Mr. Speaker, the first pillar of our government's mineral development strategy is to improve our territory's competitive edge. It sets the goal that investors in North America and around the globe see the Northwest Territories as an attractive place to invest in mineral development. Under the umbrella of unlocking our potential brand and marketing plan, we continue to invest in this goal.
On behalf of our government and our territory, the Department of Industry, Tourism and Investment acts as a champion of our immense resources potential to investors and resource companies around the world.
We are fostering the partnerships and the trade needed to be competitive in the global marketplace and to transform our extensive mineral and gas resources into exploration, jobs, and economic opportunities for the people and businesses of our territory.
Mr. Speaker, at a time when resource projects and companies must stand up to increased skepticism and stronger scrutiny, we have a good story to tell. Canada's Northwest Territories offers low-risk investment jurisdiction that is setting the bar for Indigenous partnership, and one that contributes to improved outcomes from northern communities and meaningful opportunities for Northerners.
We tell our stories to audiences that have the knowledge and capital to get projects going in our territory at conferences, trade shows and showcases, attracting leaders and experts in the resources sector. Representatives from Industry, Tourism and Investment were in Toronto earlier this month to attend Mines and Money Americas, an annual event that brings together over 600 delegates, including institutional investors, bankers, brokers, mining, and exploration companies from across the globe.
A two-person delegation has also just returned from China after attending the China Mining Congress and Exhibition, one of the world's largest mining and exploration conferences, where again we pitched investment in both our mining and oil and gas sectors for a rapidly-growing Asian market. The agenda for the mission also included mineral investment forums in both Beijing and Shanghai and meetings with Chinese investors and resource companies along the way.
Mr. Speaker, with markets on the upward trend, now is the time to intensify our efforts to sell the many advantages of doing business in the Northwest Territories.
Next week, Members of Cabinet will be attending the Yellowknife Geoscience Forum, confirmation of our continued whole-of-government approach to supporting exploration and mining in our territory. This is also a reminder that our support for mining and resource development is not limited to the promotion of investment. It is reflected in our approach and financial contribution to training and labour force development, in permitting, public geoscience, taxation, and the management of our legislative and regulatory environment.
Meanwhile, we are preparing once again to attend January's Mineral Exploration Roundup in Vancouver, working with our Indigenous governments and investment organizations to demonstrate to delegates at this major international mining conference that the NWT means business. We will follow that up with a presence in Toronto at the annual gathering of the Prospectors and Developers Association of Canada's International Convention, Trade Show and Investors Exchange in March.
Northern interests will also be represented at the Arctic Oil and Gas Symposium in Calgary that same month, where we will seek partners to help us realize our petroleum resource strategy's goals of local benefit today and global reach for the future.
Mr. Speaker, our territory is at a crossroads. To sustain our economy into the future, we need to stimulate new interest in the development of our natural gas resources and replace the anticipated closure of our existing diamond mines with new projects.
I would like to assure Members of this Legislative Assembly that the Government of the Northwest Territories, led by Industry, Tourism and Investment, will continue to invest and make the case on the global stage for investment in our territory in defense of the thousands of jobs, millions in investment, and about four billion in economic activity that is at stake. Thank you, Mr. Speaker.
Masi. Ministers' statements. Minister of Health and Social Services.
Thank you, Mr. Speaker. Mr. Speaker, as a government we have committed to putting the principles of reconciliation in action and to transform the way that we deliver programs and services to be more culturally informed and respectful throughout our mandate. Today I would like to update colleagues and the public on efforts that we have been adopting within our Health and Social Services system to put these principles into action to better serve our residents.
Embedding the concept of cultural safety into our Health and Social Services system has been one of our main areas of focus. Cultural safety is an outcome; when organizations adopt the cultural safety approach, the needs of clients and families are the priority, and Indigenous peoples feel safe and respected, free from racism and discrimination.
This means that cultural safety is a key to improving quality and access to care for Indigenous residents, because it addresses some of the difficult truths: that the status of Indigenous health is a direct result of government policies; that the legacies of colonization and residential schools have affected health outcomes and shaped the way services are delivered; and that the Health and Social Services system has too often not been a place of healing for many Indigenous residents. Simply put, our commitment to cultural safety recognizes that Indigenous clients should not have to adapt to our system, but rather, it is the responsibility of the system to change and transform to meet the needs of the clients.
In 2016, I tabled the document "Building a Culturally Respectful Health and Social Services System" that outlined our approach to making sure that cultural safety is incorporated across the Northwest Territories Health and Social Services system. In that document a commitment was made to develop a Cultural Safety Action Plan, in collaboration with Indigenous and northern residents and partners. Based on the principle of "nothing about us without us," the Department of Health and Social Services began a knowledge-sharing process with Indigenous and northern peoples and staff in the fall of 2017 to hear their experiences, concerns, and aspirations for our system.
Mr. Speaker, through this knowledge-sharing process we have heard directly from our residents that they envision a territory where Indigenous peoples, families, and communities enjoy physical, mental, emotional, and spiritual health and wellness. The stories shared in these sessions were powerful reminders that, while our system has many strengths to build upon, there is still much work to do.
A whole system approach is required to embed cultural safety in the Health and Social Services system. We began this shift with system transformation and the creation of the Northwest Territories Health and Social Services Authority in 2016. This has created a foundation for cultural safety and placed us in a stronger position to respond to the needs of Indigenous and northern clients. The department is just beginning the cultural safety journey, but in the long term it is expected to help address the health disparity between Indigenous and non-Indigenous people through increased access and use of health and social services and improved client and community experience.
Mr. Speaker, we know that cultural safety is key to improving quality and access to care for Indigenous residents, but it also provides a framework for better care for all NWT residents. We've heard from residents that relationship-based care is a priority for them, meaning that they want trusting, caring, and ongoing relationships with their healthcare providers. Relationship-based care honours the value that Indigenous peoples have placed on relationships, and improves the quality of care for everyone by putting the needs of the clients and the family first.
The Department of Health and Social Services recognizes that building long-term relationships between clients, practitioners, and staff makes a meaningful difference to achieving improved health outcomes and providing comfortable, safe, and respectful care for all people in the NWT. In August of 2018, the NWT Health and Social Services Leadership Council passed a motion to support the redesign of our system of care toward a team and relationship-based approach that is driven by community feedback and data and built upon a foundation of trust and shared outcomes. This marks another significant milestone in the ongoing effort to create an operational philosophy, organizational culture, and governance structures that will allow us to achieve our vision of Best Health, Best Care, and a Better Future for all residents of the Northwest Territories.
The next step in this journey will be the release of the Cultural Safety Action Plan, which is going to occur in the coming months. There is much work yet to be done to embed cultural safety and relationship-based care throughout our Health and Social Services system, and an action plan will be an essential guide as we focus our efforts to create a better system for all residents. As we do this work, our department is committed to moving forward with continued collaboration with our partners and guidance from Indigenous as well as northern residents. This is critical work for the health and wellbeing of our people, now and for the future. Thank you to all of those who have supported this work, and we look forward to getting it done. Thank you, Mr. Speaker.
Masi. Ministers' statements. Minister of Environment and Natural Resources.
Thank you, Mr. Speaker. Mr. Speaker, the Government of the Northwest Territories has a mandate commitment to support the Northwest Territories Cumulative Impact Monitoring Program, or NWT CIMP. This program is a research and monitoring program to help understand environmental trends and the cumulative impacts of both human and natural changes.
Today I am pleased to announce this program is providing $660,000 this year to initiate 11 new research and monitoring projects. These projects address key cumulative impact monitoring priorities for caribou, water, and fish. Funding recipients include Indigenous governments and organizations, universities, territorial and federal government departments.
Mr. Speaker, these projects include studying the impact of wildfire on boreal caribou, understanding ecosystem processes in our two Great Lakes, and using traditional and local knowledge to monitor environmental change.
Results from the projects will provide valuable scientific and traditional knowledge to support effective resource management decisions by communities, governments, and co-management boards.
The recommendations on project funding were made by a steering committee of Indigenous, territorial, and federal government representatives.
Mr. Speaker, NWT CIMP provides approximately $1.7 million in funding for scientific and traditional knowledge projects each year. This year the program is supporting a total of 28 projects. Fourteen projects were completed in 2018, and results are available online. Information on NWT CIMP, including a list of completed projects since 1999, can be found on-line at www.nwtcimp.ca. Thank you, Mr. Speaker.
Masi. Ministers' statements. Minister of Municipal and Community Affairs.
Thank you, Mr. Speaker. Mr. Speaker, today I would like to highlight and celebrate the 2018 inductees into the Northwest Territories Sport Hall of Fame.
The Northwest Territories Sport Hall of Fame was created to honour athletes, coaches, officials, and contributors to sport from all parts of our society. Sponsored by the Sport North Federation, the Hall of Fame shares the history and the impact of our greatest contributors to sport.
Mr. Speaker, I invite Members of this House to join me in congratulating Ms. Robin Mercer-Sproule, Mr. Abe Theil, and the 1970 Fort McPherson Centennial Canoe team, who will be recognized at a special ceremony to be held in Yellowknife on November 23rd.
Ms. Mercer-Sproule competed on behalf of the Northwest Territories in figure skating, softball, volleyball, basketball, hockey, and broomball in no less than 12 Arctic Winter Games and numerous other regional and national competitions across Canada. A breakthrough leader in women's hockey, she started in the sport by playing with a boys' team in 1977 as a forward. She later became a top goaltender.
Mr. Theil is being recognized for his lifelong contribution to volleyball, and for the significant role he played in the development of the Sport North Federation. He participated in 10 Arctic Winter Games from 1972 through 1998. His contribution to the sport from the local club level through to the national and international levels has been significant and remains an important part of the sport's legacy in our country.
The Fort McPherson Canoe Team participated in the historic Northwest Territories Centennial Fort Providence to Inuvik canoe race in 1970. The six-member team finished in first place after a series of races covering the 1,800 kilometre distance, competing against teams from Aklavik, Inuvik, Fort Providence, Fort Good Hope, Yellowknife, Detah, Tsiigehtchic, and from outside the Northwest Territories. Team members were Captain Phillip Blake, Woody Elias, Fred Vittrekwa, Joe Vittrekwa, John Itsi, and Joseph Kaye.
Mr. Speaker, these inductees and those selected in previous years are role models, mentors, and leaders in sport. They have worked tirelessly to develop the North's capacity to pursue active healthy lifestyles through engagement and participation in sports programming.
It is important to recognize and celebrate the past and the present successes of our Northern athletes and sport builders. Applauding their commitment to excellence, as athletes, coaches, or as an entire team helps to set a benchmark for the next generation. On November 23rd, we will celebrate these inductees for their accomplishments and for the inspiration they have provided to us all.
Mr. Speaker, I would like to thank our community governments, the Sport North Federation, and all the territorial sport organizations for their efforts to support opportunities for these inductees and all the residents to pursue their dreams through sport.
I would also like to thank the many volunteers who contribute their time, talent, and energy to the sport system. The work you do is important to the well-being of our youth, the growth of the sport system, and our collective efforts to build healthier communities in the Northwest Territories. Mahsi cho, Mr. Speaker.
Masi. Ministers' statements. Colleagues, I would like to draw your attention to the visitors in the gallery. We have with us Wendy Bisaro. She has been a former Member of our 16th and 17th Legislative Assembly. Welcome to our proceedings.
Thank you, Mr. Speaker. Mr. Speaker, under its mandate, this government has committed to fostering government-to-government relationships with Aboriginal governments and to implementing land resources and self-government agreements. This has been a top-of-mind issue since we first began to develop our priorities of the 18th Legislative Assembly. Although the government has made some important strides, including a pilot project of the Gwich'in Tribal Council, challenges in communication and collaboration mean that the process is in trouble.
Mackenzie Delta residents are coming to me with their questions and concerns. They have asked me about public reporting and public accountability around these mandate commitments. They have asked me about the GNWT's responsibilities to Aboriginal governments under the Gwich'in Comprehensive Land Claim Agreement and Inuvialuit Final Agreement. They have also asked how the GNWT is making its commitment to fulfilling these agreements part of its daily practice. I will have questions for our Premier about the GNWT's role in the implementation of these agreements later today. Thank you, Mr. Speaker.
Masi. Members' statements. Member for Hay River North.
Thank you, Mr. Speaker. Mr. Speaker, I want to talk about connectivity. If the Mackenzie Valley Highway or the road to the Slave Geological Province had been built when they were first proposed or in the decade since, the outlook for our economy would be much different, but because we lack basic transportation infrastructure that has been connecting southern Canada for over a century we are facing a relatively near-term economic crisis. However, Mr. Speaker, that's not the kind of connectivity I want to discuss. I want to talk about high-speed Internet access.
If we don't start to capitalize on the recently completed Mackenzie Fibre Optic Link and begin putting the infrastructure in place to ensure that everyone in the NWT has access to high-speed Internet, we will once again be in a position where our infrastructure deficit is holding back our economy and we are playing catch-up with the rest of the developed world.
In 2016, the CRTC declared that broadband Internet access with unlimited data options and a target download speed of 50 megabits per second is a basic telecommunications service that should be available to all Canadians. Although many communities in the NWT are served by a fibre optic backbone, which is more than capable of achieving such results, homes and businesses are still connected to the backbone through antiquated infrastructure, resulting in slow and unreliable Internet for which we are forced to pay top dollar.
According to the CRTC, Canadians living in rural areas need high-quality Internet and mobile wireless service to fully participate in the digital economy and access healthcare, education, government, and public safety services. The vast size of our territory makes this especially true for us, Mr. Speaker. That's why we need to put the right infrastructure in place. If we do it, the possibilities are endless. We could have telehealth services, allowing residents to see and speak with medical professionals anywhere in the world without ever leaving their communities; every school could deliver immersive and interactive educational experiences; we could utilize the economies of scale to broaden the range of courses offered to high school and polytechnic university students. Internet service set as an asset and not as a liability could generate new business opportunities for our residents. Municipalities that install their own broadband infrastructure could use it to generate revenue and make their communities a more attractive place to invest. The list of possibilities is endless, and the time to act is now.
Just last month the CRTC announced it will soon be accepting applications for a $750 million broadband fund which is intended to support infrastructure projects. Mr. Speaker, I seek unanimous consent to conclude my statement.
---Unanimous consent granted
As I stated, just last month the CRTC announced that it will soon begin accepting applications for a $750 million broadband fund which is intended to support infrastructure projects that will help close the gap in Internet connectivity between rural and urban areas. Last week the federal, provincial, and territorial Ministers for Innovation and Economic Development agreed to making broadband a priority and to develop a long-term strategy to improve access to high-speed Internet services for all Canadians. At the appropriate time, I will have questions for the Minister of Infrastructure to see what he is doing to bring our infrastructure into the 21st century. Thank you, Mr. Speaker.
Masi. Members' statements. Member for Kam Lake.
Mr. Speaker, tourism is big business in the Northwest Territories. Last year more than 100,000 visitors travelled to the NWT, and spending also reached an all-time high at $200 million. The results are expected to be even higher for this past year. It's unsurprising that many entrepreneurs are building businesses based on the success of our tourism market. Unfortunately, not all these individuals are playing by the same rules.
Mr. Speaker, I have heard several complaints from licensed tourism operators in Kam Lake who raise serious concerns around illegal outfits exploiting tourism opportunities in the NWT. More light has been shed on these illegal businesses in recent days with reporting from the CBC supported by internal government documents obtained through access to information requests.
What these complaints and documents reveal is a business environment with little to no consequences for illegal tourism operators, with fly-in, fly-out operations exploiting a lack of readiness on the part of this government to ensure that all operators are held to the same standard.
Mr. Speaker, under the law, an operator must have a licence issued by the GNWT. An unlicensed operator is not obliged to follow safety rules nor have proper insurance for their activities, putting tourists at risk and legal operators who pay these costs at a disadvantage.
Internal documents reveal that this government is struggling to keep up. An official wrote, "There are so many operators lately, it's hard to keep track of them all." Compare this to public concerns from legal, northern-owned and operated businesses. To quote one of these operators, "These guys are coming in and doing what they want. They're cutting corners."
Mr. Speaker, a licensed operator must pay for proper insurance and renew their licence every year. In addition to these expenses, it costs hundreds of thousands of dollars more for insurance. Illegal operators claim none of these costs, and there is ample evidence that they're not being held to account to the laws of the NWT by its own government.
Since 2013, there have only been nine investigations into illegal tourism operators, with two charges being brought forward under the act, and only a single fine issued, along with six compliance orders that do not level criminal penalties against these illegal businesses.
Despite the concerns raised by northern tourism operators who are paying their dues and operating within the letter of the law with legal licences, the GNWT says this is not a systemic problem. Departmental officials have said, "We will address it as we find out about it," and, "we're doing the best with the resources we have." Perhaps that's because they do not have the adequate resources to operate.
Mr. Speaker, this is a serious issue, and I will have questions for the Minister of Industry, Tourism and Investment later today to see what he has done to address the issue of illegal tourism operators in the Northwest Territories. Thank you, Mr. Speaker.
Masi. Member's statements. Member for Yellowknife North.
Thank you, Mr. Speaker. Mr. Speaker, as the Minister noted in his statement, we are all aware of the forthcoming slowdown in the NWT's economy from diamond mines winding down, and we're also well aware that it will take several new metal mines to replace the socioeconomic benefits of a single diamond mine.
Mr. Speaker, this summer I had the opportunity to meet with a number of representatives from world-class mining companies considering investing in the NWT. In general, we are seen as a favourable jurisdiction. We have world-class rock and proven resources. Most of the experts agree that our regulatory regime is improving; they agree that the diamond mines proved that development can succeed while working on land rights. As we know, the carbon tax is not a problem because it is, in fact, a rebate.
However, Mr. Speaker, they are concerned about one major barrier to investing, and that is carbon-based energy. That's right: burning diesel. In 2016, almost half of our carbon emissions came from mining, but the world is changing, Mr. Speaker. Today, for global mining companies to maintain their social licence to operate, they must avoid producing greenhouse gas emissions.
Believe it or not, in 2018, investment decisions on mineral development are not driven by economics alone. Issues affecting social and environmental impacts, climate change chief among them, are equally prominent considerations.
As there should be, Mr. Speaker, there's a growing intolerance among financial institutions, investors, mining companies, and the public for projects that have large carbon footprints. It is simply smarter and safer for them to invest in places with competitive carbon-free energy.
If the NWT is to open its world-class Slave Geological Province to exploration and development, we must bring Taltson hydro power to the region.
Mr. Speaker, the GNWT is undertaking the Great Slave Lake Submarine Cable Concept Study. That will inform us how we can supply competitive-priced, carbon-free hydro power to the Slave Geological Province. Our potential partners in mining are applauding this step, as it holds great promise for growth and for reducing the NWT's greenhouse gas emissions, while providing socioeconomic benefits for our people.
Mr. Speaker, the NWT must address the risks of carbon-based energy if we want to attract major mining interests to develop multi-generational projects.
While I can, Mr. Speaker, I'd just like to let folks know that, in case they're trying to change their plans, the Geoscience Forum is November 20th to the 22nd, and not next week. At the appropriate time, I'll have questions for the Minister of Infrastructure responsible for energy. Thank you, Mr. Speaker.
Masi. Members' statements. Member for Nahendeh.
Thank you, Mr. Speaker. As Members in this House heard, we had an accident at the Nahanni Butte airport on August 15, 2018. I'm very happy to say that all the individuals directly involved with the crash are safe and were discharged from the hospital. I'm very happy to hear the collaboration between the community health representative in Nahanni Butte, and the healthcare practitioners in Fort Simpson and Yellowknife work very well together. It is good to hear that telehealth and our telephone systems work well. The community of Nahanni Butte and the GNWT health staff did an amazing job and should be recognized for their help and support throughout the event.
Unfortunately, the smoothness of the response time and the process for medevac is a concern. It is my understanding that at approximately 13:16 the accident occurred. At approximately 13:45, one of the local airline companies contacted the Fort Simpson Health Centre and they said they were willing to take two Fort Simpson firefighters trained in primary care, paramedics who are trained to deal with packaging and transferring of injured people, to Nahanni Butte to assess injuries and to help out the local staff.
Unfortunately, at 14:05 the local company was told that the health centre would not be sending support staff, and that a plane was going to be dispatched from Yellowknife. At around 15:56, a King Air and two Twin Otters left for Nahanni Butte. Unfortunately, the King Air could not land in Nahanni Butte and had to go to Fort Liard. They needed to use a helicopter to take some of the passengers to Fort Liard to get on the King Air. The whole process took a long time, approximately seven hours, for the medevac to leave for Yellowknife.
One of the injured passengers was horrified that it was going to take more than two hours to get help in the community. Community members tried to be supportive and calm her down, but you can imagine her frustration and fear.
In speaking with the community and people from Fort Simpson, we were confused that there was an islander plane and a helicopter in Nahanni Butte and it was not used. They would also like to know why the support team from Fort Simpson was not dispatched. They were only 30 minutes away. Mr. Speaker, I seek unanimous consent to conclude my statement.
---Unanimous consent granted
Thank you, Mr. Speaker, and thank you, colleagues. The feeling is that policy and procedures outweighed the care of residents. What would happen if a very serious or fatal situation occurred? Would they have to wait at least seven hours to get the necessary transportation out to get help? This would not happen in bigger centres. They feel it is an uneven playing field, and I cannot blame them. I will later have questions for the Minister of Health. Thank you, Mr. Speaker.
Masi. Members' statements. Member for Frame Lake.
Merci, Monsieur le President. Yesterday I tabled a 2017 report contracted by the Industry, Tourism and Investment Department called "Policies for Generating Socioeconomic Benefits from Natural Resource Extraction Projects." This report shows how jurisdictions around the world make sure their citizens get a fair share of benefits from non-renewable resources extraction.
Unfortunately, this report received by the ITI 18 months ago was only recently posted deep on the department's website because I forced this government to make it public through an access to information request. Committee was not even informed of the existence of this report until the Minister disclosed it in an April 17th public meeting where he presented on socioeconomic agreements.
The report examines exactly the issues that play in our development of a Mineral Resources Act. Public groups asked for this type of information during the MRA consultations process. Regular MLAs have repeatedly requested the Minister share the extensive cross-jurisdictional research his department claims to have done, but he has refused to provide this information.
The 2017 ITI-commissioned report is packed with detailed information on the types of instruments jurisdictions used to capture social and economic benefits for their citizens. It analyzes the different types of benefits, employment, contracting, capacity development, impact mitigation, new infrastructure, and does a provincial-territorial-international scan of other approaches. Why was this information suppressed?
This report is a good one, and I call on this government to pursue much stronger socio-economic agreements. These improvements should include requirements for binding and enforceable employment in contracting targets with penalties, locating offices and professional support in the Northwest Territories, and investments in research and development, training, and post-secondary education. Other jurisdictions tie the provision of such benefits to security of tenure and approvals for development. We should and must do much better.
The development of a new Mineral Resources Act and the amendments to our oil and gas legislation provide an ideal opportunity to build the framework of improved retention of benefits for our residents.
I'll have questions for the Minister of Industry on what other materials may be outstanding, and how these recommendations will inform our post-devolution resource management moving forward. Mahsi, Mr. Speaker.
Masi. Members' statements. Member for Sahtu.
Mr. Speaker, energy initiatives in the Sahtu. As of this morning, Imperial Oil started supplying gas powered electricity to the community.
Mr. Speaker, energy has been on my mind lately, with the reopening of the Enbridge pipeline and the announcement of the new funding by the federal government for energy programs in the Northwest Territories.
I understand that, back in March, the GNWT secured $570 million from the Investing Canada Plan, and more recently, this government secured the first $23 million of its $31 million allocation from the federal Low Carbon Economy Leadership Fund.
Mr. Speaker, these new program dollars have come out around the same time as the GNWT Energy Strategy and Action Plan. The people of the Sahtu are interested in the details, how this money will be spent, and more importantly, how we can be involved in the transition to more efficient and cleaner energy systems in our communities.
Mr. Speaker, in the last few years, we have seen real progress in the Sahtu on the use of biomass heating. Cord wood has been an important source of heating in the Sahtu for generations, and the introduction of wood pellet heating has brought a new source of high-efficiency wood heating to our region.
Mr. Speaker, most of our communities have begun a transition to the lower-cost wood pellet systems and high-efficiency wood stoves. Heating with wood has many benefits, including being carbon neutral. As the supply chain for wood pellet improves, we hope to see it being more used in the Sahtu.
Mr. Speaker, we have also seen the installation of a state-of-the-art solar diesel plant in Colville Lake that has reduced the use of diesel fuel and reduced the emissions. Other efficiency upgrades were also made on the electrical side. Mr. Speaker, I seek unanimous consent to conclude my statement. Mahsi.
---Unanimous consent granted
Thank you, colleagues. Mr. Speaker, the Sahtu itself is a leader in energy efficiency, and we want to continue down this road so that all our residents can benefit from the new federal money. I will have follow-up questions to the Minister of Infrastructure at the appropriate time. Mahsi.
Masi. Members' statements. Member for Yellowknife Centre.
Mahsi, Mr. Speaker. Mr. Speaker, at the end of August the Government of Canada introduced its long-awaited and first-ever poverty reduction strategy. After years of telling advocates that poverty reduction was a provincial and territorial responsibility, the federal government has finally stepped up.
In 2015, one in eight Canadians lived in poverty, about 5 million people; a shameful number for a wealthy country like ours. The federal government has set a goal to reduce that number by 20 percent in the next two years, and the government's long-term goal is to further reduce poverty by half by 2030. This measurement boosts the credibility of the strategy, and it gives hope to those who want to exit from the poverty track.
Mr. Speaker, the federal strategy introduces a poverty measurement. It's called the Market Basket Measure. The MBM puts a dollar figure on a basket of goods and services for a family of four. The MBM for Yellowknife in 2015 was about $56,000. The problem with the Market Basket Measure as a general measure of poverty is that it isn't calculated for any other NWT communities.
The NWT has had a poverty reduction strategy for five years. Its vision is that Northerners will have access to the supports they need to live in dignity and free from poverty as active participants in community life. This vision still resonates, but the GNWT didn't establish a definition of poverty or a goal for its reduction, so it's difficult to say whether Northerners are less poor than they were five years ago.
A group of non-profits recently published a poverty update to show what poverty in the North looks like. Here are a few of the results. Twenty percent of households earn about $25,000, one in seven residents faces moderate to severe food insecurity, and there are almost 2,000 people on income assistance in the NWT. It's a grim picture.
Mr. Speaker, it's understood that children who grow up in poverty are likely to live in poverty as adults. This fact underlines the importance of providing resources to families to move them out of the poverty trap. The federal and territorial child benefits are a good start, but income thresholds must be raised, and we need greater investments in housing. Mr. Speaker, I seek unanimous consent to conclude my statement.
---Unanimous consent granted
Mahsi, Mr. Speaker. The National Poverty Reduction Strategy challenges provinces and territories to do better and provides the opportunity for a partnership to assault poverty in the GNWT. It's time to establish a poverty measurement, set goals for poverty reduction, and make a commitment to tracking results over time. I will have questions for the Minister of Health and Social Services. Mahsi.
Masi. Members' statements. Member for Tu Nedhe-Wiilideh.
Marsi, cho, Mr. Speaker. Mr. Speaker, today I will speak on the need to increase spending in early childhood development. Addressing this issue must be a solid joint effort on the part of our government.
Mr. Speaker, I will begin with the work needed in prenatal care. It is essential that we provide as much support as possible to women who are at risk of consuming alcohol while pregnant, because our territory depends on it. I believe the difference in the government spending between a person with FASD and a person without this disorder is over $1 million.
Mr. Speaker, we must invest in daycares across the NWT. Early childhood spending for children who are one, two, and three years old have huge returns. I believe the return on social spending is near a ratio of seven to one. In other words, Mr. Speaker, for every dollar spent in this area, the government will save $7 on things like social housing, income support, and increased graduation rates.
Mr. Speaker, if children are given the right supports, it would make them excel in their earlier years in school. It increases their chances of graduating from high school, which is the first big benchmark in education. Students who achieve grade 12 have a much higher chance of getting a job than a person who does not achieve grade 12. In fact, it's about 25 percent higher. It also gives that student an ability to go onto post-secondary education if they wish, which again is another important benchmark.
Mr. Speaker, students who have post-secondary education in the NWT can almost write their own ticket on the type of job they want. In fact, students with post-secondary education have about a 20 percent better chance of getting a job than a grade 12 graduate.
Mr. Speaker, it has been mentioned in this House many times that a job is the best social program. It reduces social spending on families with jobs, and I believe a salary paid is a return of $2.50 to every dollar paid to the employee. Thank you, Mr. Speaker.
Thank you, Mr. Speaker. Mr. Speaker, your Standing Committee on Government Operations is pleased to provide its Report on the Review of Bill 18, An Act to Amend the Cities, Towns and Villages Act, and commends it to the House.
Bill 18, sponsored by the Department of Municipal and Community Affairs (MACA), amends the Cities, Towns and Villages (CTV) Act to provide municipal councils governed under the act with new powers: the authority to impose a tax on tourist accommodations; and the authority to allow property owners to finance energy efficiency or renewable energy works through local improvement charges added to the property owner's municipal tax bill. It is important to note that these new powers are separate from one another and not related, except that they are both dealt with under the Cities, Towns and Villages Act, the legislation that sets out the powers of tax-based municipal governments.
Bill 18 received second reading in the Legislative Assembly on May 29, 2018, and was referred to the Standing Committee on Government Operations ("the committee") for review.
The standing committee is pleased to report on its review of Bill 18: An Act to Amend the Cities, Towns and Villages Act.
The Cities, Towns and Villages Act governs the tax-based municipalities of Yellowknife, Norman Wells, Fort Smith, Inuvik, Hay River, and Fort Simpson in the Northwest Territories. The amendments proposed to the CTV Act under Bill 18 would provide these municipalities with two new areas of authority that municipalities could choose to exercise at their discretion.
As drafted, Bill 18 provides tax-based municipalities with the authority to pass a bylaw imposing a tourist accommodation tax, not exceeding 4 percent of the daily accommodation rate on anyone who offers accommodation in return for money within the municipal boundaries.
The bill prohibits the tax from being imposed on the following persons and classes of accommodation: accommodation paid for more than 30 continuous days; accommodation where the rate is less than $20 per night; accommodation where the subject of the tax is the Government of the Northwest Territories or its public boards and agencies; any person or family member being accommodated as a result of medical travel; anyone paying for a stay at a hospital or healthcare facility; or any other class of persons or bodies set out in the regulations. Collectively, these exemptions are referred to as "exclusions" in the act's marginal notes.
The bill also sets out other matters a municipality may include it its bylaw. This includes further exemptions and rebates from the tax; penalties for failure to comply; interest on outstanding payments; audit and inspection powers; dispute resolution mechanisms; enforcement; and any other matters council considers important. It also provides that municipalities may go to court to attempt to recover unpaid amounts.
The bill authorizes municipal councils to enter into revenue-sharing agreements with not-for-profit organizations for promoting tourism, and with persons and bodies for the collection and administration of tourist accommodation taxes. It also requires that tax revenue be used only for supporting tourism initiatives, such as the provision of visitor services and the promotion of the community and the NWT as a tourism destination.
Finally, Bill 18 proposes to enhance the Minister's regulation-making authority:
Governing the collection of a tourist accommodation tax;
Prescribing conditions and limits on that tax;
Prescribing persons and classes of accommodations that are exempt from the tax;
Respecting agreements between the municipality and hotel operators regarding the collection of taxes; and
Respecting the sharing of revenue with not-for-profit organizations.
Currently, the CTV Act allows municipalities to make upgrades or improvements to groups of properties adjacent to one another, and to charge the owners of these properties for the cost of the work on their property tax bills.
These types of upgrades, referred to as "local improvements," tend to be new or replacement construction projects intended to upgrade or improve certain conditions within residential, commercial, and industrial areas of the municipality. Examples include street paving, driveway crossings, sidewalk replacement, lane paving, curb and gutter replacement, boulevards and street lighting, and extending sanitary, storm or water systems. Subject to local bylaws, the participation of property owners in these types of standard local improvements may be mandatory.
Bill 18 proposes to give tax-based municipalities the authority, by bylaw, to enable individual owners of private property to improve the energy efficiency of their homes or businesses and use the "local improvement charge" mechanism to pay off the cost of the energy installation over time.
This would allow interested private property owners to undertake energy efficiency or renewable energy retrofits or improvements without having to pay the costs upfront. Instead, they could have the municipality add the costs to their property tax bill to be paid off over time.
The most important difference between the standard type of local improvements tax-based municipalities already have the authority to undertake, and this new type of local improvement, is that the latter is completely voluntary on the part of a private property owner. A municipality must have the written consent of the property owner in order to authorize a levy against their property tax bill.
Bill 18 sets out the administrative process for how this new type of local improvement can be put into effect, including rules for how the energy efficiency or renewable energy work must be described, how costs must be determined, the requirement for the passing of bylaws to charge a levy against a private property, and for determining the period over which the costs will be repaid.
In addition, Bill 18 includes provisions:
Specifying that costs may include reasonable engineering expenses and administrative costs, and interests on borrowing;
Requiring that a municipality give public notice of its intent to pass a bylaw and sets out the required contents of that notice;
Requiring that a municipality pass a second bylaw once energy retrofit is completed, to levy a local improvement charge against a property;
Requiring full cost recovery for each project financed through a local improvement charge;
Allowing the municipality to streamline the administrative process for passing these bylaws by allowing the bylaw to authorize a specific or series of energy efficiency or renewable energy works or any works that satisfy the requirements of a program of the municipality; and
Require reporting by municipalities to the Minister.
Mr. Speaker, I will now ask the honourable Member for Hay River North to continue reading of the Report. Thank you, Mr. Speaker.
Member for Hay River North.
Thank you, Mr. Speaker.
To commence consultation on Bill 18, the standing committee invited input on the bill from 99 local hotel and bed and breakfast (B&B) operators offering tourist accommodations in the six tax-based municipalities. This consultation list was kindly provided by the Department of Municipal and Community Affairs, who used the same list when consulting on the development of the bill. The committee also sent letters seeking input from the six impacted municipal councils.
Committee held a public hearing on Bill 18 in Yellowknife on September 19, 2018. At that hearing, committee heard a presentation from the Yellowknife Chamber of Commerce, provided by Mr. Kyle Thomas, Vice President. Committee also received a presentation from the City of Yellowknife, represented by Mr. Mark Heyck, Mayor; Ms. Sheila Bassi-Kellett, City Administrator; and Ms. Kerry Penney, Director of Policy, Communications and Economic Development. Committee noted that Ms. Shauna Morgan and Mr. Julian Morse, both councillors with the City of Yellowknife, were also in attendance in the audience. Finally, committee received a presentation from Mr. Karl H. Schaefers and Mr. Dan Dupuis, representing Mr. Ed Romanowski, president and chief operating officer of the Explorer Hotel. Committee thanks everyone who appeared before the committee and provided input on Bill 18 that evening.
Because of planned consultation travel on Bills 8 and 20, committee had already made arrangements to travel to three of the six tax-based municipalities. Hence, committee extended invitations to the municipal councils in these communities to discuss Bill 18. A meeting scheduled with the town of Hay River in mid-August was, unfortunately, cancelled due to unforeseen circumstances. However, on October 2, 2018, committee had the opportunity to meet with Mr. Jim McDonald, mayor of Inuvik; Mr. Joe Lavoie, assistant deputy mayor; and Ms. Natasha Kulikowski and Mr. Clarence Wood, both councillors. Committee thanks these Town of Inuvik representatives for their time and input.
Finally, committee received written submissions from the following:
The Explorer Hotel;
The Town of Fort Smith;
The Yellowknife Chamber of Commerce;
The City of Yellowknife;
Days Inn and Suites, Yellowknife; and
Embleton House Bed and Breakfast.
The committee takes this opportunity to thank everyone who provided written submissions. Copies of these submissions are appended to this report.
Overall, committee heard mixed support for Bill 18. Outside of Yellowknife, it is largely seen as a "Yellowknife" bill. Both Inuvik and Fort Smith expressed the view that, for smaller tax-based municipalities, any revenues the "hotel tax" might yield would be offset by the costs of administration.
Aside from Yellowknife, none of the five remaining tax-based municipalities indicated that they would be interested, at this time, in exercising the new authorities provided by the bill. There was, however, general agreement that the City of Yellowknife should have the right to exercise these new authorities if it chooses.
Both the Yellowknife Chamber of Commerce and the City of Yellowknife expressed support for the bill. Mr. Kyle Thomas, vice president of the Yellowknife Chamber of Commerce, noted that the chamber would like to see the tax rate reduced from 4 percent to 3 percent. The City of Yellowknife raised concerns about the lengthy list of exclusions, which would reduce the total amount of revenue collected and make it difficult for front desk staff, who would be required to determine a person's reason for travel and whether or not an exemption applies.
Both the Yellowknife Days Inn and Suites and the Explorer Hotel offered conditional support for the bill. The support of the Explorer Hotel was based on the following conditions:
A 3 percent levy on the daily room rate;
Applicability to all accommodation properties;
No exemptions;
Industry oversight of fund management; and
No spending on convention or meeting facilities or on destination or visitor services, events or facilities.
The Yellowknife Days Inn and Suites expressed the view that "the draft as written falls short of the intended purpose of the levy," noting concerns about the exemptions in the bill and stressing that Section 70.3(1) must clarify that the levy's primary purpose is to promote Yellowknife.
Both the Town of Fort Smith and Embleton House B&B are not supportive of the bill. In correspondence to the committee, Fort Smith Mayor Ms. Lynn Napier-Buckley said that, "When this change was first proposed by MACA, the Town of Fort Smith requested an impact assessment to be performed, which we have not received," noting that, "while the choice to provide this program is the decision of the municipality, it is a concern that this revision will be closely followed by reductions to territorial programs." She also asked, "What will the GNWT provide to ensure equity for the smaller communities in promoting and selling tourism outside of Yellowknife with this change?"
In explaining her lack of support for the bill, Ms. Faith Embleton of Embleton House B&B emphasized that, with the number of unlicensed accommodations popping up online, now is not the time to implement a tourism levy, but to work to ensure that unlicensed operators meet appropriate standards, noting that, "When they arrive, travellers often face substandard accommodation and sometimes no accommodation at all, leaving them out on the street when things get busy."
I would now like to turn it over to the Member for Deh Cho. Thank you, Mr. Speaker.
