Debates of February 25, 2019 (day 60)

Date
February
25
2019
Session
18th Assembly, 3rd Session
Day
60
Members Present
Hon. Glen Abernethy, Mr. 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 have said under heavy questioning before, around some of the funding allocations that we try to get for the Department of Industry, Tourism and Investment, we have to do our applications just like all of the other departments and compete with the limited amount of resources that the Government of the Northwest Territories has. That being said, with the amount of money that we have right now for Support for Entrepreneurs and Economic Development in the Northwest Territories and the applicants that we have got, I think that we are doing a pretty good job with the allocation that we have, and we are meeting the needs of Northerners at this point. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. Testart.

Thank you. I am not disagreeing 100 percent. I think that this is doing a good job. It's just that we could be doing an even better job, and of course, there were changes to SEED that have allowed the program to flow a bit more broadly throughout all of the regions of the territory. Doing the best job that we can with the available resources isn't doing better. We are looking at a future of recession. We are looking at economic hardship ahead. No one denies that. We should be using funding like this and resources like this that, A, we know work; B, we know that entrepreneurs are readily accessing and celebrating the opportunity; and C, we know that a marginal increase over a period of years is going to have large economic impacts and form multipliers.

Will the Minister consider a SEED plan that will see more investment in this fund in the next business plan for a period of years when, again, capital markets are going to contrast even more tightly than they currently are? Thank you.

Thank you, Mr. Testart. Minister Schumann.

Thank you, Mr. Chair. One of the things that we've done, on recommendation from the Regular Members was, we want more data, so we've taken that initiative. We're taking that step to track these programs, and some of the stuff they're doing within our department. We've clearly set out some internal working groups that collect more data for us to be able to make better decisions on, are we getting value for money around these programs that we're in charge of. This is early days of collecting that data, but as I've said, we've got to compete with resources with every other department with the Minister of Finance and make our case for it. I think, once we get more data to support the fact that the points that the Members raise, if they're supportive of what he's saying, then I would clearly support trying to get more money into the SEED program. First of all, we can't put the cart before the horse. They've asked us to get more data, and that's what we're going to do. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. Testart.

Thank you, Mr. Chair. I would encourage the Minister to move expediently on it. Moving to the Film Industry Rebate Program, Members have had an opportunity to speak with the professional association around the film industry in the Northwest Territories, and also look at how this program performs. It's moved from a pilot project to a full-time funding pool, which is fantastic, but again, this is another one where we see very similar funding allocations year on year. If we want to expand the presence of the film industry, especially down-market production, we're going to need to put more financial resources into the rebate program. That down-market production is where you're going to develop the capacity, the knowledge economy, and create jobs that stick around and aren't brought here just during the production phase. These are media professionals who will stick around. Is there any thought as to either putting more resources into this, or developing new funding criteria to support a downstream production of film in the Northwest Territories? Thank you.

Thank you, Mr. Testart. Minister Schumann.

Thank you, Mr. Chair. One of the things that we've done throughout this year is that we've asked for a film officer, one new position. That's in there. It's clearly laid out, that we wanted additional funding to help support the implementation of the Northwest Territories Film Strategy in its actions to increase marketing efforts to promote the Northwest Territories Film Rebate program and new targeted initiatives that will include annual familiarization tours to attract interest and investment into the Northwest Territories. This position, as I've said, is to help attract investment and interest in the Northwest Territories, and this is going to certainly help the film industry to move forward with this additional position that we've asked for. Thank you, Mr. Chair.

Thank you, Minister Schumann. Mr. Testart.

Thank you, Mr. Chair. The Film Commissioner and the office around the Film Commissioner works very hard to do exactly that, and I think the additional support will be great, but marketing and bringing productions here is only half the equation. The way to expand the industry is to actually build that local production capacity so you can have creators and film crews and technicians and engineers and all those people who make movies permanently based here. That's the way we can diversify the economy as well. Local economies in regions that have been successful in this have always built very strong rebate programs. The rebate program we have is great for now and for attracting people to come and make movies here, but if we're going to make our own movies, we need to strengthen it. Is the Minister open to that component of the film industry? Thank you.

Thank you, Mr. Testart. Minister Schumann.

Thank you, Mr. Chair. Ever since I got this file, the film industry has moved a long way. We've done a number of things working with the film Commission and moving the Western Arctic Movie Pictures and NWT Professional Media Association along. We continue to promote them alongside them. As I've said, we've offered this new officer to help them promote the industry in the Northwest Territories. Last year, at their first annual gala, we supported a new apprenticeship program for its members, which was greatly appreciated by the industry. The feedback that I've got from them to help them grow the industry here in the Northwest Territories, this is going to continue to help support those types of programs of them moving forward.

As I've said, we just can't keep throwing money at this. We've got to do our allocation with our Finance Minister to try to get the appropriate funds where the most need is right now in the Northwest Territories, and I think just adding this one position this year with the limited resources we've got is doing good things for the film industry. Thank you, Mr. Chair.

Thank you, Minister Schumann. Any further questions from committee? Seeing none, I'll call the page. Industry, Tourism and Investment, economic diversification and business support, operations expenditure summary, $17,251,000. Does committee agree?

Speaker: SOME HON. MEMBERS

Agreed.

Thank you. That brings us to minerals and petroleum resources, operations expenditure summary, $16,569,000 from pages 214 to 217. Any questions from committee? Mr. O'Reilly.

Thanks, Mr. Chair. On page 216 under grants and contributions I see the NWT Chamber of Mines for $30,000. When I looked at the 2017-2018 grants contributions report from the department, and I see that the Chamber of Mines 2017-2018 got $190,600. How do we go from $30,000 to $190,000? Because that seems to be a flat line over time, although it was more back in 2017-2018. What else is happening here that the Chamber of Mines is getting money from ITI? Thanks, Mr. Chair.

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

Speaker: MS. SALVADOR

Thank you, Mr. Chair. I think what we're talking about is the funding that was paid under the grants and contributions report. Basically, the reason why we have an increased amount in 2017-2018 is that contributions in 2017 and 2018 were to promote the NWT as an investment destination through hosting promotional events at major geoscience and mining conferences such as Roundup, PDAC, and Antwerp World Diamond Centre in Ottawa; organizing, promoting, and hosting the 2017 Yellowknife Geoscience Forum; and increasing public awareness of the minerals industry, Mining North works. Overall, there is an increase in activities within the NWT Chamber of Mines. Thank you, Mr. Chair.

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

Thanks, Mr. Chair. Thanks, Mr. Chair. I can read those items in the grants and contributions report, as well. This Indigenous Mineral Development Support Program of $100,000, is that actually run through the Chamber of Mines? Thanks, Mr. Chair.

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

Thank you, Mr. Chair. No, that is all run through our department. Thank you, Mr. Chair.

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

Thanks, Mr. Chair. How do we go from $190,000 in 2017-2018 to only $30,000 in 2019-2020? That's what's in the main estimates here. Thanks, Mr. Chair.

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

Thank you, Mr. Chair. That's the answer that Ms. Salvador just gave him. There were contributions for 2017-2018 in order to promote the Northwest Territories and all those number of initiatives that were mentioned by the Director of Finance. Thank you, Mr. Chair.

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

Okay, thanks. I'll see what happens with the future grants and contributions reports. It just doesn't seem to really square up very well. I think this is the part of the budget where, as I understand it, the department is looking at hiring a deputy, an additional deputy mining recorder. Is that correct? Thanks, Mr. Chair.

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

Thank you, Mr. Chair. Yes, it is.

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

Thanks, Mr. Chair. In the department's business plan which is found on the Department of Finance's website, there's an interesting figure there. It's 12, that shows the number of claims that are in good standing, number of leases in good standing, number of prospecting permits, and virtually all of those have declined from 2014-2015 to 2017-2018. There is this declining trend of either claims being kept in good standing, leases in good standing, number of prospecting permits. Why do we need another deputy mining recorder if all of these trends are in decline? Thanks, Mr. Chair.

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

Thank you, Mr. Chair. If you look at the new mineral claims that have taken place in the Northwest Territories since 2015-2016 in particular and forward, the growth has been 165 percent, 175 percent, so, as a result of this increase in mineral activity registration transaction plan inquiries, there is a need to ensure that industry clients receive timely approvals of their claims, work-report filings, related transactions, necessary device, and support for their regulatory requirements related to mineral tender and management that is administered by the mining recorder's office are met. The position is intended to provide appropriate support to the mining industry clients. Thank you, Mr. Chair.

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

Thanks, Mr. Chair. The Minister referred to a 165-percent increase in work. That is not what I am seeing on figure 12 in the business plan. As I said, in fact, it is a declining amount of claims that are in good standing, number of leases in good standing, number of prospecting permits in good standing. Everything is declining, so what figure is the Minister referring to? Thanks, Mr. Chair.

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

Thank you, Mr. Chair. I will have to have a discussion with the Member, I guess maybe when we are done business plans, but my numbers clearly show there has been an increase in activity of mineral claims, as I said, 165 percent, 175 percent. Registered document filings are up by 695 percent. There are some serious increased activity within this department. Thank you, Mr. Chair.

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

Thanks, Mr. Chair. Yes, well, whatever the figures the Minister has certainly don't square with what is in the business plan where, you know, the number of claims in good standing declined in 2014-2015: 2,256 down to 1,123 in 2017-2018. That is less than half. The number of leases hasn't declined quite that rapidly, but I just don't see an increase in workload here. I don't know what figures the Minister has that I can't see. That is not what I am seeing here, so, if the Minister could commit to share that information with me, that would be great.

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

Thank you, Mr. Chair. Absolutely, we will share that with the Member. Thank you, Mr. Chair.

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

Thanks, Mr. Chair. I have another question on this one with regard to the Mining Incentive Program. There is a table in the business plan. It's figure 11. That talks about how the money from the Mineral Incentive Program has resulted, at least in the opinion of the department, in a whole bunch of extra spending on mineral exploration. Can someone explain to me what this leveraged spending is all about and why some of it doesn't even occur in the same financial year as the money that is provided? Thanks, Mr. Chair.

Thank you, Mr. O'Reilly. Mr. Jensen.

Speaker: MR. JENSEN

I am just looking at the numbers here. Thanks, Mr. Chair. In terms of leveraging, the argument is that we make the argument that, if we have provided mining incentive funds to a particular exploration company or advance exploration company, that the funds that they contribute to exploration would not have happened otherwise. That is why we use the term. We would leverage that money. It is money that would not have been spent if we had not contributed money under Mining Incentive Program.

Thank you, Mr. Jensen. Mr. O'Reilly.

Thanks, Mr. Chair. Yes, I guess I remain to be convinced that the GNWT contributing $400,000 in one year is going to lead to $3.28 million in exploration funding, but I guess at some point I am going to have to meet with the Minister and his staff to get a better explanation because I don't really quite understand or accept some of the figures that are presented here. I am happy to meet with the staff and the Minister if he will make that commitment. Thanks, Mr. Chair.

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