Debates of October 18, 2006 (day 10)

Thank you, Mr. Speaker. My questions are for the Premier and it’s with regard to the Deh Cho Bridge and the loan guarantee to the Deh Cho Bridge Corporation. We just recently received a letter saying the loan guarantee was going to be again bumped up another $100,000. I distinctly remember saying the tap had been turned off on the Deh Cho Bridge project, so I was quite surprised to receive a letter like that. The project costs have gone from $50 million to $60 million to $140 million to $150 million. I am not sure why we continue to allow the tally to build up on this. I would like to ask the Premier if he didn’t mean the tap was really turned off, when is he going to turn it off? Thank you.

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

Return To Question 130-15(5): Deh Cho Bridge Loan Guarantee

Mr. Speaker, no further work is being done on the Deh Cho Bridge. The work has stopped. It’s on hold. Mr. Speaker, when I say there is nothing being done, we, though, still have the interest and bank fee costs of the outstanding loan that is made, loan guarantee. Mr. Speaker, that is the only cost we are bearing now. We have chosen to keep this on hold in light of Minister Cannon’s statement that he would be laying out a national infrastructure program and that we would be included in that. We have yet to find out what would be available to us. Thank you, Mr. Speaker.

Thank you, Mr. Handley. Supplementary, Mr. Ramsay.

Supplementary To Question 130-15(5): Deh Cho Bridge Loan Guarantee

Thank you, Mr. Speaker. Mr. Speaker, I don’t know why we continue to put our dollars at risk while we wait for a decision from the federal government. That’s for certain.

The other thing I want to ask the Premier is what exactly are the other costs that are associated? If you are saying that it’s $100,000 in interest, I can see a loan guarantee of $3.55 million costing much, much more than $100,000. What is going to be the final tab on the Deh Cho Bridge Corporation and what is it going to cost the residents of the Northwest Territories?

Thank you, Mr. Ramsay. Mr. Handley.

Further Return To Question 130-15(5): Deh Cho Bridge Loan Guarantee

Mr. Speaker, all of the cost, the additional costs we have now for the time that this loan is extended to, are bank related. It’s interest, bank fees, bank charges. That’s all there is. There is nothing more going on. The loan is roughly $3.5 million. The work that has been done is not wasted. It doesn’t go in a wastebasket. It’s there and it’s work that’s been done and it’s ready to go. If we were to just fold up everything and say we don’t need to look at that project anymore, the heck with it, it would cost us roughly $3.5 million to pay off the loan and clean this up. Mr. Speaker, it’s our view that there is infrastructure money coming and we should not jump the gun here and be premature. Let’s wait to see what the federal government has to offer. Thank you.

Thank you, Mr. Handley. Supplementary, Mr. Ramsay.

Supplementary To Question 130-15(5): Deh Cho Bridge Loan Guarantee

Thank you, Mr. Speaker. I don’t think we would be jumping the gun by cutting off the risk of the territorial government in that loan guarantee. Why wouldn’t we just pay it out? We are going to get the information anyway. The decision from the federal government might be years away. Again, I don’t understand why we continue to bleed. What other costs is the government going to incur on this loan guarantee? There has to be other costs out there. What are they and will the Premier let us know what they are? Thank you.

Thank you, Mr. Ramsay. Mr. Handley.

Further Return To Question 130-15(5): Deh Cho Bridge Loan Guarantee

Mr. Speaker, we still anticipate that we will be successful in getting additional money to make this bridge possible. If the bridge goes ahead, if we get the money and the bridge goes ahead, then that money that we have loaned or guaranteed to the Bridge Corporation is rolled into the cost of the bridge. So there is no cost to the government at all. If we were to assume that the bridge is not going to go ahead and pay the $3.5 million, then in that scenario it costs us, as public government, $3.5 million. It’s our view that we are better to wait and not fold up the Bridge Corporation now. There may be money coming in. This money can be rolled into the price of the bridge and no cost to public government. Thank you.

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

Supplementary To Question 130-15(5): Deh Cho Bridge Loan Guarantee

Thank you, Mr. Speaker. Members have been asking, for some time, for a detailed costing on where this $3.5 million has gone and exactly what it’s been spent on. We haven’t received that level of detail yet on where this money has gone and what it’s been spent on. From what I hear, the Premier -- and I would like again to ask him this question -- is there going to be anymore money spent on the Deh Cho Bridge Corporation? Is it going to cost the residents here any more money? Thank you.

Thank you, Mr. Ramsay. Mr. Handley.

Further Return To Question 130-15(5): Deh Cho Bridge Loan Guarantee

Mr. Speaker, again, I will say there is no activity at all, no additional cost to the Bridge Corporation. The only additional cost that we have accruing now are bank interest and other fees. There is no more activity with the Deh Cho Bridge Corporation and there won’t be until we have the revenues to be able to proceed with this project. Thank you, Mr. Speaker.