Debates of February 6, 2006 (day 23)

Thank you, Mr. Speaker. Mr. Speaker, the owners of Arslanian Diamonds were in town last week and they had a chance to meet with the Ministers of ITI and Finance. My question for the Minister of Finance is now that they have seen the number and the proof that this company can buy diamonds from Antwerp cheaper than they can buy them 300 kilometres north of Yellowknife, what is the Minister planning to specifically do with this challenge? Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. The honourable Minister responsible for Education, Culture and Employment, Mr. Dent. Sorry; Industry, Tourism and Investment, Mr. Bell. Mr. Hawkins, could you clarify for the Chair who you had directed your question to? Mr. Hawkins.

Mr. Speaker, I asked my question to the Minister of ITI. I said Arslanian Cutting Works spoke to the Ministers of ITI and Finance, but my question was directed to the Minister of ITI. They can do whatever they want with it. Thank you.

Thank you, Mr. Hawkins. The honourable Minister responsible for Industry, Tourism and Investment, Mr. Bell.

Return To Question 340-15(4): Support For Northern Diamond Polishing Facilities

Thank you, Mr. Speaker. The Member is right that I, along with the Minister of Finance, met with the owners of Arslanian and Polar Bear factories to have this discussion. The allegations they have raised are concerning for us, so we have asked them to provide us with some documentation and that is something that we can then take to the company to have this discussion. I should point out the factory seems concerned only with one of the mines. I don’t want to make the suggestion that it is all producers. We do have MOUs in place with both mines. Under the terms of our socio-economic agreement, there are diamonds set aside for northern producers. One of the challenges we have is that there was never any discussions or reference made to pricing in those agreements, but it is something we are sitting down to deal with with that company and look forward to making some progress. Thank you, Mr. Speaker.

Thank you, Mr. Bell. Supplementary, Mr. Hawkins.

Supplementary To Question 340-15(4): Support For Northern Diamond Polishing Facilities

Thank you, Mr. Speaker. Mr. Speaker, the Minister of ITI could let me know what is the problem of possibly just calling up the president of that particular diamond mine that we are referring to and asking what the problem is. We shouldn’t be choking our local diamond mines with the facts that you can buy diamonds in Antwerp cheaper than you can buy 300 kilometres north. Mr. Speaker, could the Minister look at placing a phone call so we can giddy-up on this problem and make sure we solve it quicker, rather than later? Thank you.

Thank you, Mr. Hawkins. Mr. Bell.

Further Return To Question 340-15(4): Support For Northern Diamond Polishing Facilities

Thank you, Mr. Speaker. We are looking to get to the bottom of the issue. The Ministers prior to myself have had the same concern raised and have sought to address it. One of the difficulties is that it’s not as if this is a commodity traded on the open market and we can see the pricing arrangements made with various customers. The mines have customers overseas that they term core customers. They have private arrangements made with those customers. We are not sure how much the diamonds are sold to those customers for, so it’s very difficult for us to make a determination around what kind of pricing arrangements, compared to other companies, our local industry gets, but we are working on it. Thank you, Mr. Speaker.

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

Supplementary To Question 340-15(4): Support For Northern Diamond Polishing Facilities

Thank you, Mr. Speaker. Mr. Speaker, the Minister mentioned or alluded to the fact that it’s an historical problem. I would like to hear that the Minister is working to put this in writing, so we can make sure at least a fair premium is charged in recognition of where we are in comparison to where Antwerp is. The diamond mines are on our doorstep, Mr. Speaker, yet they cost more. I would like to hear what the options are that the Minister is going to look at if the diamond mine that we are talking about doesn’t step up to the plate and supply diamonds at a fair and reasonable price to our local cutters. Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. Mr. Bell.

Further Return To Question 340-15(4): Support For Northern Diamond Polishing Facilities

Thank you, Mr. Speaker. I believe the problem is an allegation of premium being charged to one of our companies over and above the price that Antwerp customers can pay. Of course, these diamonds are very easy and cheap to move to another location, so it’s not as if it’s onerous transportation costs that would lead to a higher price having to be charged in Antwerp. We are looking at it. It’s hypothetical at this point as to what we might do if we are not able to resolve it. I do think we will be able to sit down with the company and talk this through and get some better understanding if a premium is being charged to northern companies. We believe that is not what should be happening. So I would like to work this through with the Finance Minister, as well, and with the company and see if we can’t come to a beneficial arrangement for northern factories. Thank you, Mr. Speaker.