Thank you, Mr. Speaker. As the recent climate change audit reveals, we have a large task before us in addressing our climate change goals and objectives, and also transitioning to a clean energy economy. The Northwest Territories Power Corporation serves an important role there, and I'd like to ask the Minister responsible today if he can respond to a few of the decisions he's made around the governance of that corporation.
In 2005, the Treasury Board of Canada Secretariat released a report called the Review of Governance Framework for Canada's Crown Corporations. In there, they define a Crown corporation by stating, "Crown corporations derived a raison d'etre from these statutory roles as instruments of public policy." How is the Minister using the NWT Power Corporation as an instrument of policy to drive our clean energy agenda? Thank you.
Masi. Minister responsible for the NWT Power Corporation.
Certainly, Mr. Speaker, we are working with other departments to ensure that the energy future for the Northwest Territories will be a cleaner one. We are in the process of developing a 20-year strategic plan that will focus on addressing such issues as cleaner energy, ensuring reliability, and supporting economic development in the Northwest Territories. Thank you, Mr. Speaker.
I was looking for something a bit bolder than kind of boilerplate strategic goals like that. Clean energy is a demanding task in the Northwest Territories. It's going to take time and effort, and I think the board of directors is key in this role. This report also goes on to state that "best practices dictate that to be effective, directors must approach their work objectively and with decision-making independence. This independence helps establish a board's credibility and supports sound governance and effective accountability. For these reasons, corporate governance best practices require that boards of directors of Crown corporations function independently from management." Can the Minister explain why he has decided to go against best practices, and combine an independent board with management?
The nature of this Crown corporation has changed over the years. Many of its activities, particularly in the area of energy conservation and the more experimental projects, are now shared with other departments. So a new board has been put in place and is looking at these types of issues of management as we move forward. It's a question of added value, Mr. Speaker. The old board was quite expensive. Keeping it in place would have led to a higher rate increase than the one that's anticipated. The new board of directors has a diverse education and background, and I am confident in them.
I can't see the Minister's shoes under his desk, but I assume they're dancing shoes, because he didn't quite answer the question. I asked him why he has eliminated the independence of the board and combined it with management, which undermines the credibility of the Power Corporation. Northerners are frustrated to see their power rates continue to rise, and have no trust in this organization. The Minister has further damaged that trust by this decision. So will the Minister at least commit to re-visiting these decisions and installing an independent board that can direct the corporation towards a clean energy future?
Mr. Speaker, of course, we are looking at all these matters. As indicated in my response to one of the earlier questions, part of the concern of the board that is shared by the shareholder was that increase in rates be as moderate as possible. Had we kept the old board, there would have been a larger increase than the one that is anticipated. We are, however, looking at the whole corporate governance of the board, the future of the Power Corporation.
Masi. Oral questions. Member for Kam Lake.
Thank you, Mr. Speaker. Over the last seven years, it would appear that Northland's rates have gone down by 1.8 per cent, and NTPC's have skyrocketed at 48 per cent, and we're still looking at an increase. Maybe it's a smaller increase. Perhaps the board could have been paid less or given less resources. The Minister has said he's working on governance. He's also talking about a 20-year strategic plan. When is the governance review going to be complete, and when is that plan going to come forward? Thank you, Mr. Speaker.
Mr. Speaker, I will bring these concerns to the board, and work with them on a continuing basis so that we can improve the Power Corporation. We do wish to keep rates low. The rates, of course, are set by the Public Utilities Board, an independent arm completely separate from government. Northland Utilities and the Power Corporation are different corporations with different concerns. All I can say is that we are working to keep rates as low as possible, and I am in constant contact with members of the board. Thank you, Mr. Speaker.
Masi. Oral questions. Member for Tu Nedhe-Wiilideh.
