Debates of March 12, 2021 (day 70)

Date
March
12
2021
Session
19th Assembly, 2nd Session
Day
70
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, 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

Supplementary Estimates (Operation Expenditures), No. 3, 2020-2021, Department of Health and Social Services, total department, not previously authorized, $18,413,000. Does committee agree?

Speaker: SOME HON. MEMBERS

Agreed.

Committee, we will now consider the department of Industry, Tourism and Investment, starting on page 8. Supplementary Estimates (Operation Expenditures), No. 3, 2020-2021, Department of Industry, Tourism and Investment, minerals and petroleum resources, not previously authorized, $150,000. Member for Yellowknife North.

Thank you, Madam Chair. This is $150,000 to support the Mackenzie Valley liquefied natural gas project. I believe the Department of ITI also has a corresponding territory-wide LNG feasibility study going on. It's a little hard to want to remove this when it's fully paid for by the federal government, so I'm happy to see that. My main concern here is that the IRC is actually quite a ways ahead of us, I believe, in some of their projects and their feasibility assessments, and in fact, they are actually doing some work. I'm just trying to get a sense of why or how the GNWT's feasibility assessments fit into the IRC's LNG assessments. I note they actually own most of the gas in this area. Thank you, Madam Chair.

Thank you, Madam Chair. I certainly want to be assuring the Member, and this would really be more broadly reassuring, that ITI has engaged with IRC and made them aware of the extent and nature of what is intended with this project. It is meant to be something that can be complementary to their work. It's not meant to be in competition at all, but really, again, complementary to the work that they are already doing to advance their potential industry in this regard. With this project here, it's looking at feasibility of one possible delivery mechanism for LNG, and the marketing analysis more generally, again, is really not only for resources that might be found in the IRC region, but in other regions in the Northwest Territories. Again, to that extent, it would be complementary and supportive of the industry growth. Again, I can't emphasize enough that it's meant to be complementary, and we are keeping them very much up to date as to what we are doing so that they can use the information we get. Thank you, Madam Chair.

Thank you, Madam Chair. I have a bit of concern with these feasibility studies. When the LNG pipeline finally died, there were quite a lot of comments from industries who had invested millions of dollars that they simply just were not trying again. There have been a lot of companies in the last few years who have looked at it and said it's not worth any private investment. I question what these reports do when we have them when industry is doing similar reports. What I am looking for is some sort of commitment that this feasibility economic analysis will be made public because it's one thing for the GNWT to have it, but we are never going to develop these resources. We need to find investors to do it. Can I get a commitment that these reports will be public, and hopefully, some investors can look at them and decide whether there is money worth investing? Thank you, Madam Chair.

Thank you, Madam Chair. I agree that the point of doing studies of this nature is to promote a potential industry and not to simply hold the cards to our chest. That doesn't benefit the government if we are trying to support the growth of an economic sector; but, and just a small "but," because, again, we do want to be respectful and engage with the Indigenous governments who are, in many cases, owners of the land or owners of these resources, I just want to ensure that, whenever we have done studies that they may have contributed to or may be relying on, I do need to go back to them first before putting studies out to the public so that we, again, ensure that what we put out is complementary to their efforts. Subject to that, I expect that we will be able to put some information forward. Thank you, Madam Chair.

Thank you, Minister. Any other questions? Member for Great Slave.

Thank you, Madam Chair. First, I just want to say that I think there was a lot of interest in this area and this topic when I was doing some travelling around and meeting with people, as well. I know it's mineral resources strategies that came out with Indigenous governments and organizations, that there was a lot of interest from other groups to also have similar strategies, and I think this also does apply into the oil and gas sector, as well. I do think there's a good synergy between the Department of ITI and these organizations. They work closely together and in conjunction. I know that the deputy minister makes a lot of effort to continue those communications. This is a great opportunity for us to look at our potential and for the federal government to pay for it, so my question is: do we anticipate this happening again, to further the studies of whatever may come out of this, because I am sure there will be recommendations for further work, or does the Minister feel this is just a one-time shot that we are getting from the federal government? Thank you.

Thank you, Madam Chair. Far be it for me to speak for the federal government, but certainly, Madam Chair, as far as just a sense of things, there is a growing interest in LNG right now, as there is a growing interest in a lot of green energy-related minerals and metals. I think both of those are areas that there is some potential and that the federal government is well-aware of that and that there is geopolitical interest in both of those. I am hopeful that, once these studies are done, that, again, not only are we sharing them with members of the public and, more specifically, members of the economic sector, but sharing them with partners in the federal government. I think that is an easier commitment, likely, to make in that it potentially could be shared confidentially, even if there are some elements that are limited. Thank you, Madam Chair.

Thank you. Member for Great Slave.

Thank you, Madam Chair. I would agree that, while, yes, you can't speak for the federal government, our inclusion in the national mineral strategy, I think, shows really quite favourable that they are looking at the North and recognizing the potential in the North. As well, we often heard about how our very strong regulatory system allows for certainty. Investors really like that and often speak to that. More of a comment. Thank you, Madam Chair.

Thank you. Are there any further questions? Member for Hay River South.

Thank you, Madam Chair. When it comes to oil and gas, that's kind of my favourite area. We are coming in, I think, to the five-year requirement for a review on the moratorium of oil and gas in the Beaufort Sea area. Keeping this alive, I think, is important and for this government to continue participating. Whether anything comes out of it, I am not holding my breath because of the price of gas right now. Our best bet would probably be selling to China or somewhere like that, to move it that way. There is an abundance of it around North America. I have no problem with this. It's paid by the federal government, and it allows us to continue our participation with Indigenous groups in the territories and maybe find ways to hopefully reduce cost of energy to communities in the Delta. More of a comment. Thank you, Madam Chair.

Thank you. Anything further? Supplementary Estimates (Operations Expenditures), No. 3, 2020-2021, Department of Industry, Tourism and Investment, mineral and petroleum resources, not previously authorized, $150,000. Does committee agree?

Speaker: SOME HON. MEMBERS

Agreed.

Supplementary Estimates (Operations Expenditures), No. 3, 2020-2021, Department of Industry, Tourism and Investment, total department, not previously authorized, $150,000. Does committee agree?

Speaker: SOME HON. MEMBERS

Agreed.

Committee, we will now consider the Department of Infrastructure on page 9. Supplementary Estimates (Operations Expenditures), No. 3, 2020-2021, Department of Infrastructure, regional operations, not previously authorized, $3,425,000. Does committee agree? Member for Frame Lake.

Thanks, Madam Chair. Item 10 here around accelerating construction of the ice road, crossings at Tulita and Wrigley. Presumably, we know if that was already done; it was well into the season. What actually happened? Thanks, Madam Chair.

Thank you, Madam Chair. Yes, it's done.

Thanks, Madam Chair. The money has been spent. Did it come to $125,000? I think it was being recovered from Enbridge, so has that already happened, as well? Thanks, Madam Chair.

Yes, Madam Chair. That is correct. This was a partnership with Enbridge to accelerate the construction here: a good opportunity and a good example of where government efforts were able to support a private sector project. As far as the specifics of where the actuals landed, Madam Chair, I don't have those actuals in front of me, but I do know that, as I said, the work has been done. I will simply confirm where the actuals came in. Thank you, Madam Chair.

Thanks, Madam Chair. It's great that the Minister can confirm it. Can she share it, as well? Thank you.

Thank you. Member for Kam Lake.

Thank you very much, Madam Chair. I am just looking at the $3.3 million that is being put back into the Yellowknife Airport Revolving Fund as part of the fees waived due to the COVID-19 pandemic response. I am wondering the total amount that it cost the Yellowknife Airport Revolving Fund to have the fees waived during the COVID-19 pandemic. Thank you.

Thank you, Madam Chair. The Yellowknife Airport revenues are expected to be down $12 million as a result of almost nine months of having fees waived over 2020-2021, a significant decrease. Thank you, Madam Chair.

Thank you very much, Madam Chair. I think, just a placeholder for lessons learned during the COVID-19 pandemic, and while I appreciate that speed is much more important over perfection when we are making decisions like this, there were a number of businesses that do have leased land out on the airport property that did quite well during the pandemic and a number of businesses who weren't lucky enough to be on the airport land during the pandemic who didn't fare so well. I think that this is important to put in our lessons learned from the pandemic as to how we do economic support and economic recovery during pandemics so that we can be quick and efficient next time. Thank you.

Thank you, Madam Chair. Always happy to take lessons learned. I would only, perhaps, suggest, if the Member wanted to follow up with me about, more specifically, what she is pointing at, that would only help us learn those lessons better. Thank you, Madam Chair.

Thank you, Minister. Member.

I'm good. Thank you.

Any other questions? Member for Hay River South.

Thank you, Madam Chair. I just want to go to the $125,000 for the accelerated construction. Again, that is related to, I think, an oil and gas activity. I think it's important that we participate and we assist, especially when it comes to the ice roads because that should be our expertise here in the Northwest Territories, to ensure that any projects that may be in the area happen because it's a big economic boost to the communities in the surrounding area. My understanding is that this year it was all the way from Fort Simpson up into the Tulita area. I am glad that we got the money. I am glad that the road was built and that there was some benefit to the communities and businesses in that area. That was more of a comment. Thank you.

Thank you, Member. If there are no further questions or comments? Supplementary Estimates (Operations Expenditures), No. 3, 2020-2021, Department of Infrastructure, regional operations, not previously authorized, $3,425,000. Does committee agree?

Speaker: SOME HON. MEMBERS

Agreed.

Supplementary Estimates (Operations Expenditures), No. 3, 2020-2021, Department of Infrastructure, total department, not previously authorized, $3,425,000. Does committee agree?

Speaker: SOME HON. MEMBERS

Agreed.