Mr. Speaker, I am pleased to announce the Government of the Northwest Territories has partnered with the Government of Canada to provide more in-person services to the residents of the Northwest Territories, through our single window service centres.
Earlier this year, our two governments launched a 12-month service delivery pilot project in Fort Providence, Fort Liard, and Tuktoyaktuk. Government services officers in these communities are now providing in-person services on behalf of Service Canada, in addition to their current duties for the Government of the Northwest Territories.
The government services officers were trained to help residents with applications for six federal programs: Apprenticeship Grants, Canada Pension Plan, Employment Insurance, Guaranteed Income Supplement, Old Age Security and the Wage Earner Protection Program.
Mr. Speaker, our single window service centres have been an important way to make sure the residents of the Northwest Territories’ small communities have access to government programs and services in a way that works for them. We are pleased to be partnering with the Government of Canada to formally extend access to Government of Canada programs and services in these three communities.
The single window service centres are an already successful program, and since it was launched in
2010, the program has grown across the Northwest Territories from eight to 20 centres and has helped residents with over 40,000 requests for services.
In 2014, the Government of the Northwest Territories received a national award from the Institute of Public Administration of Canada for the single window service centres recognizing the model for its innovative management. Connecting residents with the programs and services they need is important and we continue to work and improve upon the services that the government service officers provide.
Mr. Speaker, we are currently working on establishing the twenty-first single window service centre on Hay River Dene Reserve K'atlodeeche First Nation, with an anticipated opening early in April.
Mr. Speaker, this initiative is an important way that government is more accessible to residents, and I want to thank Members, community residents, local leadership, as well as community and Government of the Northwest Territories staff for their ongoing support. Thank you, Mr. Speaker.
Masi. Ministers' statements. Minister of Lands.
Mr. Speaker, in a couple of weeks, the Department of Lands will mark its third anniversary. Tasked with managing and administering 1.15 million square kilometres of land in the Northwest Territories, the department has been working to serve residents in a way that reflects the Northwest Territories' interests and priorities.
Our work takes us across the entire Northwest Territories and our staff works with various partners, governments and landowners to ensure we are managing land and resources in a fair and transparent manner.
Much of the way in which we engage, and a standard this government is working to achieve for land management, is set out in the Land Use and Sustainability Framework.
The Government of the Northwest Territories has made a commitment in its mandate to create a defined set of collective land use and sustainability objectives. Lands is working with other Government of the Northwest Territories departments on this commitment by looking at how they apply to land management strategies and frameworks. Taken together, this will give us the baseline information to develop an approach to ensure the objectives figure significantly in our decision processes.
Mr. Speaker, the Government of the Northwest Territories has also made a commitment in its mandate to evolve our land and resource management legislative, regulatory, and policy systems. In support of this goal, the Department of Lands is currently working on administrative and technical amendments to the Government of the Northwest Territories' two land acts; notably, the Northwest Territories Lands Act and the Commissioner’s Land Act.
With two land administration systems now under one government, this initiative supports consistency in administrative application and enhanced clarity for land users. Engagement and consultation activities will occur at various stages of this initiative. This summer, we will have a discussion paper ready to share with Aboriginal governments and with the general public.
As part of a separate initiative, the Department of Lands has proposed regulatory changes to fee schedules that would affect those accessing services from document preparation and application fees to royalty collection and permit fees for quarrying.
We have also reviewed lease rent minimums with the objective of better aligning the two land administration systems. Updates to these fees have been proposed based on a number of factors, including inflation.
In addition to this work, the Government of the Northwest Territories has committed in its mandate to work to improve the Northwest Territories integrated resource management regime to ensure it reflects the Northwest Territories interests and priorities. The Department of Lands coordinates the Government of the Northwest Territories' input into amendments to the federal Mackenzie Valley Resource Management Act and regulations, a key feature of the NWT’s integrated resource management regime. We have started engaging with Indigenous and Northern Affairs Canada on changes to the Mackenzie Valley Resource Management Act to reverse amendments that would have resulted in restructuring of the land and water boards in the Mackenzie Valley. In addition, the Department has been actively involved in coordinating the Government of the Northwest Territories' input in the Expert Panel for the Review of Federal Environmental Assessment Processes. As part of our input, we continue to voice the need for participant funding for environmental assessment processes in the Northwest Territories.
As Minister of Lands I am responsible for nominating members to various boards created under the Mackenzie Valley Resource Management Act concerned with environmental review and land use planning, as well as appointments to the Surface Rights Board. The department established a screening process and related procedures to ensure board vacancies are filled in a timely matter, with the most qualified nominees available for each position.
The department continues to help the government meet a high standard for environmental assessment and improve our integrated resource management system.
Mr. Speaker, we recently collaborated with the Department of Environment and Natural Resources, and MVRMA boards, to host resource co-management workshops in Hay River and Norman Wells. These workshops support the mandate commitment to ensure that residents have meaningful opportunities to participate in the assessment of potential benefits and risks associated with resource development.
The government’s mandate commits it to developing an integrated, comprehensive approach to the management of contaminated sites. The Department of Lands is supporting this commitment through work the Securities and Project Assessment Division is doing to address how we handle and process securities and assess risk. Consistent with the strategic direction in the Land Use and Sustainability Framework, our Shared Services Informatics Centre is working with the Securities Division to develop enhanced information-management capacity for tracking securities and assisting in evidence-based decision-making.
Further to that, the department is collaborating with ENR and other departments through an interdepartmental working group to build and implement an inventory of securities and tracking systems over the next few months. Mr. Speaker, creating certainty around land use is critical to the environmental and economic future of the Northwest Territories. Regional land use plans are the primary instrument to define where certain activities can and cannot take place in a specific region or area, and land use planning is a collaborative process that requires strong relationships between communities and governments.
To help create greater certainty for all land users, the GNWT has made a commitment, in its mandate, to complete land use plans in all areas, in collaboration with Aboriginal governments. The department’s work on meeting this mandate item includes the development of regional land use planning guidelines, to clarify the Government of the Northwest Territories’ role in land-use planning.
In addition, the department will host its third annual Land-Use Planning Forum in March 2017. We have invited Aboriginal governments and land-use planning partners to share information and perspectives on how the current and planned approaches, tools, and activities of planning partners can contribute to advancing land-use planning, in areas without completed land-use plans.
We have also initiated work with the Tlicho Government to develop a planning mechanism for public lands within the Wek'eezhii Management Area. Any final land use plan that is developed through the planning mechanism is directly linked to the provisions of the Tlicho Agreement, and those provisions will also make the plan legally binding on all governments.
Finally, Mr. Speaker, the department is close to completing work to develop a framework that will articulate the Government of the Northwest Territory’s goals and priorities for managing recreational leasing on public lands in the Northwest Territories, another commitment of our mandate.
The department also recognized the need for targeted recreational management planning for the public lands outside and around Yellowknife, Ndilo and Detah. Public engagement sessions and online surveys were held last year, giving residents and stakeholders several opportunities for input into the development of the plan for the Yellowknife Periphery Area. The draft plan is expected to be released for public comment this summer. The Government of the Northwest Territories will ensure section 35 consultation responsibilities are met, prior to finalizing the plan.
This work will ensure that Northerners continue to have diverse opportunities to experience and enjoy northern land and waters, in ways that are most meaningful to them.
In closing, Mr. Speaker, the Department of Lands takes its commitments to help this government achieve all of its priorities seriously. We will continue to work toward improving the Northwest Territories’ integrated resource management system, while meeting our land use and sustainability objectives, and the aspirations of Northwest Territories residents. Thank you, Mr. Speaker.
Masi. Ministers' statements. Minister of Industry, Tourism and Investment.
Mr. Speaker, the Government of the Northwest Territories made a commitment in its mandate to support mineral exploration and the mining sector by implementing the Mineral Development Strategy.
I rise today to update my colleagues on our progress. Mr. Speaker, the Mineral Development Strategy has five pillars: creating a competitive edge; establishing a new regulatory environment; enhancing Aboriginal engagement and capacity; promoting sustainability; and enriching workforce development and public awareness.
In our work to create a competitive edge for mining in the NWT, we have placed incentives and advanced world-class geoscience to improve our jurisdiction’s investment attractiveness.
Over three years, we have invested $1.2 million in our Mining Incentive Program. Our first two years of investment leveraged an additional $3.36 million in exploration spending by companies and prospectors on their supported projects. In light of this interest, I am pleased with the decision last week to increase the budget for this fund by $600,000.
We have provided extra work credits through the Exploration Incentive Program, as a stop-gap for companies in uncertain economic times. It is a program that, I am happy to advise Members, will be extended for an additional two years.
We have invested in developing the geoscience research and data that will enable responsible decision-making. Regional maps now detail the geology of the Gwich'in, Sahtu, Inuvialuit, and Deh Cho regions, as well as the Wek'eezhii Resource Management, and Akaitcho areas.
Mr. Speaker, we see our investments in geoscience as part of the broader public good. Not only does the Northwest Territories’ Geological Survey generate and collect this information, it makes it available at no charge.
Our mineral industry drill core collection, including the world’s largest publicly-available kimberlite collection, will be housed in a geological materials storage facility that we will open this summer. This collection, which will be available for examination year-round, significantly reduces costs for companies and prospectors looking to evaluate older mineral prospects that may hold promise as new exploration projects.
Finally, Mr. Speaker, under the pillar of creating a competitive edge, we continue to find ways to promote exploration and mineral investment in the NWT. Last year’s gala celebrating our 25-year history with the diamond industry is an example of how we are using the Unlocking our Potential brand to advance the profile and recognition of our territory’s natural wealth and redouble our efforts to communicate our government’s support for mining.
Mr. Speaker, while geological and economic considerations are important factors in determining mineral exploration and investment decisions, so is our region’s policy climate. Last week, the Fraser Institute published its 2016 survey on mining and exploration companies worldwide.
It ranked the NWT as the seventh most attractive Canadian jurisdiction for mining. Out of 104 jurisdictions worldwide, the Northwest Territories was ranked 11th for best practices and mineral potential and 21st for investment attractiveness.
As part of establishing a new regulatory environment, we have begun work to create a new leading-edge Mineral Resources Act. This work is also part of our mandate commitment to advance the territorial vision of land and resource management, in accordance with the Land Use and Sustainability Framework. While creating legislation from scratch is a long process, we will draw on the latest science and best practices to create an act that will be key to the future of our largest industry.
Our work to promote the sustainability of our mineral development sector has included permafrost, and surficial geology research in the Slave Geological Province, which will help to ensure that any new developments in this region are undertaken with an eye to minimizing environmental impacts on our land and water.
Mr. Speaker, all of this work serves to raise public awareness for the mining industry, and its importance to our territory. It is a message that we take every opportunity to deliver. Working through its Client Service and Community Relations Unit, the Department of ITI has facilitated workshops with Aboriginal governments to create regional mineral development strategies. We have worked closely with the members of the Intergovernmental Council to promote NWT mining and minerals at events, further advancing the spirit of collaboration upon which our successful, modern mining industry was built.
Meanwhile, through the delivery of the Mining Matters program, we are also engaging students in the stories of the NWT minerals and promoting career opportunities in mining in a user-friendly way.
As we work to implement the Mineral Development Strategy, we will continue to improve the climate for exploration and investment in our territory. As market and economic conditions change, we will need to focus and adjust the actions and investments in our strategy to meet this intended mark.
I look forward to continuing to shepherd this strategy, and advancing the NWT mining sector that is creating meaningful jobs and opportunities for our people and a stable, competitive future for our economy. Thank you, Mr. Speaker.
Merci, Mr. Speaker. Following the Minister's statement about mining, our government is committed to the development of a Mineral Resources Act as part of our mandate.
A request for qualifications was issued for a consultant to develop and carry out a public engagement process resulting in a legislative proposal for this work. It closes on March 17th. The objective is the development of a world-class legislative framework for mining that:
Encourages sufficient mineral exploration and production operations;
Protects the land, water, and natural resources of the NWT;
Modernizes the legislative framework and secures the greatest benefit for NWT residents;
Provides clarity, predictability, and transparency for all stakeholders throughout the regulatory and operational processes;
Provides employment and economic opportunities for NWT residents;
Supports Aboriginal governments to build capacity for mining-related activities; and
Builds consensus for mineral development.
All this sounds rather noble. I would like to suggest several specific issues and solutions.
First is to ensure that mineral exploration and development is fully subject to our integrated environmental management regime, the Mackenzie Valley Resource Management Act. There should be no exceptions or exemptions for the mining industry, as is currently the case.
Next, communities should have the ability to prohibit locating mineral claims within municipal boundaries to avoid land-use conflicts and disputes. The NWT Association of Communities has called for such authority, and this would likely require changes to the Surface Rights Board Act. We should also move this board to a co-management approach.
We should modify or end the free entry system to something more like the directed rights disposition system found in our oil and gas regime.
Capture geoscience data and information during exploration to build our knowledge base and avoid repeating environmental disturbance.
Review and adjust royalties from the extractions of public mineral resources. We are now in control and must ensure we retain fair and equitable returns from mineral resources.
I look forward to opportunities to meaningfully shape a new Mineral Resources Act. I will have questions for the Minister of Industry, Tourism and Investment later today. Mahsi, Mr. Speaker.
Masi. Members' statements. Member for Nahendeh.
Thank you, Mr. Speaker. Mr. Speaker, I believe this government recognizes the value and importance of the continued health and wellbeing of their employees. However, these past two years have been difficult ones for the public service. Positions are being eliminated as a result of departmental amalgamations, people are being laid off, and unionized employees have been working without a signed contract for almost a year. As a result, our employees are not feeling good about their relationship with their employer. This needs to be fixed.
Mr. Speaker, wellness is an active process of becoming aware of and learning to make healthy choices. When you focus on keeping your mind, body, and soul in good condition, you can become a more efficient and effective person. We can achieve true wellness only when we proactively recognize that we have mental, physical, and social needs to look after.
A wellness program would help increase productivity, boost morale, and reduce stress. Because a lot of government jobs are sedentary, we need to come up with stretching and walking programs that can be implemented throughout the day. This will help stimulate the brain, help employees refocus, and help provide natural energy. As well, government could look at bringing in a relaxation coach or using videos to help employees learn about deep breathing techniques, tips for loosening up, and secrets for maintaining a relaxed state of mind, even when under pressure.
To truly achieve a healthy and sustainable work-life balance for its employees, the government needs to consider the creation of employee wellness days as part of the overall wellness strategy. These paid wellness days would be spread out across the year to allow employees to spend more time with their families, hobbies, or self.
I am proposing that wellness days be scheduled to fall on the Friday of the third week in February and the Fridays before the following statutory holidays: Victoria Day, August Civic Day, Labour Day, and Thanksgiving. This will give GNWT employees extra-long long weekends to recharge their batteries and return to work rested and enthusiastic about the work they do for the GNWT.
Mr. Speaker, wellness programs would help employees make smart, and healthy choices that can reduce healthcare costs, increase vitality, and diminish workplace absenteeism. Mr. Speaker, I seek unanimous consent to conclude my statement.
---Unanimous consent granted
Thank you, Mr. Speaker, and I thank my colleagues. I have shared these ideas with a number of GNWT employees, including the president of the Union of Northern Workers. I have heard positive support for this approach. I hope the government will give some serious consideration to this proposal. Mr. Speaker, later today I will have questions for the Minister of Finance. Mahsi cho, Mr. Speaker.
Masi. Members' statements. Member for Sahtu.
Mahsi, Mr. Speaker. I had the opportunity to visit almost all 25 students in the Sahtu region attending post-secondary or upgrading technical schooling in Fort Smith.
Mr. Speaker, in recognition of this resource as our next workforce, mentoring and future life skills counselling contributes to the graduation success rate of the youth.
Mr. Speaker, ECE is working in partnership with Aurora College in publication of a renewed labour market development and implementing the first year of the Skills 4 Success.
Mr. Speaker, this Assembly continues to advocate for higher youth graduation candidates. Succession planning and counselling is the main tool of focus on collaborative engagement on the principle of job or career readiness. This element of engagement in forecasting opportunities must be developed to share our vision on prosperity to the youth pre-employment entries into the work world. Later, Mr. Speaker, I will have questions for the appropriate Minister. Mahsi.
Masi. Members' statements. Member for Deh Cho.
Thank you, Mr. Speaker. Mr. Speaker, students in Fort Providence of the Introduction to Northern Leadership provided this statement to me to express on their behalf.
Mr. Speaker, the tourism industry is a great opportunity for the Northwest Territories. Tourism brought in nearly $94.1 million between 2010 and 2011. This number increased to $146 million in the period from 2014 to 2015, which is approximately a 50 per cent increase. Tourism has made a comeback in the NWT and is an important part of the economy.
Mr. Speaker, Fort Providence can take advantage of this opportunity by upgrading Telemia to a tourist camp. Telemia is currently used as a cultural camp of the community and is located approximately 10 kilometres from Fort Providence on the Mackenzie River. Converting it to a tourist camp will enable Fort Providence to participate in the tourism boom in the Northwest Territories.
Mr. Speaker, the local people have the opportunity to explore careers in the tourism sector, as the daily operations of the tourist camp will create 40 jobs. Tourists will also have a chance to experience and learn about the rich Dene culture, food, and heritage that we are so proud of. This camp will create an opportunity for local businesses and foreign investment.
Mr. Speaker, the GNWT has identified Aboriginal tourism as an important opportunity for the NWT.
We have allocated resources towards the development of regional tourism plans and initiatives. We need tourist attractions beyond Yellowknife and for people driving north.
Mr. Speaker, Telemia is a great example of that kind of opportunity and a way to showcase the culture and traditions of the North in a historically important location.
Mr. Speaker, I encourage Industry, Tourism and Investment to offer all its support towards this project. I remain hopeful that this vision can come to fruition. Mahsi, Mr. Speaker.
Masi. Members' statements. Member for Yellowknife Centre.
Mahsi, Mr. Speaker. Mr. Speaker, I want to report today on efforts to introduce a living wage in Yellowknife. The principle guiding this work is that people who work full time should not be living below the poverty line. Eleven Yellowknife organizations with a total of more than 300 employees have now signed with a pledge to pay their employees the living wage.
First, a little background. In 2015, a northern non-profit commissioned an economist to calculate a living wage for Yellowknife. The calculation was based on a 40-hour work week. It included expenses such as food, shelter, transportation, clothing, childcare, and recreation. It does not include paying debts, saving money, helping other family members financially, or owning a pet, among other things. It really is just the basics. The living wage for Yellowknife was calculated for a family of four with two full-time wage earners and two children, one of those children in day care, one in school, as this is the most common family type. The living wage in Yellowknife, Mr. Speaker, is $20.68 an hour for each full-time worker.
The research and calculation of a living wage are important when you consider that, in 2015, there were 1,700 people in Yellowknife making less than $20 per hour, with most of that group earning less than $16 per hour. Contrast this to the territorial minimum wage of $12.50 per hour and you see how far short the legislated wage falls from the wage needed just to get by.
For low-income earners, a living wage can be a permanent solution to poverty. It relieves families of the stress of meeting basic expenses and dealing with financial emergencies. It also allows families to access social and recreational activities that most of us take for granted.
Workers earning a living wage have more money in their pockets to spend locally. They contribute more to the tax base, and that benefits the entire community. Staff retention and workplace productivity is increased, and recruitment and training costs are reduced for employers. Mr. Speaker, a living wage is truly a win-win situation for business and workers and it represents a systemic solution to poverty.
When you are out and about, look for the blue and white living wage supporter decal that living wage employers have posted in their establishments. Mr. Speaker. I seek unanimous consent to conclude my statement.
---Unanimous consent granted
Thank you, Mr. Speaker. Thank you, colleagues. Mr. Speaker, Outreach is continuing to get more businesses and organizations to take the living wage pledge. I salute Alternatives North for leading this work and all the living wage employers present and future.
Masi. Members' statements. Member for Yellowknife North.
Thank you, Mr. Speaker. Mr. Speaker, I was happy to hear the Minister of ITI's statement earlier today. It was definitely some good news. However, Mr. Speaker, an article in the newspaper last week held some news that should trouble us all. Statistics Canada numbers show that, last month, the number of people employed in the NWT was at its lowest rate since 2010. The article indicates that, between last December and January, employment dropped by 700 people across the territory.
I know I'm sounding like a doom-and-gloom broken record, Mr. Speaker, but these discouraging numbers can be attributed to mine closures and corporate offices leaving the North: Imperial Oil planning to leave Norman Wells; Dominion Diamonds and De Beers have relocated to Calgary; layoffs at Diavik. Interestingly the Chamber of Commerce found during its membership drive last month that almost every business that cancelled its membership did so because it was leaving Yellowknife.
At the same time, Mr. Speaker, the Chamber of Mines announced that mining revenues have fallen in the NWT, and exploration activity continues to be flat.
Companies need to find economical ways to do business, Mr. Speaker. The situation begs for solutions. Not that we can wave a magic wand to fix these problems, but the government needs to send clear signals that we are addressing the high cost of doing business in the territory. That high cost remains a barrier to the economic investment that we need to bring jobs back.
In our mandate, we made a commitment to lower the cost of living, but, instead, the average Northerner's dollar is shrinking by the week, Mr. Speaker. We have faced six straight years of rising power rates. If approved, an airport user fee will drive up the costs of everything. We're paying more at the pumps and in grocery stores because of Alberta's carbon tax, and we know that we're going to phase in our own carbon tax regime at some point. People work two or even three jobs just to be able to cover the basics, Mr. Speaker. My honourable colleague from Yellowknife Centre spoke exactly to this challenge earlier with regard to the living wage. The average person's dollar is getting stretched ever tighter, making it harder and harder for families to invest, save, and build upon their future, much less their kids' future. Mr. Speaker, I seek unanimous consent to conclude my statement. Thank you, Mr. Speaker.
---Unanimous consent granted
Thank you, Mr. Speaker, and thank you, colleagues. Mr. Speaker, over the past weeks we've made good progress on the budget, and I appreciate the hard work of Members on both sides of this Chamber. We can now finally move forward. However, as you have heard me say before, I support being fiscally responsible, but not at the expense of our residents. I will continue to advocate that we focus on reducing the cost of living. Thank you, Mr. Speaker.
Masi. Members' statements. Member for Kam Lake.
Thank you, Mr. Speaker. Mr. Speaker, I also rise today to speak to an issue that my honourable friends have brought up today, which is the cost of living and helping Northerners make ends meet, but also the coming cost pressures and expectations that Northerners have on their government.
We acknowledge that one part of living in the North that is so spectacular is our pristine environment that is unparalleled across the country and in the world. You know, we need to look at ways to promote a healthy environment and also a healthy economy. Across the world, really, carbon pricing has become a mechanism to do exactly that. However, this government continues to drag its feet on moving forward with a real plan for carbon pricing in the Northwest Territories.
Others have spoken on this comment. Most recently, I have enquired with our Chamber of Commerce, and they have said that they do not have the capacity to reach out and participate in these meaningful consultations, and yet the government will provide, has provided, resources for others to do that. Our business community needs to be consulted in these very important decisions.
In our sister territory, in the Yukon, their Chamber of Commerce has reversed its position and is now in support of a carbon tax. They want to manage it through a third party, Green Energy Trust, and, while I will save that debate for another day, I think that they are proposing solutions, and good ones at that, to start this discussion going.
This government gives $22 million back in cost-of-living tax credits to Northerners each year, and, with this most recent budget, that number is being enhanced. That is a good thing. Why do we not just make that commitment today to implement a carbon tax and give the money back to Northerners directly as a tax return? That is just one idea.
Lowering the cost of living is completely possible while still adopting a carbon tax. The writing is on the wall, Mr. Speaker. Ottawa is going to do it for us if we do not do it for ourselves. We still do not have anything on the table. We do not even have a list of exceptions that this government wants to ask Ottawa for, so I am afraid that, when the federal budget rolls out in 2018, we will have a carbon tax enforced on us because we have not done the hard work necessary to get some ideas on the table and start that process now. Thank you, Mr. Speaker.
Masi. Members' statements. Member for Hay River North.
Thank you, Mr. Speaker. Mr. Speaker, there are around 100 people in Hay River and Enterprise who are employed in the manufacturing sector. While Hay River is undoubtedly the heart of manufacturing in the territory, the sector is also growing in Yellowknife and Inuvik. In fact, since the economic crash in 2009, manufacturing has been growing every year and has more than doubled its share of the GDP. It continues to create dozens of new jobs yearly and sometimes monthly.
In the NWT, we manufacture modular homes, modular buildings, windows, doors, cabinetry, trusses, signs, fiberglass tanks, steel tanks, tank stands, screw jacks, bridges, and pretty much anything that can be welded together. Do you need a custom-designed and fabricated water truck, a picker truck, a winch truck, a plow, deck, vacuum, roll-off, or fuel delivery truck? We do that, too. Mr. Speaker, the list goes on. I'm told that we even manufacture diamonds.
We should all know by now that we cannot continue to be so utterly reliant on the mining industry. The diamond mines have limited lifespans, and projects to replace them are not even on the horizon. While I’m sure such projects are an inevitability, the fact that we are at the edge of an economic precipice is proof that we need to be more proactive and aggressive in our development of other industries.
That’s precisely why this Assembly voted unanimously to include in the mandate of this government, the commitment that the 18th Legislative Assembly will lead economic diversification in the NWT by investing in manufacturing and a commitment to develop a northern manufacturing strategy.
This will be no small task, Mr. Speaker. There are numerous barriers to growth that we have to overcome. The North is not like the rest of Canada. Our climate, energy costs, lack of infrastructure, and skills gap will require serious investment from this government and will require multiple departments to get out of their silos and work together.
I will give credit where it is due. Members of this Cabinet have made concerted efforts to advance manufacturing, and those efforts have resulted in dozens and dozens of jobs. Those efforts have also exposed many of the barriers faced by entrepreneurs, many of them bureaucratic. The good news, Mr. Speaker, is that those barriers can be removed. That is one reason why a manufacturing strategy is so important. I look forward to working with the Government in the development of this strategy, to helping put even more people to work.
I will have questions for the Minister of ITI at the appropriate time. Thank you, Mr. Speaker.
Thank you, Mr. Speaker. Mr. Speaker, your Standing Committee on Government Operations is pleased to provide its report on the review of the 2016 report of the Auditor General of Canada on Support to Communities for Municipal Services in the Northwest Territories, municipal and community affairs, and commends it to the House.
The Standing Committee on Government Operations (“the Standing Committee”) is pleased to report on its review of the 2016 Report of the Auditor General of Canada on Support to Communities for Municipal Services in the Northwest Territories.
Public Review
The 2016 Report of the Auditor General of Canada on Support to Communities for Municipal Services in the Northwest Territories was tabled in the Legislative Assembly on October 25, 2016. The Standing Committee on Government Operations held its public review of this performance audit report on January 17, 2017.
Members thank Auditor General Mr. Michael Ferguson, Assistant Auditor General Mr. Jerome Berthelette, Principal Mr. Glenn Wheeler, and Lead Auditor Ms. Erin Jellinek for preparing the report and assisting the committee during the public review.
The committee also thanks the Deputy Minister of Municipal and Community Affairs, Ms. Eleanor Young, and officials from the Department of Municipal and Community Affairs (MACA) for their appearances before the Committee.
The standing committee received an unsolicited submission on the Auditor General’s report from Mr. Bradley W. Enge. The standing committee does not, as a matter of practice, seek submissions from members of the public when it holds a public review on a report by a statutory officer such as the Auditor General. Nonetheless, the committee thanks Mr. Enge for taking time to write to the committee.
The Role of the Auditor General of Canada
The Auditor General of Canada is the Auditor of record for the Government of the Northwest Territories, and reports to the Legislative Assembly of the Northwest Territories in accordance with Section 41 of the federal Northwest Territories Act.
The Office of the Auditor General of Canada (OAG) conducts financial and performance audits in all three northern territories. Financial audits tell the Legislative Assembly and the public whether the government is keeping proper records and presenting its financial information fairly and in accordance with public sector accounting standards.
Performance audits, on the other hand, consider whether programs are being run according to the department’s own legislation, regulations, directives and policies, and with due regard for economy, efficiency, effectiveness, and environmental impacts. In the last decade, the Auditor General has completed 10 performance audits in the Northwest Territories, including one status report evaluating progress on the recommendations of previous audits, one special audit, and the most recent audit on support to communities to municipal services, which is the subject of this report.
The Legislative Assembly’s Standing Committee on Government Operations is mandated to review the reports of the Auditor General and make recommendations to the Government of the Northwest Territories on the basis of those reports. Members look for efficiencies, best practices, and gaps, with the intent of improving services to residents. The Auditor General’s reports play a crucial role in Members’ scrutiny of government spending and performance.
Each of the 33 community governments in the Northwest Territories is responsible for providing a range of programs and services to its residents, including essential services, which are: drinking water; waste management; fire protection; and emergency preparedness. The audit focuses specifically on the provision of these essential services because the failure of a community government to adequately provide these services may result in significant risks to public health and safety.
Of the 33 communities, 24 are established as municipalities under one of four acts that outline the responsibilities of the community government, including the powers and duties of the council and municipal employees, procedural requirements, and the circumstances under which MACA can intervene in community government operations. These acts are: the Cities, Towns and Villages Act; the Hamlets Act; the Charter Communities Act; and the Tlicho Community Government Act.
The remaining nine communities, referred to as designated authorities, are First Nations communities within the jurisdiction of the federal government’s Indian Act and, as such, are not subject to territorial legislation governing municipalities.
The audit notes that on-going as lands, resources and self-government agreements are settled in the Northwest Territories, the legislative basis for the Government of the Northwest Territories, including the Department of Municipal and Community Affairs, to be involved with community governments in their delivery of essential services is diminished.
The Role of the Department of Municipal and Community Affairs
Under the Minister, the Department of Municipal and Community Affairs is responsible for developing and maintaining community governments that are responsible and responsive to their residents. This includes providing funding to community governments for essential services, helping ensure that they have the necessary governance structures and financial management capabilities to fulfill their responsibilities, and supporting them to provide their residents with the programs and services essential to good community life. The department’s mandate includes delivering training through its School of Community Government.
In the 2015-16 fiscal year, the department had 100 employees and a budget of just under $104 million. The Legislative Assembly allocates funding to MACA that is used by community governments for the programs and services they are responsible to provide under territorial legislation, regulations and policies. The department transfers over 80 percent of its budget annually to community governments through contribution agreements for the provision of essential services. Through contribution agreements, the department also administers federal funding from the Gas Tax Fund and the Building Canada Fund, which is used by community governments to improve public infrastructure.
If a community government is unable to properly administer its operations and services, the department may appoint an administrator to supervise or conduct operations on behalf of the community government. This, however, is not the case for designated authorities. Because these communities are not governed under territorial legislation, MACA can only intervene at the request of the designated authority and under mutually approved conditions.
The audit makes note of the 2007 New Deal for Community Governments, which fundamentally changed the relationship between the department and the community governments it supports. The ‘New Deal’ moved the department away from a prescriptive role, in which the department essentially dictated what community governments must do, to one in which the department facilitates program delivery by community governments, allowing them the flexibility and autonomy to establish their own priorities.
About the Audit
The Auditor General’s performance audit covered the Department of Municipal and Community Affairs’ activities in the period from April 1, 2013, to June 30, 2016. Work related to the NWT Community Government Accountability Framework covered the period from January 1, 2010, to June 30, 2016.
It may be of interest to note that the work done by the Office of the Auditor General on behalf of the residents of the Northwest Territories is not paid for or reimbursed by the Legislative Assembly or the Government of the Northwest Territories. This gives the Office of the Auditor General the ability to independently select the subject of a performance audit and provide objective assessment and recommendations based on the information that is evaluated during the audit and the findings contained within.
The Office of the Auditor General works closely with the department during the audit process and obtains confirmation from the department’s senior management that the findings in the Auditor General’s report are factually based. Additionally, it should be noted that the department’s formal response to each of the Auditor General’s recommendations is included within the report itself.
The audit examined whether the Department of Municipal and Community Affairs adequately supported community governments’ delivery of essential services that it funded, namely drinking water, waste management, fire protection, and emergency preparedness. To assess this, the audit examined whether the department monitored the provision of these essential services in order to know if they were being adequately delivered in communities across the Northwest Territories. The audit also examined whether the department assisted communities in delivering essential services, including helping to mitigate risks in those areas where services were inadequate. In addition, the audit examined the department’s efforts to build community government capacity through its School of Community Government.
The committee points out that the audit does not compare the work of the department against similar work done in other jurisdictions. Similarly, the audit does not examine whether the budget allocated to the department by the Legislative Assembly is sufficient, nor does it consider whether the legislation, regulations and policies governing the department's work are adequate or appropriate. The audit simply accepts these things a given and looks only at whether or not the department is meeting its obligations that exist under the current legislative and policy framework.
The Office of the Auditor General works with the department to define the scope of the audit. Only those parameters that fall within the scope of the audit are examined. It is important to note that, in this case, the scope of the audit did not include an examination of other key municipal services such as road maintenance, community planning or sport and recreation programming. The community governments themselves, along with other territorial government departments and Indigenous and Northern Affairs Canada, were also excluded from the scope of the audit.
Additionally, the standing committee wishes to point out that an estimated 6,000 hours of work by the Office of the Auditor General went into the audit. This does not include the hours put in by the department in responding to the information needs of the auditors. The committee mentions it here, to provide the audience with a sense of the amount of time and effort involved in conducting a compliance audit.
The standing committee would like to acknowledge the positive comments made by the Office of the Auditor General about the responsiveness of the department during the audit process. The committee is pleased to hear from the Office of the Auditor General that MACA took the audit work seriously and provided the OAG with good cooperation and assistance to complete the work. The committee commends the department for its work in this regard.
Mr. Speaker, the honourable Member for Hay River North will continue reading from this point on.
Masi. Member for Hay River.
Key Audit Findings
Overall, the Auditor General found that MACA did not do enough to help community governments improve their delivery of some essential services. The audit found that while MACA had some information on the essential services provided by some community governments, it did not adequately support community governments in providing key essential services in accordance with legislative and regulatory requirements. The Auditor General noted that this lack of support means that communities were put at risk as a result of inadequate essential services.
Additionally, the audit found that MACA did not take adequate action to mitigate risks associated with essential service delivery in designated authority communities. The audit found that MACA's support to community governments was inadequate to help mitigate risks in the key essential service areas of waste management, emergency preparedness planning, and fire protection services. However, its support to communities to help maintain safe drinking water was adequate.
In his report, and in the public review held by the Standing Committee, the Auditor General noted that MACA's role with respect to community governments had fundamentally changed as a result of the 2007 New Deal, but that the department had not fully stepped into its new role of providing support to community governments and, in particular, ensuring that community governments fulfil their statutory and legal requirements.
The Auditor General had positive comments on the value of the NWT Community Government Accountability Framework as a planning tool, noting that it significantly advanced accountability and transparency by requiring annual reports from community governments on essential service delivery. However, the audit also pointed out that the Accountability Framework did not require enough quality information from communities to allow MACA to determine if its support was aligned with community needs and, further, that MACA did not use other available mechanisms to fill the information gap.
Audit Recommendations
The report contains 11 recommendations related to support for essential services in communities and two recommendations related to capacity development for community governments. These are summarized below. Please note that the numbers in brackets signify the paragraph number of the recommendation as it is contained in the Auditor General's report.
Under the heading of support for essential services in communities, the Auditor General's report makes the following recommendations:
(Paragraph 41) MACA should formally assess information gaps related to water quality testing and work with Health and Social Services to identify and provide communities with support needed to comply with water testing requirements. It should also work with community governments to ensure that all water treatment plant operators get the training needed to become certified.
(Paragraph 53) In consultation with the Department of Environment and Natural Resources, MACA should work with community governments to help identify and provide the necessary support and capacity building needed so they can comply with regulatory and other waste management requirements, including compliance with water licence requirements regulating the management of solid waste sites and sewage lagoons, and proper handling and disposal of hazardous waste.
(Paragraph 63) MACA should take immediate action to reassess whether communities with fire departments meet Safety Act requirements and assist those that do not to become compliant. For those without fire departments, MACA should assist in developing strategies for fire safety.
(Paragraph 69) MACA should provide the supports necessary for all communities to have current emergency plans and training to implement these plans.
(Paragraph 80) MACA should regularly review, and modify as required, the wording of the questions in the NWT Community Government Accountability Framework (the "Accountability Framework") to ensure community governments can correctly answer them.
(Paragraph 81) MACA should develop clear guidelines for community government officials to complete, and department officials to assess, performance indicator checklists in the Accountability Framework, including the criteria for each question and how to respond properly.
(Paragraph 86) MACA should develop a strategy to develop the accuracy of information provided by community governments under the Accountability Framework to support meaningful engagement with community governments on required supports and foster accurate departmental decision-making.
(Paragraph 95) MACA should identify standard performance information for essential services that could be required under contribution agreements. It should also develop a risk-based approach to identifying those higher-risk communities for which more frequent information should be provided.
(Paragraph 99) MACA should review its contribution agreements and the Accountability Framework with a view to using them more thoroughly to facilitate ongoing engagement with community governments to achieve the timely support needed for essential services. MACA should also continue to develop tools for identifying and collecting information critical to community government support.
(Paragraph 109) MACA's contribution agreements with designated authorities should include provisions related to the provision of essential services funded by MACA, which would allow the department to collect required performance information and take corrective action where these essential services are at risk.
(Paragraph 112) MACA should consult with Indigenous and Northern Affairs Canada to determine how the two organizations could work more effectively together to strengthen community governance by designated authorities.
Under the heading of capacity development for community governments, the Auditor General's report makes the following recommendations:
(Paragraph 128) MACA should formally assess how it identifies training needs, and the suite of courses offered, to ensure it is helping community governments develop the capacity required to deliver essential services.
(Paragraph 129) MACA should explore the use of distance education and partnership opportunities with other organizations to maximize program delivery.
The standing committee endorses all of the recommendations made by the Office of the Auditor General and recommends that the department ensure they are implemented in a timely manner.
Further detailed observations and recommendations made by the Standing Committee are provided below in the context of the standing committee's analysis of the department's response to the Auditor General's report.
Recommendation 1
Audit Conclusion
The Office of the Auditor General concluded:
…that the Department of Municipal and Community Affairs did not adequately support community governments' delivery of the essential services it funded. Although the department monitored community governments' provision of some essential services to residents, it did not adequately assist community governments to help ensure essential services were provided in accordance with requirements. [The Audit] found that risks remained in delivering these services and that the Department's actions to mitigate these risks in many cases were not sufficient.
The Auditor General went on to note that while community governments are responsible for the delivery of essential services to their residents, MACA must adequately monitor and support them and assist them to manage the risks associated with inadequate service delivery.
Department of Municipal and Community Affairs’ Action Plan for Improving Support to Community Governments in the Northwest Territories
The standing committee is pleased to see that the Department of Municipal and Community Affairs accepted all of the recommendations made by the Office of the Auditor General. The department prepared an Action Plan for Improving Support to Community Governments in the Northwest Territories (Action Plan) in which it identifies the actions it proposes to implement the Auditor General's recommendations. The standing committee has considered the contents of this document and offers the following assessment and recommendations, based on the content of the action plan and the Auditor General's observations and advice to the standing committee.
Mr. Speaker, I would like to hand the reading of this report off to the honourable Member for Sahtu.
Masi. Member for Sahtu.
Mahsi, Mr. Speaker.
GENERAL OBSERVATIONS AND RECOMMENDATIONS
Timely Receipt of Materials
The standing committee received the Minister's letter transmitting the action plan at the close of business on Friday, January 13, 2016. The committee's in camera preparation for the public review began on the afternoon of the following business day. This effectively left the standing committee with a half-day to prepare for consideration of the 36-page action plan. This is unacceptable.
The committee considers that it is a contravention of section 10 of the Process Convention on Communications between Cabinet Ministers, Standing Committees and Regular MLAs to provide such materials any later than three business days prior to the meeting at which the materials should be provided. The deputy minister offered the explanation that this delay was due to the department's desire to consult with its partner agencies on the action plan.
The committee appreciates the well-intended apology offered by the deputy minister, but it is of the view that the late provision of important materials to the standing committee evidences lack of understanding and/or lack of respect on the part of the department for the standing committee's oversight role in the process. Ultimately, the onus rests with Minister to ensure the timely transmittal of materials.
Recommendation 2
Receipt of the Action Plan in Draft Format
The standing committee has an excellent working relationship with Office of the Auditor General and, as a matter of course, has in-depth discussions both in camera and in public with the Auditor General and his staff. This gives the committee insight into the findings and recommendations made in the audit and, as importantly, into the purpose of the Auditor General's recommendations and the outcome that his office hopes the audit will achieve. This dialogue informs the production of this report and the committee's recommendations, which may be of some benefit to the audited department in refining its approach to addressing the concerns the Auditor General raises.
The standing committee takes notes of and commends MACA for the department's willingness, as expressed in the opening presentation by the deputy minister and in the action plan itself, to make changes and adjustments to the action plan based on the Standing Committee's feedback and that from other stakeholders.
The following recommendation is forward-looking and made with respect to future departments selected for audit by the OAG:
Recommendation 3
Mr. Speaker, the honourable Member for Deh Cho will continue from here.
Masi. Member for Deh Cho.
Thank you, Mr. Speaker.
Observations and Recommendations on the Action Plan
MACA’s Approach to Development of the Plan
In outlining its approach to developing the action plan, the department noted that “…all MACA staff were provided an opportunity to offer grassroots solutions and approaches to address the issues the OAG has identified,” and that this approach “…underlines the importance of engaging staff who are going to be directly responsible for the implementation of the action plan.”
While the Standing Committee agrees with the importance of engaging with staff to identify innovative solutions, Members believe that it is equally important to engage stakeholders outside the department in this discussion, particularly the communities to which the department provides support.
This, in fact, was a theme that permeated the committee's overall discussion with the Office of the Auditor General on the audit. In tracing the changing role of the department as a result of the 2007 New Deal, the OAG noted that MACA's role in providing support to communities has evolved into one that requires the department to develop expertise in relationship building. In fact, during the public review, the Auditor General expressed the view that relationship-building should be MACA's core competency. The committee encourages the department to carefully consider this advice.
The committee was pleased to hear from the deputy minister that input on the action plan was sought from Indigenous and Northern Affairs Canada. At the same time, it is concerned that the department did not move beyond discussion amongst its own officials to involve community governments, through their representative organizations, in the identification of potential solutions. The committee notes the department's intention to involve these organizations in achieving the identified actions, but wishes to emphasize that this is not the same as providing an opportunity for meaningful discussion with community representatives regarding whether the identified actions are the right ones.
Recognition by the department of the need to do this kind of ground-floor consultation would, in the view of the committee, demonstrate that the department is strengthening its competency in the area of relationship-building. The fact that it appears not to have been done suggests to the committee that the OAG's observation is correct that the department still has much work to do to build relationships with its partner organizations.
Recommendation 4
MACA's Assessment of the Audit's Findings
The committee notes MACA's observation “that many of the recommendations describe a lack of defined process and challenges the department faces with data collection.” While this may appear to be the case at first glance, the committee cautions the department reducing the Auditor General's concerns to a "documentation problem."
The committee is of the understanding that it is not uncommon for audited departments to characterize the findings of the audit as identifying problems related to data collection and management. Some committee members saw an example of this at a recent public briefing on Child and Family Services compliance audits provided by the Department of Health and Social Services, at which the findings of the Auditor General's 2014 report were described as failing to make the distinction between “work done” and “work documented.” Similarly, in the report on the Auditor General's 2015 report on corrections in the Northwest Territories, the Standing Committee in the 17th Assembly expressed concern with “the apparent efforts of the Minister and department to minimize the significance of the Auditor General's findings.” The committee suggests that this inclination to conclude that an audit's findings are about information and data management loses sight of the bigger picture, which connects information and data management as a means to the end of providing quality programs and services. The committee encourages the department to take heed the Auditor General’s caution that to fully address the issues raised by the audit, the department must:
Take a more proactive role with communities;
Fulfil its duty to ensure the proper delivery of essential services by communities in accordance with legislation, regulations and policy; and
Develop expert skills in relationship-building as a core competency.
Mr. Speaker, I would like to hand this off to the honourable Member for Nunakput. Mahsi.
Masi. Member for Nunakput.
Thank you, Mr. Speaker.
Implementation
During the public review, the Auditor General stated that he wants the audits done by his office to have real and meaningful outcomes for citizens. He made the pointed observation that, for this to happen, it is important for the Department to stay focused not only on the actions it is implementing in response to the audit, but on whether those actions are achieving the desired outcome of having real, meaningful impacts on community residents. He further observed that doing so aligns with the department’s vision of “responsible, responsive governments,” and its client-centred focus.
The Auditor General also was of the view that, in order to achieve this goal, the department should include indicators in its action plan as a way of measuring how the actions it is taking are resulting in positive changes at the community level. The Committee concurs with the Auditor General’s assessment and, accordingly, makes the following recommendation:
Recommendation 5
Drinking Water (paragraph 41)
The committee acknowledges the Auditor General’s finding that department’s support to communities was acceptable with regard to drinking water. The committee commends the department for this achievement, but questions whether success in this area was achieved at the cost of poorer progress in the other three key essential services.
The committee views the department’s success in this area as proof that it has the potential to improve results in support for the other three essential services addressed in the audit. The committee reiterates the Auditor General’s observation in the public review that the department needs to take a comprehensive approach to the support it provides to communities. By better marshalling its resources, the department can strike the balance needed to ensure all essential services receive adequate and appropriate attention.
Contribution Agreements with Designated Authorities (paragraph 109)
Contribution agreements are, in essence, a contract between MACA and the designated authorities for the provision of essential services. The proper execution of contribution agreements, recommended by the Auditor General, will ensure that expectations are clearly set out and the circumstances identified under which the department may intervene in a Designated Authority’s activities.
MACA should be diligent about ensuring that provisions contained in contribution agreements are being enforced.
The committee urges MACA to make a distinction between the proper execution of contribution agreements and the larger issue of relationship building with Indigenous and Northern Affairs Canada, which involves addressing the currently existing legislative gap which leaves the department without the authority to unilaterally intervene in a Designated Authority’s business.
The committee acknowledges the explanation provided by the deputy minister at the Public Review that the department considered the responses to the recommendations at paragraph 109 and 112 together, which explains the similarity in the responses. The deputy went on to suggest that the Action Plan might better reflect the department’s intentions if the responses were identical and repeated in both.
The committee strongly discourages this approach; the recommendations are distinct from one another and were designed that way by the Auditor General for a reason. The committee challenges the department to craft an approach that is responsive to the intent of each recommendation. The committee suggests that one way to achieve this would be to move Priority Action items 109.3 through 109.5 to the response to recommendation 112, as they are specific to that recommendation.
Recommendation 6
Mr. Speaker, the Chair of Standing Committee on Government Operations, the honourable Member for Kam Lake will conclude the presentation of this report. Thank you, Mr. Speaker.
Masi. Member for Kam Lake.
Thank you, Mr. Speaker.
CONCLUSION
According to the Auditor General, the Department of Municipal and Community Affairs did not do enough to help community governments improve their delivery of some essential services and did not take adequate action to mitigate risks specific to the delivery of essential services, particularly in designated authority communities. Adequate support and community engagement are key to helping ensure that community governments have the capacity they need to provide residents with quality essential services critical to their health and safety.
The committee is encouraged that the Minister accepted the Auditor General’s recommendations and that the department has developed an action plan to implement them.
The standing committee will be monitoring the department’s progress and looks forward to receiving substantive progress reports.
Recommendation 7
Masi. Member for Kam Lake.
