Thank you, Mr. Speaker. My question is directed to the Minister of Finance. One of the concerns that have been raised in regard to the AIP and devolution agreement is the formula being used for other net fiscal benefit and the government having a limit on the cap of 5 percent of gross expenditures under the agreement. I’d like to ask the Minister of Finance if we have taken into consideration mega projects such as the pipeline down the Mackenzie Highway. I think we’re looking somewhere in excess of $900 million. I’d like to know if the government has done an assessment on how this formula is going to work at the end of the day for these major projects that will benefit the federal government or ourselves.
Thank you, Mr. Krutko. The honourable Minister of Finance, Mr. Miltenberger.
Thank you, Mr. Speaker. Those facts have been considered. If the day comes when we generate as much wealth as Alberta, for example, then we won’t require territorial formula financing. We will be able to make do on what we generate in wealth out of the Northwest Territories. Until that point, the net fiscal benefit policy and agreement that is being proposed is there with the cap and the 50 percent. Yes, we have looked at those factors.
Again, I’d like to ask the Premier with regard to justifying the net fiscal benefit, and using the cap of 5 percent of government gross expenditure base I think this will seriously affect the GNWT and Aboriginal governments with regard to our share of resources revenues, in which I see a major increase in share revenues going directly to the federal government from all these large projects because we have the cap net fiscal benefit. I’d just like to know from the Minister if we have an idea of how much money is going to flow to the federal government on these major projects compared to what’s going to flow to the GNWT.
We will get 100 percent of the royalties but there’s a 50 percent offset against our territorial formula financing. We can keep up to the cap of 5 percent of the gross expenditure base.
I would point out, as well, I just saw a news story on CBC where the folks over in the Yukon were already making arrangements to see if they could start renegotiating their agreement because what they’ve seen on the table for the Northwest Territories is considerably better than what they were able to negotiate.
The other thing to keep in mind as the AIP goes forward and the final agreement is signed, there will be review periods built in periodically going forward.
I’d like to ask the Minister if there were any other proposals put forward than the 5 percent cap. Did we consider a 15 percent cap or was the 5 percent cap something that the federal government wanted? I’d like to know from the Minister if we considered other options than the 5 percent cap of gross expenditures under the agreement-in-principle.
That 5 percent cap came about in the Assembly and the last go-round with negotiations on equalization and the territorial formula financing. It is not tied directly to or a result of the AIP that’s been signed and that we’re now moving on. Thank you.
Thank you, Mr. Miltenberger. Your final supplementary, Mr. Krutko.
Thank you, Mr. Speaker. Again, another major concern was the whole area of the resources that excluded the Norman Wells revenues from the total NWT resource revenues under the agreement-in-principle. I’d like to ask, have we considered exactly how much revenues are there in the Norman Wells oilfield, and more importantly, the revenues that are generated out of Norman Wells, the amount of money that’s flowing to the federal government, and more importantly, is there any opportunity to reopen this. More importantly, can the Minister give us a breakdown on all these assessments and costs associated with this so we can see it for ourselves? Can the Minister of Finance let me know how much we are leaving on the table, excluding the Norman Wells revenues from the AIP?
The debate over the Norman Wells royalties and access to them have been going on for years throughout this process. There was a settlement made out of court with the Sahtu and the Gwich’in in terms of a one-time cash settlement over the issue of access to royalties. As we go forward with the AIP and negotiate a final devolution deal, there’s nothing to preclude us from continuing to raise that issue, hopefully to our satisfaction. Thank you.
Thank you, Mr. Miltenberger. The honourable Member for Tu Nedhe, Mr. Beaulieu.
