Debates of March 9, 2021 (day 67)

Date
March
9
2021
Session
19th Assembly, 2nd Session
Day
67
Members Present
Hon. Diane Archie, Hon. Frederick Blake Jr., Mr. Bonnetrouge, Hon. Paulie Chinna, Ms. Cleveland, Hon. Caroline Cochrane, Hon. Julie Green, Mr. Jacobson, Mr. Johnson, Mr. Lafferty, Ms. Martselos, Ms. Nokleby, Mr. Norn, Mr. O'Reilly, Ms. Semmler, Hon. R.J. Simpson, Mr. Rocky Simpson, Hon. Shane Thompson, Hon. Caroline Wawzonek
Topics
Statements

Oral Questions

Question 642-19(2): RCMP Housing Units

Thank you, Mr. Speaker. My questions are for the Minister responsible for the NWT Housing Corporation. I'd like to ask the Minister if she confirm the construction status of the RCMP houses in Hay River? Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Member for Hay River South. Minister responsible for the Northwest Territories Housing Corporation.

Thank you, Mr. Speaker. We had announced 22 of the 42 RCMP units would be constructed this year. We are looking at completion for the Northwest Territories as of October 2021. Thank you, Mr. Speaker.

I would also ask the Minister to confirm how the design and the square footage of these units, especially for Hay River, was determined.

The RCMP units are a federal initiative that took engagement with the RCMP and the federal government. The federal design was submitted and approved by the federal government. The design was from the RCMP.

I would ask the Minister if she knows if the RCMP members were consulted on the design. I ask this question because the units appear small and seem to lack storage space, which I'm sure those with larger families would require if they're coming North.

Our conversations were with the RCMP and with the federal government for Canada. I'm not too sure about the consultation they would have done with their members. I don't have that information.

Speaker: MR. SPEAKER

Thank you, Minister. Oral questions. Member for Hay River South.

Thank you, Mr. Speaker. Would the Minister know if the RCMP members are required to move out of their current houses and into the new units, and what will happen with the units they move out of, if they are required to move out? Thank you, Mr. Speaker.

Absolutely, the RCMP members, I hope they're moving into the units after we built them. It's their project. Also, for the Northwest Territories Housing Corporation, as the Minister, I am questioning the vacancy of the federal units that will be vacated by the RCMP members, and I am hoping to acquire them by the Northwest Territories Housing Corporation, that we would hopefully be eligible to be administering them and they would be transferred over to us. That's a conversation that would be further with the federal government. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Oral questions. Member for Nunakput.

Question 643-19(2): Aging Housing Units in Nunakput

Thank you, Mr. Speaker. I'm just excited because we've got five new units and the RCMP have got to get moved out, potentially. Today, I brought up aging housing units in my riding of Nunakput. I'm asking today: can the Minister tell me how fast we are accessing renovation funds per community in my riding to start planning renovations for this coming summer? Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Member for Nunakput. Minister responsible for the Northwest Territories Housing Corporation.

Thank you, Mr. Speaker. Last year, when we had started the restrictions and we started to act on COVID-19, the Housing Corporation had acquired $5 million and had distributed that amongst the LHOs in the smaller communities for housing repair. Right now, for your region, we have a number of units that are under repair and scheduled to be completed for this year. Just for the Member, we do have new construction built for Ulukhaktok, where we have two public housing units that are coming up, which doesn't seem like very much, but then it's the retrofits that we do have throughout the territory, where we have to bring these public housing units up to standard. I'm looking at hopefully completing the public housing repair this year of 2021. Thank you, Mr. Speaker.

Are there any plans to replace the old Weber units that were built in 1970 in communities? Like, take them off the books and be able to bring in new builds in regard to the community, for each community in my riding, and be able to bring in new units for the people, and maybe even more complexes?

I'm quite eager to start working with home ownership throughout the Northwest Territories. The Weber units, we are working on a strategy within the Housing Corporation to have these units up for sale, to transfer them over to the public housing tenants who are acquiring the single-family dwelling units. We do have a rollout of units that will be coming together within the next few months. I don't have that list in front of me, as it hasn't been finalized. Just to try to speak about the Member's comments about his riding and looking at the condition of the homes in those communities, as well, these are shoreline communities, so I hear the Member on the damages that are quite significant in that riding. We are working as a Housing Corporation, and we are also working with the Indigenous groups in that riding, as well, to access the co-investment fund. Hopefully within the next couple of weeks, we will have an announcement to make.

I want to thank the Minister for that. This is a question in regards to getting ready for the summer retrofits and renovation season. I'm just wondering if we could get the third party to come into the communities to go and see every house in, say, Sach's Harbour and Paulatuk and Ulukhaktok to see, under the housing renovation, what the house needs and to see what is accessible to do for this coming year and be able to get it on the barge before winter season comes again. Is that possible, and using local hire to do that?

Condition rating is a priority, as well. We are looking at the public housing units. I know that we are reaching the 40-year mark for them, and yes, I will have my staff go into the Member's riding and to take a look at the conditions of the units that are there because I'm quite interested to see the amount of retrofits we need to get done for that riding and making sure that we do get material into that riding on time.

Speaker: MR. SPEAKER

Thank you, Minister. Final supplementary. Member for Nunakput.

Thank you, Mr. Speaker. I thank the Minister for that again. I would like to see if the Minister is able to commit to a tour this summer and not only that, but making sure that local people are hired to do the jobs and not bring in outsiders because outsiders, that's the problem that we've been having in my riding. I need local hire and local contractors to get those contracts so we're providing jobs for the community and it's done locally on a timely and cost-effective manner. Thank you, Mr. Speaker.

I am a supporter, as well, for local hire, but some of the retrofits that are required, we do need the expertise to be flown in and to pass the inspection of the work that is potentially going to be done. I don't know the level of work that needs to be done, but I will keep the Member informed as we go forward and looking at possibilities of working with those specific communities. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Oral questions. Member for Deh Cho.

Question 644-19(2): Government of the Northwest Territories Energy Plan

Mahsi, Mr. Speaker. I do notice that former Premiers' photos are in the past energy reports, so my questions are for the Premier even though her photo is not in one yet. The Premier must be aware of the need to get a grip on the escalating cost of living in the territory. Has the Premier provided direction to Cabinet to come up with innovative ways for energy savings to curb the cost of living? Mahsi.

Speaker: MR. SPEAKER

Thank you, Member for Deh Cho. Honourable Premier.

Thank you, Mr. Speaker. I'll begin this line of questioning. I am just totally unhappy that my picture is not in the energy strategy. I have to say that, Mr. Speaker. Do I have a grasp on the cost of living? Mr. Speaker, I've said it more than enough times. I was a single parent for many years. I exactly know how hard it is to live in the Northwest Territories, so I will just stop at those questions. Thank you, Mr. Speaker.

Some of the largest energy users of fossil fuels are the Northwest Territories Housing Corporation, the Northwest Territories Power Corporation, and Marine Transportation Services. Can the Premier commit to directing the departments to submit energy plans to guide the long-term development of secure, affordable, and sustainable energy for transportation, heat, and electricity?

I do know that we have a long-term energy strategy. However, it is not done in my portfolio. It is the Minister of Infrastructure, so I'd like to defer the questions to the Minister of Infrastructure.

Speaker: MR. SPEAKER

Thank you, Honourable Premier. Minister of Infrastructure.

Thank you, Mr. Speaker. We have under the 2030 Energy Strategy, the GNWT and its partners will invest $400 million over the life of this strategy. These are to ensure we have a reliable energy system as well as to address some of the cost of the energy, reduce greenhouse gas emissions. We are on track to meet the strategic objectives of the energy strategy. We rolled out the new GNWT greenhouse grant program for governments, buildings, and industry to be able to support alternative energy and efficiency. We've also doubled some of the Arctic Energy Alliance funding to be able to efficiently triple the amount of reliable rebates available to residents, businesses, as well as communities. We're also setting the stage for our larger energy projects such as hydro power. With that, Mr. Speaker, I think that just goes to show that, within our current strategy, we are meeting some of our standards. Thank you, Mr. Speaker.

Vision from 2020 was founded upon the goal of reducing imported fuels and greater utilization of local and renewable forms of energy. Can the Premier commit to developing a comprehensive biomass strategy that can be utilized by all departments, including NTPC?

I thought I heard Premier in there, but that's fine. We are always looking at ways to be able to reduce some of the costs, especially to the public, NTPC, housing, Housing Corporation. That's why we buy bulk, and we use MTS to be able to deliver some of our fuel services up and down the Mackenzie Valley Highway -- soon, we'll have a highway, it's just the Mackenzie Valley.

Speaker: MR. SPEAKER

Thank you, Minister. Oral questions. Member for Deh Cho.

Thank you, Mr. Speaker. All my questions are all related to biomass strategy and not to liquid fuels. Electricity rates keep climbing every time the price of diesel goes up. I note the hydro dams and plants burn up a significant amount of diesel to operate. Can the Premier or Infrastructure Minister commit to having NTPC find innovative strategies to lowering their greenhouse gas emissions using biomass, and that, in turn, lowers the cost of electricity customers have to pay? Mahsi.

The Government of the Northwest Territories has delivered a number of biomass projects to be able to reduce greenhouse gas emissions and also operating costs. The use of wood pellets, boilers, has proven to be a reliable technology for the NWT and the residents. As well as businesses, local and territorial governments have all benefited from some of these successes. The use the biomass heating, like the Member mentioned, is considered for all GNWT facilities, and are currently being constructed. These are some of the projects that we are doing now, and like I said, we talked about the 2030 Energy Strategy and also the action plan. This is stuff we're working on. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Oral questions. Member for Frame Lake.

Question 645-19(2): Husky Energy Significant Discovery License

Merci, Monsieur le President. My questions are for the Minister of Industry, Tourism and Investment. Last week, the Minister revealed that she is working on issuing a significant discovery licence for Husky Energy under the amended Petroleum Resources Act. This will be the first significant discovery licence issued under our improved regime. Can the Minister tell us whether she's going to consult Sahtu communities, Indigenous governments, and Regular MLAs before issuing the significant discovery licence? Mahsi, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Member for Frame Lake. Minister of Industry, Tourism and Investment.

Thank you, Mr. Speaker. The Government of the Northwest Territories does indeed consult with Indigenous governments, Indigenous organizations at the stage of when there's a call for bids. It is much earlier in the process than where this particular item is at. In this instance, what is relevant here is Section 30 of the new Petroleum Resources Act, which actually says that the Minister shall issue the significant discovery licence if certain conditions are met which, indeed, they are here for Husky. As such, I won't have any discretion in this particular instance. The reason that the consultation takes place earlier and, in this case, took place, was under the previous federal regime. Thank you, Mr. Speaker.

That's great to hear. I hope this is not going to be another resource giveaway, but the Minister sort of prefaced my next question: Section 30.3 of the Petroleum Resources Act says that a significant discovery licence "may contain any other terms and conditions as may be agreed on by the Minister and the interest owner of the significant discovery licence." It's not clear whether that means the Minister can impose work requirements or annual fees that could even rise over time or whether Husky Energy has a veto. Can the Minister tell us whether it is her intention to pose any terms and conditions in this significant discovery licence that require exploration to be carried out, northern benefits, or annual fees?

As I mentioned earlier, the particular instance here of Husky Oil is one where the call for bids stage took place in 2011-2012 under a pre-devolution regime, under a totally different regime than that which is envisioned by the new Petroleum Resources Act. The new act certainly does give the opportunity at the earlier stage of that call for bids to include rentals and fee structures and opportunities to really increase the possibility for revenue, but again, in this particular instance, we are well past that stage. I would also note that, yes, the new act includes the opportunity for issuing benefit plans, and in this instance, Husky would still, should it choose to proceed undertaking activity, have to go through the process of submitting a benefit plan. With respect to those parts of the process where they predated the current regime, there is not a fair opportunity at this stage to be imposing items that weren't there previously.

However, this is a somewhat unusual situation. Husky is, I believe, one of the last if not the last occasions where we are pulling something that happened in this pre-devolution time and putting it into the new act with the new stage as it goes through its evolution of its licence from the call for bids through to production. The questions being asked are ones that, in the future, when we are looking at new discoveries, I'll be able to answer a strong and firm yes into the future with those new projects.

I'm a bit perplexed at what I just heard. We changed this legislation in the last Assembly so we would give the Minister the authority to impose terms and conditions to get northern benefits; otherwise, we just give the company a significant discovery licence and they can sit on it for 15 years and do nothing. Is this Minister going to use her discretion to impose some terms and conditions to get northern benefits, or is she just going to give Husky Energy a blank cheque?

Again, this is an occasion where Husky originally had their processes done or their bids done in 2011 and 2012, and there is an element of fairness in the regime that we have to ensure to include at all times so that no business or industry of any sector is going to think that they come in here under a certain regime with a certain set of expectations and have it changed under them. In this case, while yes, if they intend to go out onto the land and conduct activities, they will have to be filing their benefit plans, and those benefit plans then have to now be made public. That is under the new regime. It is a tremendous opportunity for northern communities, but with respect to imposing, now, rentals and fees when they didn't have those imposed on them in the past, no, we're not going to be dragging something from 10 years ago and applying this. That's not fair, and that's not the right way to do business. In this particular instance, again, the act is getting that power now looking forward, and certainly, that's something that everyone can move forward understanding what that regime is going to be so that, into the future, there will continue to be those opportunities.

Speaker: MR. SPEAKER

Thank you, Minister. Final supplementary. Member for Frame Lake.

Thanks, Mr. Speaker. I want to thank the Minister for that. In the existing exploration licence for Husky Energy, there already is an annual fee per hectare the company has to pay. Now, is the Minister prepared to keep that kind of annual fee in the significant discovery licence, or is she just going to give everything away? I want to know from the Minister: she has discretion to do the right thing and secure benefits for the North. Is she going to do that, or is she going to give this away, not even include an annual fee, as there is in the current exploration licence? Will she impose a fee in the significant discovery licence, same as what's in the exploration licence? Mahsi, Mr. Speaker.

This licence has been subject to significant review from the Department of Justice because of the fact that there was so much that had to come in from the past and into the present. That has been some of the challenge here. I'm not trying to avoid the question. I'm just trying to make sure that I'm not here on the floor of the House getting into something that really has gone through significant legal review, as I've said. I would certainly not expect that there is going to be less fees offered or a freer ride now than what it has been in the past. The significant discovery licence here flows from the exploration licence that was in place, and I'm quite certain that we will continue to follow that approach and looking for it. If they are going to look to renew, which is one of the new benefits of the act, then they are going to be looking to renew knowing that there is now this new regime in place where there may be additional or enhanced fees and additional or enhanced reporting, and additional or enhanced requirements. Again, I'm simply trying to steer us to the fact that, as we go forward, there is a new act that gives a lot more power and puts a lot more expectations on the industry. Thank you, Mr. Speaker.