Mr. Speaker, three years ago the 17th Legislative Assembly made it a priority to establish sustainable, vibrant, safe communities. Today I want to speak about some of the work being done by the Department of Municipal and Community Affairs to help reach that goal by strengthening community emergency preparedness and fire protection.
In the past 12 months, NWT communities have experienced some extreme events that have tested their ability to respond to natural disasters and community fire incidents. These events can occur at any time and in any place, with or without warning. Effective response requires a continual planning and capacity building.
Mr. Speaker, emergency preparedness and community fire protection are critical. Our collective efforts need to focus on helping communities reach a suitable level of readiness. To this end, MACA is committed to several important goals that will help create and sustain a foundation with which to support and strengthen community preparedness and response.
MACA continues its efforts to help community governments improve community emergency management capacity. This includes the delivery of community planning workshops and tabletop exercises. Since 2011, 20 communities have updated their existing emergency response plans or created new ones. Last year MACA launched a new tabletop exercise in Whati, which is now available to communities to help validate emergency plans.
Mr. Speaker, work continues at the territorial level as well. Recently, MACA began a review of the
government’s civil emergency response efforts from last summer. The review will identify gaps and deficiencies in last summer’s operations and allow us to improve procedures and plans. It will also inform work to update the territorial Emergency Response Plan that will commence in the spring.
MACA is also coordinating the GNWT’s participation in Operation NANOOK 2015, which provides a great opportunity to practice and evaluate components of the NWT’s emergency measures regime. This annual Canadian Forces live exercise is scheduled to take place in August and will involve working with key partners to respond to a simulated wildfire event in the vicinity of Fort Smith.
Last summer the department completed a territorial hazard identification risk assessment which provides communities guidance concerning risks that pose the greatest threat to people, property, environment and the economy. This tool can be used to update community emergency plans, develop municipal disaster risk mitigation plans and guide development of emergency response exercises.
MACA also started work on modernizing the Civil Emergency Measures Act to ensure it provides the GNWT and community governments with effective tools to respond to our current hazard environment. Work is well underway and it is hoped that we can pass in the 17th Assembly.
Mr. Speaker, not all emergency events occur from natural disasters. Many originate in our own homes and have a profound impact on families. According to the National Fire Protection Association, households can expect a home fire every 15 years. While most will be small fires resulting in little or no damage, some will be greater. This means effective community fire protection needs to remain a high priority for the department and community governments.
In 2014 MACA continued implementation of an NWT Community Fire Protection Plan, focused on key priorities identified by fire protection stakeholders. The department recently worked with partners to implement a territorial-wide Carbon Monoxide Awareness Campaign and a volunteer firefighter recruitment and retention tool kit for community governments. These efforts combine to help improve the efforts of smaller communities with limited equipment, capacity and volunteers. Future efforts will continue to build on local capacity by providing templates and tools that can be implemented by fire departments in communities across the NWT.
To help ensure adequate first aid skills, MACA is delivering first responder training to community volunteers and staff. Since June 2014, six communities have received training, with several more sessions planned for the remainder of the year. This effort has been combined with a unique opportunity to increase public access to automated external defibrillators. Working with the Heart and Stroke Foundation, we are combining efforts to place more than 60 defibrillators in recreation and public facilities throughout the North and to deliver user training to volunteers.
Central to this goal are our continued efforts to help community government staff and volunteers achieve certification and accreditation as firefighters. In 2014, eighteen individuals were certified as fire instructors and eight individuals as fire investigators.
Mr. Speaker, improvements in community fire protection require a sustained effort and effective collaboration on behalf of all stakeholders. It also requires an effective foundation with which to ensure adequate oversight and authority for all levels of government. To this end, MACA is making good progress towards an updated Fire Prevention Act that will reflect our true operating environment. A draft bill is expected early in the 18th Assembly.
Mr. Speaker, I wish to commend community governments for their continued efforts in this important area and to thank our partners for their ongoing support. Thank you, Mr. Speaker.
Thank you, Mr. McLeod. The honourable Minister of Education, Culture and Employment, Mr. Lafferty.
Mr. Speaker, it makes me very proud to share an important milestone with this Legislative Assembly. At the Truth and Reconciliation Commission event in Inuvik in 2011, I committed our government to educating students and teachers in the Northwest Territories about the history and legacy of the residential schools.
For the year following that TRC event, Education, Culture and Employment staff worked closely with the Nunavut government, the Legacy of Hope Foundation and, in particular, former residential school students, to complete a resource package of teaching and learning materials.
In October of 2012, all NWT northern studies teachers were introduced to the new teacher’s guide. At this in-service, many survivors shared their experiences with our teachers. The experiences shared during this in-service helped the teachers not only in their delivery of northern studies but in their understanding of their students and the communities they are working in.
Since this initial launch, I committed our government to train not just the northern Studies teachers but all K to 12 teachers in the NWT on the history and legacy of residential schools. It has taken us over a year to accomplish this goal, and as of February 19th every NWT teacher has participated in an in-service. We will now be offering this in-service to all new teachers arriving to the Northwest Territories.
Mr. Speaker, this is an important accomplishment, and I want to take this opportunity to acknowledge and thank several groups. I want to thank the principals and teachers who listened respectfully to the difficult truths.
I want to thank the Vision of Hope and Health Canada for supporting the process through their counselling services and attending every in-service. They also provided follow-up support for those who needed it. I want to thank Maxine Lacorne who is an intergenerational survivor and also travelled to many communities and provided hope through sharing her experiences and journey of healing. Most importantly, I want to acknowledge and thank the many former residential school students all over the NWT who graciously shared their experiences with open hearts.
In June I will be hosting meetings with my counterparts from across the country, the Council of Ministers of Education Canada. At these meetings we will be discussing how to make it a requirement in every province and territory across Canada for all teachers to be familiar with the issues related to the history and legacy of residential schools, regardless of where they study or where they teach. Together, we are understanding the past and seeking reconciliation to build hope for tomorrow.
Mr. Speaker, the Northwest Territories can be very proud of the leadership role we have played right across this country in assuring that never again will another generation be able to say, “I didn’t know.” Mahsi, Mr. Speaker.
Thank you, Mr. Lafferty. The honourable Minister of Health and Social Services, Mr. Abernethy.
Mr. Speaker, each year we celebrate March as National Social Work Month. Social work is a profession for those with a passion to help improve people’s lives. Social workers help individuals, families and communities by providing support and resources and working through challenging and complex circumstances.
Social workers can work directly with individuals to provide counselling services or other supports. They also contribute to the broader improvement of our territory through policy development and helping to improve the way services are provided and delivered at the community level.
Social workers have an ethical obligation to advocate for broad social change to address social inequalities that will benefit the marginalized members of our communities and, ultimately, all of us.
When families are in crisis, social workers are there to help people get back on their feet. Social workers show outstanding dedication and professionalism to help people achieve success and realize their best selves. The hours are tough, as help is required around the clock.
Social work requires determination, devotion and a sense of purpose to make a real difference for people in need, and I have seen many positive outcomes as a result of social workers’ efforts.
For these reasons and many more, social work is being celebrated this year as a profession of choice. As the Minister of Health and Social Services, I want to express how much the Government of the Northwest Territories appreciates professional social work not just during Social Work Month but every day.
I am pleased to have this extra opportunity to celebrate these outstanding professionals and express the Government of the Northwest Territories’ recognition and thanks for all their hard work on behalf of the people of the Northwest Territories. Thank you, Mr. Speaker.
Thank you, Mr. Speaker. The Stanton Territorial Hospital Renewal Project must include a wellness centre that beats for the hearts of all Aboriginal people and culture. Our territorial hospital, when renovated, has to incorporate the Aboriginal identity that over 50 percent of our population has. “There is one thing stronger than all the armies in the world, and that is an idea whose time has come,” said Victor Hugo, the famous writer. I believe it’s true in this case.
Colonialism and, consequently, the residential school system for Aboriginal peoples in Canada has resulted in the loss of control over their lives and culture and they continue to struggle for self-determination on almost every level, including the health care system.
Aboriginal people die earlier, live in conditions comparable to Third World countries, experience housing and living crises, obtain lower education levels, experience unemployment and poverty and are at increased risk for suicide, tuberculosis and diabetes.
Improving and recognizing a unique Aboriginal health care model is beneficial because it has been shown in other jurisdictions that having close Aboriginal ties to traditional healing works wonders. Cancer rates decrease, diabetes rates decline and the general health and well-being improves because our people are comfortable and relaxed in a setting they recognize.
Francois Paulette, chair of the Stanton Elders Council, has recently called upon the Department of Health and Social Services to include an Aboriginal wellness centre at the Stanton Territorial Hospital. I support this and I will look to all my colleagues to support it as well.
He and all the members of the Elders Council envision a facility that would blend traditional and western medicine at the hospital to enshrine and recognize Aboriginal culture and traditional healing practices to complement our NWT health care services.
The council has seen how this works by observing other hospitals that incorporate traditional healing into their facilities. Two unique northern examples are the Alaska Native Medical Center which is home to one of North American’s most unique health care environments, the place where the highest quality care and cutting-edge technology meets special Aboriginal cultural and traditional services and patient experiences.
Mr. Speaker, I seek unanimous consent to conclude my statement.
---Unanimous consent granted
Then, in the Yukon, the First Nations health programs promote the provision of quality culturally sensitive holistic health care to Aboriginal people by providing social and spiritual support as well as access to traditional food, medicine and healing practices.
I am pleased to hear that the Department of Health and Social Services is supportive of the concept and has identified and set aside land at the Stanton Territorial Hospital. Regretfully, an Aboriginal wellness centre was never included in the Stanton Renewal Project. But with political will, no army can stop us from including it in the plan. We must find a way to provide funding for a business plan and get this facility on our books and into the Stanton Renewal Project before we complete it in five years’ time.
I will have questions for the Minister of Health and Social Services during question period. Thank you.
Thank you, Mr. Menicoche. Member for Range Lake, Mr. Dolynny.
Thank you, Mr. Speaker. Reading about a WSCC stop work order of the Fort Resolution fire department in December of 2014 did leave many asking how. How did this hamlet get itself in this predicament?
Although little was said or reported, the concern was about the safety of the volunteer firefighters. But what was never discussed was the root problem of why there were so many safety deficiencies, training and equipment maintenance issues.
Armed with more questions than answers, I attempted to peel back the layers surrounding this concern. Interestingly, through my findings, this is not an isolated case in the Northwest Territories. Actually, many, if not most communities in the NWT, struggle with the capacity to provide reliable fire service. For the most part, there appears to be a lack of buy-in for a proper fire safety culture. There are few volunteers, constant turnover, very little training, let alone recertification, unmaintained equipment and what appears to be insufficient budgets. Researching further, we know that training modules have been developed, but there is a gap in whether competencies are being tested.
So I’m concerned, should this be left as is, we are putting our residents at grave risk. So, when this government is supporting a global presumption of basic emergency services at community levels are working safely and efficiently, this, in my opinion, is wrong.
We should be asking our leadership, when was the last time communities were assessed for their ability to deliver emergency services? Where can we find community information that indicates compliance to codes and standards of emergency services? Where is this report and are the findings made public? Is money being wasted? We are not sure, but it is clear we are surrounding this issue with too much politics and drowning it by design.
I will be discussing this topic later today with the Minister of Municipal and Community Affairs. Thank you, Mr. Speaker.
Thank you, Mr. Dolynny. Member for Weledeh, Mr. Bromley.
Thank you, Mr. Speaker. A silver lining may emerge from a catastrophic fire season the Northwest Territories experienced last summer. A bumper crop of morel mushrooms is anticipated this spring. Buyers of these delicacies will be again on site, bringing millions into the NWT economy.
While the potential abundance and ease of access are welcome, potential administrative and other nightmares could derail the industry. Members have called for regulation of the industry, and the government may be responding with legislation governing the mushroom harvest in the NWT. This is welcome only if timing issues do not undermine this new industry start-up.
Buyers and pickers will be at harvest sites by early to mid-May as the early harvest begins at that time. Buyers and pickers will be, of course, unaware of any law brought into effect after the 1st of May, being out in the forest doing their job. Harvesters working in the forest will not have the communications to find out about new requirements for business licences or permits, should they happen.
If legislation calls for registration and permits, these must be available prior to May 1st. If not, we will unintentionally put buyers and pickers into a situation of being offenders of the law. Buyers could leave and the industry fail.
This is a potential recipe for disaster and I expect the Ministers of ITI and ENR to be aware of this situation and to take steps to avoid it. Proper planning and implementation of any new law and regulations can avoid unnecessary and costly confusion. Licence and permit forms need to be designed, printed and distributed for this industry to key communities by May 1st and as readily obtainable as a fishing licence. Communication of the new rules will need to be proactive with signs posted along the highways from the south, alerting harvesters to their new responsibilities. User-friendly visits to picking sites by renewable resource officers to explain new regulations and issue the required permits will be needed.
Finally, consideration needs to be given as to where picking should be encouraged and what areas should be restricted. While most edible mushrooms are clean and safe to eat, those from some areas have been found to carry contaminant loads including lead and arsenic.
To foster and safeguard the industry and consumers, it is essential to have the technology to test soil samples in the first mushrooms from possible picking sites prior to the harvest. With proper timing and communication of regulations and responsible testing of soils and products, a sustainable mushroom industry can contribute to the NWT economy for years to come. I will have questions. Mahsi.
Thank you, Mr. Bromley. Member for Inuvik Boot Lake, Mr. Moses.
Thank you, Mr. Speaker. Yesterday afternoon I had the opportunity, along with my colleagues here, to attend a luncheon over at the Explorer Hotel with participants who are attending this year’s Weaving Our Wisdom Gathering, a territorial wellness gathering. I just want to say it was a really great opportunity to meet and catch up with old colleagues who I used to work with in the Department of Health as well as the Department of MACA, and also look at some of the leaders who were at the event itself.
It was really unique in the sense that the Department of Health put on this conference. We had volunteers, we had elders, we had community leaders, chiefs, mayors all speaking with one another about how we make our health systems and programs and services that we provide better, and how we work together to create healthier individuals in the Northwest Territories.
One other thing that was really great to see was all the youth who were in attendance. I think there were youth representing all the communities across the Northwest Territories, bringing their voices to the table, like I said, with mayors, with chiefs and with community leaders all striving for the same goal and objective.
One thing that was really great to see in these three days of meetings that they had was they had an online webcast. So if people couldn’t come in for the conference, or it was already at capacity, then people could participate online, something that this government hasn’t really done before. They were able to listen to presentations, download the presentations from the site, ask questions in real time and just be part of the conference from up in the Beaufort-Delta, to the Sahtu and the Deh Cho. I’m not sure what kind of uptake was on that website, but that’s where we need to move in order to get the information out, to have people from the Northwest Territories participating on how we do business, how we create action plans and strategies moving forward.
I think the Department of Health did a great job, an excellent job in providing this gathering, Weaving Our Wisdom, to everybody in the Northwest Territories. I’m sure it was even available to people down south. I heard the presentations were great, the keynote speakers were great, and I applaud the Minister and his department for doing such a great job on this gathering here. Thank you, Mr. Speaker.
Thank you, Mr. Moses. Member for Frame Lake, Ms. Bisaro.
Thank you, Mr. Speaker. We’ve heard a lot in the House about GNWT jobs and vacancies. But something not often spoken about that is a huge drain on our resources, both human and financial, is absenteeism.
According to the NWT 2013 Public Service Annual Report, the work absence rate for the GNWT public service was 12.3 days per employee. This is a decrease from 2012, when it was 13.2 days, and 2011, when it was 14.7 days. I guess it’s a good thing that that number is going down, but this statistic means that every NWT employee was absent from work one day every month of the year. That’s a lot of days off.
The reasons why people are absent are many, but one we seldom talk about, and hardly ever admit to, is days away from work because of poor mental health or mental illness.
A 2011 study showed that one in three workplace disability claims are related to mental illness. Many of those claims are stress related. Stress is causing disability due to mental illness in many people.
Of those 12.3 days absent per employee in 2013, how many were due to poor mental health or mental illness? I’m sure all of us know people who have taken mental health days away from work, whether they were really mentally ill or just taking advantage of their sick days allotment. Either way, it’s a day away from work when the work did not get done.
Any illness at work can have a significant effect on employee morale and productivity, so it’s advantageous for the employer to protect its biggest investment: its people. Physical illness we talk about, but mental illness we do not. Four in 10 people say that they would hide or ignore a mental illness from their workplace, and less than 25 percent of people would talk to their employer about their mental illness.
The stigma around mental illness and the shame that people feel because they have a mental illness prevents their mental health concerns from being properly addressed. We must change that. We have to start talking about it. We need to accept mental illness as an illness as normal as any physical illness and we have to de-stigmatize mental illness in our conversations. We need to make it normal to talk about it and to ask for help with mental illness, just like a physical illness. If we do that, there will be a greater understanding and support for our co-workers who suffer from mental illness, and if we get that greater understanding and provide greater support we will create a healthier workplace with reduced absenteeism.
I will have questions for the Minister of Human Resources at the appropriate time.
Thank you, Ms. Bisaro. The Member for Mackenzie Delta, Mr. Blake.
Thank you, Mr. Speaker. Moose Kerr School was constructed in 1969, exactly the same time as Samuel Hearne High School was built in Inuvik. Samuel Hearne was demolished and replaced a couple years ago. My constituents would like to know why is Moose Kerr School still standing. At 46 years old it’s overdue for replacement. The Minister of Education stated in the House that Moose Kerr School is slated for replacement or renovation in 2019. That’s four years from now.
I’m concerned about potential safety hazards at the school, specifically whether asbestos poses a risk to children’s health. Asbestos was routinely used in building products until the 1970s and 1980s, so a building like Moose Kerr School, constructed in 1969, very likely contains asbestos. Indeed, Samuel Hearne was built at precisely the same time and in the same region of the Northwest Territories, and it contained asbestos.
There is scientific consensus about the harmful effects of asbestos. Whenever material containing asbestos gets disturbed, the tiny microfibers are released into the air. When they are inhaled, they can become trapped in the lungs and stay there for many years. Over time, the fibers can cause serious health problems such as lung disease and cancer.
Now is the time to start planning for the replacement of Moose Kerr School.
I will have questions for the Minister of Public Works later today.
Thank you, Mr. Blake. Member for Sahtu, Mr. Yakeleya.
Thank you, Mr. Speaker. I want to talk to the issue of the transboundary water agreements that this government has undertaken since the Minister has taken the lead on this. The transboundary water agreements are very important, especially from our neighbours in the south of the Northwest Territories, specifically Alberta, because of the development that’s happening in the Alberta province and that the flow from these rivers have come from the majority of the rivers here.
I want to talk because in the Sahtu Land Claim Agreement it speaks to a chapter where the quality and the quantity of our waters would not be altered by any type of development and we would know for sure that our water will remain the same as it was when we started to negotiate our land claim agreement.
I understand that the Minister has been working very hard and the staff has been doing some excellent work on concluding some of the agreements, and I wanted to ask the Minister how this will affect our land claim and people’s water in the Northwest Territories, especially around the area of Great Slave Lake, coming down the Mackenzie River with the recent spill of the coalbed incident last year and the water monitoring stations along the Slave River, around the Great Slave area up around the Mackenzie River. This agreement will have an impact to ensure that future generations will have clean quality drinking water. A lot of the animals rely on the Mackenzie River, people who live and trap along this great river.
I’ll have further questions to the Minister on the transboundary agreements with the provinces that we’re dealing with. Thank you.
Thank you, Mr. Yakeleya. Member for Hay River North, Mr. Bouchard.
Thank you, Mr. Speaker. The Hay River Health and Social Services Authority is excited to announce the birth of the first baby in Hay River with our new Midwifery Program.
---Applause
On Wednesday, February 25, 2015, the first Hay River mother who planned her birth in the community with a midwife delivery delivered a healthy baby boy, 7 pounds, 9.5 ounces. Mother and baby are doing well and were able to return home after 24 hours.
The staff at H.H. Williams were welcoming of the new child and honestly were very excited that they’ve been trained to take on this new responsibility and were excited that Hay River is going to be back on birth certificates.
I’d like to thank everybody in the House here that supported midwifery. We look forward to seeing Hay River on the birth certificates out there. Thank you very much.
Thank you, Mr. Bouchard. The Member for Deh Cho, Mr. Nadli.
Thank you, Mr. Speaker. A couple of days ago the Auditor General released a report on the correctional facilities in the Northwest Territories. I’ve heard people refer to the North Slave Correctional Centre as a country club. They say the facility doesn’t punish people but instead rewards them for the terrible things they’ve done.
There’s some superficial truth to the country club, but it doesn’t capture the whole story. Beneath the surface, things are more complicated. My experience is that many inmates are actually very good people, very good people who do very bad things when they’re drinking. When they are sober they are reliable, they are out on the land, they are raising families. Under the influence of alcohol, though, these same people show a completely different side time and time again. A Jekyll and Hyde pattern shows itself.
The Auditor General found some serious deficiencies in the rehabilitation of inmates. Even when inmates are identified as needing long-term individualized treatment to cope with alcohol dependency, they don’t receive meaningful support during the period of incarceration. That means inmates are not prepared to live clean or sober lives when they go back into the community. Without support, many inmates only return to their communities hardened by their prison experience.
Why does this matter? It matters because the government has a responsibility under the Corrections Act to provide treatment and rehabilitate offenders. However, many inmates are returning to their home communities without having received an appropriate level of aid and rehabilitative programming.
At the appropriate time I will ask the Premier to account for these failings. Mahsi.
Thank you, Mr. Nadli. The Member for Hay River South, Mrs. Groenewegen.
Thank you, Mr. Speaker. Just before we came into the House today, my colleague from Hay River North took me to a website on his computer which indicated a gentleman who has set up a special kind of Hansard, and in that Hansard you can put in key words and it tells you how many times those words were mentioned by certain Members.
I was dismayed to realize that my colleague has mentioned Hay River 40 more times than I have during this session.
---Interjection
Forty-five, oh right, because of his statement today.
So, I cannot let that be the truth. So, Mr. Speaker, I represent Hay River. I live in Hay River. I will grow old in Hay River. I invite people to visit Hay River, especially this weekend for Kamba Carnival. I invite this government to plan meetings, gatherings and conferences in Hay River and enjoy all of the amenities that Hay River has to offer.
Hay River is the NWT’s second largest community. Hay River was built there because of its proximity to the lake and to the Hay River. I want this government to be fair to Hay River residents when they hand out government program services and resources.
Hay River has an amazing business community on the leading edge of things in the area of manufacturing service and retail sectors. Hay River has outstanding volunteers and service clubs and sports organizations. To prove it, Hay River is home to our Olympic athlete, Brendan Green.
Hay River has exceptional schools with educators second to none. Hay River is the headquarters of the territorial library services. Hay River is headquarters to the NWT Liquor Commission. Hay River is headquarters to the Northwest Territories Power Corporation and, Mr. Speaker, Hay River is many, many more things, but I think I might have caught up by now. Thanks, Mr. Speaker.
Thank you, Mrs. Groenewegen. Item 4, reports of standing and special committees, Mr. Nadli.
Thank you, Mr. Speaker. Your Standing Committee on Government Operations is pleased to provide its Report on the Review of Bill 12: Northern Employee Benefits Services Pension Plan Act, and commends it to the House.
The Standing Committee on Government Operations – “the Standing Committee” – is pleased to report on its review of Bill 12, Northern Employee Benefits Services Pension Plan Act.
Bill 12, sponsored by the Department of Finance, sets out the legislative framework for the continuation of the Northern Employee Benefits Services, NEBS, Pension Plan as a multi-employer, multi-jurisdictional pension plan for employees of approved public sector employers in the Northwest Territories and Nunavut.
Bill 12 received second reading in the Legislative Assembly on February 27, 2014, and was referred to the Standing Committee on Government Operations for review.
NEBS has been in existence since 1979 and was incorporated as a not-for-profit corporation in 1999. At that time the plan was regulated under the federal Pension Benefits Standards Act, PBSA. In 2004 the federal office of the Superintendent of Financial Institutions, OSFI, determined that the NEBS Pension Plan no longer qualified for regulation under federal legislation. This decision meant that member pension contributions were no longer protected from creditors and locking-in provisions and plan portability outside the Northwest Territories and Nunavut were lost. Additionally, while the NEBS Board of Directors continued to govern the NEBS Pension Plan in voluntary compliance with the PBSA, they no longer had the legislative authority to govern and manage the plan with certainty.
In 2009 the GNWT enacted the Northern Employee Benefits Services Pension Plan Act, as did Nunavut, which provides protection from creditors for member contributions. However, this still left NEBS conducting business in the absence of a legislative foundation. Bill 12 represents the collective efforts of the Government of the Northwest Territories’ Department of Finance and the Government of Nunavut’s Department of Community and Government Services, working in collaboration with NEBS, to resolve that problem.
The multi-jurisdictional nature of the proposed legislation governing NEBS has presented unique challenges related to the development and review of Bill 12. It has created a situation in which two distinct, sovereign Legislatures are simultaneously considering amendments to two separate, but virtually identical, pieces of legislation governing a single body that conducts business in both jurisdictions. Therefore, at the same time that the Standing Committee on Government Operations has been considering Bill 12, our counterpart in Nunavut, the Standing Committee on Legislation of the Legislative Assembly of Nunavut, has been considering Bill 1.
While the circumstances that have given rise to two different Legislatures in two independently-governed jurisdictions considering “mirrored” legislation are unusual, they are not without precedent. The last time this situation occurred was in 2007, when both Nunavut and the Northwest Territories considered a new Workers’ Compensation Act. Passage of this act allowed both jurisdictions to continue to share a single Workers’ Safety and Compensation Commission and to enjoy the economies of scale that come with doing so. It is in this same vein that the NEBS Pension Plan Act has been developed and is being considered, to allow employers and workers in both jurisdictions to participate in a single pension plan.
Given the complexity of the bill, and the high degree of collaboration required between Nunavut and the Northwest Territories to facilitate concurrent reviews of Bill 1 and Bill 12, respectively, both committees determined that additional time would be required to complete their reviews. Consequently, consistent with each Legislature’s own rules, each standing committee sought to extend the review period for its respective bill by an additional 120 days. On October 27, 2014, the Government of Nunavut passed Motion 012-4(2): Extension of Review Period for Bill 1, Northern Employee Benefits Services Pension Plan Act. On October 29, 2014, the chair of the Standing Committee on Government Operations, in accordance with Rule 70(1) of the Rules of the Legislative Assembly of the Northwest Territories, requested in the House, under reports of committees on the review of bills, an extension by 120 days to the period of time allowed for the standing committee’s review of Bill 12.
The committee wishes to take this opportunity to thank their counterparts and officials in Nunavut for their timely cooperation and spirit of collaboration which contributed to the successful review of this important bill.
Mr. Speaker, through you, I’ll ask Ms. Bisaro to continue with the report. Mahsi.
Thank you, Mr. Nadli. Ms. Bisaro.
Thank you, Mr. Speaker.
The Standing Committee on Government Operations held a public hearing on Bill 12, in Yellowknife, on September 25, 2014. The committee anticipated that there would be some degree of stakeholder interest in Bill 12, owing to the importance placed by most individuals on matters related to their pensions. However, the turnout for the meeting exceeded the committee’s expectations. The committee wishes to thank everyone who attended the public hearing, especially for their forbearance regarding the somewhat crowded committee room.
The chair of the standing committee opened the meeting, followed by opening remarks by the Honourable J. Michael Miltenberger, Minister of Finance, and Mr. John McKee, president/chairman of NEBS. Opening remarks were followed by presentations made by Mr. Mike Aumond, deputy minister, Department of Finance; and Mr. Shawn Maley, chief executive officer, NEBS.
The following individuals were also present as part of the delegations:
Mr. Jamie Koe, director of corporate services, Department of Finance, GNWT;
Ms. Kelly McLaughlin, director, legal services, Department of Justice, GNWT;
Mr. Carl Bird, director, NEBS;
Mr. Jeff Renaud, director, NEBS; and
Ms. Nicole Pintkowsky, director, program operations, NEBS.
The committee received oral and written submissions from:
Mr. Dennis Adams, a retired NEBS pensioner and former CEO of NEBS, writing as a member of the public;
Mr. James Anderson, a member of the public;
Mr. Jack Bourassa, regional executive vice-president, north, Public Service Alliance of Canada;
Ms. Mary Lou Cherwaty, president, Northern Territories Federation of Labour;
Mr. Metro Huculak, superintendent, Yellowknife Education District No. 1;
Mr. Kevin Hynes, president, International Association of Fire Fighters, Local 2890;
Mr. James Infantino, pensions and disability insurance officer, national programs section, membership programs branch, Public Service Alliance of Canada; and
Ms. Gayla Meredith, president, and Mr. Dave Roebuck, executive director, Northwest Territories Teachers’ Association.
Outside of the call for submissions, the committee also received correspondence related to Bill 12 from:
Ms. Sara Brown, chief executive officer, NWT Association of Communities; and
Mr. Shawn Maley, chief executive officer, NEBS.
All submissions received by the committee are appended to this report.
It is clear from the passion with which presenters spoke that pension security is an emotionally-charged subject matter and one that is very important to those who work hard to save towards their retirement. The standing committee found all of the submissions it received to be thoughtful and carefully considered and wishes to thank everyone who took the time to provide a submission on Bill 12. While the comments on Bill 12 were broad-ranging, the following themes emerged from the submissions:
All of the submissions we received acknowledged the need for and were supportive, in principle, of legislation to govern NEBS. There was no one who expressed the opinion that NEBS should continue to be administered in the absence of a legislative framework.
Despite the support for legislation in some form, the degree of support for Bill 12 varied and all of the submissions raised concerns regarding aspects of the bill that were considered to be problematic.
Of the eight submissions received, one was supportive of Bill 12, but acknowledged those parts of the bill that were likely to be contentious and offered suggestions as to how those areas of concern might be addressed. One was supportive, provided that NEBS remained a “defined-benefits” pension plan. Three submissions called for Bill 12 to be withdrawn, or abandoned in its current form, on the basis that inadequate consultation had taken place with pension holders and called for a meaningful consultation process to be established in place of Bill 12.
Ultimately, after considering all of the input received, the standing committee felt that the withdrawal of Bill 12 would be counterproductive. The committee felt that the key concerns of stakeholders could be addressed with appropriate changes to Bill 12. It is on this basis that committee proposed 12 motions to amend the gill which are discussed in greater detail under the section of the report titled “What We Did.”
Going into the public hearing on Bill 12, the committee was concerned that pension beneficiaries had not been adequately consulted during the preparation of Bill 12. This concern was substantiated by several of the presenters, some who confirmed that no consultation was undertaken with the bargaining agents representing pension beneficiaries and some who noted that, as pension-holders, they had received no information or meaningful consultation on the proposed legislation.
When asked specifically about the government’s consultation efforts, Minister Miltenberger spoke about the consultation that took place with the Nunavut government and Mr. Aumond added that the GNWT consulted with the NEBS Board. Mr. Maley described the consultation effort by NEBS as “extensive,” adding that NEBS made a point of telling beneficiaries what is going on with the development of Bill 12.
The committee was persuaded that Bill 12 was developed in the absence of meaningful consultation with pension beneficiaries. Meaningful consultation depends on those being consulted having adequate information, time to consider it and the ability to have input into decisions before they are made. The committee has no reason to doubt the truth of Mr. Maley’s claim that beneficiaries were provided with information about the legislation as it was being developed. However, merely providing information does not constitute consultation.
In this regard, the committee feels that, ultimately, it is the Minister of Finance as the sponsor of the bill who has a duty to ensure that adequate and appropriate consultation takes place with all stakeholders, including pension beneficiaries. By restricting their consultation efforts to the Government of Nunavut and NEBS Board members and officials, this duty was not met by the Department of Finance.
Clauses 15(1)(a) and (b) of Bill 12 authorize the Pension Committee “at any time, from time to time,” to retroactively reduce accrued ancillary benefits and to reduce core pension benefits on a going-forward basis. Serious concerns were raised regarding this provision because it was seen to be giving the Pension Committee this power under circumstances in which a majority of the Pension Committee members represent employer members of NEBS, not employee pension holders. These concerns were exacerbated by the fact that the definition of what benefits are considered “core” versus “ancillary” is not included in the legislation, but is instead left to be defined in the plan documents.
NEBS representatives responded to this concern by noting that ancillary benefits would be defined narrowly as cost of living indexing benefits and that the Pension Committee has no intention of reducing ancillary benefits accrued before the coming-into-force date of Bill 12.
The committee believes that the representatives of NEBS who appeared before the committee were well-meaning and sincere in their efforts to develop legislation governing the NEBS Pension Plan. The committee has no reason to disbelieve the information they were provided, which included assurances from NEBS representatives that they have no intention of reducing any benefits. These assurances notwithstanding, the committee is aware that the legislation has the potential to long outlast the current NEBS Board and administration and that, as drafted, Bill 12 provides the authority for the retroactive reduction of accrued ancillary benefits and the future reduction of core benefits not yet accrued.
As a result of the concerns heard, the standing committee moved Motion 6 which, among other things, removes the ability of the NEBS Board or Pension Committee to retroactively reduce any accrued benefits. Motion 6 is discussed in further detail below, as are Motions 8 and 11, which are related to Motion 6.
Mr. Speaker, I would like to pass the reading of the report to my colleague Mr. Dolynny.
Thank you, Ms. Bisaro. Mr. Dolynny.
Thank you, Mr. Speaker. Thank you, Ms. Bisaro.
Closely related to the proposal allowing the retroactive reduction of ancillary benefits is the issue of how Bill 12 would affect the nature of the NEBS plan. Presenters who spoke against Bill 12 expressed the view that the NEBS plan is a defined-benefit pension model and that the provision allowing the retroactive reduction of ancillary benefits, if and when put into effect, would effectively shift NEBS to a target-benefit pension model.
A defined-benefit pension plan is a type of plan which pays a guaranteed, predetermined benefit on retirement. The plan is 'defined' in the sense that the benefit formula is specified and known in advance. On the other hand, a target-benefit pension plan is one in which future benefits are based on affordability projections and may vary as a function of the funding status of the plan. Plan members, therefore, share a greater degree of plan risk through adjustments to their benefits.
Committee found the discussion around this point to be complicated by the fact that participants did not have a shared understanding of what constitutes a “defined-benefit” plan. Both the Department of Finance and NEBS representatives put forth the proposition that by continuing to protect “core” benefits from reduction, the nature of the NEBS Pension Plan under Bill 12 remained a “defined-benefits” plan.
The bill’s detractors expressed the view that giving the Pension Committee the authority to retroactively reduce any accrued benefits – core or otherwise – would have the effect of changing the NEBS plan from a defined-benefit to a target-benefit model. Participants referred to this as “sacrilege” and “breaking the pension promise,” arguing that NEBS employers had entered into a covenant with employees to provide a set pension benefit based on their contributions, and that to reduce this retroactively is tantamount to reneging on this covenant.
In order to understand the significance of the shift from a defined- to a target-benefit model, committee found it important to look at trends in pension reform in the larger Canadian context. Committee’s research showed that, across Canada and in other industrialized nations, there has been a movement in recent years away from defined-benefit pension models to models in which the benefits are targeted. This shift has been precipitated by the challenges faced by both public and private sector employers in keeping their pension funds solvent. The movement to a target-benefit model is one approach being employed to address the problem of pension solvency. However, it is not without its critics. Views and perceptions around target-benefit pension models have the potential to be polarizing, depending upon one’s position.
The committee did not feel that it was necessary to reach agreement regarding what constitutes a “defined-benefit” pension. Regardless of the label used, it was clear to the committee that the retroactive reduction of any accrued benefits, whether considered to be “ancillary” or “core,” was something that pension beneficiaries did not want to see happen. At the same time, the standing committee is cognizant of the need for the NEBS Board and Pension Committee to have tools that allow them to maintain a solvent plan otherwise all beneficiaries are ultimately at risk of receiving little or no pension whatsoever.
To address these concerns, the committee moved Motion 6, which has the effect of ensuring that the NEBS pension remains a defined-benefit plan. For further certainty, the term “defined-benefit” is incorporated into the bill through Motion 1.
Section 11 of Bill 12, as originally drafted, authorizes the composition of the NEBS Board to be set out in the NEBS bylaws. It also gives the board the exclusive authority to appoint members or set the rules for their election to the Pension Committee, in addition to determining their numbers and length of term. Section 12 specifies that there must be at least two members on the Pension Committee who are independent to the extent that neither is a member of the board or an employee of a participating employer. Sections 11 and 12 also establish the authorities of the NEBS Board and Pension Committee respectively.
A good deal of the input heard by the committee pertained to this governance model established for the NEBS Pension Plan by Bill 12. The committee was told that the legislation “fails to establish good governance;” that “the governance model is seriously flawed;” that it “imposes a flawed administrative process with no effective voice for the parties that bear the risk;” and that it “leaves all major decisions in the hands of the NEBS Board and Pension Committee, which are dominated by employers.”
In illustrating this point, presenters made specific note of Section 15(3), which effectively gives employers, represented by the NEBS Board, the power to opt out of contribution increases, thereby placing the burden for an under-funded plan fully on employees.
These submissions called for the implementation of a joint-governance pension-plan model. The standing committee considered the implications of this and determined that such an approach would likely necessitate a rewrite of the bill, which would delay the implementation of pension legislation for NEBS possibly beyond the life of the 17th Assembly. The standing committee opted to focus its efforts on making amendments to the existing bill, with the hope and expectation that it could be amended to address the major concerns raised, without unduly delaying the bill’s passage.
One submission expressed the opinion that it is unnecessary to change the governance structure of the plan to ensure that the needs of pension beneficiaries are considered, because the fiduciary duty of the Pension Committee members requires them to act on behalf of beneficiaries. The Minister’s staff and NEBS representatives also made this assertion that NEBS pension committee members will act in the interests of pension beneficiaries because they have a fiduciary obligation to do so.
The standing committee gave a great deal of consideration to this view. While standing committee members acknowledge the importance of the fiduciary obligations of Pension Committee members, the existence of this obligation alone cannot overcome the biases inherent in a governance design that favours employer over employee interests. If that were the case, observed the standing committee, then fiduciary duty would have resulted in a more meaningful consultation with employee pension beneficiaries during the development of Bill 12.
In response to concerns heard, the standing committee moved Motion 5 to mandate in the legislation the composition of the Pension Committee. Motions 3 and 4 are also related to the powers of the Pension Committee and are discussed in further detail below.
A number of presenters raised concerns about sections of the bill that they viewed as giving the GNWT too much power and influence over the NEBS plan and/or the NEBS Board and Pension Committee.
Some presenters expressed a concern that Section 9(1) of the bill, for example, “invests enormous and far-reaching powers to the Minister, with no recourse except to the courts,” thereby giving the GNWT too much power to override decisions.
The committee considered these concerns but recognized that the removal of this provision from the bill would leave the Minister unable to act in the event that there was a failure to manage the NEBS plan in compliance with the act.
The committee looked to other pieces of legislation providing similar powers to the Minister to step in and act in the event of a problem. One example is offered by Section 156 of the Cities, Towns and Villages Act, which allows the Minister to intervene in the affairs of a municipal corporation. In this case, the Minister may only act in unusual circumstances to address problems that have arisen. Similar powers are contained in Section 17 of the Hospital Insurance and Health and Social Services Administration Act which allows the Minister to appoint a person to act as a public administrator of a health or social services facility under specific circumstances where care is jeopardized.
Having reviewed similar provisions in other legislation, the committee is of the view that the powers provided to the Minister in Section 9(1) of Bill 12 reasonably afford the government the authority to enforce its legislation, and only in the event that specified problems arise.
Similar concerns were raised regarding Section 10(2) of Bill 12. This clause specifies that in the event that the GNWT becomes a member of NEBS, then the GNWT must adhere to the requirements of a participating member. Some presenters felt that this clause allows the GNWT to become a plan member, with too much power under Section 15(2) and (3).
The committee considered this concern but determined that it was based on a lack of understanding about the purpose of the clause. The intent of the clause is to give greater certainty that if the GNWT were to join NEBS, it would enjoy no special privileges as an employer member. This clause was described by a member of the Department of Finance delegation as a comfort clause included at the request of the NEBS Board.
The existence of clause 10(2) does not “permit” the GNWT to join NEBS. In fact it is Section 22, which defines a “public sector employer” as including “a territorial government,” that permits the GNWT to join NEBS. Therefore, the removal of clause 10(2) does not prevent the GNWT from joining NEBS. Its removal does, however, eliminate the certainty provided by the clause that the GNWT must follow the rules in the same manner as any other member employer. For this reason, the committee determined that the clause should remain in the bill.
Through you, Mr. Speaker, I would like to pass this to my colleague Mr. Moses. Thank you.
