Debates of March 1, 2021 (day 63)

Date
March
1
2021
Session
19th Assembly, 2nd Session
Day
63
Members Present
Hon. Diane Archie, Hon. Frederick Blake Jr., Mr. Bonnetrouge, Hon. Paulie Chinna, Ms. Cleveland, Hon. Caroline Cochrane, Hon. Julie Green, Mr. Jacobson, Mr. Johnson, Mr. Lafferty, Ms. Martselos, Ms. Nokleby, Mr. Norn, Mr. O'Reilly, Ms. Semmler, Hon. R.J. Simpson, Mr. Rocky Simpson, Hon. Shane Thompson, Hon. Caroline Wawzonek
Topics
Statements

Return to Written Question 22-19(2): Financial Obligations for the Ekati Mine to the Government of the Northwest Territories

Speaker: Mr. Rutland

Thank you, Mr. Speaker. I have a return to Written Question 22-19(2) asked by the Member for Frame Lake on February 8, 2021, regarding the financial obligations for the Ekati Mine to the Government of the Northwest Territories.

At the appropriate time later today, I will table two documents, the first that provides an overview of the GNWT's role in the Dominion Diamond insolvency process; and the second is a spreadsheet that identifies payments received as part of the Ekati Mine sale closing process, as well as outstanding amounts due to the GNWT. Notably, the GNWT has not forgiven any payments and nearly all receivables owed to the GNWT have been paid in full or agreement has been reached for payment by Arctic Canadian Diamond Company, or ACDC.

Regarding Workers' Safety and Compensation Commission, or WSCC, assessment information you requested, we have confirmed with WSCC that this information cannot be released due to privacy issues.

Regarding your request for mining royalty information, this information is confidential in nature and not able to be publicly disclosed per company, as it would be releasing third-party information. However, I can tell you that all royalty reports were filed and all outstanding royalty audits were closed out prior to the sale closing. Dominion Diamond, ACDC, and the GNWT reached an agreement where amounts owing on these items will be paid in instalments between May 2021 and December 2021. Upon written request and the expiration of the appeal period on April 1, 2021, the Department of Industry, Tourism and Investment or ITI will release details of these royalties and payment terms to the Standing Committee of Economic Development and Environment in confidence. While Dominion Diamond and now ACDC are eligible to receive relief on all land tenures for 2020-2021 as part of the rent relief program, the total amount that they receive is confidential in nature as it would be releasing third party information.

Consistent with my Return to Written Question 15-19(2) in August, the GNWT has determined that other portions of the information you requested cannot be disclosed under the Access to Information and Protection of Privacy Act, or the act. The GNWT has determined that Section 24(d) of the act applies to your request regarding tax liability, as public bodies cannot disclose information about a third party, gathered for the purpose of determining tax liability or collecting a tax.

The GNWT incurred costs of approximately $130,000 for the external financial advisors who assisted with the thorough review of Arctic's ability to meet the regulatory, financial, and social commitments of the Ekati Mine, the structure of the sale, and the financial health of the surety providers. These reviews informed GNWT decisions on acceptance of new securities and assignment of the Ekati Environmental Agreement. Of this, about $30,000 would have been incurred under normal circumstances, as we regularly review the health of the insurance companies backing our surety bonds. The GNWT has spent $192,000 to date for external counsel. The GNWT's outside legal counsel attended court hearings and spoke in support of the government, northern workers, businesses, communities, and the NWT economy.

Finally, in terms of staff time, you are correct in implying that these past few months have been busy ones for those involved with the Companies' Creditors Arrangement Act, or CCAA, process and the extensive due diligence required to finalize the sale. Indeed, I will take this opportunity to thank those who worked collaboratively across the Departments of Finance, Industry, Tourism and Investment, Environment and Natural Resources, and Lands to ensure that the interests of the GNWT, and especially those of the residents and businesses of the NWT, were of utmost importance and protected. Thank you, Mr. Speaker.