Good morning, colleagues. I just want to say thank you to Ruth Carol, the Gwich'in translator, for doing the open prayer today. It's Friday, so hopefully we have a really good day and a good session. Thank you.
Mr. Speaker, thank you for the opportunity to provide the Legislative Assembly with this fall economic and fiscal update. I will also use this opportunity to outline our progress towards the goals set out in our fiscal strategy.
Our work towards restoring balance through this government's fiscal strategy meant that we started the fiscal year with the GNWT's largest-ever projected operating surplus. We have been trimming longstanding unfilled public service positions, consolidating programs that were inefficiently split between departments, and identifying underspent funds that could be reduced from our budget. We are well underway with the fleet management program and a lease space review.
However, Mr. Speaker, despite these efforts, the fiscal situation facing the Government of the Northwest Territories is dire. Despite the hard work departments have done to find value for money, the actions taken under our fiscal sustainability strategy have not been enough to absorb the multiple fiscal challenges that have arisen since the tabling of the 2024-2025 Main Estimates.
Efforts to maintain the resiliency of the energy grid, rising costs within the health system, and wildfire expenditures have resulted in our total debt being projected to reach $1.74 billion. As a result, we will breach the $120 million buffer below the federally imposed $1.8 billion limit as outlined in our fiscal responsibility policy. We are, therefore, in the process of requesting a borrowing limit increase from the Government of Canada.
Requesting a borrowing limit increase is necessary to ensure we have the capacity to respond to expenditure shocks that have become more frequent. However, seeking this flexibility in our borrowing room does not mean that we can ease off on our own efforts to ensure fiscal responsibility and sustainability. We will continue to evaluate the value of all programs and services, keep a close eye on public sector growth, and find innovative ways to achieve efficiencies.
Mr. Speaker, we are all acutely aware of the impending diamond mine closures but for now, the Northwest Territories' economy remains stable. Over the last three years, since the 2020 lows caused by COVID-19 restrictions, the economy has broadly recovered. Indicators such as household spending, public expenditure, and resident employment have expanded to surpass pre-pandemic levels. Even after the sharp shocks of last year's severe wildfire season, the economy was resilient enough to fully recover to pre-wildfire levels by December.
Mineral exploration investments and appraisal spending intentions are up 27 percent in 2024. However, exploration spending is no guarantee of an operating mine, and the North remains a higher-cost jurisdiction compared to more southern locations. Further, we are forecasting real gross domestic product to shrink this year due to overall slower activity in the mining and oil and gas sectors. That said, other economic measures remain robust, including high employment and a fall in consumer price inflation to less than 2 percent.
The upside of having an economy heavily weighted toward the public sector across all levels of government is that government spending and public sector employment continue to stabilize the economy. In addition to the rise in exploration spending, the GNWT supported the new commercial fish plant in Hay River, which is now open. We have also provided financial support to communities affected by the summer wildfires and barge cancellations, helping local economies remain resilient in the face of ongoing climate shocks. We must continue to help all Northwest Territories communities enhance their distinct economic strengths and address labour shortages, both for skilled and unskilled workers.
Mr. Speaker, we finished 2023-2024 in better shape than expected, primarily due to federal disaster relief funding. However, we still ended the year in a deficit position due to the tremendous financial pressures created during the summer of 2023. Although the cash position going into the 2024-2025 fiscal year was an improvement, it did not actually improve the 2024-2025 fiscal situation as some federal funding expected this year was received last year.
Mr. Speaker, you will recall that we started this fiscal year with the largest projected operating surplus in history $294 million. This was expected to fully cover the 2024-2025 capital budget without the need for additional borrowing, and we hoped to use it to pay down some of our short-term debt. It is fortunate that we worked to achieve this surplus because, once again, the fiscal shocks of various extreme events have reduced our forecasted surplus to $67 million. One such extreme event is the ongoing low water situation. Since the 2024-2025 budget was released in May, the situation has worsened. Marine Transportation Services lost almost $14 million in revenue due to the canceled barge season, and increased costs associated with resupply challenges are being felt across multiple departments.
Low water has also impacted the Northwest Territories Power Corporation's, or NTPC's, generating costs. These impacts were magnified by reliance on diesel during the overhaul of the original Taltson generating facility, a project that was well overdue. This project was on time and on budget until the 2023 wildfires caused the evacuation of key personnel and damaged NTPC infrastructure. Getting the work back on track has led to cost overruns, which are now projected to reach $31 million. Between the costs of diesel backup and the Taltson overhaul, NTPC needs to borrow another $75 million in short-term debt.
While not as severe as 2023, this summer saw yet another challenging fire season, with two communities in the Sahtu evacuated and several others across the territory under evacuation alerts. We also continue to face significant cost pressures to maintain stability in the health care system, which is treating more patients, many of whom have more complex needs.
In order to absorb all of these impacts, we currently project that we will end the fiscal year with $700 million in short-term borrowing. This increase in short-term borrowing, combined with the additional $75 million required by NTPC, brings our total authorized debt to $1.74 billion, just $60 million below the federally imposed $1.8 billion borrowing limit. As noted earlier, we have begun the process of requesting a borrowing limit increase to ensure we have the necessary room to absorb further expenditure shocks.
Mr. Speaker, as I have said before, and will emphasize again: Even in the face of these challenges, I remain optimistic when looking at the long-term potential of the Northwest Territories economy and our ability to restore balance to the GNWT's fiscal health.
The recent trip to Ottawa with the Council of Leaders highlighted the strength of collaboration between governments in the Northwest Territories. This collaboration does not detract from the many challenges we face at home, but it is through collaboration and cooperation that we can raise the profile and prosperity of our territory.
Commodity markets may be depressed at the moment, but this buys us time to deliver foundational infrastructure that will make the Northwest Territories a stronger candidate for large-scale mineral resource investments. It also allows us time to highlight the investment stability in our co-management regime for land and natural resources. Finally, this time gives us the opportunity to continue seeking national attention for strategic investments in key projects that will support critical mineral value chains.
We are also seeing much needed attention paid to the vast stretch of border that faces international waters toward Russia and China. While this poses a defense risk today, it is also an opportunity for multi-use infrastructure investments that will not only enhance the North's strategic capabilities but also benefit people on a day-to-day basis, strengthening the region overall.
Finally, within our own fiscal house, we remain committed to the Restoring Balance fiscal strategy, but we will take the time necessary to ensure we get it right. We still have promising suggestions from the GNWT's public service in progress, and others already being implemented. While the short-term fiscal situation is tight, we will avoid kneejerk actions that could unnecessarily disrupt government programs or services causing more severe impacts on residents, businesses, or the overall economy.
We continue to seek opportunities to lapse unnecessary spending in 2024-2025, aiming to end the year in better fiscal shape than we are in now. A key focus as we move forward with Restoring Balance is addressing health care system sustainability, which remains an area of high financial risk and high need. In line with the government's mandate, a large part of determining sustainable service levels is defining our core programs and services. This work is being led by the health care system sustainability unit within the Department of Executive and Indigenous Affairs. They are taking an evaluative approach to the health and social services system, focusing on determining sustainable service levels and exploring opportunities for greater efficiencies.
Mr. Speaker, we knew there would be significant fiscal challenges coming into this Legislative Assembly, and we know we have difficult choices leading up to next year's budget. We are also keenly aware of the obligation and expectation to achieve the priorities set by this Legislative Assembly. Within that priority framework, we remain committed as a government to supporting immediate needs in times of crisis, maintaining core programs and services for residents and communities, while also being vigilant in creating and enabling long-term growth opportunities. Thank you, Mr. Speaker.
Thank you to the Minister of Finance for her Minister's statement. Any further Ministers' statements?
Thank you, Mr. Speaker. Mr. Speaker, I want to use my Member's statement to come back to some of the matters raised by me and other Members, of course, in the June session.
Mr. Speaker, many of us had some excitement coming into the election almost a year ago and about where the Aurora College was going in the context of transition to a polytech. And, of course, it wasn't until after being elected sometimes when you find out what really is happening behind the scenes that you find out actually that they're still working on the transition plan but the transition plan isn't funded and things they want to do but they need a mandate. And in our conversations during the June session, it was realized that the new mandate letters were being signed in July of the summer that just had passed. That said, Mr. Speaker, of course, the important part is is we want to make sure the Aurora College for the students, for the North, the economic impact, and of course certainly the educational opportunities that will come with a college that transitions into a polytech, are well disbursed and well realized for all Northerners, Mr. Speaker.
So with that, Mr. Speaker, the issue of the mandate letter as quoted in unedited Hansard was, when I asked would the Minister make it public, she had said she would make it public, she's a fan of transparency based on legislation of course, so obviously if there's something she can't table or make public, I'd like to know why, but I do respect it if that is the case. But that said, there is elements of its mandate letter that could be probably transitioned and hence I look forward to asking those kinds of questions in question period.
At the same time, I'd also asked about funding, and I -- again, I'm not alone on this particular issue but, I mean, as they always say, you know, a vision is just a dream without a plan and if we don't have a plan, you know -- sorry, money -- without money, we don't have a plan -- sorry, is what I was trying to say. And of course to bring it all together; in other words, Mr. Speaker, we need a plan, we need money, and we certainly need a vision, and all of this is for not if it doesn't find a way to coalesce.
So, Mr. Speaker, recognizing that I believe that it can no longer be funded by using leftover dollars from the education program or the diploma social worker program and hoping for those types of dollars, it just won't be sustainable. We need dedicated line items that support this. Mr. Speaker, I'll have questions at the time with respect to this particular matter. Thank you, Mr. Speaker.
Thank you. I'll move on to the Member from Great Slave.
Thank you, Mr. Speaker. Mr. Speaker, the 51st Street encampment could have happened anywhere in Yellowknife. It just happens to be in my riding. The encampment started out as a group of folks not being welcomed at various locations prior to staying in this empty lot. To its credit, the GNWT quickly worked to find a location that they own near the downtown core. The solution is far from ideal least of all because the site will soon be an active construction site. I want to take this time to thank the residents of the neighbourhood for being extremely patient and compassionate and providing myself and the Premier with your feedback that created more safety and dignity for everyone. I appreciate that the GNWT looked at how to find spaces for precariously housed residents with NGOs who often knew them and their histories and took the time to get to know each one of these folks and what they need. EIA has just sent an update recently that there are two people that remain and one who visits infrequently.
Mr. Speaker, everyone in Yellowknife is part of our community regardless of their access to housing. Everyone deserves dignity and a safe place to sleep. As we have heard from the Salvation Army in their presentation to standing committee, finding safety is starting to become difficult in Yellowknife shelters. When speaking with the Premier and his staff, he noted that the encampment was a point of urgency in finding solutions discussed in the GNWT's Homelessness Strategy. I'm heartened that Cabinet felt compelled to seek more funding for transitional and supportive housing across the territory when they were in Ottawa last week. But some of what I hear from folks who are involved with, or in some cases were not invited to, the working group that were seeking solutions for the encampment is that the GNWT continues to be cagey about how we are working to expand options in a meaningful, timely way. Many folks are also wondering how we got here when we have known for a long time about the lack of sustainable options and spaces that NGOs can provide.
Mr. Speaker, I'm barely scratching the surface of this issue. I'll note that the point-in-time count of underhoused folks that the city of Yellowknife has conducted this fall is not available yet but will be soon. The city's housing needs assessment interim report points to trends that aren't going away. A continued strain on existing housing stock means more people are a whisper away from precarious housing than we want to admit. I'll have questions for the deputy Premier at the appropriate time. Thank you.
Thank you. I'll go to the Member from the Sahtu.
Thank you, Mr. Speaker. Mr. Speaker, the town of Norman Wells issued a humanitarian state of an emergency October 15, 2024. Under the Emergency Management Act, a declaration of an emergency would mean the price of fuel could be fixed by the responsible Minister and there may be opportunities for federal support. The following summary explains the trigger mechanism for the declaration and the items in the act that concern the prices of fuel in section 17.
Mr. Speaker, section 17(1), paragraph 1, the Minister may procure, ration, or fix prices for food, fuel, equipment, medical supplies, and other essential supplies.
Mr. Speaker, under section 18(1) of the act, if a local authority is satisfied that an emergency exists and may exist within the community, the local authority may, by resolution, declare a state of an emergency to exist in all or part of the community.
Mr. Speaker, under section 14(1), I will be asking the Minister responsible supporting the declaration and state of an emergency then invoke the Emergency Management Act, the procedures in both the act and management plan. Thank you, Mr. Speaker. I look forward to sharing the questions at the appropriate time to the appropriate Minister. Mahsi.
Thank you. I'm going to go to the Member from the Mackenzie Delta.
Thank you, Mr. Speaker. Today I would like to inform the Assembly and the residents of the Northwest Territories of a program that is bringing hope to the people who are struggling with alcohol and drug abuse. It has been many years since we have had a program of this nature and that is giving hope to our residents of the North here in the North.
Mr. Speaker, the Gwich'in wellness Department of the Gwich'in Tribal Council has taken the lead in developing this program in the North for Northerners. In the past, I have spoken to a number of people who have expressed interest in attending a treatment program to deal with their personal issues but travelling hundreds of kilometers to a totally different culture was not an option for the select few. This program is being held at the Rachel Ranger Camp, a half hour boat ride north of Inuvik. It keeps the participants close to home and in familiar surroundings.
Mr. Speaker, the addictions program is facilitated by Mr. William Greenland, a Gwich'in who grew up in Inuvik and has worked in the field of recovery for a number of years throughout the North. There are other facilitators who are also involved in one capacity or another, but a collaborative approach will make this program a success.
Mr. Dennis Allen, another descendant of the Inuvialuit and Gwich'in who grew up in Inuvik and has worked in the field of recovery, is also available for support. With their familiar surroundings, the people from the region, the participants will be more likely to complete their program successfully.
Mr. Speaker, this past spring the Standing Committee on Social Development had the opportunity to visit and tour the site while it was being renovated. The facility is quite impressive. The Gwich'in Wellness Camp will indeed serve its purpose to the willing participants with great hospitality and comfort for many years to come.
Mr. Speaker, in closing, I would like to thank and congratulate the Gwich'in Tribal Council and all the funding agencies in meeting the needs of our residents when the need is most needed. Thank you, Mr. Speaker.
Thank you. Next on my list here I have the Member from Frame Lake.
Thank you, Mr. Speaker. Mr. Speaker, yesterday I spoke about change management, and today I want to continue that thread and speak to the state of the Aurora College transition. Despite reassurance from the board and president that they are committed to the transition, every indication and metric I see is clearly communicating that the transition has ground to a halt and, if anything, is in the process of being openly reversed. Responsibility for this lies on both the Ministers and the board's shoulders, but there were a number of critical change management elements missed along the way when GNWT was firmly in control. One is anchoring the change firmly throughout the corporate culture of the organization. It is clear this never happened, Mr. Speaker. Yesterday, CBC News shared a story detailing how research chairs were hired, immediately encountered significant internal barriers to carrying out their work and ended up leaving the organization in short order.
Another fundamental change element is clearly articulating a vision, Mr. Speaker, and despite years of work and some apparent progress, it's clear the vision didn't stick during the hand-over process. This part rests with the Minister of education who is responsible for articulating a mandate to the board. The college's current mandate expired in July, and we are yet to see a new one. The Minister needs to give clear direction about the vision for this project and steps needed for it to succeed. If the direction is that we are proceeding with the transition, we need to be decisive about it. If not, at least tell us that's the case so we can have that unwanted conversation. Personally, I want to be clear that I am not supportive of continuing to fund the college in its current form. We already paid for the analysis. We already found that the college wasn't working. Continuing with status quo is never going to change outcomes, and we owe the students of the NWT better than that, Mr. Speaker.
To end on a positive note, I want to share a glimmer of hope. The former research chair, quoted in the CBC story, noted he still believes there is a lot of potential for knowledge economy growth in the NWT, and I've heard that message from so many people who are working in this field here. The potential is there, Mr. Speaker. The question now is whether we have the vision and wherewithal to grasp it. I will have questions for the Minister. Thank you, Mr. Speaker.
Thank you. Next on my list I have is the Member from Range Lake.
Thank you, Mr. Speaker. I want to take a moment today to celebrate the fact that one of our northern icons, Sharon Firth, will be inducted into the Laurentian Ski Hall of Fame tomorrow during their tribute to Canadian women in skiing this weekend. A world-renowned cross country skier, Sharon was a Member of Canada's cross country team, alongside her late sister Shirley, for an incredible 17 years. Together, they competed in countless national and international championships and had the historic honour of being the first Indigenous female athletes at the Winter Olympics. Not only is Sharon an incredible athlete but she's also a dedicated public servant and activist. She and her sister are also residential school survivors and share the trauma many Indigenous children face growing up in the North.
Born in Aklavik to Gwich'in and Metis parents, Sharon was introduced to cross country skiing at a young age thanks to the territorial experimental ski program, and the rest was history. Through their hard work and dedication, the Firth sisters constantly trained through the cold winter days, that were all familiar with up here, and would soon come to dominate the sport for decades. They have since become the first Indigenous women awarded the Order of Sport, and Sharon herself has received the Order of Canada, the National Aboriginal Achievement Award, and the Queen's Golden Jubilee Medal. While Shirley has sadly passed, Sharon has continued to offer her expertise, training, and nurturing successive generations of talent and informing public policy regarding recreation and sport. Thank you so much, Sharon, for all that you've done to bring northern and Indigenous athletes to the world's attention. You are a pioneer, a trailblazer, a role model, and my friend. And I know you still have much more to contribute to the Northwest Territories, and I know we all stand together in this House to congratulate you. Thank you, Sharon.
Thank you. I'm going to go to the Member from Yellowknife North.
Thank you, Mr. Speaker. Mr. Speaker, we all know that climate change is turning the North into a different world but sometimes we forget that the rest of the world has been dramatically shifting, too, in terms of energy systems, infrastructure, and the global economy. In order to avoid being left behind with dinosaur technologies and costs we cannot bear alone, we have to change with the times. And that means taking more responsibility and leadership in terms of our carbon emissions and setting a climate target of net-zero emissions by 2050.
Previously, we had set a target of reducing emissions by 30 percent by 2030. So what's wrong with that? It sounds ambitious enough, right? But that path we were on meant that we could do virtually nothing and just wait for Diavik mine to close. Do we really want our climate strategy to simply be let the diamond mines close? Do we want that to be our economic strategy? The thing is that Rio Tinto has already committed to a net-zero climate target across its global operations by 2050. De Beers has committed to net-zero by 2030. For the critical minerals sector, both private financing and federal government dollars are increasingly dependent on net-zero targets.
Lazy climate targets are not helping industry. Lagging behind on clean energy makes the NWT one of the least attractive jurisdictions for modern mining. If we see mining as a big part of this territory's future, then we have to embrace a net-zero future. Both the federal government and the majority of Canadian provinces and territories, including the Yukon, have already committed to net-zero by 2050. Increasingly federal funding is being tied to net-zero targets so if we don't set ourselves on this clean energy path, we are missing out and we're isolating ourselves. We desperately need ways to bring down the cost of power, and the NWT needs to commit to a net-zero power system by 2035 for the NWT Power Corporation to benefit from a new federal tax credit.
Back in June, this government committed as part of budget negotiations to set a net-zero target by 2050. This means we have to confront head-on the challenge of facilitating clean energy solutions for transportation, heavy equipment, and industry. Mr. Speaker, I ask for unanimous consent to conclude my statement.
---Unanimous consent granted
Thank you, Mr. Speaker. So as I was saying, we need to confront head-on the challenge of facilitating clean energy for transportation, heavy equipment, and industry, which together make up 84 percent of the territory's emissions. There are solutions, and I will continue to push this government to pursue them. We can do this, and we must do it. Thank you, Mr. Speaker.
Thank you, Member. Next on my list I have is the Member from Monfwi.
Thank you, Mr. Speaker. Mr. Speaker, today I would like to talk about the future for public housing in the Tlicho region.
Mr. Speaker, it is a priority of the 20th Legislative Assembly to ensure sustainable financial resources for housing programs and projects. When we talk about public housing, we mean programs that provide income-based rental housing for the residents most in need, like elders and families with little or no income. But residents are saying NWT Housing is not functioning the way it is supposed to.
Yesterday, Behchoko Ko Gha K'aodee held a public hearing on housing in Behchoko. Residents had a lot of feedback for NWT Housing. There were complaints that policies and procedures were not being followed; there are not enough tenant relations officers to assist residents; and, the waiting list for the community of Behchoko has over 130 people on it. Mr. Speaker, one resident put it this way: Why would housing board members have a meeting when there is no available housing to allocate to people? The waiting list needs to be cleared.
Mr. Speaker, I understand that the Government of the Northwest Territories has different programs in place to help with these types of programs, like the homelessness assistance fund. I know the Minister of housing has committed in the past to reviewing instances where tenants have arrears on a case-by-case basis. We need to do more.
I would like to know the plan for public housing in Behchoko, Mr. Speaker. The housing stock is old. A family of seven in my riding have said that their unit has mold. Other houses are boarded up. With the other problems tenants discussed yesterday, it's too much. People want to know what the plan is. I will have questions for the Minister of housing at the appropriate time. Thank you, Mr. Speaker.
Thank you, Member. Next on my list I have is the Member from the Deh Cho.
Thank you, Mr. Speaker. Today I would like to take the opportunity to extend thanks and express gratitude. As we have reconvened for another sitting, I would like to thank my constituents. Without their faith in me, I wouldn't have the privilege of being here in this Chamber today. As I've stated before, I am honoured and humbled to be here to serve all my constituents and all my riding of the Deh Cho.
Mr. Speaker, I would like to thank family and friends from all over the NWT for their support, calls, and reaching out with when my daughter was hospitalized in Kelowna this past summer. Specifically, I would like to thank Alison de Pelham, executive director, and all the chiefs of the Deh Cho First Nations. I would like to thank Rosa Wright and all the people in Fort Simpson, Linda Kraft, Harry Sapp, and Trish Landry of Fort Providence, and the doctors, nurses, and staff at the Kelowna General Hospital who provided care for my daughter. The love and support that poured out in the community to my family during a difficult time, it really meant the world to me and helped get us through.
Finally, Mr. Speaker, I want to thank my husband Norman, my adult children, my mother, and all our extended family. Thank you, Mr. Speaker.
Thank you. I'm going to go to item number 4 on the agenda of the day, return to oral questions. I'm going to go to the Minister of MACA.
And if we have missed anyone in the gallery today, welcome to your chambers. I hope you are enjoying the proceedings. It is always nice to see people in the gallery. Mahsi for being here.
Thank you, Mr. Speaker. Mr. Speaker, I've just made my statement, so we know what my questions are about. Mr. Speaker, why has the Minister of education not sent a new mandate letter to the Aurora College board?
Thank you. I'm going to go to the Minister.
Thank you very much, Mr. Speaker. Mr. Speaker, I'm currently working on that mandate letter with the Aurora College board of governors. Thank you.
Thank you, Mr. Speaker. Mr. Speaker, just to be clear, is the Minister committed to transitioning Aurora College to a polytechnic university and supporting the college in proceeding with the facility's master plan?
Thank you very much, Mr. Speaker. Mr. Speaker, I have said it in this House before, I've said it to the board of governors before, I am absolutely committed to this transition. Thank you.
Thank you, Mr. Speaker; we're keeping it short and sweet today. Mr. Speaker, I know that the Minister has a textbook on change management on her desk because I handed it to her myself. Mr. Speaker, has the Minister considered employing change management principles in setting her direction to the board? Thank you, Mr. Speaker.
Thank you very much, Mr. Speaker. Mr. Speaker, the Member knows the way to my heart is certainly through books, and I appreciate that. My role within the post-secondary system and through the Aurora College Act has definitely changed between the last Assembly and this one. My role is certainly one of oversight over the post-secondary education system whereas the board of governors really has control and oversight over Aurora College's programs as well as their operations. Thank you, Mr. Speaker.
Thank you. I'm going to go to the Member from Frame Lake. Final supplementary.
Thank you, Mr. Speaker. Mr. Speaker, considering the board does have that responsibility, Mr. Speaker, what measures is the Minister taking or considering in holding the board accountable for results for the funding they receive from the government for transition, for operation of the college, all of it? Thank you, Mr. Speaker.
Thank you, Mr. Speaker. Mr. Speaker, I'm certainly using all of the tools that I have at my disposal. Currently, at the end of September, I met with the board to actually sit down and hear what their priorities are, what their concerns are, how their year in operation has gone, and to sit down and figure out, okay, where do we align and ensure that we align on the transformation of Aurora College. They have informed me that they are certainly committed to this and that they want to be able to continue to work closely together on this collaborative process and to continue to meet regularly. Thank you, Mr. Speaker.
Thank you. I'm going to go to the Member from Yellowknife Centre.
