Debates of June 9, 2016 (day 18)

Date
June
9
2016
Session
18th Assembly, 2nd Session
Day
18
Members Present
Hon. Glen Abernethy, Mr. Beaulieu, Mr. Blake, Hon. Caroline Cochrane, Ms. Julie Green, Hon. Jackson Lafferty, Hon. Robert McLeod, Mr. McNeely, Hon. Alfred Moses, Mr. Nadli, Mr. Nakimayak, Mr. O’Reilly, Hon. Wally Schumann, Hon. Louis Sebert, Mr. Simpson, Mr. Testart, Mr. Vanthuyne
Topics
Statements

Thank you, Mr. Speaker. Unfortunately, the contractor was unable to complete the gravel pad last year. I’m happy to advise the Members, though, that all of the materials to complete the installation of the duplex are in the community at this point. We’re anticipating that the duplex will be fully operational prior to August and allocated shortly after. Thank you, Mr. Speaker.

Mr. Speaker, my next questions are: what are the Housing Corporation’s infrastructure priorities for the Nunakput region in the coming year?

The Housing Corporation has identified needs within the communities from our previous needs assessment, and so we’ve identified that we need to replace older public housing; we need new affordable housing; we need major renovation projects on public housing. However, we have committed to working with the IRC, and, as such, we will do so before we define exactly what our priorities will be for that region.

I appreciation the response from the Minister. Mr. Speaker, my final question to the Minister of Housing is: how will the GNWT work with Inuvialuit Regional Corporation to make the most of the new federal funding over the next two years?

As stated in the previous question, the Housing Corporation is using its definition of needs based on the needs assessment that was done. We’ve also met with members of the IRC individually, representatives, to see what they define as the needs. The final process that we’ll be doing is actually calling a meeting with the IRC, which will be happening within the next couple of weeks, to show the results of what we’ve compiled and actually to hear what they have to say. They will take the lead on defining where we go with that. I have committed, as the Minister, that I will actually attend that meeting in person to make sure that I fulfil my commitment.

Speaker: MR. SPEAKER

Masi. Oral questions. Member for Kam Lake.

Question 196-18(2): Plan to Address the High Cost of Power Rates

Thank you, Mr. Speaker. Yesterday, the Minister responsible for the Northwest Territories Power Corporation said, first and most importantly, this change to the board of directors of the Power Corporation will save ratepayers $1 million per year. My question for the Minister today is: that million dollars, how are ratepayers going to see that coming off their bills? Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Masi. Minister responsible for the Northwest Territories Power Corporation.

Yes, Mr. Speaker. As this House will know, an application has gone in for an increase in power rates of 4.8, four, and four per cent over the next three years. The savings of a million dollars allowed us to keep the application that low. Had that million dollars not been saved, the application would have required a higher rate of return to cover the costs of the board. I haven’t calculated the exact amount, but it would have been considerably higher than the rates requested. Thank you.

Previously the Minister had said that the Northwest Territories Power Corporation has been the recipient of substantial GNWT subsidies in recent years. Why is it then that the Power Corporation continues to increase power rates each year, more than 40 per cent since 2012? Is this subsidy a prudent expenditure of government resources in keeping the cost of power under control? It doesn’t seem to be working, Mr. Speaker.

Certainly, there have been increases in power rates over the last five or six years, and we are anticipating increases over the next three years. However, this increase in rates is driven by several factors. The cost of fuel is certainly one of the factors. Also, too, the amount of power that the corporation actually sells is not increasing, and so costs tend to be stable or increasing while the amount of power actually sold is decreasing. Therefore, unless we are able to find a major export market, it would seem to me that power rates may continue to increase.

Mr. Speaker, the Minister clearly has a keen grasp on the issues facing affordable power in the Northwest Territories, but I don’t hear much of a plan to deal with them. Can the Minister share with this House some of the ideas he has on dealing with this problem moving ahead and perhaps on how we’re going to build on the NTPC’s success with renewables specifically, Mr. Speaker?

The Northwest Territories is an acknowledged leader in biomass heating and ranks second in the country in solar capacity per person. As the House heard yesterday in the Premier’s speech, we are going to be rolling out a new energy plan. We will be seeking the input of the public, Members of this House, interested parties, and we are anticipating in being able to table a new energy plan early in 2017.

Speaker: MR. SPEAKER

Masi. Member for Kam Lake.

Thank you, Mr. Speaker. Mr. Speaker, the new federal government has offered billions in green infrastructure and plenty of money available for developing renewable power and renewable energy economies. Has the Northwest Territories Power Corporation applied for any of these resources, and are they looking at deploying to the Northwest Territories so we can get away from increases over every year, as The Minister said we can anticipate? Thank you, Mr. Speaker.

Certainly, Mr. Speaker the Power Corporation is interested in keeping rates down. As I mentioned earlier, one of the projects that is a possibility, and this was mentioned in the House yesterday by the Premier, is the possibility of exporting power to Alberta and Saskatchewan. Those discussions are at a very preliminary level as they are governments, provincial, federal, and Aboriginal, involved. But I would expect, should we be able to move forward on that project, that we would hope to obtain significant funds from the federal government. It is a renewable resource, hydro. Provinces to the south of us, particularly Saskatchewan, have indicated that they wish to get off coal, and it does present an opportunity for us.

Speaker: MR. SPEAKER

Masi. Oral questions. Member for Frame Lake.

Question 197-18(2): Future of Renewable Energy in the North Slave Region

Mahsi, Mr. Speaker. I have some questions about the future of renewable energy in the North Slave region and I’ll ask them of the Minister of Public Works and Services. I’d like to start with the North Slave Resiliency Study. I cannot see in the study where climate change models may have been used to predict water levels. Analysis seems to have been based on the past 30 years of data. Can the Minister confirm that the North Slave Resiliency Study did not consider climate change and then no predictions were made of future water levels? Mahsi, Mr. Speaker.

Speaker: MR. SPEAKER

Masi. Minister of Public Works and Services.

Thank you, Mr. Speaker. Climate change was taken into consideration, but the focus was really on the previous 30 years and that is why one of the recommendation is to consider an upgrade and to keep monitoring our hydro production so that we can keep better statistics on the water levels and where we’re going in the future with climate change. Thank you, Mr. Speaker.

Thanks to the Minister for the response. The North Slave Resiliency Study basically recommends against investing in renewable energy in the North Slave. Can the Minister indicate what the position of this government is regarding investment and renewable energy in the North Slave region?

I would like to start by reinforcing that hydro is actually a renewable energy and one of the most cost effective as well, and we have a good supply as related in the Member’s opening speech. It’s sufficient for 90 per cent of our needs at this time. Unless there’s a major mine would we actually have to look at expanding upon that. Within the cost analysis it was shown that the current system as we have now is cost effective versus bringing in something such as a solar system which would cost millions of dollars, and that cost would actually have to be transferred to the ratepayers. We’re on top of it, we’re watching it, but one of the priorities within this Assembly is the costs of living. We’re really conscious that we want to support renewable energy but the most effective renewable energy options that we have at this time.

I guess I do agree with the Minister in that the North Slave Resiliency Study did recommend against investing in solar, wind, and biomass. Hydro, yes, we can probably spend a lot more money on that too perhaps, but we’ve already made a significant investment in Arctic Energy Alliance as the delivery agent for a variety of very successful energy conservation and retrofit programs over many years now. What impact will the recommendations from the North Slave Resiliency Study have on this investment that we’ve already started through the Arctic Energy Alliance and its programs?

The NWT is actually the second in Canada in regards to renewable resources and I really want to keep that title. In fact, I would like to be number one if we could get there. Arctic Energy Alliance is really key in distributing the renewable energy resources to communities, so we are committed to maintaining an Arctic Energy Alliance within our programs and projects to work with renewable energy within the NWT.

Speaker: MR. SPEAKER

Masi. Oral questions. Member for Frame Lake.

Mahsi, Mr. Speaker, and I’d like to thank the Minister for her commitment that the recommendations coming from the North Slave Resiliency Study will not impact in any adverse way Arctic Energy Alliance. Yesterday in the House the Premier announced that there was going to be a new energy plan for the Northwest Territories. We already know that NTPC cancelled work leading to renewable energy in the North Slave. The North Slave Resiliency Study recommends against solar, wind, biomass investment in the North Slave. It appears this government has already started to make up its mind about renewable energy, at least in the North Slave. Can the Minister tell this House how renewable energy will be considered in the energy plan and whether that will be an open and transparent process? Mahsi, Mr. Speaker.

Yes, the new energy plan will be… We will try to consult as much as possible within the definition, so although right now at this point the study showed that within this region that we have capacity, that we’re fine within the hydro system, the renewable energy system that we have currently, we still are focusing within our thermal communities. We need to get them off diesel. This is really not sustainable energy and it’s not good for our environment. This is not only a concern for the Northwest Territories, this is national wide and international wide, so we’ve committed to working nationally and internationally on this issue. We take it very seriously and we will continue to research and stay abreast of current practices and as soon as the cost of alternative besides hydro becomes more cost effective than we will refocus and relook at that again because there have been really amazing results come in with the solar and the capacity of batteries, et cetera. We’re on top of it and keep watching it.

Speaker: MR. SPEAKER

Masi. Oral questions. Member for Deh Cho.

Question 198-18(2): K’aagee Tu Protected Area

Thank you, Mr. Speaker. My question is for the Minister of Environment and Natural Resources. “Collaborate with First Nations government” seems to be the mantra that this Cabinet has put forward, and there’s also a need for jobs, so of course obviously a need to work with industries as well. Can the Minister explain how our concerns over the wood pellet mill and the woodland caribou population within the K’aagee Tu protected area are being addressed? Mahsi.

Speaker: MR. SPEAKER

Masi. Minister of Environment and Natural Resources.

Thank you, Ms. Speaker. The department is working on the Conservation Net Reduction Plan to bring forward towards this House here during this session. Hopefully we’re going to bring forward our new strategy and Conservation Action Plan. These two questions that he’s proposed to me are both related to the conservation area that he’s referring to. The woodland caribou has a strategy that we’re developing right now with our Aboriginal partners and collaboratively with all people, user groups, and that. I’m glad to say that the working group has worked on a plan and we’re expecting to release that by the end of 2016 for the Deh Cho region. As the Member is well aware, the Conservation Action Plan will protect areas for the habitat of boreal caribou. That’s something that’ll be in the long-range plans for that region and also for the territory-wide one that we will be introducing on boreal caribou. As for the question for the pellet mill and its effect on conservation areas, there’s two things, I guess, related to the pellet mill: one is the boreal strategy that also would be affected by the FMA holders in their wood lots. Those things were addressed through the land use permitting of those FMA holders. I believe that the total area for both FMA holders in boreal caribou would have a minimum impact as low as point-two-five per cent of the range plan for boreal caribou. Yes, we are trying to work with all groups in this and move this forward, so thank you for that, Mr. Speaker.

Thank you, Mr. Speaker. Negotiations can take time; however, I believe the department and this government could consider mechanisms including fast tracking negotiations or putting interim measures in place. What is required to move candidate area from its current evaluation stage to the next step in the process? Mahsi.

Thank you, Ms. Speaker. As I’ve said, we are moving forward with the conservation network planning for the NWT. Hopefully within this session we’re going to be tabling Healthy Land, Healthy People NWT Conservation Area Action Plan 2015-2020. Within that strategy it’s going to have an engagement section and we want to get going on all these areas that were put forward as soon as we can once this is brought to the House. Thank you, Mr. Speaker.

How does the Department of Environment and Natural Resources plan to support the processes here? You know, it’s moved from an initial concept of Protective Area Strategy, it’s kind of moving to this new conservation network initiative there. How would the department plan to support this process?

Once the plan is tabled in this House, we will be looking at seeking engaging our Aboriginal partners and advising a plan with the priority outcomes and that. We will continue with the process with all Aboriginal governments and private sector and user groups as we did previously. We will be looking to engage them in a meaningful way.

Speaker: MR. SPEAKER

Masi. Oral questions. Member for Deh Cho.

Thank you, Mr. Speaker. Are the two protected area linked to the Deh Cho land use plan and the overall land use plan for the Northwest Territories? Mahsi.

I would have to get back to the Member on that particular issue. I’m not quite certain how they’re linked together. In the land use plan there’s a Territorial Land Use Plan Strategy and the Deh Cho has their process for their protected areas as well. I’d have to get back to the Member on that.

Speaker: MR. SPEAKER

Masi. Oral questions. Member for Yellowknife Centre.

Question 199-18(2): Allocation of Lottery Proceeds

Mr. Speaker, Mahsi. My questions are for the Minister of Municipal and Community Affairs. First of all, can you update the House on the status of the review of lotteries to bring them into compliance with the CRA? Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Masi. Minister of Municipal and Community Affairs.

Thank you, Mr. Speaker. Mr. Speaker, we’re still doing the process of trying to bring the lotteries into the department. It was recognized a few years ago that having lotteries distributed by SRC may have been taxable to the point of $1.4 million. The SRC to their credit are the ones that brought that forward to our attention, though it’s better that these proceeds go to physical activity across the Northwest Territories rather than their existence. We’re still in the stages of that right now. We’re getting legal opinions and everything and we’re trying to ensure that we have that transferred too within the department so that we can use that $1.4 million for physical activity Northwest Territories. Thank you. Mr. Speaker.

Thank you to the Minister for that answer. Mr. Speaker, to my knowledge we’ve never consulted with the public to determine whether there’s a desire to see the funding eligibility opened to the arts as well as to sports. Program review seemed to involve only sports organizations and, of course, they have a vested interest. Is there an opportunity to have a broader conversation on how the proceeds are allocated? Thank you.

Mr. Speaker, there is always a broader opportunity to have further discussion on this. We feel that the investment that’s made by the government through ECE into the arts through ITI is fairly significant and to the point of, well, $2 million, I think, through ECE. I’m not exactly sure what the ITI numbers are. To say that this money is going directly to sports, it actually goes to the overall physical activity and healthy choices activity for people across the Northwest Territories. This program, I think, was $5 million that we’re looking to distribute, and that would go to our four sporting organization partners who deliver a lot of programs in all the remote communities, plus it also goes toward funding all the territorial sport organizations across the Northwest Territories. That little pot of funding has to go a long way. Unfortunately, we don’t have the level of profits as other jurisdictions across the country and if we start spreading those small proceeds even further then hopefully we don’t want to water down their effectiveness. We believe that there’s a fairly significant investment into arts and culture across the Northwest Territories. Thank you, Mr. Speaker.

Thank you to the Minister for his answer. At the beginning I thought that I heard that he would be interested in having a public conversation. What would it take to get that conversation started?

Mr. Speaker, we hear from the public all the time, through Members. Asking me to take this on the road to 33 communities has got to be cost-effective first of all, and we know what we’re going to hear. We’re going to hear… Well, we assume we know what we’re going to hear: the arts organization across the Northwest Territories will say that they would like part of the lottery proceeds and all the folks that are responsible for delivering physical activity in healthy choices sport programs will say that we need more money ourselves. We feel with the $2 million plus investment from other government departments, that’s a fairly healthy investment into the arts community. I told the Member that there’s always opportunity to have public consultation, what that consists of we’ll have to determine that. I do have a forum coming up later on this spring or early summer. I’ve made a commitment to our sporting partners that we were going to have another sport forum once we get further into the lottery proceeds going over to the department, and that might be a great opportunity for me to get their input as to what the next steps may consist of. I’ll have that conversation with them and we’ll see where we go from there. Thank you, Mr. Speaker.