Merci, Madam la Presidente. I move that consideration of Tabled Document 97319(2), Capital Estimates 20242025, be now concluded and that Tabled Document 97319(2) be reported and recommended as ready for further consideration in formal session through the form of an appropriation bill. Mahsi, Madam Chair.
Thank you. The motion is just being distributed. I always jump the gun on that one.
The motion is in order. To the motion.
Question.
Question has been called. All those in favour? All those opposed? Abstentions? The motion is carried. Tabled Document 97319(2) will be reported as ready for consideration in the formal session through the form of an appropriation bill.
Carried
Minister of Finance.
You know what, Madam Chair, since you've turned it back to me, I was remiss to not thank yourself and the chair of the AOC more directly. It actually has made the process let's go ahead and say fun. Thank you, Madam Chair.
Well, thank you. Committee, thank you, Minister. And there's no witnesses. So we'll continue with our next item.
Committee, we've agreed to consider Tabled Document 97419(2), Supplementary Estimates (Operations Expenditures), No. 3, 20232024. And I will remind the Members that we considered all of the detail within the document on September 29th. Does the Minister of Finance have any opening remarks?
I do, Madam Chair. Thank you. Madam Chair, this is an unusual supplementary estimates request following a very unusual, and I hope unique, summer for the Northwest Territories.
Low water levels have made the annual barging resupply much more costly. Low water levels have also meant that we've been burning more diesel to provide electricity throughout the Northwest Territories, which is much more costly to the GNWT. And, meanwhile, early in the season, flooding also required emergency response.
Madam Chair, these emergency costs alone would not have required this supplementary request or supplementary estimates because we build in contingency when we put forward a proposed borrowing appropriation at the main estimates stage. In fact, even adding a difficult fire season would not have led to this request.
However, the dryness we are experiencing has contributed to the worst wildfire season we have ever experienced and lead to multiple evacuations for Hay River and K'atlodeeche First Nation and then, ultimately, to the evacuation in total of almost 70 percent of the population from eight different communities with most having to cross into other jurisdictions. Madam Chair, this summer was beyond being merely difficult.
This level of emergency and emergencies and the amount of financial output required to pay emergency responders, for example, and emergency services was extraordinary. Therefore, to ensure that we continue to have adequate cash available to pay all of the invoices that will be coming in over the next few weeks, we are requesting this supplementary borrowing appropriation in order to provide a cushion.
This supplementary request, to be clear, is not a new approval to incur additional expenses. It is only to ensure that we would have the cash available to pay the bills that we have already been approved to incur. For example, during our oneday emergency session, the Legislative Assembly approved an appropriation to the Department of Environment and Climate Change for $75 million to support the wildfire suppression costs. In order to ensure that we can pay all of the contractors and suppliers in cash, we are requesting this supplementary appropriation to the borrowing.
This request does not necessarily mean that we will end the fiscal year with significantly more debt than what was originally projected. We are expecting an advance from the federal government under the Disaster Assistance Financial Arrangement which will provide a significant cushion to our cash balance. We do not, however, know exactly when that cash will be received.
We do continue to monitor all of our expenses and revenues regularly, as we always do, as well as monitoring departmental variances as we have through the floods and previous fires. And as the costs will come in from this summer season, that work will continue. Thank you, Madam Chair.
Thank you, Minister. Minister, did you wish to bring witnesses?
No, thank you, Madam Chair.
Thank you. Committee, do you have any comments? Member for Frame Lake.
Yeah, thanks, Madam Chair. I've got a couple questions if I can. Is this a onetime increase, or is this a permanent increase to the borrowing limit? Thanks, Madam Chair.
Thank you. Minister.
Madam Chair, this is not an increase to the borrowing limit. I'm happy to clarify that. So the borrowing limit that's imposed by the federal government is separate and apart, and I certainly do not have the authority to increase that, which is imposed by the federal government. And within our fiscal responsibility policy, we created our own internal limit to give ourselves room that if we come up upon our own internally imposed limit, which is the cushion below the federal limit, that would then trigger within our own processes a requirement to consider what we would then do lest we in fact get to that federal limit. And I can say that, quite intentionally, while we wanted to give enough of a cushion so that given the election period and given the blackout period that is associated with it, that the Department of Finance could go about their business paying all of our contractors and invoices. So we've sought a limit that is under our own imposed limit and does not approach the federal borrowing limit. Thank you.
Thank you, Minister. Member for Frame Lake.
Yeah, thank you, Madam Chair. Yeah, sorry. I misspoke; I'm really tired. But is this a onetime increase to the shortterm borrowing limit? Thank you, Madam Chair.
Thank you. Minister.
Thank you, Madam Chair. Also happy to clarify that, Madam Chair. I do think these are all questions that folks may have generally in the public. So the main estimates every year has included upon it is a page that has all of the borrowing and every year, including when we do the next main estimates process or when the next Assembly does the main estimates process, that page will have on it a new borrowing plan. That borrowing plan would take into account our cash balances for the in terms of shortterm borrowing, it would take into account the cash balances that we're at once we know what advances we might have received from the federal government or what other financial supports we might receive from the federal government. So every year we go through this process with main estimates. It considers again, it considers all of what's coming in and all of what is expected to go out. So the main estimates is where you will see the new shortterm borrowing year over year. Thank you.
Thank you. Member for Frame Lake.
Yeah, thanks, Madam Chair. I think that was a detailed explanation of yes, this is a onetime increase. But maybe I'll just turn it back to the Minister. Thanks.
Minister.
This is a onetime thing, Madam Chair.
Thank you. Member for Frame Lake.
Thanks, Madam Chair. I love clarity. I want to thank the Minister for that. And, yeah, it'll be up to the next batch of MLAs to watch that line going forward. Thank you, Madam Chair.
Thank you. Committee, do you agree that sorry, are there any other further comments? Do you agree that you've concluded consideration of Tabled Document 97419(2), Supplementary Estimates (operations Expenditures), No. 3, 20232024?
Agreed.
Member for Frame Lake.
