Thank you, Mr. Speaker. My questions are addressed to the Premier today and I want to speak to some of the questions that have arisen from the Auditor General’s report.
In February of 2008, when the project was at financial close and things were in a bit of a critical situation, I believe that the Department of Transport expressed concern that the bridge design was not complete, and at that point, according to what the Minister of Transportation said earlier, there was a decision by Cabinet to go ahead with the project without design approval. I’d like to know on what basis, if the Premier can advise on what basis Cabinet made that decision to go ahead with the construction of the bridge. Thank you.
Thank you, Ms. Bisaro. The honourable Premier, Mr. Roland.
Thank you, Mr. Speaker. Let’s be clear on this: Cabinet did not overrule Transportation. The fact is this project was under the Department of Transportation and it is the initiative of the department and Minister to bring forward papers for discussions on that process.
I didn’t hear an answer to the question there. If a department brings forward a proposal, there must have been some basis on which a decision is made to go on one side or the other. I didn’t hear an answer as to what basis that decision was made on.
I’d like to know also from the Premier, when this decision was being considered, was there an evaluation of the risk to the project, for instance, cost overruns, if the project went ahead to construction without approval of bridge design?
The process of any construction project coming forward, number one, the specific department would have to do a number of analyses in coming forward with a request for a decision. In this case, the Department of Transportation looked at many of those options and came forward with their paper. Decisions were made based on that.
Now, as well, I must say, as we’re talking about a decision made back in February at the request of Members of this Assembly to myself, I had authorized the Department of Executive to work with the departments involved, that was Transportation, Justice and Finance at the time, to do a review. We submitted that paper to the Standing Committee on Economic Development and Infrastructure on March 3, 2008, going over a number of the concerns that were raised by Members at that time.
I didn’t really hear an answer to my question about what kind of evaluation was done at the time that the decision was made so I guess I’m not going to get one.
I’d like to ask the Premier, in February of 2008 as well we’ve understood from the Auditor General’s report that regulations to the Financial Administration Act were amended and at that time the requirement for 14 days’ advance notice to Members was also waived. I’d like to know from the Premier why Members were not advised of the waiving or the amendment to the regulations even if it had to be after the fact.
There was no waiving of notice of Members. It is a natural part of the decision to provide an exemption to indemnification where the process that was followed is a standard practice and has been in place since 1999. This decision to do that as a normal part of business -- and governments across the land use this as a tool -- was to address the need to indemnify, in the initial case, the Deh Cho Bridge Corporation and then follow up with the lenders. We could read out exactly what that indemnification meant. Again, in the paper, in the response that I gave to committee we did reflect on the need to adjust the current processes going forward and reference the work that was ongoing, for example, in the Financial Administration Act. That work is still ongoing that would look towards those issues.
Thank you, Mr. Roland. Final supplementary, Ms. Bisaro.
Thank you, Mr. Speaker. Thanks to the Premier for that response. I guess maybe if that information went to the Standing Committee on Economic Development and Infrastructure I did not see it as I’m not on that committee. I’d like to ask the Premier if he would commit to providing the information that went to Standing Committee on Economic Development and Infrastructure relative to the amendment of these regulations. If he could commit to provide that to me and Members on this side of the House.
Again, the notifications particular to what the Member just stated about the amendment to indemnifications, the list is attached to the regulations. The Minister of Finance can provide a list of those that are included in the regulations. Again, this process does not, it is a normal part of business and it foregoes the 14-day process that we’ve gone through. That was discussed with Members. In fact, again, the letter I wrote to the chair of Standing Committee on Economic Development and Infrastructure and the attachment highlighted the need for looking at a modernization of the Financial Administration Act and the area of loan guarantees and indemnities.
Thank you, Mr. Roland. The honourable Member for Nahendeh, Mr. Menicoche.
