Merci, Monsieur le President. My questions are for the Minister of Industry, Tourism and Investment.
I was surprised to see a presentation on modeling of mining royalties at the November geoscience forum from a consultant hired by her department. I understand that this Vancouver consultant was hired through a sole sourced contract for $75,000.
Can the Minister confirm the hiring process and amount for this consultant and explain why this work was sole sourced? Mahsi, Mr. Speaker.
Thank you, Member for Frame Lake. Move Minister responsible for Industry, Tourism and Investment.
Thank you, Mr. Speaker. Mr. Speaker, right now there's actually two contracts, and individually I believe they both come under the limits for what is permissible for sole sourcing; however, they are going to one individual or one entity. So I'm certainly live to the reasons for that and very live to the reasons why a department would want to use a sole source. One of them is where the party or entity that you're contracting to is really is the only or essentially the only entity or person who can do certain work. In this case, models are, as I understand it, maybe not quite proprietary but certainly close to it. So rather than having to go out and have to rebuild and reexamine the entirety of the process, they are seeking to have the same person build these models and work off of those models in order to ensure that there's some consistency with the work that's been done and avoid any unnecessary risk to get everything done in a timely fashion.
I would note that this individual does have a fairly high degree of expertise in this area, does exactly this type of modeling for the federal government, and so that was the basis of going with this party. Thank you, Mr. Speaker.
Merci, Monsieur le President. I want to thank the Minister for that. This consultant seems to have already concluded the NWT is doing just fine with regard to its competitiveness and royalty regime. Can the Minister explain what this consultant has been asked to do and when that consultant's work will be made public? Mahsi, Mr. Speaker.
Thank you, Mr. Speaker. Mr. Speaker, so again, this is work that's being done to develop models. This has been something that I know I've spoken about in this House more than once in the last year with respect to the process for as part of developing the regulations and specifically with royalties, that there would be a process by which different models were run through prototype models were run through to actually best understand what we're looking at before we make final policy decisions for the kind of royalty regime we want. That is the process that they're in right now and to develop exactly those different models and then to apply those models to different types of mines, different types of mine prototypes.
So once that's done, there will be an independent third party review done as a sort of verification process or an auditing process and that will go out through RFP to ensure that, again, that there's enough appropriate level of expertise and eyes on the different models and approaches before the final decisions are made. Thank you, Mr. Speaker.
Merci, Monsieur le President. The Standing Committee on Economic Development and Environment hired an independent expert with global experience, you know, helping governments manage resources. And that consultant found, quote, "NWT sells its nonrenewable resources more cheaply than most other jurisdictions in the world", end of quote.
ITI also commissioned the Natural Resources Governance Institute that found, quote, "NWT has one of the world's most charitable fiscal regimes for the mining sector", end of quote.
Can the Minister tell us whether her department considered hiring these other experts and what role, if any, these other studies will play in the modeling of mining royalties? Mahsi, Mr. Speaker.
Thank you, Mr. Speaker. Mr. Speaker, this is an area that has been covered many times here with respect to whether or not, in fact, there's been a conclusion around competitiveness or non-competitiveness. And, Mr. Speaker, certainly one has to consider the fact that if there are no mines or less mines then there's no worry about there being any benefits because there won't be any benefits. There will be less benefits or no benefits. So, yes, the fact that there's going to be some disagreement on this one, I think, between the Member and I. That said, again, the feedback and response that we've had from standing committee, from other experts, has been considered; it is part of the "what we heard" report; it's part of the total package that goes to the technical working group of IGCS, or the Intergovernmental Council, and who then are able to direct what kinds of models should be done so that ultimately decisions can be made going forward as to what the final results should look like. Thank you, Mr. Speaker.
Thank you, Minister. Final supplementary. Member for Frame Lake.
Merci, Monsieur le President. I want to thank the Minister for that. It's not clear who is really directing the modeling or how it's going to be done. Is it ITI alone, the Intergovernmental Council, the mining industry? Will there be any attempt to analyze past performance of the royalty regime or model what could have happened with government revenues or internal rates of return? We've got eight years now, Mr. Speaker, of real live data we could be working with. So can the Minister tell us who is directing the modeling, whether the public will get a say, and whether any modeling will be done of past performance? Mahsi, Mr. Speaker.
Thank you, Mr. Speaker. I'm surprised it's unclear, Mr. Speaker. ITI is the government lead on the Mineral Resources Act and has been now for well many, many years, long before my time. And it's, I think, quite well known we're quite proud of the fact that this is being codeveloped with the ICGS, or Intergovernmental Council. There's a working group there, as I know I've spoken to many times before. And while ITI is the lead, certainly this has, of course, gone back to the partners and the codevelopment partners at ICGS. They've helped to develop the policy options that are being modeled and that and also we'll be basing that on historical production as well as looking to the future of what types of models are required such as, for example, base metals. So that is where it's at. That's who is directing it and looking forward certainly to seeing that work move forward, reminding of course that along the way certainly, Mr. Speaker, I remain available and open to having opportunities to speak to the Member or others about what is happening. Thank you, Mr. Speaker.
Thank you, Minister. Oral questions. Member for Kam Lake.
