Debates of February 23, 2021 (day 59)

Date
February
23
2021
Session
19th Assembly, 2nd Session
Day
59
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

Question 570-19(2): Crown Corporation Boards of Directors

Thank you, Mr. Speaker. The questions are for the Minister responsible for the Northwest Territories Power Corporation, and the questions are just a formality because I am sure that she is going to agree with me. Mr. Speaker, with all due respect to the Minister and her department, can the Minister explain how the NWT Power Corporation is expected to be arm's length and provide oversight when we are using senior bureaucrats as a board of directors to oversee management and strategic direction? Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Member for Hay River South. Minister responsible for the Northwest Territories Power Corporation.

Thank you, Mr. Speaker. Governance and accountability for the Northwest Territories Power Corporation has been a long-standing issue for the GNWT, and several reviews have been done, completed over the last 10 to 12 years. The use of senior bureaucrats as a board was an interim measure while looking at a comprehensive review and also building on all the past reviews that have been undertaken. I admit this work is not proceeding as fast as we would like it to. I currently have a request in with Standing Committee on Government Operations to discuss some potential NTPC governance structures. Mr. Speaker, we need to get this right. We need to figure out how to make any NTPC board structure accountable to me as Minister and to the Legislative Assembly. Thank you, Mr. Speaker.

Can the Minister confirm, during the number of reviews, as to the effectiveness of the board that is made up of bureaucrats versus independent directors, and if so, what were the criteria used?

I think that was two questions, but I will try to get it in one answer. There has been no formal assessment done as to the effectiveness of the current board structure versus the previous board structure. That was his first question. There are advantages and disadvantages of either structure. The important thing, Mr. Speaker, is to come up with a structure that is accountable to ratepayers, the Minister responsible for the Northwest Territories Power Corporation, and the Legislative Assembly without costing an arm and a leg and not having power rates go up to pay for all this.

Since I tried to sneak in that extra question, I will just ask one more. The NWT Power Corporation has a series of aging infrastructure along with potential major projects on the books. I would ask for a commitment from the Minister to initiate the process for replacing the current board of directors with persons who have the interests, experience, and time to ensure we properly position NTPC to take advantage of new technology and cost-saving measures as we move forward.

I have stated that there is a review underway, and I am hoping to meet with Standing Committee on Government Operations this session to be able to discuss some options. I do agree with the Member that, whatever board structure we land on, there is a need for independent engineering advice for decision-makers to be able to understand the consequences of any decisions that they have to make. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Oral questions. Member for Frame Lake.