Thank you, Member from Hay River South. Recognition of visitors in the gallery. Member from Yellowknife South.
Thank you, Mr. Speaker. Mr. Speaker, I'd like to recognize a resident of Yellowknife South, also a fellow hockey parent, fellow soccer parent Nicole Sok here today. Thank you.
Thank you, Member from Yellowknife South. Recognition of visitors in the gallery.
Colleagues, if we've missed anyone in the gallery today, welcome to your chamber. I hope you are enjoying the proceedings. It is always nice to see people in the gallery.
Thank you, Mr. Speaker. Mr. Speaker, Northwest Territories businesses expect the government to fulfill its commitment to maximize benefits of spending of public dollars in the North for the North. This is why we have the business incentive policy, Mr. Speaker. The Stanton audit states that we cannot prove that the single biggest project in the history of this time achieved this goal.
Mr. Speaker, I have a question for the Minister of ITI. How do we assure northern businesses that the BIP is being used? Thank you.
Thank you, Member for Boot Lake. Minister of Industry, Tourism, and Investment.
Thank you very much, Mr. Speaker. So, Mr. Speaker, a few things, businesses have to meet the eligibility requirements of BIP and then those businesses, of course, are audited on a biannual basis. And then also we have our vendor performance management policy as well as the -- which was put out in 2023. And then in 2024, the guidelines were put out so that both the staff of the GNWT would understand what is expected and required, and staff do undergo training. And then in future we will be putting out training for contractors as well. Thank you.
Thank you, Mr. Speaker. Thank you to the Minister. And, yes, I was aware in 2023 certainly the BIP had had some changes. I attended the workshop in Inuvik when they implemented -- they were talking about implementing goes. So I guess my question is who was watching? And previously, Mr. Speaker, people would fill out the BIP application but how are we now, I guess, being a little more robust in monitoring that and ensuring that those businesses that fill out that form are actually following through on the commitments they make to northern businesses in that form. Thank you.
Thank you very much, Mr. Speaker. So, Mr. Speaker, the change that was made was specific to start off for construction contracts over $250,000. And so those contracts, they're really what we are focusing on to start with the vendor performance management policy to ensure that those contractors are meeting their BIP requirements. All of the contracts that are put out by the government then undergo review, along with the contractors, and there are penalties that are applied to contracts where BIP is not followed within that financial bracket. And I'd be more than happy to answer any other questions about enforcement of BIP certification for the Member as well. Thank you.
Thank you, Mr. Speaker. And in the past, there has been issues where the following up has kind of taken place halfway through the contract where it puts us in a position oftentimes not to be able to make a change because of the cost associated with that. I guess, can the Minister maybe speak a little more on the penalties and on monitoring these contractors early on in the contract versus previous years it's been a little later in the project. Thank you.
Thank you very much, Mr. Speaker. Mr. Speaker, well the contractor is the one that is making a commitment off the hop on a commitment they are making through a contract and through a bidding process to the government. So they would, I would hope, would know what commitments they're making in their own tendering process right from the hop. That being said, one of the things that we will be implementing coming up here is training for contractors so that they understand the expectation of all contracts, they understand how businesses are registered and comply with BIP, that they understand what penalties will be applied to them. So if BIP commitments are not achieved and -- so sorry, the payment adjustment applies only if BIP commitments are not achieved and is equal to 15 percent of the amount by which a contractor failed to meet their commitment for NWT content and 20 percent of the amount by which the contractor failed to meet its commitments for local content. Thank you, Mr. Speaker.
Thank you, Minister of ITI. Final supplementary. Member from Inuvik Boot Lake.
Thank you, Mr. Speaker. And thank you for that. I'm glad to hear that. Again, my only concern, and my question would be, that it's great that we have penalties in there but if no one is watching, what's the incentive for a company to follow through? So my concern is, again, that not only are we saying it but that we're doing it and that we're following up early on in the contract to ensure that these businesses that say they're going to use local businesses but, maybe for cost saving measures, get halfway through the contract and say I'm going to flip that and buy that product in the south instead. Are we watching that early on in the contract?
Thank you very much, Mr. Speaker. Mr. Speaker, this essentially is the point of this policy and this program is, first of all, penalizing financially the companies that aren't adhering to BIP and then at a certain point if companies are being nonresponsive, then they are going to end up with consequences and especially in a place where government contracting is so important to contractors, you know, as the -- my other hat, the MLA for Kam Lake, very much understand that government contracting is very important. If government's not putting out contracts, you better believe that I hear about it. So making sure that we are ensuring that there is benefit to Northerners, it helps everybody, and that is really what we are trying to do with this policy. Thank you.
Thank you, Minister for Minister for ITI. Oral questions. Member from Yellowknife Centre.
Thank you, Mr. Speaker. Mr. Speaker, in my Member's statement today, I talked about the Burgundy letter, and if I remember correctly, I think I even read somewhere that the Premier had reached out or had some conversation with them. And if I'm incorrect on that understanding, I would hope that the Premier would clarify. But that said, what has the Premier done in response to the open letter Burgundy has written, I guess the Government of the Northwest Territories, about trying to be a partner in the longer-term solution of our economic viability as a territory? Thank you.
Thank you, Member from Yellowknife Centre. Mr. Premier.
Thank you, Mr. Speaker. I did receive a letter from Burgundy, and I did meet with the senior executives from Burgundy maybe sometime in October. Also at that meeting were the Minister of ITI and the Minister of Environment and Climate Change. Was the Minister of Finance there? The Minister of Finance was there as well as well as the Minister of Infrastructure. So we had a number of Ministers there. And when it comes to these types of files, I'm not the lead on the regulations on access to lands, those securities, things like that, but I felt it was important for me to attend because economic development in the territory, creating a strong climate for economic development and for industry is important to me. But ultimately, the leads on those files are the Ministers and I made sure that Burgundy knew that, made sure they had connections into the Ministers. And there were officials at that meeting as well who made commitments to work further with Burgundy. So we are working with them to address their issues. Thank you.
Thank you, Mr. Speaker. The reason I'm going to the Premier is, first, he's the head of the government in the context of Cabinet; it also sews over many departments and it's difficult -- I'd be here for weeks and months if not trying to get every Minister through the cycle of asking questions hence I'm trying to point them.
So what type of Cabinet direction is being provided or what could be provided with respect to the concerns raised? I could go through them. I think the Premier's well versed in them or at least aware of them, generally speaking. But I want to emphasize just on one micro statement which is the Jay pipe alone represents one of the largest undeveloped kimberlite pipes on the planet. Mr. Speaker, does that inspire the government to call to action ways to work with Burgundy? Thank you.
Thank you, Mr. Speaker. And Jay pipe's a good example of the vast resources that we have here in the Northwest Territories. 1.3 million square kilometers, much of it contains a number of diamonds, precious metals, rare Earth elements, critical minerals, timber, wildlife, all sorts of natural resources that the people of the North can benefit from and resources that we should be able to benefit from. And we are doing that by working with industry, working on streamlining our regulations to the extent that we can, understanding we're just one partner in land management in the Northwest Territories. We manage the land collaboratively with the Indigenous governments, and the Government of Canada also has a role. So part of what we need to do is explain to industry what it's like to do work up here. To that end, I've mandated the Ministers of ECC and ITI to work together so that industry will have a single window to come to and so they can hear from the regulators, hear from those we're promoting, development, and help make -- get their way through that process of, you know, right from exploration to mining. So that's just one of the things that we're doing here. Thank you, Mr. Speaker.
Mr. Speaker, Ekati's been in business approximately 25 years. They're proposing they could be here another 25 to 2040. They hire at least 350 Northerners, according to their letter, Mr. Speaker. Mr. Speaker, it's not attracting them. It's trying to find ways to keep them here in the North working and employing as well as the endless contributions to communities and community governments or organizations.
Mr. Speaker, does the Premier see the significance of this partner in their economic future? And if he doesn't, does he have another alternative? Because mining cannot easily be replaced with forestry, et cetera, et cetera. Thank you.
Thank you, Mr. Speaker. And, yes, of course, I see the benefit of having Burgundy here and all of the direct employment that they provide to northerners as well as all the spinoff employment, all the services provided by contractors across the territory. So yes, we're very committed to continuing to work with industry and making the erritory -- continuously improving the territory so that it is a better place to do business. Thank you, Mr. Speaker.
Mr. Premier. Final supplementary, Member from Yellowknife Centre.
Mr. Speaker, I read every word in this letter very closely. I did not see we’re big business, we need a big pass. What it says is we see opportunity and we need a partner. Mr. Speaker, would the Premier commit to updating us on progress on all of these initiatives outlined by the Burgundy letter in a way that even Members can see where we can help support this industry to employ Northerners and to help continue to make the territories an economically viable place to live and work. Thank you.
Thank you, Mr. Speaker. I think this is a great opportunity to offer committee a briefing on what the territory is doing on this file and on regulations in general to help spur development and to continue development in the Northwest Territories. And so I'd like to make that offer to the standing committee. I believe the Member might be the chair. And we'd be happy to provide that update and have that conversation. Thank you.
Thank you, Mr. Premier. Oral questions. Member from Frame Lake.
Thank you, Mr. Speaker. Mr. Speaker, my questions today are for the Minister of MACA as mentioned in my statement.
Can the Minister explain what documents residents must show to demonstrate prior refusal for insurance in order to be as eligible for the disaster assistance program? Thank you.
Thank you, Member from Frame Lake. Minister of Municipal and Community Affairs.
Thank you, Mr. Speaker. Residents who are obtaining insurance must obtain documents from their insurance company to state that what their insurance covers. And I think it's important for all residents that, you know, we all look at our insurance documents. They're pretty thick, and I'm sure probably most of us here have never read the fine lines of the insurance documents. I know I have after the last couple years. But it's important to go through them and get the information you need out of your insurance documents. If you have documents that are showing that you're refused uncertain coverage, it's important to have those ready. Thank you, Mr. Speaker.
Thank you, Mr. Speaker. Mr. Speaker, what is MACA doing to help residents understand the steps that they need to follow in order to have proper insurance documentation? Certainly, I have residents I'd like to get this message out to. So what can I share with them, Mr. Speaker? Thank you.
Thank you, Mr. Speaker. I know the last year we've -- MACA has done a good job promoting the Be Ready campaign which also included making sure that you have insurance available for your assets. We have staff, like the Pathfinders, who work with residents to make sure they have their documents or assist them in getting documents from insurance companies. So it's important that, you know, residents reach out and even just work with Pathfinders that are available to see what they need. So thank you, Mr. Speaker.
Thank you, Mr. Speaker. And if the Minister doesn't mind following up with an e-mail or something with some information I can share with residents, I'd appreciate it.
Mr. Speaker, the issue of affordability seems to be one of the most difficult items. Can the Minister describe how residents who can't afford insurance in particular need to document their efforts to obtain eligibility for disaster assistance? Is there something that can be done to help residents who simply can't afford the insurance quotes that they're receiving and are not necessarily being refused? Thank you.
Thank you, Mr. Speaker. The issue of affordability is getting to be worse. It's not just -- you know, it used to be hard to get insurance for some folks, and now it's continuing to be harder and harder for most of us to get insurance for certain things. And that just relates to a lot of the disasters that have happened throughout Canada. You know, with the affordability, you know, there's documentation that's needed to show that it's not affordable for them to have insurance. You know, if you can't afford it, make sure you have that documentation so that it can help you in an event of emergency and disaster, the DFAA may be applied if it's not affordable. So when it comes down to the insurance, I know it's tough, but DFAA is really strict on the fact of affordability is not necessarily a point of coverage. So thank you, Mr. Speaker.
Thank you, Minister for Municipal and Community Affairs. Final supplementary. Member from Frame Lake.
Thank you, Mr. Speaker. And it seems the Minister is identifying a bit of a gray area here that I think we need to dig further into, and certainly I'll be doing that with research over the coming months preparing for the next session.
Mr. Speaker, has the Minister considered what measurements the government might be able to take to assist residents who are unable to obtain insurance due to affordability considering the federal government doesn't necessarily consider this to be reason enough to make residents eligible for disaster assistance? Thank you, Mr. Speaker.
Thank you, Mr. Speaker. The territorial government is on a working group with the federal government that is talking about insurance and affordability, also insurance coverage that is not available. For an example, some flood insurance is not available depending on the type of flood. So there is a working group out there to work on insurance coverage. And to mention to the point of the gray area, there is a lot of confusion about insurance and what can and cannot be covered. So there is a federal working group, and the government is part of it. Also, I believe the NWTAC is also part of that working group. So thank you, Mr. Speaker.
Thank you, Minister of Municipal and Community Affairs. Oral questions. Member from Yellowknife North.
Thank you, Mr. Speaker. Mr. Speaker, we've all seen the news about the intention of the Northwest Territories Power Corporation to apply for a general increase that would lead to a 25 percent hike in electricity costs, which is obviously a huge blow to both the residents and businesses. My constituents, and I'm sure that many of my colleagues' constituents, are very concerned about the governance of the NTPC. So my questions are for the Minister of the Northwest Territories Power Corporation.
First, what are the Minister's plans to create a truly independent NTPC board instead of a board made up of deputy ministers and ADMs? Thank you, Mr. Speaker.
Thank you, member from Yellowknife North. Minister responsible for NWT Power Corp.
Thank you, Mr. Speaker. Mr. Speaker, this is something that is a commitment from the very end of the last government in carrying forward and one that I'm certainly happy to action. One of the first things that we do need to do is make sure we design what an appropriate and professional board and non-deputy minister board is going to look like. So the intention there is to ensure that we are outlining what the criteria will be for an expression of interest. That is right now underway, determining what that should look like -- it is being led by the Department of Infrastructure -- to ensure that we are maintaining regional representation and a degree of expertise in the subject matter area. So that's the first step, and then we'll be going out to begin the recruitment process. Thank you.
Thank you, Mr. Speaker. So what is the timeline for implementing those changes? If the Minister can explain. Thank you, Mr. Speaker.
Thank you, Mr. Speaker. Mr. Speaker, my understanding is that the expression of interest that should be going out for the public will be ready in 2025, early 2025. That then goes out to seek the expressions of interest. We're hopefully going to be looking to get four to eight new members on. That will help to then transition off several of the existing board members who obviously do have other responsibilities. And we'd be keeping, of course -- I shouldn't say of course, we are looking to keep at least two GNWT members on the board; we are the sole shareholder. But that transition process will begin again once we've hopefully recruited a good slate of four to eight members in 2025. Thank you.
Thank you, Mr. Speaker. So how will the Minister ensure that the new NTPC board has the appropriate expertise and experience in both the electricity business and in public energy policy to ensure that we can create a modern, forward-thinking, efficient, and accountable board? Thank you, Mr. Speaker.
Thank you, Mr. Speaker. Mr. Speaker, that is exactly the importance of ensuring that we get now a process as well that's clear and that's well thought out in terms of what we are looking for before the expression of interest goes out, designing a matrices of board composition. This is actually the kind of work that's been happening slowly over the last few years in the GNWT, is to move a lot more boards towards having a matrices of what competencies are required for success, what kinds of backgrounds, what kinds of education, what kinds of regional representation, to ensure that the board is diverse, which promotes better decision-making, but has the expertise. So that is the time that's taking to make sure that that piece of what is the matrix we're looking for is done clearly because then the expression of interest can flow from it, and then ultimately board selection can flow from that, aligning who's applied back to the skill set we're looking for. So that's literally the work underway right now. Thank you.
Thank you, Minister responsible for NTPC. Member from Yellowknife North. Final supplementary.
Thank you, Mr. Speaker. So given the challenges that we often speak about in this House around accountability of independent boards, whether it's education, health, housing, how will the Minister ensure that an independent NTPC board can be held completely accountability to NWT residents? Thank you, Mr. Speaker.
