Debates of October 21, 2004 (day 25)

Thank you, Mr. Speaker. Mr. Speaker, I rise again today to bring forward some of my concerns to a shepherd of our Assembly. I raised many questions in my Member’s statement today. Mr. Speaker, I would like to ask the Premier if he knows whether or not the federal government will deduct from our grants the resources and revenues that the territory may collect in the future -- I stress may -- from the pipeline even if we do get a resource revenue agreement and deal. What does he have to demonstrate certainty; not his gut feeling, certainty? Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. The honourable Premier, Mr. Handley.

Return To Question 281-15(3): Reduction Of Federal Grants Due To Resource Revenues

Mr. Speaker, as I said earlier, we will not sign a deal that is not a good deal, so I can have that as a piece of certainty. Mr. Speaker, I fully expect that as a territory we are going to someday have much less of a grant from the federal government and be more self-reliant on our own resource revenue. So I expect the federal government will take some money out of our grant, but I think we’ve got a lot of wealth in this territory and we need to keep it here for our people. We can live someday on our own resource revenues and be a have jurisdiction in Canada. Thank you.

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Thank you, Mr. Handley. Supplementary, Mr. Hawkins.

Supplementary To Question 281-15(3): Reduction Of Federal Grants Due To Resource Revenues

Thank you, Mr. Speaker, and I hope and I pray our Premier is right, that some day…However, the way I read the agreement now or I see us proceeding, I should say, not reading the agreement, is, yes, our resource benefit will increase, but our grant will decrease and still it will be a level playing field, there will be no change. So I can’t see that we are proceeding in a direction right now that is what I want as concrete.

Mr. Speaker, the Pembina Institute released a report that was on the radio in August, saying that the federal government who sets the royalties is giving away the territory's oil and gas resources at a low cost. Between 1995 and 2002, on average, only $2.20 per barrel of oil was collected for production in the NWT. Now compare that to $14 per barrel in Norway, $11.50 in Alaska per barrel. I would like to ask the Premier if he could address this issue or has he addressed this issue on the federal government. Are we giving away our resource revenues for nothing? Thank you.

Thank you, Mr. Hawkins. Mr. Handley.

Further Return To Question 281-15(3): Reduction Of Federal Grants Due To Resource Revenues

Mr. Speaker, first of all let me say that when we balance our grants and our own resource revenues, we expect to have what we have always referred to as a net fiscal benefit. We never want to see a dollar for dollar, otherwise why are we doing this. Mr. Speaker, on the other one, on the report, yes, I believe the federal government is not getting the fiscal resources out of our natural resource development. We are not getting what we should and I saw the same report, I know we are getting much, much less than some of the Scandinavian countries, for example. Mr. Speaker, that’s the federal government. We don’t have any say on that right now, and, of course, that's why devolution is important. Thank you, Mr. Speaker.

Thank you, Mr. Handley. Supplementary, Mr. Hawkins.

Supplementary To Question 281-15(3): Reduction Of Federal Grants Due To Resource Revenues

Thank you, Mr. Speaker, thank you very much. Mr. Speaker, the way I see it right now is we could be spending money better and how could that be happening? I bet we could get further by spending $1 million on a television commercial that could air all across Canada for people in Canada, and maybe even we could wake up some of those parliamentarians down in Ottawa to see what is really happening up here. I think our resource money is being stolen. There is no Robin Hood stealing from the Northwest Territories and giving it back to the people, Mr. Premier. I think our Prime Minister should be going to jail, the way he is stealing from us.

Mr. Speaker, would the Premier tell us today, how much money is…

Mr. Hawkins, the Chair cannot accept that statement from you. Would you retract that statement, Mr. Hawkins?

My apologies, Mr. Speaker, and, of course to the Prime Minister of Canada. I would not insinuate that in a very negative way, and my apologies and I will retract that.

Mr. Speaker, I see the North is hurting from the way Ottawa is taking our resources, and I think you can tell from the passion in my voice I think our people will be suffering from that. Would the Premier tell us today how much has been invested to date in preparing for this pipeline? Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. The honourable Premier, Mr. Handley.

Further Return To Question 281-15(3): Reduction Of Federal Grants Due To Resource Revenues

Mr. Speaker, that is a very complex question and I don’t know, I don’t have the information in front of me of how much we have spent as a government or how much has been spent by others preparing for the pipeline. I can tell you that it is in the hundreds of millions of dollars, particularly by industry. Thank you, Mr. Speaker.

Thank you, Mr. Handley. Final supplementary, Mr. Hawkins.

Supplementary To Question 281-15(3): Reduction Of Federal Grants Due To Resource Revenues

Thank you, Mr. Speaker. Mr. Speaker, my last question to the Premier would be can you say for certainty, for concrete proof, that our territorial membership is onside with this deal? Can you tell us that we are ready? Can you tell me that all regions are onside? Because if we do not have our house in order, we will never be able to deal on a collective front with Ottawa. Can the Premier say for certain that our investment to date will not be wasted, because we are not planning this with a planned approach together? Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. The honourable Premier, Mr. Handley.

Further Return To Question 281-15(3): Reduction Of Federal Grants Due To Resource Revenues

Mr. Speaker, I have not heard any regions say with any unanimous voice that they are not ready for the pipeline or for the economic opportunities we have today. Thank you, Mr. Speaker.

Thank you, Mr. Handley. Item 7, oral questions. At this time the Chair is going to call a 15-minute break.

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