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. The other part of this question is on page 207. It makes reference to the Mackenzie Valley development contribution, which is essentially non-existent anymore, but it also makes reference to the Aboriginal Pipeline Group. Does this department or this government have an obligation in terms of ensuring that the APG in terms of their relationship with the GNWT is maintained, if there is a relationship? Mahsi.

Thank you, Mr. Nadli. Minister Schumann.

Thank you, Mr. Chair. As we've said, we've taken that funding out, as the Mackenzie Valley Gas Project right now is kind of in a moratorium stage, to figure out what the industry is going to do moving forward. As far as the Aboriginal Pipeline Working Group goes, they're well aware of this reduction, and I believe everything is just on pause until things to decide to move forward. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. Nadli.

Thank you, Mr. Chair. I think the scope of possibilities has widened in terms of how perhaps this department can maybe refocus its energy if the oil and gas industry is non-existent. So I'm just trying to understand whether this department would be perhaps a lead agency in terms of engaging. You know, there may be some consideration of developing at least the infrastructure so that in eventually, maybe 10 years, 20 years down the road, there's a need to access the oil fields and the gas fields that more likely haven't been found yet.

Is there perhaps some consideration of examining the pipeline infrastructure perhaps down the road that could be in parallel to this great propensity that we have of highway infrastructure? Is there some idea of a strategy that could be part of this oil and gas, at least discussion paper or strategy that might be developed? Mahsi.

Thank you, Mr. Nadli. Minister Schumann.

Thank you, Mr. Chair. The oil and gas strategy as we move forward is going to have a component on infrastructure. With the pause, as I've said, in the oil and gas industry this department has taken the initiative to downsize our wants and needs around the oil and gas industry to at least meet our obligation and the mandate commitments as well as developing oil and gas strategy legislation moving forward and have enough people in place in case there is a rebound and the market indicates there will be.

I want to make the comment around what the Member is stating, around infrastructure needs, and that is a cross-departmental issue with this whole government. How do we bring interest back into the oil fields, and particularly in the Sahtu? I believe, as in my other role as Minister of Transportation, that it is vital that we try to get the Mackenzie Valley Highway approved and get that built to help access all the millions and billions of dollars' worth of oil and gas that we have in the territory. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. Nadli.

Thank you, Mr. Chair. No further questions.

Thank you, Mr. Nadli. Next we have Mr. Beaulieu.

Thank you, Mr. Chairman. Mr. Chairman, I was looking for a bit of clarification on an item here on page 206 on the expenditure category on compensation and benefits over the past two fiscal years, gone down slightly from almost $10 million down to $9.6 million down to $8.3 million, but the positions are exactly the same. I was wondering what the difference is? If we are still paying 58 people benefits and compensation, why is there such a big drop in the amount? Thank you, Mr. Chair.

Thank you, Mr. Beaulieu. Minister Schumann.

Thank you, Mr. Chair. I will redirect that to the director of finance. Thank you, Mr. Chair.

Thank you, Minister Schumann. Ms. Mujcin.

Speaker: MS. MUJCIN

Thank you, Mr. Chair. The reduction you see here is the second year of the reductions that were made in 2016-17. There were a number of position reductions made in the 2016-17 Main Estimates and they were cash-flowed over two fiscal years. That is what you are seeing in 2017-18. Thank you, Mr. Chair.

Thank you, Ms. Mujcin. Mr. Beaulieu.

Thank you, Mr. Chairman. Mr. Chairman, can the Minister tell me how many positions existed in mineral petroleum resources, active positions, in 2015-16, so that I get a better picture of what the director is referring to?

Thank you, Mr. Beaulieu. Minister Schumann.

Thank you, Mr. Chair. From the 2015-16 that the Member is asking for, there were 14 positions. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. Beaulieu.

Thank you, Mr. Chairman. This has got me confused. Did the Minister say there were 14 positions in -- okay. According to this there was a huge increase in the amount of positions. I wonder if the Minister would like to clarify what he means by 14 positions? Thank you, Mr. Chair.

Thank you, Mr. Beaulieu. Ms. Mujcin.

Speaker: MS. MUJCIN

Thank you, Mr. Chair. There were 14 position reductions. Thank you, Mr. Chair.

Thank you, Ms. Mujcin. Mr. Beaulieu.

Thank you. Mr. Chairman, I think that is clear. What is not clear is why it was cash-flowed over two years, but that is fine. I have no more questions in this area. Thank you, Mr. Chair.

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

Thanks, Mr. Chair. I just want to go to the grants and contributions and transfers page, which is 207. There was a reduction in the socio-economic agreement funding for Canadian Zinc and Diavik. There is now zero there for 2017-18. Can the Minister or staff explain what is going on? Thanks, Mr. Chair.

Thank you, Mr. O'Reilly. Minister Schumann.

Thank you, Mr. Chair. There was no reduction as such. We just moved them to other expenses. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. O'Reilly.

Thanks, Mr. Chair. Can the Minister tell me where it was moved to? Thank you.

Thank you, Mr. O'Reilly. Ms. Mujcin.

Speaker: MS. MUJCIN

Thank you, Mr. Chair. This budget line item was moved to contract services. Thank you, Mr. Chair.

Thank you, Ms. Mujcin. Mr. O'Reilly.

Thanks, Mr. Chair. I am not sure that it is buried in there. This seems to be a much more transparent way of presenting the information; why has it been moved to contracts? Thanks, Mr. Chair.

Thank you, Mr. O'Reilly. Ms. Mujcin.

Speaker: MS. MUJCIN

Thank you, Mr. Chair. Typically, the work that is done in this area is through contract services or travel. It is typically not through a contribution program, so therefore we reflected it more accurately, the way the funds are being spent for 2017-18. Thank you, Mr. Chair.

Thank you, Ms. Mujcin. Mr. O'Reilly.

Thanks, Mr. Chair. Are the companies actually putting any money into these agreements, or is it just us expending money on the agreements? Thanks, Mr. Chair.

Thank you, Mr. O'Reilly. Minister Schumann.

Thank you, Mr. Chair. Our expenditures are covered for us to meet with communities and have our conversation with them. I am sure that the mines, when they are there participating, they are expending their own expenses. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. O'Reilly.

Thanks, Mr. Chair. Why are we contracting people to go meet with the communities? Is that not something that we would do on our own with our existing staff? Thank you, Mr. Chair.

Thank you, Mr. O'Reilly. Minister Schumann.

Thank you, Mr. Chair. I would have to get the details of the numbers, but that is probably for boardroom rentals and things of that nature. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. O'Reilly.

Thanks, Mr. Chair. The bottom line in this contributions is for the NWT Chamber of Mines; is that core funding that is provided to the chamber? Thanks, Mr. Chair.

Thank you, Mr. O'Reilly. Minister Schumann.

Thank you, Mr. Chair. No, that is not core funding.

Thank you, Minister Schumann. Mr. O'Reilly.