Debates of February 25, 2020 (day 8)

Date
February
25
2020
Session
19th Assembly, 2nd Session
Day
8
Members Present
Hon. Frederick Blake Jr, Mr. Bonnetrouge, Hon. Paulie Chinna, Ms. Cleveland, Hon. Caroline Cochrane, Ms. Green, Mr. Jacobson, Mr. Johnson, Mr. Lafferty, Hon. Katrina Nokleby, Mr. Norn, Mr. O'Reilly, Ms. Semmler, Hon. R.J. Simpson, Mr. Rocky Simpson, Hon. Diane Thom, Hon. Shane Thompson, Hon. Caroline Wawzonek
Topics
Statements

Thank you, Madam Chair. When you are talking about entrepreneurship and red tape, regulatory burdens, that says to me all over, Chamber of Commerce, Chamber of Mines. My experience, being with those chambers, is that neither of them is going to sit quietly and not have a strong voice at the table. I see other Members who are smiling, knowing that. If you look at it, I mean, we are beginning it in the fall 2020 and a bit already, and it will be completed by 2022. My experience has been, with those organizations, they are very task-focused; they will be watching us closely. Thank you, Madam Chair.

Thank you, Madam Premier. All right. Are there any further questions on "Increase economic diversification by supporting growth in non-extractive sectors and setting regional diversification targets"? Seeing none, committee, we will move to page 20, "Increase resource exploration and development." Questions. Member for Nunakput.

Thank you, Madam Chair. No, just in regard to our go-forward with the federal government on the exploration in the Beaufort Sea, I know that we are waiting for the federal government to open up drilling. I know that, to some people, that is a bad word, but for us, we were born and raised up there, working in the offshore, and we are hoping that our territorial government could convince the federal government to open it up, working together. That is going to alleviate a lot of pressure for where I am from, because it will create jobs with the offshore drilling if we are so lucky to get that back.

The Inuvialuit Development Corporation and the Inuvialuit Regional Corporation, in regard to the safety aspect of our Beaufort Sea, they take care of us in that work because it's in our land claim settlement, in the ISR. That being said, with the Premier, what is her game plan in regard to dealing with the federal government and the Prime Minister to get the Beaufort Sea opened up? Thank you, Madam Chair.

Thank you, Member for Nunakput. Madam Premier.

Thank you, Madam Chair. When the federal government put the moratorium on the offshore oil and gas, that was not in consultation with the territorial government, is my understanding, being on the Cabinet from the last Assembly. We did not know about it. They did put a provision in it, though, that said that after five years it would be open to doing a review, a full review. That five years is up, and so we are actually already at the table. Inuvialuit Regional Corporation and the Yukon government are our partners in this, so we are working, doing that review at this moment, and we will be presenting the findings, negotiating with the federal government to open it up. I am not 100 percent sure if the federal government is going to lift the moratorium at this time, but what I am 100 percent sure of is that we need to have our case and be ready to identify what happens in our lands as soon as that moratorium is lifted. Thank you, Madam Chair.

Thank you, Madam Premier. Member for Nunakput.

Thank you, Madam Chair. Just in regard to that, thank you for that answer, Madam Premier, but what do you think is the timeline? You say it's negotiations. How long are we looking at negotiations? Is there a timeline on that? Thank you, Madam Chair.

Thank you, Member for Nunakput. Madam Premier.

Thank you, Madam Chair. There is no timeline on it. I am hoping it's not years. I am worried it might be years. Sometimes, governments tend to put people off and dance around us, but it is something that's really important. It is something that we will be going to the federal government with our Indigenous partners, with the other governments, and continually advocating. The federal government needs to realize that this is a huge part of our economic development; it's jobs in communities. Often, I hear that people do not have jobs in communities. This is a way of getting jobs into those communities. We have an obligation, therefore, to advocate for our people. I take that seriously, and I will constantly bring that forward at the federal table. Thank you, Madam Chair.

Thank you, Madam Premier. Member for Yellowknife Centre.

Thank you, Madam Chair. We have talked around procurement issues, and this seems like as good a place as any to look at it. As the Premier may know, the federal government has a threshold for Indigenous procurement, that a certain portion of procurement has to be with Indigenous organizations. In implementing this section and others that have to do with economic development, did the Premier at all think about making that a policy here in the NWT, as well? Thank you.

Thank you, Member for Yellowknife Centre. Madam Premier.

Thank you, Madam Chair. I just want to make sure I am understanding that the federal government has a procurement policy that gives a certain amount to Indigenous governments? If that is correct, then, when we look at our Business Incentive Policy or our manufacturers' policy, which we have committed to doing, then we can look at that within our review. Thank you, Madam Chair.

Thank you, Madam Premier. Member for Yellowknife Centre.

Yes, thank you. It's my understanding that the federal government has this threshold for Indigenous procurement, and so I wonder if it could be broader than manufacturing and exploration and development and whether it could be government-wide, that procurement in all areas of government business could have a mandated Indigenous component? Thank you.

Thank you, Member for Yellowknife Centre. Madam Premier.

Thank you, Madam Chair. What I will commit to is, while we look at all of our procurement processes, we can look at it. At this point, I cannot commit that that will be because, again, I do not like to make decisions off of not-good information. Once we do the review, if it's possible, then we will look at that. If it's not possible, then we can offer an explanation on why it's not possible. Thank you, Madam Chair.

Thank you, Madam Premier. Member for Yellowknife Centre.

Thank you, Madam Chair. Madam Premier, when haven't I given you the straight goods? I appreciate your commitment to looking at how Indigenous business procurement can be reviewed in the context of the more general procurement review that we understand is going to happen. That is everything. Thank you.

Thank you, Member for Yellowknife Centre. Madam Premier.

Thank you, Madam Chair. Yes, we commit to looking at it. I am trying to think, but I don't think the Member has ever not given me the straight goods.

Are there any further questions on "Increase resource exploration and development"? Member for Frame Lake.

Thanks, Madam Chair. While we are on the subject of straight goods, I had suggested that I think the impediments to resource exploration and development is lack of certainty around land. That means completing the land rights agreements and implementing them to create greater certainty. That is not featured in here. I know we are going to get to a different priority that deals with that issue. What it comes down to is changing the kind of messaging that is coming out of our government and countering some of the messaging that is coming from particularly the mining industry, which is scaring away investment, quite frankly. I have told them this. The kind of messaging that they have been giving is that the North is too complicated; there are too many regulations; it takes too long. It is not true. We do things differently here because it has been developed and designed that way in recognition of Indigenous rights. The ability of local people to have more influence as they rightfully should.

The Minister of Finance, her final sentence in her budget address talks about showing the world that the Northwest Territories is a premier destination to live with a positive economic future, strong educational opportunities, blah, blah, blah, blah, blah. That is the kind of messaging that we need to be giving out. Sorry. I didn't mean to be put words in the Minister's mouth, but she said it earlier. It wasn't "blah, blah, blah," but that is the kind of messaging we need to be sending out to attract investment.

We have a very good integrated resource management system here. Unfortunately, it is not properly funded. The environmental audits are not followed up the way they can and should be to improve the system. People try to come in and cherry-pick things like what Mr. Harper did in trying to change the MVRMA that resulted in it going to court. If we want to attract investment, we have got to change the kind of messaging that comes out of here. Our government needs to show the kind of leadership on this, even if it means countering what the Chamber of Mines is saying. If you want to mine, come here. Go to the Ring of Fire. How many mines do they have? Zero, because there is zero certainty there. There are unresolved Indigenous rights. It is a complicated 10-year system. The government doesn't issue permits. It is a mess, Ring of Fire. You want to get a mine? Come here. The only thing that is stopping new mines is financing and commodity prices. It has got nothing to do with our regulatory system or environmental management system anymore. Thanks, Madam Chair.

Thank you, Member for Frame Lake. Madam Premier.

Thank you, Madam Chair. It is a bit soft, but I agree that we do need to change our messaging. The last sentence on the "How We Will Do It" says that we will promote investment and increase awareness of the NWT's regulatory system, because I think that is a concern that people often say. We need to also change our messaging, not only about getting mines here, but how people see mineral exploration in the Northwest Territories, because I keep hearing people are saying green energy versus mining, but you can't have green energy, Madam Chair, without mining. We have cobalt here. We have lithium here. Those are needed for batteries. We have rare earths here. We have gold here. We have minerals that are necessary to bring in a green economy.

If we were to shut down every single home in the Northwest Territories, 44,000 people, it would make a fraction of a dent, if any, on our carbon footprint. If we look at using what we have, we can actually help the world in actually looking at alternative energy. You cannot have alternative energy without mining. Everyone that says they can need to look at it again because even the clothes we are wearing, even the pencils and stuff we are using, things need mining. You can't look at it one or the other. We need all. Yes, we will change our messaging, not only around the regulatory process, but also around the green energy and how we can be a benefit in bringing the world into a greener economy. Thank you, Madam Chair.

Thank you, Madam Premier. Member for Hay River South.

Thank you, Madam Chair. In talking about messaging and getting the message out there that we are open for business, I believe that we have to send a positive message. If we keep saying that we have no money, we can't do anything, then I don't blame people for wanting to come here. With the mining industry, I know I made a statement a while back, and I got a few nasty notes from some of the guys. They have to realize that the resources in the Northwest Territories are owned by the people of the Northwest Territories, this government, and Indigenous groups. When mines are developed and put on stream, in one of the emails, it said, "It is the mining companies that pay for this." I guess they pay for it, but they use our bank account to do it, which is the resources. They end up with a profit at the end of it, and we end up with a little bit. Everybody wins to some respect.

I am not sure if they thought I was against mining, but when it comes to development, I am pro-development. I know we need it. We need a mixture of things to keep this economy going and to give us what we want in terms of housing and social programs. I reached out to the NWT Mining Association, and I said I would like to meet with them one-on-one and just talk. I will be an advocate under the right circumstances. We might have disagreements on the way to proceed, but I think it is important that we send out that positive message.

The other thing we have to do is, we have to make sure we have buy-in from the Indigenous groups and the mining companies and the politicians or the associations that support them. If we just keep butting heads, we are not going to get anywhere. We do need development. I will support mining development. I will support petroleum oil and gas development. I worked in it many years. I love that industry. It is fast-paced. It is up-and-down. It is an adrenaline rush is what it is. It put my kids through school and on and on. I think we need that. Again, at the same time, I understand that we have to protect our water systems, and we have to protect those type of things. We are downstream, and that is where we need our First Nation and our Indigenous organizations people to support us, because in that respect, they have more power than the Government of the Northwest Territories.

I am hoping that you, as Premier, and the Ministers can get out there and get that message that we are willing to work with the resource sector in promoting the North. If we have to deal with the red tape issues and regulations, let's try and deal with that. We are not going to change it maybe in our term, but we can at least start working towards something.

What else here? Everybody wants roads somewhere. Usually, they seem to go nowhere, but let's make them go somewhere. If there are industries or companies that want to do work up here, let's try to steer them towards some communities that do need roads, and maybe we can combine them. Otherwise, you know, we are just going to end up paying for something that we do not really need when we could put that money into housing or into something that has more impact. Other than that, I don't know. There is no question there, but I am just hoping that you will convey a positive message that, yes, we are not shutting anybody out. Thank you.

Thank you, Member for Hay River South. Do you want to respond, Madam Premier?

Thank you, Madam Chair. I agree it's important to work with Indigenous governments, the mining companies, and also the associations that support the industries. That was shown when we attended roundup, not only this year, previous years, as well. More and more Indigenous governments are taking part in it. They are coming down. They have got mineral resource strategies that are opening before them. They want the economy. We also need to make sure that we take care of our environment and jobs for people. When I was down at roundup, I said that before and I will keep saying it through my term: I am a diamond driller's daughter. I believe in the industry. We want money here. However, I am not supporting mines that are not having contracts for northern businesses and jobs for northern residents, and I was very clear with that to all of the mining companies.

The other thing is roads. It's easy to say, "I think that road systems are really important, not only to mineral resources, but to communities," and I have heard that argument here. People are saying, "We don't need the road to small communities. We're fine without it." However, I also see that people from this capital were complaining when they did not have a crosswalk going across the road from the Legislative Assembly. I do not think it's okay for Members to say, "We want our services by our communities, but we do not want to make sure that we have for all communities." My job as Premier, and even before that, my job as Minister, and even if I was a Regular MLA, our job here is to make sure that 33 communities prosper. We have many communities without road systems, and so, if we can get roads to communities and get resources on top of it, it's a win-win. Why would we not do that? Thank you, Madam Chair.

Thank you, Madam Premier. Member for Hay River South.

Thank you, Madam Chair. I just want to touch on where it says, "Increase local supply and production of natural gas." In the South Slave, there is potential to have some of the communities supplied by natural gas, and I think it's Fort Simpson, Hay River, maybe Fort Smith, as well, and some of the other ones, and then maybe move that into a line into Yellowknife. There is some preliminary work going on, and I brought this up before. We have the oil and gas people sitting in Inuvik right now, and I am not quite sure what they are doing, but they probably have time on their hands, I suspect. If we could use their services to look at and assist whoever in the South Slave is trying to bring natural gas into the North to heat homes and try to reduce costs, those are the type of things we need.

I know it's up to me, as well, to reach out to the Minister or whoever and get the parties together. I am not expecting you guys to do all the work. We have to do the work, as well. We can't just sit here and criticize. We have to help out, as well. Like I have said before, we have to have your backs, and you have to have ours. If we are going to move ahead, we have got to talk. When it comes to natural gas, I see an opportunity there. We have it here, but there has not really been a lot of discussion on it, and I would like to see us bring some natural gas into the NWT to supply some of the communities. Thank you, Madam Chair.

Thank you, Member for Hay River South. Madam Premier.

Thank you, Madam Chair. Yes, I absolutely agree. We need to not only look at natural gas. We need to look at things like hydro, as well. We need to get the communities, smaller communities, off of diesel. Diesel is not good for the environment. It's not good for people. It's not good for the cost of living, so we have an obligation to do that. I do know that some of the Indigenous governments in our northern communities, in Inuvik, are looking at not only for natural gas and how we use it in the territories, but also for exporting internationally. I think that we need to stay on top of it, and we need to be open to whatever opportunities we can get in the Northwest Territories. Thank you, Madam Chair.

Thank you, Madam Premier. Member for Yellowknife North.

Thank you, Madam Chair. I am looking at the line that says: "Increase [...] the mining incentive programs by 50 percent over the next four years." I see "Winter 2020, increase by 10 percent," and then I am going to the main estimates tabled today and see that the Mining Incentive Program has not increased by 10 percent, $100,000. Will we see a supplementary appropriation for $100,000 to increase the Mining Incentive Program in this session? Thank you, Madam Chair.

Thank you, Member for Yellowknife North. Madam Premier.

Thank you, Madam Chair. The budget that you see, that was presented by the finance Minister today as the O and M budget. It's the main budget. These mandates will have their own budget, and that is the process that we need to bring forward. We have money that is set aside just for the mandates. It's a matter that we do not have enough money for all of the mandates, so there will be tough decisions to be made. Thank you, Madam Chair.

Thank you, Madam Premier. Member for Yellowknife North.

Thank you, Madam Chair. I believe I heard the Minister of Finance state earlier that these will be brought in supplemental appropriations in the June sitting, so can I just confirm that we will not meet this mandate of winter 2020, increase 10 percent, and this should in fact be spring 2020?

Thank you, Member for Yellowknife North. Madam Premier.

Minister of Finance?

Thank you, Madam Chair. Any initiatives at this point that would be coming through from ITI would either have to be internally funded or would have to come through a supplementary appropriation.

Thank you, Minister of Finance. Member for Yellowknife North.

Thank you, Madam Chair. I am going to hold Cabinet to account here and say we have already made one error, and this will be spring 2020 is my guess, if we are getting this to $1.1 million, or perhaps ITI finds something. Anyways, sorry, I have lost my train of thought. No further questions, Madam Chair.

All right. Thank you, Member for Yellowknife North. Are there any further questions on "Increase resource exploration and development"? Seeing none, committee, we will move to page 21, "Reduce the cost of power and increase the use of alternative and renewable energy." Questions? Member for Kam Lake.

Thank you, Madam Chair. I am just looking at the second point here, "Expand the reach of energy conservation and efficiency initiatives." It notes that the intention is to partner with key stakeholders to provide these initiatives to those most in need. What I have found in talking to people within my constituency is that quite often our thresholds either are so low that people are not able to take advantage of programming or, if people do meet the threshold, they don't have the financing to actually go out and do the work and then be reimbursed down the road by organizations like the Arctic Energy Alliance. I am just wondering if we are going to make sure that the people that this program is intended for are actually supported to be able to take advantage of these initiatives. Thank you.

Thank you, Member for Kam Lake. Premier.

Thank you, Madam Chair. Deputy Minister Goldney would like to respond.

Thank you, Mr. Goldney.