Debates of October 18, 2005 (day 12)

Mr. Speaker, in light of the discussions that we are having this afternoon, I want to ask the Minister responsible for the petroleum products division, in terms of emergency needs…This has to do with the increase of fuel prices in the small communities. We are getting mixed messages from our communities.

Even Bern Brown from Colville Lake wrote a letter to me on his old typewriter, saying, why the increase? I guess the issue here is, what forms of communication is the Minister giving to the communities? Because of the mixed messages of resupply, winter barge, winter road resupply and barge supply, and the increase will be here, the increase will be there, what is the message that the department is going to be giving, once and for all, to the communities on this high increase of fuel in our communities this winter?

Thank you, Mr. Yakeleya. The honourable Minister of Public Works and Services, Mr. Roland.

Return To Question 157-15(4): Fuel Price Increases

Thank you, Mr. Speaker. Mr. Speaker, in the area of petroleum products, notification was sent out to Members, and notification was given out to communities, that an increase was coming effective April 1st. That increase is a result of two things. First, we have gone to a full cost recovery model for pricing of products in communities. That means that the cost of delivering that product to a community is what is going to be charged at that community going forward. In the past, there was a different model used where some communities that had larger volume sales were offsetting the higher costs in the smaller communities. That is no longer happening. We are going with full cost recovery in every community. Secondly, the resupply situation that has happened over the summer has added a further increased cost to the product itself. That is also being reflected in this recent change. Thank you.

Thank you, Mr. Roland. Supplementary, Mr. Yakeleya.

Supplementary To Question 157-15(4): Fuel Price Increases

Thank you, Mr. Speaker. The full cost recovery…I am having a hard time here, Mr. Speaker in terms of the prices that are going to be charged in these small, isolated communities. Wekweeti is $1.56; Nahanni Butte is $1.33; Colville Lake is $1.50; and Paulatuk is $1.50. In terms of helping out the small communities in their traditional lifestyle, it is going to be pretty tough for these people who live in this type of a situation. Can the Minister help me out here by explaining full cost recovery, and what type of support assistance would these people with low income receive in terms of having a decent living? Thank you.

Thank you, Mr. Yakeleya. Mr. Roland.

Further Return To Question 157-15(4): Fuel Price Increases

Thank you, Mr. Speaker. Mr. Speaker, from the petroleum products division itself we are not providing any subsidies to individuals out there. There are a number of other programs within other departments that do help out people in the North. One is the seniors' fuel subsidy; another, through income support, possibly, would be a hardship allowance. Again, that is income tested.

What we have done in the petroleum products division is to try to offset the increased cost of home heating oil. Within our stabilization fund, there was enough funding there to lower the price or keep the price from going up further by 10 cents a litre on home heating oil. That is one of the things that we have done, is taken some of that subsidy to lower what the impact would have been had we not applied that 10 cent reduction to home heating oil. Thank you.

Thank you, Mr. Roland. Supplementary, Mr. Yakeleya.

Supplementary To Question 157-15(4): Fuel Price Increases

Thank you, Mr. Speaker. I want to ask the Minister, how is this type of information, through the communities down the valley, being communicated? Again, you said the notification went out to the MLAs, to the communities; how is that being…Because of the different mixed messages that the communities are receiving, I'm not too sure in how plain a language you could put it, Mr. Minister, in letting the communities know. Can the people in Colville Lake know that $1.50 will now stay until next year, or is there going to be an increase in the heating fuel or the gasoline fuel? They weren't notified when the prices were increased, and they were in shock, actually. Thank you, Mr. Speaker.

Thank you, Mr. Yakeleya. Mr. Roland.

Further Return To Question 157-15(4): Fuel Price Increases

Thank you, Mr. Speaker. Mr. Speaker, we can work on doing an information package that we can put out there. We can possibly look at what immediate ways we can get it out to the people, whether it is flyers or something like that. I think we have to, again, recognize the cost of getting information out there. I think we can look at trying to get a package out there that is fairly straightforward as to what the impacts are. The difference would be, now that we have changed the full cost recovery model where we are paying for the basic prices of product, the taxes that are applied to the federal government and ourselves and the commission cost -- the cost of having the fuel delivered in the community by a contractor -- there are basic parameters already there. The only change that will happen now is the actual cost of the product and transportation to the community. The rest will stay relatively stable. That is a thing that will happen. That will happen in the communities where resupply happens in the summer. That will be shortly after resupply happens. An adjustment will happen at that point. After winter resupply, again, adjustments will be made shortly after that. Thank you.

Thank you, Mr. Roland. Final, short supplementary, Mr. Yakeleya.

Supplementary To Question 157-15(4): Fuel Price Increases

Thank you, Mr. Speaker. That is the issue here in terms of the price increase in the smaller communities that the Minister has indicated. I hope he sees some communication in advance going out to the small communities of what they are to expect in terms of proper planning, in terms of looking at different options, in terms of paying for the high cost of fuel. Mr. Speaker, in light of the amount of gas we have in the Northwest Territories, it is really hard to see that this type of increase can come down in the Northwest Territories. Can the Minister advise the House that this type of information would also be done in the North Slavey language, or any other language that is primarily an aboriginal language? Thank you.

Thank you, Mr. Yakeleya. Mr. Roland.

Further Return To Question 157-15(4): Fuel Price Increases

Thank you, Mr. Speaker. Mr. Speaker, we can look at doing some information packages that would be done in the aboriginal language of the regions. Again, we are going to rely on a fair bit of support through community delivery agencies. We have passed information out there about the change. Obviously, that comes up short. We will look at what package we can put together. I am willing to discuss with Members what might be the best move in getting that information out, and work on it from that end of it. Thank you.