Debates of February 16, 2017 (day 54)

Date
February
16
2017
Session
18th Assembly, 2nd Session
Day
54
Members Present
Hon. Glen Abernethy, Hon. Tom Beaulieu, Mr. Blake, Hon. Caroline Cochrane, Ms. Green, 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. Chair. As I just said, Cabinet went to Mineral Roundup with us and they have seen the importance of the mining industry in the Northwest Territories. All my Cabinet colleagues got to see some of the wants and desires of some of the mining companies and what we need to do to improve and attract business in the Northwest Territories. This is one of the programs that got some attention. As the Minister of ITI, moving forward in the life of this Assembly, I will see what I can do about adding some funds to this portfolio. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. Testart.

Thank you, Mr. Chairman. I appreciate that the entire Cabinet did attend the Roundup conference. That shows that we are willing to go to extraordinary measures to show leadership and support on this industry. I think, furthering that leadership, we should be increasing this fund to at least be comparable to our neighbours in the Yukon. Does the Minister disagree with that? Thank you.

Thank you, Mr. Testart. Minister Schumann.

Thank you, Mr. Chair. We are two different jurisdictions. I am worried about the Government of the Northwest Territories, not the Government of the Yukon. Like I have said in my comment previous to this, I will look at trying to top this up in the coming years of the life of this Legislative Assembly. I believe it is an important program within the department of ITI, and I will see what I can do with my Cabinet colleagues moving forward. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. Testart.

Thank you, Mr. Chairman. I also note that, on page 206, the NWT geological survey, which does very important work providing exploration data to mining companies and prospectors, the budget is down from last year. I am wondering if the Minister can speak to the reasons for that decline. Thank you.

Thank you, Mr. Testart. Minister Schumann.

Thank you, Mr. Chair. The reduction reflects the balance of a position reduction from 2016-17 as well as a sunset of devolution funding for receiving documents, core rehabilitation, core relocation, as well as funding no longer required for a portion of the shortfall for compensation and benefits for positions that came over to the GNWT during devolution. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. Testart.

Thank you, Mr. Chairman. Is the NWT geological survey going to be impacted at an operational level or hampered in its ability to provide high-quality data to the mining industry? Thank you.

Thank you, Mr. Testart. Minister Schumann.

Thank you, Mr. Chair. No, that was just project work from switching over and we don't believe that that will impact the NWT geological surveys group. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. Testart.

Thank you, Mr. Chairman. That decrease was from last year to this year. However, in the 2015-16 actuals, also listed on page 206, we see almost a million-dollar decrease to the NTGS. What explains that sharp loss in available funding? Thank you.

Thank you, Mr. Testart. Minister Schumann.

Thank you, Mr. Chair. That would be devolution funding. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. Testart.

Thank you, Mr. Chairman. Again, I have heard the Minister say he wants to support this industry and that we are doing a lot to support it and that our government has its own programs that shouldn't be held in contrast with other jurisdictions. Can the Minister point to any increased funding or a new program or a new initiative specifically that is designed to address the needs of our mining industry at a time when risk capital is at an all-time low and when there is much uncertainty in the Northwest Territories and when we see the lowest land tenure, mineral tenure, in the history of the Northwest Territories? Can the Minister point to some specific initiatives that are new and going directly to address this issue of getting mining back on track in the Northwest Territories? Thank you.

Thank you, Mr. Testart. Minister Schumann.

Thank you, Mr. Chair. One of the things that we are bringing forward in the supplementary estimates -- I think they are already tabled, so I can ask about it -- we are asking for additional funding to provide the Slave geological, physical, surficial materials and permafrost study. That might have actually been in one of my Member's statements, I think. That is some of the revenue that we are trying to get to proceed with some other work. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. Testart.

Thank you, Mr. Chairman and thank you to the Minister for that. However, I am a bit disappointed that that is the only concrete thing we can look at. Surely, there must be more. I am a bit beside myself that we are doing nothing new in what we are offering to develop this industry. Does the Minister agree with that assessment of this status quo as terms of support to the industry? Thank you.

Thank you, Mr. Testart. Minister Schumann.

Thank you, Mr. Chair. Status quo, no, I don't believe it is status quo. We had the opportunity, as we were at Mineral Roundup, to hear from a number of people. They are quite encouraged with some of the stuff that we are moving forward on in the Northwest Territories. Our job, when we were down there, was to figure out some of the concerns that we need to work on moving forward. I took some of their comments not very lightly, and we are looking into a number of things. I think one of the things that we are having a good hard look at here right now is the EIP money, Exploration Incentive Program. It expires on March 31st of this year. Every dollar that is invested allows a $1.50 credit for exploration in the Northwest Territories. That is something we are considering extending on in this coming fiscal year. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. Testart.

Thank you, Mr. Chairman. I appreciate those answers from the Minister. As the Minister knows, the Standing Committee on Priorities and Planning has recommended an increase to the Mineral Incentive Program in the amount of $600,000 of new funding. The budget last year was $1,010,000 and we've seen that basically cut in half. Sorry, that's page 206. That's a sunset in the Mackenzie Valley development. So it will be an increase of $600,000 to the $400,000, bringing that total to $1 million. Is the Minister prepared to reinstate, or does the Minister have a reason not to reinstate, the grants and contributions to transfer funding which are seeing sunset now? Thank you.

Thank you, Mr. Testart. Minister Schumann.

Thank you, Mr. Chair. I think we need some more clarity, because I think he's talking about two different funds that I'm not talking about here right now. Thank you, Mr. Chair.

Thank you, Mr. Schumann. Sorry, Mr. Testart, your time has expired. Next on the list we have Mr. McNeely.

Thank you, Mr. Chair. My question is related to allowances throughout the next 12 months for the duration of this budget here in preparation for, say, expenses. Underneath purchase services, there's an allowance there, contract services. As we review some of the opportunities that are going to be created by the remedial reclamation side of the Esso-Imperial Norman Wells Oilfield, as we know, the permit application for that reclamation is moving forward. Prior to Christmas, the applicant received an approval for one permit. They're applying for a secondary permit, so movement towards the remedial activities is happening. Are there funding allowances there? Should a remedial workshop be budgeted for or initiated by one of the land corporations in the Sahtu to engage on discussions of opportunities created by the reclamation side and create some awareness on those identification opportunities to the younger folks in the area of land and environmental land management, and maybe some required post-secondary schooling that's needed for those opportunities?

Just a general awareness workshop on the reclamation opportunities. Is there funding available for the person who is going to be laid off who was responsible for that position over the next 12 months? Thank you, Mr. Chair.

Thank you, Mr. McNeely. Minister Schumann.

Thank you, Mr. Chair. I think the remediation question around the Esso Norman Wells field is a little early; they're still planning on producing for the next five to six years, but that's not saying that if someone came forward with a proposal to look at how we're going to get the community involved in a remediation, that type of workshop, I'm certain that the department would have a look at it and consider it. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. McNeely.

Thank you, Mr. Chair. I'm glad to hear that response here. Most times, a project of this magnitude, there is never enough time for pre-planning and making the other communities aware that it's going to be a layoff process but it's down the road. In preparation to replace those operational producing opportunities or wage positions, here is another set of opportunities. So I'm glad to hear we're budgeting and being proactive for the reclamation phase. Thank you.

Thank you, Mr. McNeely. Minister Schumann.

No, I'll just take his comments as noted. Thank you, Mr. Chair.

Okay, thank you. Any further questions? Mr. McNeely.

No more questions. Thank you.

Next we have Mr. Nakimayak.

Thank you, Mr. Chair. Mr. Chair, I'd like to look at petroleum resources, the reductions. I've heard some explanation about the breakdown. I'm just wondering if the ban on drilling in the Arctic would have any further effects for 2017-18 on this program? Thank you, Mr. Chair.

Thank you, Mr. Nakimayak. Minister Schumann.

Thank you, Mr. Chair. I'll pass that on to the deputy minister, please. Thank you, Mr. Chair.

Thank you, Minister Schumann. Deputy Minister Jensen.

Speaker: MR. JENSEN

Thank you, Mr. Chair. There will not be any impact in terms of the budget numbers here, but I just would like to inform the Member that we have an opportunity through the devolution agreement to negotiate responsibility for management of the offshore with the federal government, and those staff would be engaged, and, in fact, are engaged now and would continue to be engaged post the announcement of the ban on exploration, but there's still that process in place that that group would be involved in in terms of negotiating. Thank you, Mr. Chair.

Thank you, Deputy Jensen. Mr. Nakimayak.

Thanks, Mr. Chair. Getting back to the mineral resources line, I see the reduction in there. I know in the territory when an exploration program is unsuccessful and the licence is still held, I'm just wondering if the departments are thinking about keeping the information of these exploration programs who do not succeed so there's a library of information for the next exploration company that may come in to help boost our economy, and ensure that we have accurate records of exploration across the territory? Thank you, Mr. Chair.

Thank you, Mr. Nakimayak. Minister Schumann.

Thank you, Mr. Chair. I believe we're already doing that on a number of sectors, but we'll make sure that anything that Member is referring to is included as well. Thank you, Mr. Chair.

Thank you, Mr. Schumann. Next we have Mr. O'Reilly.