Debates of September 28, 2023 (day 163)

Date
September
28
2023
Session
19th Assembly, 2nd Session
Day
163
Members Present
Hon. Diane Archie, Hon. Frederick Blake Jr., Mr. Bonnetrouge, Hon. Paulie Chinna, Ms. Cleveland, Hon. Caroline Cochrane, Mr. Edjericon, Hon. Julie Green, Mr. Jacobson, Mr. Johnson, Ms. Martselos, Ms. Nokleby, Mr. O’Reilly, Ms. Semmler, Hon. R.J. Simpson, Mr. Rocky Simpson, Hon. Shane Thompson, Hon. Caroline Wawzonek, Ms. Weyallon Armstrong
Topics
Statements

Thank you, Mr. Speaker. Mr. Speaker, I just want to note that this matter is before the courts, and I don't have a lot of detailed information that I could share on the floor of the House. I do want to note, though, that I have shared detailed information with the Member to be able to go through the whole process on what's happened on this project. I also want to note that direct payments to that are made by NT Energy to the subcontractors would not offset outstanding contract amounts between the primary contractor for access to the road and its subcontractors. Mr. Speaker, this could result in NT Energy paying for the same goods and services twice and at the detriment of NWT taxpayers. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, my colleague has just said we as a territory are planning on wanting to build probably more than a $2 billion project. I would feel sorry for those contractors now because are they going to get paid for any of the work that they do? So I want to know how this Minister's going to fix this. And sending my small businesses to go and find a lawyer to fight things in court is not an answer. They need to be paid, and I want this Minister to make sure and commit in the House that she will rectify this before our term is up. We don't have much longer, Mr. Speaker.

Thank you very much, Mr. Speaker. Mr. Speaker, I would also like to see these local contractors paid as soon as possible. We are working with the contractors to be able to direct them to be able to get their payments. You know, this is in my riding as well, and I'm doing my best to be able to ensure that, you know, we start this process. Right now it's just in the it's before the legal system so my powers are very limited. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Final supplementary. Member for Inuvik Twin Lakes.

Thank you, Mr. Speaker. Mr. Speaker, I would like this Minister or her staff, or whoever's listening behind that's going to be there, you know, if she's the Minister of something else next time, or you know, she's on this side or whatever the future holds for us, that this project is looked into so that way when we move on to the next project that we're doing on this energy strategy, that we don't make these same mistakes so our local contractors, if they're going to do work, they're going to get paid. You know, they can't be sitting out. So I would like this Minister to commit that she will have her staff make sure that there is a detail of what not to do next time. Thank you.

Thank you very much, Mr. Speaker. Mr. Speaker, yes, I can commit to continuing to keep the Member in the loop. I want to do note that, you know, as a result of this project we've had challenges. You know, I've been on the floor talking about some of the challenges. We have had lessons learned. So in the future should we have major infrastructure projects, we can look at some of our lessons learned. That's the whole idea of having this lessons learned document. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

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

Question 1589-19(2): Mining Regulations

Merci, Monsieur le President. My questions are for the Minister of Industry, Tourism and Investment. There are no new mining regulations, so we're stuck with what the federal government gave us for mining, as bad as that was. The Mineral Resources Act was passed four years ago that gave the Minister extraordinary new powers, but not much of anything has been completed or implemented. Can the Minister tell us the status and the development of the mining regulations? Mahsi, Mr. Speaker.

Speaker: MR. SPEAKER

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

Thank you, Mr. Speaker. Mr. Speaker, the extent of the work the Member's quite right, the extent of the work to see the implementation to the Mineral Resources Act is extraordinary. It is huge. And I'm happy to say I will be putting forward to the House a full summary status report detailing all the different pieces, all of what's been worked on with the technical working group, with the Intergovernmental Council and in order to show a pathway that we're on and where we would what we've achieved over the last four years. There is quite a lot that has been done. I will have that tabled in the House. Perhaps I can get it here for tomorrow, Mr. Speaker, and so we can have that fulsome document before you and for the Member to see, again, exactly how much work has been done and how far we've come. Thank you.

Merci, Monsieur le President. I'm trying to contain my drooling here, but I've asked numerous times if the new regulations will change our regulatory our royalty regime to ensure a more balanced approach between competitiveness and fair return. Can the Minister tell us whether there is anything to report on the royalty regime, or are we stuck with what experts have called the, quote, "world's most charitable fiscal regimes where", quote, "the NWT sells its nonrenewable resources more cheaply than most other jurisdictions in the world." Mahsi, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, there will be changes to the royalty regime. It's part of the regulatory process that we're undergoing. Whether it will necessarily be what the Member wants or visions for it, I can't say. Obviously, the process isn't done. It's one that we are going through, and I will detail it at some length in the summary report showing the process that is followed with the Intergovernmental Council. I can say from the recent mining and Minister's or energy and mining Ministers' conference that I was at that there's been some work done at Enercan, looking at all of Canada, to determine where we all fall in terms of the kind of costs that are associated both in taxation as well as from royalties. They looked at all the Canadian jurisdictions. They used much the same methodology that we use. And by doing so, they found that we sit quite squarely in with the rest of the jurisdictions of Canada and, as such, you know, whether or not there needs to be change or what that change will look like, we'll be taking into account all of that kind of expert information. Thank you, Mr. Speaker.

Merci, Monsieur le President. I want to thank the Minister for that. I asked for that study last week. I'm still waiting. But the engagement to date done by the department has been done very selectively with the mining industry with secret meetings where information is shared internally and not made available to other interests. So can the Minister tell us what, if any, public or industry engagement is going to take place from now until a new Assembly is elected on November the 14th? Mahsi, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, since 2017 the level of engagement with respect to the Mineral Resource Act, and then now the mineral resource regulations, has been extensive. In particular, of course, and leading that work has been with the Intergovernmental Council and the technical working group there, and the status report I want to put before the House will detail all of those meetings, including some of the hours that were spent on some of those meetings.

Mr. Speaker, between now and the election, there's not anything that is out for public review. The process the policy documents the policy intentions document did go out earlier, back in December of 2022. That details the direction that we are going to the regulatory process. That did go out for public consultation. And now we're at the stage of wanting to get that out to drafters so the drafters can put pen to paper and get this thing done. Once they've got it drafted, it does go back out yet one more time, but they are under that work is underway right now. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

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

Merci, Monsieur le President. And I contrast the public engagement undertaken in the Yukon with what has happened here. In the Yukon, there was a thorough discussion paper with policy options outlined, public meetings were held. It was a public process, Mr. Speaker. So can the Minister tell us what lessons have been learned during the fouryear long process to develop mining regulations that is not yet complete here? Mahsi, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, I'm hesitant to try to stand and draw comparisons to the Yukon, and the reason is this: This Mineral Resource Act regulations was the first resource first of all of the projects in the Northwest Territories land and natural resources sector that relied on the Intergovernmental Council process. There were a lot of lessons learned on what that process could look like, how it could work. In the end, it's actually and my understanding from reading the summary report that I've seen is that the technical working group composed of the Intergovernmental Council members are positive about the experience. They took a point to get there. There was some learning that had to go in. That learning now is going to help inform the work of all the land and natural resource departments as we move forward, whether it's under the Lands Act, the Forestry Act, other future work that needs to happen at ITI. So this is and, again, it's something that, I think, ultimately the Northwest Territories, Government of the Northwest Territories, and IGC will be proud of. It's a process that we will be proud of. And when we you know, that's the lesson learned here. So do we want to compare it to what's happening in the Yukon, again, I don't think their process is what ours is, but I think ours is one to be proud of. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

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

Question 1590-19(2): Transmission Line to Whati

Thank you, Mr. Speaker. Mr. Speaker, this is for infrastructure. Mr. Speaker, my colleague mentioned the Whati Transmission Line. Could that Minister please provide an update; we haven't seen any update or anything like that with SCEDE. So I just wanted to ask the Minister about that. Thank you.

Speaker: MR. SPEAKER

Thank you, Member for Monfwi. Minister responsible for Infrastructure.

Thank you very much, Mr. Speaker. Mr. Speaker, I'd be happy to provide the Member with detailed information on the Whati line. We're still in discussions and looking for some partnerships along the line. Thank you, Mr. Speaker.

Not just to me, but to the SCEDE would be much appreciated. When is the construction expected to be complete, and how much is it going to cost? Thank you.

Thank you very much, Mr. Speaker. Mr. Speaker, we are looking at the transmission line to partner with Tlicho. We have had that discussion with the Tlicho government, looking at partnership, the cooperation agreement. The intent is to advance this project in a way that benefits Tlicho communities, businesses, while also helping GNWT achieve our energy goals and our priorities. Thank you, Mr. Speaker.

I did ask that, you know, when that construction is expected to complete and how much it's going to cost. So the next question is that will this be part of the Tlicho infrastructure agreement? Will it include subcontractor and support services. Thank you.

Thank you very much, Mr. Speaker. Mr. Speaker, the next phase of the work on the project is expected to be advanced early in the new year. It includes things like the preliminary planning, design, consultation, engagement activities, as well as the environmental baseline studies, developing there's a lot of things that come into play here, Mr. Speaker and, you know, I would be happy to prepare a brief update to the Member on some of the details. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

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

I just wanted to ask the Minister, has the route been selected for the transmission line? Thank you.

Thank you very much, Mr. Speaker. Mr. Speaker, we are still in discussions with the Tlicho. We are looking at the cooperation agreement so that we can have more information to be prepared and provide to the public. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Colleagues, our time for oral questions has expired. And I must say you did a lot better today than yesterday, but we still have to tighten it up a bit to have everybody an opportunity to ask questions. So keep that in mind next time, keep the preamble shorter, and you'll have time for more questions is what I'm saying. Okay, moving on.

Reports of Committees on the Review of Bills

Bill 83: Liquor Act

Thank you, Mr. Speaker. Your committee would like to report consideration of Bill 83, Liquor Act.

Bill 83 received second reading in the Legislative Assembly on March 20th, 2023, and was referred to the Standing Committee on Government Operations for review. Committee held a public hearing with the Minister of Finance on May 29th, 2023. Committee held three public meetings in Inuvik, Norman Wells, and Yellowknife. Committee also received one written submission. On July 28th, 2023, the committee held a clausebyclause review at which time the two departmentdriven motions were moved and approved.

Mr. Speaker, the committee reports that Bill 83, Liquor Act, is ready for consideration in Committee of the Whole as amended and reprinted. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Member for Yellowknife North. The bill is referred to Committee of the Whole. Reports of committees on the review of bills. Member for Yellowknife North.

Bill 92: An Act to Amend the Petroleum Products and Carbon Tax Act, No. 3

Thank you, Mr. Speaker. Your committee would like to report on its consideration of Bill 92, An Act to Amend the Petroleum Products and Carbon Tax Act, No. 3.

Bill 92 received second reading in the Legislative Assembly on June 1st, 2023, and was referred to the Standing Committee on Government Operations for review. The committee held a public hearing with the Minister of Finance on June 27th, 2023. On July 28th, 2023, committee held a clausebyclause review.

Mr. Speaker, the committee reports that Bill 92, An Act to Amend the Petroleum Products and Carbon Tax Act, No. 3, is ready for consideration in Committee of the Whole as amended and reprinted. Thank you, Mr. Speaker.

Reports of Standing and Special Committees

Thank you, Mr. Speaker. I have nine reports of standing committees which I will read in their entirety.

---laughter

Mr. Speaker, no, I will be seeking that all of these are deemed read but there's 18 total motions. So it may take some time.

Committee Report 65-19(2): Report on Bill 83, Liquor Act

Speaker: MR. SPEAKER

Thank you, Member for Yellowknife North. The motion is in order. To the motion.

Speaker: SOME HON. MEMBERS

Question.

Speaker: MR. SPEAKER

Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. The committee report is deemed read.

Carried

Bill 83: Liquor Act (Bill 83) received second reading on March 30, 2023, and was referred to the Standing Committee on Government Operations (Committee) for review.

Bill 83 repeals and replaces the existing Liquor Act (Act). The Bill follows a two-year Liquor Legislation Review that considered how to modernize and streamline liquor laws in the Northwest Territories. The Review results were released in fall 2022 and made 66 recommendations to improve legislation, regulations, and operating policies and procedures.3 Bill 83 aims to implement the recommendations that were legislative in nature, including changes to:

- Streamline how the liquor industry is regulated;

- Ensure safe public access to liquor;

- Increase community control over liquor; and

- Modernize liquor enforcement.

This report outlines Committee’s engagement with the public and the government on Bill 83. The government provided substantial background information in support of Committee’s review, which is included in the appendices to this report. This report also explains a pair of department-driven motions to amend Bill 83 that were adopted at the clause-by-clause review.

Committee hosted three public meetings on Bill 83 in Inuvik, Norman Wells – Tlegohi, and Yellowknife – Somba Ke. Thirteen residents participated in these meetings. Several common themes of interest emerged, including:

- Alcohol addictions. Many participants expressed dismay at the personal and societal harms of alcohol addictions and maintained the need for more local treatment and wellness supports, especially for youth.

- Bootlegging. Committee heard strong agreement to tackle bootlegging with specific liquor retail sales controls and enforcement actions. Multiple participants suggested requiring liquor retailers to keep data on the volume of sales to each purchaser and be allowed to share that data to law enforcement. They also suggested prohibiting retailers from selling liquor to likely bootleggers.

- Streamlining regulations. Committee heard strong agreement on streamlining how the industry is regulated. Participants wanted to see less onerous application requirements and lower fees for special occasion permits and licensing more generally. One specific suggestion was to waive the fee on special occasion permits for a Class D license – event organizers are often not-for-profit, and after paying for liability insurance and other costs, their liquor event may not break even.

- Sales model. Committee heard some agreement on allowing more different types of liquor retail stores, including private liquor sales and off-sales. - Registrar. Committee heard cautious support for moving licensing and penalties functions from the Liquor Licensing Board to a new “Registrar” position. Some participants were concerned that the “wrong person” in the position could impose unreasonable and onerous requirements on license-holders and applicants. Committee heard support for proper oversight of the new Registrar.

- Local decision-making body. Committee heard mixed views on the proposed change on which body makes decisions about community control of liquor. Some participants supported the proposal to leave decisions with a single “local authority”. Others were concerned this approach left out important voices and preferred a committee system approach including leaders from the local public government and local Indigenous Governments.

- Public places. Committee heard mixed views on continuing to prohibit liquor consumption in public. Those against the prohibition suggested maintaining the prohibition in certain areas, like schools.

- Server training. Committee heard mixed views on making server training mandatory. Some participants felt this requirement was excessive, especially for one-time events under a special occasion permit. Others shared examples of disorder when servers did not have adequate training and supported mandatory training.

Committee thanks all residents who participated in the review. Committee recognizes the difficult balance between those who want more access to liquor and those who want less.

Committee also sought written submissions on Bill 83. We sent close to 300 targeted engagement letters to:

- Indigenous Governments and Organizations;

- Municipal and community governments;

- Public agencies;

- Liquor retailers, manufacturers, and licensees; and

- Advocacy organizations;

Committee only received one written submission in response, from Big River Service Centre. Big River’s written submission primarily addressed a private licensing issue, rather than Bill 83. Committee forwarded the letter to the appropriate departmental officials.

On May 29, 2023, the Minister of Finance and departmental officials provided a public briefing on Bill 83. The department’s presentation is included in Appendix A. The department also provided an extended summary of the Bill, included in Appendix B. At the public briefing, the Minister responded to Committee’s questions and concerns. Some key pieces of information include:

Bill 83 transforms the Hay River-based Liquor Licensing Board into an appeals board and shifts its licensing and penalty functions to a new Registrar position. Committee was concerned the changes could result in job losses in Hay River. The Minister reported that she is not anticipating any significant human resources changes, and no changes to the number or location of positions. Committee is pleased the new Registrar position and the new appeals board will be in Hay River.

In March 2023, the Department of Health and Social Services released An Alcohol Strategy for the Northwest Territories. The Alcohol Strategy aims to reduce alcohol-related harm. Committee asked whether the Alcohol Strategy informed Bill 83. The Minister confirmed that policymakers working on the two projects were talking to each other. She also said the Alcohol Strategy informed several proposals in Bill 83, including minimum prices for standard drinks, lower prices for lower-alcohol content, and increasing community control.

Bill 83 requires community decisions about liquor control to be made by one body called the local authority. This authority for each community will be designated by the Minister. Committee was concerned that Bill 83 does not require the department to be transparent about which government or council the Minister designates as the local authority. The Minister said she had no problem making public the designated local authority. Committee expects the department to make this information public. Any decisions to change the local authority should also be communicated to the public.

At the public briefing, Members asked how Bill 83 fits within the broader work to implement the recommendations from the Liquor Legislation Review. The Minister explained that of the 66 recommendations, 20 percent related directly to the Liquor Act and were being addressed in Bill 83. The remaining 80 percent affected the Liquor Regulations and would be dealt with after Bill 83 receives assent.

Committee requested additional detail on this matter. In response, the department provided a high-level overview indicating where each recommendation would be addressed: in Bill 83; in the Liquor Regulations; or in separate operating procedures. This overview is included in Appendix C.

The Minister also provided a timeline for updating the Regulations. Once Bill 83 receives assent, drafting work will start. The drafting is expected to be completed by fall 2024. The new Regulations are expected to be finalized before the end of the 2024 calendar year.

Some of the changes coming forward include:

- Streamlining licensing requirements if an applicant or a premises is already licensed, allowing for bundling of applications, and putting permitting applications online;

- Removing sales restrictions related to Sundays, Christmas Day, Good Friday, and election days.

- Creating new licences for local liquor delivery and ferment-on-premises; - Creating a vendor designation for licensed manufacturers in the Northwest Territories; and given that the public was already consulted during the Liquor Legislation Review. In this case, Committee encourages the department to be transparent about its progress updating the Liquor Regulations.

- Making server training mandatory.

The Minister indicated that the department would not do additional public consultation, given that the public was already consulted during the Liquor Legislation Review. In this case, Committee encourages the department to be transparent about its progress updating the Liquor Regulations.

Committee approved two department-driven amendments The department requested two motions to amend Bill 83. The first motion fixed a typo. The second motion made consequential amendments so that five other laws would be consistent with the new Liquor Act. The motions are included in Appendix D and Appendix E, respectively. Committee was satisfied with these amendments and approved them at the clause-by-clause review, held on July 28, 2023. Committee then passed a motion to report Bill 83, as amended, to the Legislative Assembly as ready for consideration in Committee of the Whole.

Speaker: MR. SPEAKER

Member for Yellowknife North.

Mr. Speaker, I move, seconded by the Member for Thebacha, that the Committee Report 6519(2), Standing Committee on Government Operations Report on the Review of Bill 83: Liquor Act, be received and adopted by the Assembly. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Member for Yellowknife North. The motion is in order. To the motion.

Speaker: SOME HON. MEMBERS

Question.

Speaker: MR. SPEAKER

Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. Committee report has been received and adopted by the Assembly.

Carried

Reports of standing and special committees. Member for Yellowknife North.

Committee Report 66-19(2): Report on Review of Bill 92: Petroleum Products and Carbon Tax Act, No. 3

Mr. Speaker, your Standing Committee on Government Operations is pleased to provide its report on the review of Bill 92: An Act to Amend the petroleum Products and Carbon Tax Act, No. 3.

Mr. Speaker, I move, seconded by the Member for Thebacha, that the Committee Report 6619(2): Standing Committee on Government Operations Report on the Review of Bill 92: An Act to Amend the Petroleum Products and Carbon Tax Act, No. 3, be deemed read and printed in Hansard in its entirety. Thank you, Mr. Speaker.