Thank you, Mr. Speaker. I was pleased to see the honourable Member for Yellowknife North speaking about very important issues to me, both mining and transparency. I would like to ask the Minister of Transparency some questions around transparency over the royalty regime and the benefits the mining sector is paying into the Northwest Territories.
In the federal context, there is a piece of legislation called the Extractive Sector Transparency Measures Act, and this act has created a federal government website that you can look up mining companies and see what payments they had been making to governments including this government. I would like to ask the Minister of Transparency if he is willing to begin work on a similar piece of legislation for our government that would allow transparency over royalty resources in the Northwest Territories? Thank you, Mr. Speaker.
Masi. Minister responsible for Public Engagement and Transparency.
Thank you, Mr. Speaker. This is a complex issue; of course, I certainly would want to discuss this with my colleagues. My understanding was that, in the last year, there were approximately $83 million of royalties obtained from the mining industry in the Northwest Territories; however, there is not an individual breakdown from individual mining companies. I think in the past they have resisted that for the reason that they didn't want to be sharing that kind of information with competitors, because royalty regimes and rates are based often on gross production or profits. Traditionally, in the past, they have not wanted to share that with the public or with competitors, but I think that as Minister of Transparency we have to at least look at this issue. Thank you.
I will remind the honourable Minister that we're the ones who make the rules for the industry. They don't make the rules for themselves. The industry seems to be quite fine to have this information published on a federal website which includes payments made to the GNWT and to Indigenous organizations within the Northwest Territories. If he is not willing to move forward on legislation, will he begin the work on a clear annual statement on how much royalties were received; how much were shared with each Indigenous group; and that this report be tabled annually in the Legislative Assembly? Will he make that commitment?
I don't think I could make that kind of commitment at this time because the royalty regimes are an important part of our revenues. As I say, we do know what the gross amount is. The question is: how much we are getting from each individual mine? As I say, in the past, mines both here and I think in most other jurisdictions have not been willing to share that information. Some of the information can be obtained through other countries, I see, by looking at the overall profits of the parent companies, but I don't think the mines in the Northwest Territories, that are generally subsidiaries of very large international corporations, would be willing to share that information because they would see that as giving information to their competitors and perhaps affecting their competitiveness.
I always appreciate an impassioned defense of secrecy from the Minister of Public Engagement and Transparency. The Chamber of Mines here in the Northwest Territories currently produces reports and does this work to roll up royalty information. The Minister is not willing to bring forward legislation or table a report. Will he at least give a contribution to the Chamber of Mines to do this work on his behalf?
I'm not sure if that request is for a personal donation or a government donation.
Government.
No, I realize this is a serious issue. When the previous questions were asked of the Minister of ITI, I was looking at something called the Bauer Report, which does go into some of the very complex issues surrounding this whole issue of royalties. I can advise that I will be looking at that further and discussing that report and its findings with my colleagues.
Masi. Oral questions. Member for Kam Lake.
Thank you, Mr. Speaker. I just want to be clear. We're not talking about reviewing the royalty regime. We're talking about publishing the financial transparency around the economic contributions the mining industry is making to the Northwest Territories and to this government. This is something the mining industry does in other jurisdictions. This is something the Chamber of Mines assists with in other jurisdictions. I'm asking the Minister of Transparency if he can help be a leader on fiscal transparency as it relates to the extractive sector, either through legislation, either through annual reporting, or either through contributions to the Chamber of Mines to allow this reporting to be done by the private sector. Will he do any of that or something else that is tangible so we can get these facts brought forward so residents of the Northwest Territories can clearly see and celebrate the immense and tremendous contribution that the mining industry and natural resources make to the economic health and well-being of this territory? Thank you, Mr. Speaker.
Yes, Mr. Speaker, I think we're all aware of the great contribution that the mines do make to our economy and society. We know that as a gross figure, as I understand it, looking at the Bauer Report, I think there was an estimate of approximately $83 million paid in royalties to the Government of the Northwest Territories in the 2017 year. Plus, they also pay many other taxes, land leases, and so on, so they do make a huge contribution.
I think that, before I make any commitment to have the royalties broken down per mine, which I understand is the request from the Member opposite, I would have to see what our arrangements were, whether that would be allowed. I do agree that, as a matter of transparency, it would be better if those facts were known, but we do live in a competitive world, a competitive society, and the mines, to this point, have been averse to releasing that kind of documentation to us. I don't know whether they have a commitment from us that we will not seek that kind of information, but I am willing to look into the matter. Thank you, Mr. Speaker.
Masi. Oral questions. Member for Hay River North.
