Debates of June 16, 2016 (day 22)

Date
June
16
2016
Session
18th Assembly, 2nd Session
Day
22
Members Present
Hon. Glen Abernethy, Mr. Beaulieu, Mr. Blake, Hon. Caroline Cochrane, Ms. Green, Hon. Jackson Lafferty, Hon. Bob McLeod, 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. Thompson, Mr. Vanthuyne
Topics
Statements

Thank you, Mr. Minister. Mr. Testart.

Thank you, Mr. Chair. In our previous discussion, the Mining Incentive Program we have kind of a hard number: $400,000 is given out, but I think it’s $1.2 million that it’s oversubscribed by. That’s like the total amount of activity it could contain. That’s kind of the figure I’m looking for, just a sense of how many dollars are trying to access this fund and flow out of it. I take it that might not be readily available so I’m content to receive that from the department at a later date. My last question is about the Northern Frontier Visitors Centre. The infrastructure of that building is going through some tough times right now. Is the department looking at working with the centre to repair that damage and stabilize the building through some of its contribution funding? Thank you, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. Testart. Mr. Minister.

Thank you, Mr. Chair. We are not involved with the owners of the building, but we have been working with the Northern Frontier Visitors Centre and providing assistance in kind, and also helping them move through information gathering steps so that they could be in a position where they can evaluate the full extent of the problem and the cost required to address the situation. Ultimately, our government will try to support the Northern Frontier Visitors Association. Any steps or any next steps or further steps on funding decisions will have to be made on the basis of solid information. Thank you, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. Minister. Ms. Green.

Question was asked. Thank you.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Ms. Green. Questions. Mr. O’Reilly.

Thanks, Mr. Chair. There’s a reduction on the tourism diversification program, and I’m wondering if the Minister and his staff can explain that? Thanks, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. O’Reilly. Mr. Minister.

Thank you, Mr. Chair. I didn’t understand his question.

Speaker: CHAIRPERSON

(Mr. McNeely): Could you repeat, Mr. O’Reilly?

Thanks, Mr. Chair. Yes—. We are still looking at 249, contributions. There is tourism diversification program. There’s a reduction from 201516, and can the Minister or staff explain the reduction? It appears in mains. Thanks, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. O’Reilly. Mr. Minister.

Thank you, Mr. Chair. This is an area where the department commits to restoring the full budget of the tourism product, diversification and marketing programs for 201617. An ongoing fiscal year subject to budget approval of the Legislative Assembly, the department will restore $250,000 to the program that was proposed as a budget reduction and meet the department’s reduction commitments from other program areas of ITI. The funding will be found through an across-the-board O and M reduction: the activities, the directorate, policy. legislation and communication, and diamond secondary industry office. Thank you, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. Minister. Mr. O’Reilly.

Thanks, Mr. Chair. I don’t really understand the process here very well, but are we approving a different amount in the vote, or do the mains get reprinted or what? I’m sorry. I just don’t understand because I’m new. Thanks, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. O’Reilly. Mr. Minister.

Thank you. The total amount does not change, but the tourism diversification program will be put back to, made whole, I guess is the best way to put it, and that funding will come from other O and M. Thank you, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. Minister. Mr. O’Reilly.

Thanks, Mr. Chair. I appreciate the commitment by the Minister. I’m just trying to understand, are we still voting on the number that’s listed over on page 246? Does that change in some amount, or I just don’t understand how this is going to appear. Presumably, the departmental budget overall is not changing, but we’re talking about… The Minister talked about some internal reallocations. How does that show up in the mains? Thanks, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. O’Reilly. Mr. Minister.

Thank you, Mr. Chair. Maybe the Finance Minister can answer in more detail, but my understanding is that the total will not change. The main estimates have already been printed, so we can’t change that. When the budgets are loaded up, it will reflect the fact that this tourism product diversification marketing budget will be made whole, and when the budgets are loaded, the $250,000 will come from other O and M and be reduced by that amount and added into tourism program. Perhaps through you, Mr. Chair, the Minister of Finance may have further detail to eliminate this issue. Thank you, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. Minister. I will allow the Finance Minister to clarify your question. Mr. O’Reilly. It’s 249, if it’s the willingness of the Finance Minister to add clarity.

Yes, thank you, Mr. Chair. Mr. Chair, the Minister’s comment is absolutely correct. The $250,000 that the Member speaks of, the numbers in here, the overall budget for the department won’t change, and the Minister has made a commitment, and I think we made a written commitment to reinstate that $250,000, and they will find the money, as the Minister explained, in some other areas of the department. Thank you, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. Finance Minister. Mr. O’Reilly.

Thanks, Mr. Chair. Look, I’m not questioning in any way the commitment on the part of the Premier and the Finance Minister to do this, so I’ll be quiet about this, but at the end of the day, I still want to sort of understand how, whether we’re sort of voting on these amounts or how does it get reprinted or how does it show up at the end of the day. I don’t question the commitment in any way. This has been the subject of some ongoing discussions, and really appreciate the work that the Minister of Finance, the Minister of ITI’s undertaken, so I’m just trying to understand how it shows up in a printed version, but I’ll go and ask the Minister or staff afterwards rather than tie up the time tonight, but I do appreciate the commitment and the responses, and in no way am I questioning their sincerity or anything on this, just trying to understand operationally how it works, but I can do that offline. Thanks, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. O’Reilly. Further questions. Seeing none. We shall move on to detail on page 250, Industry, Tourism and Investment, tourism and parks, active positions. Questions? Seeing none. Moving on, page 251, Industry, Tourism, Investment, lease commitments. Any questions? Recognizing Ms. Green.

Thank you, Mr. Chair. Mr. Chair, I’d like to hear from the Minister some detail on the future lease payments. If this office is winding down, for how much longer is the government going to pay the lease on this office? Thank you.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Ms. Green. Mr. Minister.

Thank you, Mr. Chair. The business of government continues. Other positions are being moved into those offices, and the government will continue to utilize that space. Thank you, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. Minister. Ms. Green.

Thank you, Mr. Chair, and thanks to the Minister for his answer.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Ms. Green. Mr. Vanthuyne.

Thank you, Mr. Chairman. Just keeping in continuity with our procedures, I’m wondering if through you, Mr. Chair, are we going to actually give approval on the tourism and parks portion of the ITI budget? Thank you, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Yes. We’re going to go back to that activity total afterwards, and 251. Questions on 251. Seeing none. We shall go back to 248, Industry, Tourism and Investment, tourism and parks, operations expenditures summary, activity total, $14,283,000. Agreed. Page 252, Industry, Tourism and Investment, Northwest Territories Environmental Studies Research Fund. Questions. Mr. O’Reilly.

Thanks, Mr. Chair. As I understand it, this is something that was set up as a result of requirements in the federal legislation. We simply mirrored it, but I have some questions about how that was done and so on. I want to start with the revenue line here. There’s a big drop between 201415 and 201516. Can someone explain what that drop is all about? Thanks, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. O’Reilly. Mr. Minister.

Yes, thank you, Mr. Chair. The money came from the feds and there’s been no activity whatsoever, so it’s down to zero. The money is provided by industry as well normally. Thank you, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. Minister. Mr. O’Reilly.

Thanks, Mr. Chair. Just so I understand it, this was some money that was given to us for devolution implementation as a pot or something, and now we’ve spent it all? Is that what I’m hearing here, Mr. Chair? Thanks.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. O’Reilly. Mr. Minister.

Thank you, Mr. Chair. The money was collected from the oil and gas industry that required to put the money into this Environmental Studies Research Fund, and normally, it would… There was a going concern there would be additional funding going into the revolving or research fund, but the fact that there’s no activity in the oil and gas sector, so there’s no industry putting any money into it. The money that had 974… I’ll ask through you, Mr. Chair… I’ll ask Ms. Archibald to provide further detail. Thank you, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. Minister. Ms. Archibald.

Speaker: MS. ARCHIBALD

Yes, thank you, Mr. Chair. The Member is correct that the Environmental Studies Research Fund was established under the Petroleum Resources Act. It’s a specialpurpose fund, and the purpose is to provide funding to environmental and social studies designed to assist in decision-making processes related to oil and gas exploration, development, and production. It was exactly mirrored as was a requirement under the devolution agreement, so we did not make any changes. It was formally established in September of last year. Just to clarify a point, the monies represented here are money from industry that are derived from levies on them, and the levy is calculated on the basis of the size or the acreage of their interest holders. Part of the reason that there has been a decline is that the amount of levy is tied directly to the dollar value of research proposals that we receive, and so for this year, the amount, the total dollar value of the proposals was $100,000, and the levy was established and divided up amongst the oil and gas interests on that basis to support those. This year, its four projects relate to looking at the effects on caribou and water. Thank you, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Ms. Archibald. Mr. O’Reilly.

Thanks, Mr. Chair, and I appreciate the answer. I’m somewhat familiar with the fund and what it does. We’re not actually collecting any revenues this year to support work under the fund. Is that what I’m getting here, Mr. Chair? Thank you.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. O’Reilly. Mr. Minister.

That’s correct, Mr. Chair.

Speaker: CHAIRPERSON

(Mr. McNeely): Thank you, Mr. Minister. Mr. O’Reilly.

Thanks, Mr. Chair. As I understand, I think there is, though, some sort of a research agenda or a strategic plan or whatever for research under this fund, so there’s still more work to be done. We haven’t been collecting any money to do it. Is that where we’re at, Mr. Chair? Thank you.