Debates of June 2, 2020 (day 26)

Date
June
2
2020
Session
19th Assembly, 2nd Session
Day
26
Members Present
Hon. Frederick Blake Jr, Mr. Bonnetrouge, Hon. Paulie Chinna, Ms. Cleveland, Hon. Caroline Cochrane, Mr. Jacobson, Mr. Johnson, Mr. Lafferty, Ms. Martselos, 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
Statements

No, that's fair. Thank you very much, Madam Chair. In that case, I will wait and we'll continue this conversation later. Thank you.

Thank you. Seeing that we have gone through everybody, any more -- oh, Member for Monfwi.

Masi, Madam Chair. The community transfer initiatives, $1.6 million. That doesn't really specify what it's for. It just says it's contributions to provide funding for the services of economic development officers. What does that entail? Masi.

Thank you, Member. Minister.

Thank you, Madam Chair. We support communities to have their own employees within the community to do their own economic development, so that money goes to regional governments for their own hiring in that area. Thank you, Madam Chair.

Thank you, Minister. Member.

Masi, Madam Chair. Similar to the Member for Thebacha, the breakdown in the regions. Obviously, I'm very interested in the breakdown to my communities. If the Minister doesn't have it, could that be provided, as well? Masi.

Thank you, Member. Minister.

Thank you, Madam Chair. I will probably provide it, because it is a big list, but I can look for -- I have to see what your organization is called, here, just one second. I'm not seeing you guys. I think you'd be under the Akaitcho? No. They're not done by regions, my apologies. Some of them are regions; some are business development centres. How about we'll return to the Member with that as a written answer? Thank you, Madam Chair.

Thank you, Minister. Member.

Masi, Madam Chair. The community futures, $825,000. It has been existence before I started with the GNWT, because I was on a band council involved in the establishment in my community of Behchoko, so I would say 20 years. It's been very, very useful programming because what tends to happen is that individuals, entrepreneurs, apply for certain BDIC, Metis Dene Development Fund, and others. If they don't qualify, then the last resort, basically, it falls on the community anyways, but $825,000 seems like it's not enough to stretch across the Northwest Territories. I'm just wondering why that number is low, I guess. Has that been fully utilized across the Northwest Territories? Masi.

Thank you, Member. Minister.

Thank you, Madam Chair. First, Madam Chair, I'm just going to return. I do have your number; I didn't scroll far enough over. For the Tlicho Government, we provide $292,000 for the economic development officer, the initiatives there. Then, back to the community futures, those are always very well over-subscribed, definitely. I know that is one that we do in conjunction sometimes with CanNor, and such, and they provide funding that way, as well. So there were 18 of 19 vacancies on that last time; that's why there's the variance, there.

Yes, I would agree, community futures is an area that we definitely want to explore in supporting. I personally would prefer to see communities doing their own work and empowered and in control of their own projects and their economic development, rather than thinking that the GNWT can do it better for them. They know what they need, so I'm supportive of that. Thank you, Madam Chair.

Thank you, Minister. Member.

Masi, Madam Chair. Definitely, I think this is an area of interest. If there could be some sort of a nominal increase, I think it would go a long way in the communities.

Madam Chair, just moving on to the Canadian Agricultural Partnership. This is highlighted as an agreement between the federal government and the Government of the Northwest Territories. As you've heard and noticed, the Gameti has been involved with growing their own vegetables, potatoes, and even animals there. They have done a lot to start off, but, at times, there were some struggles with getting funding through the GNWT. I can only speak to the past; there has been some red tape that they were struggling with and I have had to help out a bit. I'm just wondering: where are things standing? Because, right now, it says $488,000. If it's between the federal government and the GNWT, what is our contribution, from the GNWT's perspective, when an individual wants to start agriculture in the community, whether it be planting seeds or vegetables, or whatnot? Where is that specified in this budget, aside from the $488,000, Madam Chair? That will be my first question. Masi.

Thank you, Member. Minister.

Thank you, Madam Chair. We pay 40 percent and the federal government pays 60 percent of the funding under the CAP program. Thank you, Madam Chair.

Thank you, Minister. Member.

So, Madam Chair, is that the overall budget for agriculture in the Northwest Territories? Masi.

Thank you, Member. Minister.

Thank you, Madam Chair. The total for the year is $1.2 million. This is our contribution. Thank you, Madam Chair.

Thank you, Minister. Member.

Masi, Madam Chair. Just to finish off, distribution. Obviously, each Member always has a keen interest in the funding going to our region, and more specifically I'm speaking about Gameti. My four communities, what was their contribution? If the Minister doesn't have that at their fingertips, then if they could provide that, it would be greatly appreciated. Masi.

Thank you, Member. Minister.

Thank you, Madam Chair. In Gameti, we spent $18,536. In Whati, we spent $6,500. In Wekweeti, we spent $4,000. Now, you're going to make me know all of your communities. Sorry, I don't have them on here, so maybe I'll just ask Ms. St-Denis to confirm for the remainder of the Member's region. Thank you.

Thank you, Minister. Ms. St-Denis.

Speaker: MS. ST-DENIS

Thank you, Madam Chair. The CAP budget is actually divided amongst the five regions and is application-based. The Minister has highlighted some of the communities in the Tlicho region that have applied for funding, so there is definitely interest in those communities for growing food. Thank you.

Thank you, Ms. St-Denis. Member for Monfwi. No? Are there any further questions under the economic diversification and business support? Seeing none, please turn to page 202. Industry, Tourism and Investment, economic diversification and business support, operations expenditure summary, 2020-2021 Main Estimates, $17,966,000. Does committee agree?

Speaker: SOME HON. MEMBERS

Agreed.

Thank you, committee. We are going to move on to ITI, minerals and petroleum resources on page 206, with information pages up to 209. Questions? Member for Yellowknife North.

Thank you, Madam Chair. The Minister had previously made statements that she is working with industry as a number of exploration companies don't qualify for federal wage subsidies as they don't have revenue. They typically don't lose revenue or make revenue, exploration companies. This puts a lot of our smaller exploration companies in a difficult position of not being eligible for federal programming. Can the Minister update any advocacy work that is done with the federal government or whether there is any intention to fill that gap from the department? Thank you, Madam Chair.

Thank you, Member. I have just been advised. Sergeant-at-Arms, we are going to change some of the witnesses. Minister, which witnesses?

[Microphone turned off] ...will leave, and we will bring in our director of finance and administration. My apologies. I tried to catch you. No. It's all good.

[Microphone turned off] ...time yet, Mr. Johnson, in case you have to repeat your question. Minister, if I could just have you introduce your witness for the record? Thank you.

Thank you, Madam Chair. I would like to introduce Ms. Nina Salvador, our director of finance and administration. Thank you.

Thank you. Welcome, Ms. Salvador. I am going to give the question back to the Member for Yellowknife North to re-ask, just in case we need to. Thanks.

Thank you, Madam Chair. A number of exploration companies are not eligible for federal wage subsidy programs given that they don't really have revenue or have the qualified drop in revenue. Can the Minister update me on any advocacy work to address this gap with the federal government or any intentions for the department to address this gap? Thank you, Madam Chair.

Thank you, Member. Minister.

Thank you, Madam Chair. Since this has all started, I have been meeting very regularly with our mineral resource extraction sector, including the Nunavut and NWT Chamber of Mines as well as Indigenous development corporations who rely heavily on the resource sector, as well. We all work together to come out with a united voice so that I am more informed when I am at my federal tables as to their asks and their gaps and the lack of ability to access some of the federal programs. At every single one of my federal tables, I raise these issues. I have had one-on-one bilateral meetings with Ministers of NRCan and with infrastructure Ministers, as well, because there is some element of infrastructure to do with the mining sector. Also, we have advocated long and hard for the airline industry and the airline supports as they are also critical to the mining and exploration companies.

We are currently in the process of finalizing a pan-territorial letter between the three territories, myself and my counterparts in the mining Ministers for the Yukon and Nunavut, asking the federal government to look at these gaps and the wage subsidies benefits that have been provided. We have just been tirelessly advocating. We have sent letters. We have recommended or endorsed letters from our chambers of commerce on this subject. As I mentioned, we have a weekly meeting, bi-weekly meetings. We are meeting with the mines. I would say this has been a major focus of ITI, advocating and identifying the gaps. Unfortunately, the federal government has not moved fast enough, I would say on listening to us telling them what the gaps are, but we have been vocal. The Premier has been vocal, as well, with the federal government, with the Prime Minister about these gaps and the importance of the resource sector to our economy. Thank you, Madam Chair.

Thank you, Minister. Member for Yellowknife North.

Thank you, Madam Chair. I hope there is a solution to this issue soon. Another issue, as the Minister is well aware, Dominion Diamond is in creditor protection, under that list of creditors is a long list of northern businesses, many small businesses that got hit with an economic recession, had cash-flow problems, and now are looking at potentially not having their debts covered. I know there is a new recent agreement for Washington companies to purchase Dominion's assets. Can the Minister update committee on any advocacy work that the department has been doing and any sense of whether those northern creditors are going to get their money in this new deal? Thank you, Madam Chair.

Thank you, Member. I will allow this question, but please make sure that comments stay general. Thank you.

Thank you, Madam Chair. We do have external counsel as the Government of the Northwest Territories, who is in the court advocating or taking part in the proceedings on behalf of the GNWT and our own interests in this situation. We also have been advocating with the court for northern businesses to be paid first out of the list of creditors. However, that is not a legal requirement, is my understanding. I am not going to profess to be a CCAA expert, but I think our role in that is just in advocacy. We don't actually have a legal right to ask for that is my understanding. We have been working very hard with my counterpart in the Department of Finance and Justice to keep an eye on this. The department itself has been modelling different scenarios as what it will mean to our economy with the different potential outcomes this.

We have been talking lots with the other two operating mines, as well, to ensure that they are going to not be able to be served by northern contractors who may be fiscally impacted by the CCAA filing. We do recognize that several of our construction companies, et cetera, our business development corporations are creditors on this list. We have asked that the two operating mines identify any contractors they felt were struggling or potentially were going to have concerns themselves about cash flow and liquidity, to identify those to my department soon so that we can reach out to help them with the other supports that we have available, the business supports within the GNWT itself. We are just very carefully monitoring this situation. Wherever we can offer supports to step in and help those businesses that have been affected, we are. Thank you, Madam Chair.

Thank you, Minister. Member.

Thank you, Madam Chair. Yes. I would appreciate some regular updates on that process. I think there is a lot of interest in the public to making sure and understanding. It's a very complicated process. I think a lot of northern businesses are nervous. I think a little more public outreach on what exactly is occurring and what the GNWT's role would be appreciated. I want to move to the $4,935,000 for mineral and petroleum resources. I have no issue with the first half, the mineral, but I have quite a few issues with the second half, petroleum resources.

At one point someone would pay you to take a barrel of oil. LNG, we have seen basically that the market has no interest in investing in LNG infrastructure right now. BC's investing billions of dollars, and that project is taking a huge risk on what the future of LNG says. I really question throwing good taxpayer money after bad in this year. I know we have an oil and gas strategy, but I think we could probably throw it out the window considering what the oil and gas economic complete uncertainty is. I think we really have to wait for the market to settle down a year or two before we put any more money into oil and gas.

My question is: in this line item, how much is spent on the minerals, and how much is spent on petroleum resources, if the Minister could give me a general idea of breaking that out? Thank you, Madam Chair.

Thank you, Member. Minister.

Thank you, Madam Chair. As the Member expresses that opinion, I can see on the faces of other Members that they maybe do not share that opinion. I think this is a much more complex situation than at this moment in time. "Gas is not looking good, so therefore we'll just throw it out the window." I would caution that that is not quite prudent or responsible of our government to do so. There is a lot of interest in LNG in the Beaufort-Delta.

Perhaps, if the Member is not aware of that, then I am lacking in communicating and educating the Member on what that department is doing up in the Beaufort-Delta. I commit to going be back to the Member and providing him with a briefing on our oil and petroleum sectors. We don't split them out. These are people and staff in an office that do both, and they work in many sort of facets, so, no, there is no hard separation between mineral and petroleum. Thank you, Madam Chair.

Thank you, Minister. Member.

Thank you, Madam Chair. I get there is a bit of a politicization of oil and gas. My concern is that the strategy is based on one market reality that has significantly changed. Perhaps I will try again. Can I get a sense of whether we have specific positions and how many work on petroleum versus minerals? Thank you, Madam Chair.

Thank you, Member. Minister.