Merci, Madame la Presidente. On October 21st, I volunteered for an interview with staff from Ernst & Young and the Department of Lands concerning a contract to consider whether GNWT should accept surety bonds as a form of financial security for environmental disturbances caused by industrial and commercial operations. I have raised concerns in this House in the past about this form of financial security and whether it is truly unconditional, irrevocable, and immediate.
Members may recall that for the first time in 2014, the GNWT accepted surety bonds backed by insurance companies for the Ekati Mine rather than irrevocable letters of credit from Canadian chartered banks, or cash. In the past, the federal government accepted some dubious forms of financial security, including promissory notes that were not guaranteed in any way, mining properties, and a hydro dam. Our government failed after devolution to ensure the public was protected from reclamation liabilities at Cantung, Cameron Hills and Prairie Creek. I have said it before, it's time that the Auditor General is called to help prevent further public liabilities.
This takes me back to surety bonds. It's not clear to me why the Department of Lands is focused on surety bonds for the convenience of the mining industry when so much other work is required to prevent further public liabilities. This work should include:
Public reporting on the amount, form and expiry dates for financial security held by GNWT;
Publicized reasons for decision when a Minister accepts anything other than cash for financial security;
Making financial security mandatory, along with regularlyupdated closure and reclamation plans and uptodate financial security calculation tools;
Prevention of perpetual care situations and industryfunded mechanisms to manage such sites;
Restrictions on ministerial discretion to accept dodgey forms of financial security; and
Development of legislation, policy, and capacity within GNWT to prevent further public liabilities.
I will have questions for the Minister of Lands later today on why our government is poised to accept surety bonds as an acceptable form of financial security. Mahsi, Madam Speaker.
Thank you. Members' statements. Member for Thebacha.
