Debates of October 20, 2006 (day 12)

Thank you, Mr. Speaker. Mr. Speaker, I'd like to use the remainder of the question period to pose one more question to the Premier and it's in regards to what I heard this morning from the study that was done by Alternatives North, which suggests that the potential income, or revenue, or profit, from the pipeline development for industry could be as high as $17 billion.

Wow!

I think we understand that this is a mega, mega project, and the latest figure I've heard was a $7 billion investment required by the consortium and the cost is going up. But even at $10 billion, a $17 billion profit is quite healthy. It's an 80 to 100 percent return. I think anybody would go for that.

Take care of the elders.

I think what we are looking at is what portion of $17 billion or any relation to that does this government stand to gain from that. Could the Premier enlighten the House as to what his response is to that?

Thank you, Ms. Lee. Honourable Premier, Mr. Handley.

Return To Question 156-15(5): Mackenzie Valley Gas Project Profits

Thank you, Mr. Speaker. We have a copy of the presentation that was made; we've seen some media reports on it. We're doing a review of it now to try to figure out how they arrived at the numbers they have. If it is $17 billion profit, I agree with the Member, that is a lot of profit. Thank you.

Thank you, Mr. Handley. Supplementary, Ms. Lee.

Supplementary To Question 156-15(5): Mackenzie Valley Gas Project Profits

Thank you, Mr. Speaker. I just want to be clear that I don't have a problem with people making a profit. I mean that's what makes the markets go around. Good on them if the companies can come and make profits. I'm interested in what is the GNWT getting in this development project. I think it is the resources of our territory; it has a lot to do with our future economic prosperity. Good on the aboriginal governments for working hard to get what is beneficial to them, but I have to tell you that we have to be very concerned that in the whole mix of things we've got nothing so far…

Nothing.

Nothing. Zip.

…for the territorial government. So what is the Premier going to do, in light of this new information, to stand up for the NWT and for this government? Thank you.

Stand up.

Thank you, Ms. Lee. Time for question period has expired; however, I'll allow the Premier to answer the question. Mr. Handley.

Further Return To Question 156-15(5): Mackenzie Valley Gas Project Profits

Thank you, Mr. Speaker. As I said, we will look at it. We want to know, we want to try and figure out ourselves what is the profit on this project. If there is huge profit, then we need our fair share of it. Mr. Speaker, I don't have a quarrel either with companies making a lot of money on these projects, but we do want our share and right now we have no commitment to have our share and it becomes increasingly difficult to support these kinds of projects if we're not getting a fair share of the resource revenues.

Hear! Hear!

If all we're getting is a little bit of corporate tax, a little bit of property tax and some payroll tax, and a lot of people may be getting jobs, that is still not enough. We know there's resource revenues that the federal government will benefit from on this project for a long, long time, and we need to get that share. I have stayed adamant with the federal government that any support for these kind of projects has to be tied to a fair share for us. The Prime Minister, in fact, has said that; now he's got to act on it.

Hear! Hear!

---Applause

Thank you, Mr. Handley. I'll allow one more supplementary question, Ms. Lee.

Supplementary To Question 156-15(5): Mackenzie Valley Gas Project Profits

Thank you, Mr. Speaker. I'm not an economist, but I don't think it takes…I mean this new report just says what I think we already have known. These consortiums of these mega companies who have projects around the world would not be spending the kind of money and the time they are if they weren't going to make money. I mean that should not come to us as a surprise.

Short question, Ms. Lee.

Mr. Speaker, I think that this government, and this Legislature, and the Premier, and the Cabinet, will be judged on how we come out in terms of benefits for the people of the Northwest Territories. I need to hear from the Premier very precisely what is it exactly he's asking the Prime Minister and how he's about to get that. Thank you, Mr. Speaker.

Thank you, Ms. Lee. Mr. Handley.

Further Return To Question 156-15(5): Mackenzie Valley Gas Project Profits

Thank you, Mr. Speaker. We are negotiating with the federal government and with Imperial. No doubt, Imperial, or Exxon who owns most of them, make profits. That's what those businesses do. But, Mr. Speaker, we are insisting with the federal government that they work with us to conclude an agreement-in-principle on devolution and resource revenue sharing within a matter of months. Mr. Speaker, we need their commitment to do that, otherwise, as I said, our support for these kind of big projects is questionable why we're doing it. Mr. Speaker, on resource revenues we're saying agree to an agreement-in-principle, then start working on a final agreement. The Prime Minister has said that the northerners should be the primary beneficiaries of resource revenues. That to me sounds like 50 percent plus, and that is where we are negotiating with the federal government on resource revenues. Of course, there's other areas in terms of socioeconomic impact and so on that we're negotiating as well. Thank you, Mr. Speaker.