Debates of Feb. 21st, 2005

This is page numbers 1387 - 1432 of the Hansard for the 15th Assembly, 3rd Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library.

The word of the day was chairman .

Topics

Members Present

Item 1: Prayer

Northern Strategy

Motion To Move Minister's Statement 86-15(3) Into Committee Of The Whole

Western Energy Alliance

Record Profits In The Insurance Industry

NWT Literacy Strategy

Gymnasium For Nahanni Butte

Birth Of Granddaughter

Education Week 2005

Land Use Access And Consultation Requirements

Secondary Diamond Industry

Inuvialuit Regional Corporation Hockey Tournament

Status Of Secondary Diamond Industry

Vacancies In The Public Service

Item 4: Returns To Oral Questions

Item 5: Recognition Of Visitors In The Gallery

Record Profits In The Insurance Industry

Sirius Diamonds Receivership

Alternative Schooling Options For Hay River

Analysis Of The Secondary Diamond Industry

Costs Of Keeping Sirius Diamonds Operational

NWT Literacy Strategy

Long-term Care For Seniors

Public Service Vacancies

Investment In The Secondary Diamond Industry

Special Needs Funding In Hay River

Multi-year Funding For Municipalities

Insurance Costs In The Nwt

Involvement In The Secondary Diamond Industry

Housing Rent Scale Changes

Written Question 76-15(3): Vacancy Rates In The Public Service

Tabled Document 108-15(3): Nation Building: Framework For A Northern Strategy

Tabled Document 109-15(3): Canadian Federation Of Independent Business Presentation

Appointment Of Commissioner Of Official Languages

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Item 20: Report Of Committee Of The Whole

Item 22: Orders Of The Day

Members Present

Honourable Brendan Bell , Mr. Braden , Honourable Paul Delorey , Honourable Charles Dent , Mrs. Groenewegen , Honourable Joe Handley , Mr. Hawkins , Honourable David Krutko , Ms. Lee , Honourable Michael McLeod , Mr. McLeod, Mr. Menicoche , Honourable Michael Miltenberger , Mr. Pokiak , Mr. Ramsay , Honourable Floyd Roland , Mr. Villeneuve , Mr. Zoe

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---Prayer

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Item 1: Prayer

Item 1: Prayer

Page 1387

The Speaker

Paul Delorey

Good afternoon, colleagues. Welcome to another week of work on behalf of the people of the Northwest Territories. Item 2, Ministers' statements. The honourable Premier , Mr. Handley .

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Minister's Statement 86-15(3): Northern Strategy

Item 2: Ministers' Statements

Page 1387

Joe Handley

Weledeh

Thank you, Mr. Speaker. Mr. Speaker, I rise today to provide an update on the Northern Strategy. As Members know, this initiative represents an important opportunity for the Northwest Territories. The work we do now and over the next couple of months has the potential to shape the future of our territory for generations to come.

We start from the premise that a strong Northwest Territories is in the best economic, social and security interests of Canada and all Canadians. It is in this spirit that I participated with the Prime Minister and Premiers Fentie and Okalik in the launch of the Northern Strategy framework last December. It is also in this spirit that we intend to work towards a comprehensive Northern Strategy that addresses the priority issues facing this territory.

Over the next few months, through our consultations on the Northern Strategy, we have a real chance to reach common agreement on actions required to advance the priorities of the North generally and the Northwest Territories specifically. We are in a period of unprecedented economic development in the Northwest Territories, development that not only benefits our territory but the country as a whole. This development provides a unique opportunity to make the Northwest Territories a self-reliant territory.

The importance of the Mackenzie gas project to the long-term strategic interest of the Northwest Territories and the socioeconomic future of our people and communities cannot be overstated.

Let me be clear, Mr. Speaker, the Government of the Northwest Territories fully supports this project. We support the work of the Aboriginal Pipeline Group in negotiating and taking an equity position in this project, the type of participation that would have been unheard of in the past projects of this magnitude. We support the negotiations between the Producers' Group and aboriginal organizations to negotiate access and benefit agreements that provide specific benefits to aboriginal people along the pipeline route.

We support and remain fully committed to the joint panel process established to review it and to ensuring that northerners fully benefit from this development. We support and are partners in the work being done through programs such as the Aboriginal Skills Employment Program to train our residents to obtain employment in the oil and gas field.

But, Mr. Speaker, more remains to be done to prepare our territory for the pipeline and other oil and gas development. The people of this territory want to be sure our communities are ready for large-scale development, such as the Mackenzie Valley pipeline. This means investing in our communities and people to prepare for and help mitigate the infrastructure and social pressures that will accompany this development.

Even without the development of a pipeline, we know the program needs of our population for health care, housing, education and for other key social programs to continue to grow. The additional needs created by our rapidly expanding economy place an increased demand on our resources. The long-term implications for our territory are serious.

Mr. Speaker, these issues are not new. The Government of the Northwest Territories has consistently identified these issues as priorities over the past several years. We have clearly spelled out these challenges to the federal government at every available opportunity. The Northern Strategy is a valuable vehicle to reinforce this message and garner federal support and investment.

While Members of Cabinet will lay out more of the specifics about our response to the Mackenzie Valley pipeline project tomorrow, I want to spend some time discussing the piece of the puzzle that remains to be completed, a fair devolution and resource revenue sharing agreement.

---Applause

Mr. Speaker, resolving this issue will ensure that northerners are the primary beneficiaries of the development of their resources. This means the federal government must step up to the plate and deliver on the Prime Minister's personal commitment at the launch of the Northern Strategy. This commitment was confirmed in his letter to me of February 9, 2005: "...to working collaboratively with the Government of the Northwest Territories and the Aboriginal Summit to secure an agreement-in-principle on the devolution of lands and resources this spring and targeting conclusion of a final agreement in 2006." I believe this is a firm signal of Prime Minster Martin's commitment to the North.

Mr. Speaker, northern control of northern resources is the principle at the heart of our participation in the Northern Strategy. We believe any effective, sustainable strategy for the North must be based on the transfer of responsibility for northern lands and resources from the

federal government to northern governments. Equally important, this transfer must be accompanied by an agreement that makes northern governments the primary beneficiaries of the revenues generated by these northern resources.

---Applause

While the issue of northern control of its resources is at the heart of the Northern Strategy, the strategy goes well beyond this issue. The strategy is based on a number of key goals and objectives:

• strengthening governance, partnerships and institutions;

• establishing strong foundations for economic development;

• protecting the environment;

• building healthy and safe communities;

• reinforcing sovereignty, national security and circumpolar cooperation;

• preserving, revitalizing and promoting culture and identity; and,

• developing northern science and research.

Mr. Speaker, these goals and objectives are not meant to be exhaustive. They are meant to be a starting point for the discussion with northerners on the elements that will comprise a final strategy.

The framework agreement I will table later today lays out examples of the objectives that may be pursued under each specific goal. For example, we have been working for many years to reach agreement with the federal government to remediate contaminated sites across the territory, to identify and protect sensitive environmental areas under the Protected Areas Strategy and to increase the use of cleaner energy sources such as hydroelectricity, natural gas and new technologies. We believe the Northern Strategy can confirm the commitment of and set a time frame for both governments to resolve these issues.

In our view, the initial goals and objectives set out in the Northern Strategy framework are consistent with many of the priorities contained in the strategic plan developed at the beginning of our term. Members of Cabinet are prepared to speak in more detail to these specific priorities during debate on this strategy.

Mr. Speaker, when completed, the Northern Strategy will be comprised of two sections. The pan-territorial

section will focus on matters that span all three territories such as sovereignty, security and climate change. The second

section will deal with issues specific to individual territories such as those that I have spoken about today.

In order for the strategy to be successful, the federal government will need to make new, long-term investments in the North. The Government of the Northwest Territories will continue to insist that the Northern Strategy include resources to implement agreed upon actions.

Mr. Speaker, I want to take a moment to speak about the $120 million fund the federal government announced at the launch of the development of the Northern Strategy. The GNWT share will be $450 million. We anticipate this funding will be available in June or July.

These funds may be drawn down and used at the sole discretion of each of the three territories. It is our intention to utilize this funding to address urgent community needs. Over the coming months, we will be consulting with Members of this Legislative Assembly on the priority areas for investment. We are also committed to consulting aboriginal leaders with respect to decisions about where the money can best be used.

Mr. Speaker, I am very much looking forward to hearing the views of the Members of this Legislative Assembly on the Northern Strategy. Over the next several months, we will also be meeting with aboriginal governments, stakeholder groups and the general public to get their input on all aspects of the Northern Strategy.

Consultations with stakeholder groups will be initiated from my office in the days and weeks ahead. In addition, an advertising campaign and information package is being prepared that will be available to stakeholders and the general public in March. It is our hope that a draft document can be ready for discussion at the Circle of Northern Leaders' meeting scheduled for April 2005 in Inuvik.

We also intend to collaborate closely on these consultations with the Minister of Indian and Northern Affairs, the Honourable Andy Scott; and our Member of Parliament, the Honourable Ethel Blondin-Andrew. I am pleased that Minister Scott will be travelling to the Northwest Territories next month and will be joining Minister Blondin-Andrew and myself in a series of consultations on the Northern Strategy. I am also optimistic we will see more federal Ministers paying attention to issues of concern to the Northwest Territories over the coming months.

Mr. Speaker, the Northern Strategy is a positive development for the Northwest Territories. I believe we have already begun to see some public awareness changes due to this initiative. Northern issues are receiving quite a bit of attention recently. With the recent Canadian Public Affairs Channel documentary on the Northwest Territories aspirations for greater self-reliance, the possibility of Peter Mansbridge coming North with 'The National' next month and even the humorous coverage on the 'Monday Report' with Rick Mercer, our message is getting out to Canadians.

Mr. Speaker, the Prime Minister has made the Northern Strategy a major personal and political commitment. We have worked hard to get this commitment. I believe we must now work together to identify and move forward with our priorities for the Northwest Territories. The Northwest Territories is our home and it is up to us to shape its future. Mahsi, Mr. Speaker.

---Applause

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Minister's Statement 86-15(3): Northern Strategy

Item 2: Ministers' Statements

Page 1388

The Speaker

Paul Delorey

Thank you, Mr. Handley . Item 2, Ministers' statements. The honourable Minister of Resources, Wildlife and Economic Development , Mr. Bell . Sorry; I recognize Mr. Hawkins .

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Motion To Move Minister's Statement 86-15(3) Into Committee Of The Whole, Carried

Item 2: Ministers' Statements

Page 1389

Robert Hawkins

Yellowknife Centre

Thank you, Mr. Speaker. Mr. Speaker, I move, seconded by the honourable Member for Nahendeh , that Minister's Statement 86-15(3) on the Northern Strategy be moved into Committee of the Whole for consideration. Thank you, Mr. Speaker.

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Motion To Move Minister's Statement 86-15(3) Into Committee Of The Whole, Carried

Item 2: Ministers' Statements

Page 1389

The Speaker

Paul Delorey

Thank you, Mr. Hawkins . The motion is on the floor. The motion is in order. All those in favour? All those opposed? The motion is carried.

---Carried

Minister's Statement 86-15(3) is ordered into Committee of the Whole. Item 2, Ministers' statements. The honourable Minister of RWED , Mr. Bell .

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Minister's Statement 87-15(3): Western Energy Alliance

Item 2: Ministers' Statements

Page 1389

Brendan Bell

Yellowknife South

Thank you, Mr. Speaker. Mr. Speaker, I am pleased to provide a brief report to the Legislative Assembly on the meeting I attended with fellow western and northern Ministers of Energy on Friday, February 18, 2005, in Calgary, Alberta. The Western Energy Alliance was formed by Premiers at the Western Premiers' Conference in Inuvik in July 2004. The Premiers directed Energy Ministers to meet and pursue the objectives of an energy alliance to ensure that the collective energy interests of western provinces and northern territories are advanced to the maximum benefit of our citizens.

At the meeting, chaired by Alberta, Ministers discussed energy supply and demand issues of common interest. Several priority areas were identified and will form the basis of our ongoing collective work.

The Ministers agreed in principle to raise awareness of northern and western Canada as a secure supplier of oil, natural gas and electricity to Canada, North America and international markets, both currently and for many years to come. This speaks to my colleagues' understanding of the critical role to be played by the Mackenzie gas project and NWT oil and gas resources. Mr. Speaker, all agreed that Canada's North will play a key role in the continental energy solution.

Mr. Speaker, Energy Ministers also agreed to pursue increased harmonization of energy-related regulations, to improve regulatory efficiency and to reduce barriers to development. Regulatory harmonization remains a priority and northern gas development will serve as a benchmark to be monitored and measured as we assess our progress. Mr. Speaker, this is an issue of interest to the Northwest Territories as we work to increase certainty in the North through the devolution of responsibilities over lands and resources.

In addition, Mr. Speaker, Ministers also agreed to communicate with their federal counterpart, the Minister of Natural Resources Canada, regarding a commitment to meaningful provincial and territorial participation in international energy discussions and negotiations. As Members know, energy issues constitute current provincial and future NWT jurisdiction and, as such, should not be left solely to the federal government.

Mr. Speaker, I am very encouraged by the spirit of cooperation amongst Ministers of Energy. There was much discussion of the unique context of the three territories and a firm commitment was made to assist the NWT in developing our energy resources to the maximum benefit of our residents.

Mr. Speaker, I am very pleased to announce today that the Ministers of Energy of Manitoba, Saskatchewan, Alberta, British Columbia, Yukon and Nunavut have agreed to hold the next Western Energy Alliance meeting in Inuvik this June.

---Applause

This meeting is timely for the NWT, and will occur in association with the Inuvik Petroleum Show. We have strong allies in advancing the energy interests of the residents of the NWT. I look forward to further cooperation with my colleagues to ensure the effective development of our collective energy resources. Thank you, Mr. Speaker.

---Applause

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Minister's Statement 87-15(3): Western Energy Alliance

Item 2: Ministers' Statements

Page 1389

The Speaker

Paul Delorey

Thank you, Mr. Bell . Item 2, Ministers' statements. Item 3, Members' statements. The honourable Member for Range Lake , Ms. Lee .

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Record Profits In The Insurance Industry

Item 3: Members' Statements

Page 1389

Sandy Lee

Range Lake

Thank you, Mr. Speaker. Over the weekend, I caught a news item on TV that really got me worked up, Mr. Speaker. That is the report that the insurance industry made a record profit of $4.2 billion in 2004. I must agree with the Consumer Association of Canada, Mr. Speaker, this is just plainly obscene, especially in light of the fact that we have all been suffering for a number of years now from the skyrocketing insurance rates on everything from vehicles to houses, not to mention the cost of doing business for our small businesses.

All along the way, we were lead to believe that we all had to suffer collectively because the insurance industry was on the verge of collapse from too many claims from the disaster of 9-11, from massive natural disasters like hurricanes in Florida and other calamities around the world that we all had to pay for. Then they had the audacity to announce a record $4.2 billion in profit. Mr. Speaker, we must ask where is the limit to this obscenity? How long do our young drivers, especially young male drivers, have to pay all of their pay cheques practically to drive their first car?

How long do real estate agents have to spend all their time trying to find coverage for home buyers? Mr. Speaker, I can tell you that even the insurance brokers in town that I talked to during my door-to-door campaign thought things were out of control because it was certainly no fun for them to be the bearer of bad news to small businesses about skyrocketing premiums. They had to tell the small businesses that their premiums were going up by 300 percent. That could possibly put them out of business. This government, and therefore the taxpayers, have been paying through their nose as well.

In fact, this government has to raise the liability deductible to $10 million in order to control our premiums, Mr. Speaker.

say it is now time for us to collectively stand up and say that we are not going to take this anymore. Mr. Speaker, at the same time that they are reporting this process, in 2004, 94 percent of the small businesses in the North have listed rising insurance premiums as one of the most negative factors affecting their business. Later on today, I am going to be asking the Minister responsible some questions. Thank you, Mr. Speaker.

---Applause

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Record Profits In The Insurance Industry

Item 3: Members' Statements

Page 1390

The Speaker

Paul Delorey

Thank you, Ms. Lee . Item 3, Members' statements. The honourable Member for North Slave , Mr. Zoe .

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NWT Literacy Strategy

Item 3: Members' Statements

Page 1390

Henry Zoe

North Slave

Mahsi, Mr. Speaker. Mr. Speaker, in my Member's statement today, I would like to talk about the Northwest Territories Literacy Strategy. I want to put on record my support for this strategy. I believe it is going to be fundamental to the well-being of the North. Mr. Speaker, communication is vital. Every individual should have the ability to read and write, and it is the responsibility of this government to provide the tools to achieve these essential skills.

Mr. Speaker, without reading and writing skills, something many of us take for granted, people have a difficult time finding employment and doing many day-to-day tasks. Mr. Speaker, literacy not only affects individuals, but it also affects society as a whole. Societies that invest in literacy programs and services reduce poverty, unemployment, income support and criminal activity. Literacy programs improve the individual, family and community.

Mr. Speaker, the Northwest Territories Literacy Council has been very successful. The strategy develops and delivers a wide range of community-based programs addressing the literacy needs of community members. The funding also supports training, online learning and resource development for adult literacy practitioners. Funding also goes towards successfully promoting the Northwest Territories Literacy Week and Family Literacy Week.

Mr. Speaker, current funding is barely enough to deliver the programs and services presently available. Additional money should be invested into the Northwest Territories Literacy Strategy to further support programs and services and campaigns, which otherwise might not survive.

For years, I have heard this government identify the need to develop a literacy strategy in the Northwest Territories, and now when we experience an economic boom, Mr. Speaker, this government should consider increasing investment into the programs that are necessary to ensure that northerners take advantage of such a prosperous time.

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NWT Literacy Strategy

Item 3: Members' Statements

Page 1390

The Speaker

Paul Delorey

Mr. Zoe , your time for your Member's statement has expired.

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NWT Literacy Strategy

Item 3: Members' Statements

Page 1390

Henry Zoe

North Slave

Mr. Speaker, I seek unanimous consent to conclude my statement.

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NWT Literacy Strategy

Item 3: Members' Statements

Page 1390

The Speaker

Paul Delorey

The Member is seeking unanimous consent to conclude his statement. Are there any nays? There are no nays. Mr. Zoe , you can conclude your statement.

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NWT Literacy Strategy

Item 3: Members' Statements

Page 1390

Henry Zoe

North Slave

Thank you, colleagues. Mr. Speaker, people who can't read and write will not be offered jobs in today's market. Again, they fall through the cracks. As I stated earlier, Mr. Speaker, I believe this strategy is fundamental to the North and the well-being of our society. In no way should we be letting our guard down on the NWT Literacy Strategy funding. If anything, we should be increasing the funding to prepare people to take advantage of our current economic situation. Reading and writing skills are critical to human development and lifelong learning. At the appropriate time, Mr. Speaker, I will be addressing some questions to the Minister of Education, Culture and Employment . Mahsi.

---Applause

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NWT Literacy Strategy

Item 3: Members' Statements

Page 1390

The Speaker

Paul Delorey

Thank you, Mr. Zoe . Item 3, Members' statements. The honourable Member for Nahendeh , Mr. Menicoche

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Gymnasium For Nahanni Butte

Item 3: Members' Statements

Page 1390

Kevin A. Menicoche

Nahendeh

Mr. Speaker, it has been 72 hours since I spoke about the Nahanni Butte and their need for a community gymnasium.

---Applause

I am not convinced that we are being heard. Perhaps a statistical approach is needed. Mr. Speaker, the statistics are not good. In Nahanni Butte, only 30 percent have graduated from high school since 1989. Both Fort Liard and Nahanni Butte have the highest rate of violent crime, which is over three times that of the rest of the Territories. The rate of juvenile crime is also higher for these two communities than elsewhere in the NWT. Core housing needs in Nahanni Butte are double those in the rest of the Territories.

The percentage of one-parent families is double that of the rest of the Territories. Nahanni Butte also has more dependent children per adult than the rest of the NWT, Mr. Speaker. All of these children have very little to do and nowhere to go, Mr. Speaker. They hang around outside the band office, and then they hang around outside the store. This is how entire childhoods are being spent.

But I believe and know, Mr. Speaker, that the addition of a gymnasium could do a lot to turn those statistics around. During the winter, kids could be inside playing games, learning new skills and learning to feel better about themselves. Adults could play games with their children. The community could organize indoor events and keep everybody moving, Mr. Speaker. We are told, time and time again, by this government that physical activity is the answer to all of our problems. Well, let's put that statement to the test and build this gymnasium in Nahanni Butte. Thank you, Mr. Speaker.

---Applause

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Gymnasium For Nahanni Butte

Item 3: Members' Statements

Page 1390

The Speaker

Paul Delorey

Thank you, Mr. Menicoche . Item 3, Members' statements. The honourable Member for Nunakput , Mr. Pokiak .

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Birth Of Granddaughter

Item 3: Members' Statements

Page 1391

Calvin Pokiak

Nunakput

Thank you, Mr. Speaker. Mr. Speaker, yesterday was a very important day to my family, when a new baby girl weighing nine pounds and one ounce came into this world.

---Applause

Mr. Speaker, I am speaking about my daughter, Letitia, and her boyfriend, John, who are the proud parents of their new baby girl. My wife, Lucille, and sons, Darren and Bertram, are proud to be grandparents and uncles.

---Applause

We welcome the baby girl to our family. I can't be there today with them, but my thoughts and prayers are with my wife, Lucille, sons, Darren and Bertram, and Letitia and John and the new addition to our family.

On another note, Mr. Speaker, Lucy Dilton, our mental health worker for Tuktoyaktuk, was recognized by the Department of Health and Social Services on February 5, 2005, for over 10 years of service. Congratulations, Lucy.

In closing, Mr. Speaker, the Nasagaluak brothers, Eli, Billy and Joe, of Tuktoyaktuk returned recently from the national snow sculpture competition in Ottawa. I am proud to report they came in second and won the People's Choice Award during this competition. Thank you, Mr. Speaker.

---Applause

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Birth Of Granddaughter

Item 3: Members' Statements

Page 1391

The Speaker

Paul Delorey

Thank you, Mr. Pokiak . Item 3, Members' statements. The honourable Member for Hay River South , Mrs. Groenewegen .

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Education Week 2005

Item 3: Members' Statements

Page 1391

Jane Groenewegen

Hay River South

Thank you, Mr. Speaker. Mr. Speaker, the week of February 21st to 25th is Education Week. I believe that this is a good time to celebrate and appreciate all of the teachers across the Northwest Territories.

---Applause

If we take the time to reflect on what teachers do every day, we can develop a clear appreciation of their hard work, perseverance and community commitment. Our children are not always angels, Mr. Speaker, and I have to say that about my own little princess as well. I know when she gets to school, she is not an angel, so I apologize to her teachers. Mr. Speaker, I think that we all have admiration for teachers who deal with everyone and, I am sure, sometimes have to grit their teeth on some occasions.

Mr. Speaker, in today's society, we depend greatly on our teachers for helping our children develop into healthy, happy, educated, and successful adults. We spread their resources very thin and often challenge their classrooms with students who display disruptive behaviours which distract from the learning of others. Mr. Speaker, for various reasons, some children cannot cope in a regular classroom environment. Their resulting disruptive behaviours result in long periods of repeat suspensions and absenteeism from school. Mr.

Speaker, it is a mandatory responsibility of this government to provide an education to every child in the Northwest Territories. If they are not in school, how is the government actually meeting this legislative mandate?

It is understood that not every child is equal in their ability, level of learning and social development. It is up to us to provide an education and environment to help these children to become productive members of society. This will require us to be creative in contemplating alternatives for students who cannot succeed in the mainstream environment.

Mr. Speaker, I will be addressing this issue through oral questions today. Mr. Speaker, if we see any teachers this week, we should take the time to congratulate them and to show how much we appreciate their efforts and how important they are to our children. Thank you, Mr. Speaker.

---Applause.

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Education Week 2005

Item 3: Members' Statements

Page 1391

The Speaker

Paul Delorey

Thank you, Mrs. Groenewegen . Item 3, Members' statements. The honourable Member for Tu Nedhe , Mr. Villeneuve .

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Land Use Access And Consultation Requirements

Item 3: Members' Statements

Page 1391

Robert Villeneuve

Tu Nedhe

Mahsi, Mr. Speaker. Mr. Speaker, over the weekend I had an opportunity to go snowmobiling without hunting, for the record...

---Laughter

...around some of the lakes just north of Yellowknife. Although the outing, Mr. Speaker, was very relaxing -- the land seemed quite serene and uninhabited most of the time -- but I was particularly concerned with the number of so-called cabins that littered the shorelines of many of the small unknown bodies of water and also some of the well-known lakes in the area.

Mr. Speaker, I would like to inform this House, the NWT residents and especially the non-residents who want to build structures on the land without proper authorization from this government, the federal Department of Indian Affairs or the local First Nations organizations, they are not only violating the territorial lands act under

section 20, but also violating the stewardship values of the local First Nations who have lived in this area since time immemorial.

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Land Use Access And Consultation Requirements

Item 3: Members' Statements

Page 1391

Some Hon. Members

Hear! Hear!

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Land Use Access And Consultation Requirements

Item 3: Members' Statements

Page 1391

Robert Villeneuve

Tu Nedhe

Mr. Speaker, I realize that this issue has been ongoing for many years without result, but now that this concern of the lack of proper consultation by this government over the land that the Akaitcho First Nations have shown interest in, near the city of Yellowknife, the issue is all of a sudden a major concern because the city says it is.

Where was this high level of concern when the local First Nations were telling this government and the federal government the exact same story about the lack of proper consultation on traditional land use permits, building permits and exploration permits being issued almost daily for the last 25 years?

To me, Mr. Speaker, this is a good example of why First Nations seem to get frustrated with this government. It

seems that when the tables suddenly turn in their favour and the issues become very complicated and seemingly cumbersome for this government to work in a timely manner, many processes are reviewed, reassessed and reconsidered over and over again which often results in nothing being concluded or resolved, as the issue is of the squatters which is still ongoing now for the last 15 years.

In closing, Mr. Speaker, I would like to see some action soon by this government in working with the Akaitcho Territory Government to finding an amicable solution, process or plan that will allow certain individuals, organizations or industries to use the traditional lands under certain conditions that the First Nations deem as fair and sensible, based on their traditional values and culture. Mahsi, Mr. Speaker.

---Applause

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Land Use Access And Consultation Requirements

Item 3: Members' Statements

Page 1392

The Speaker

Paul Delorey

Thank you, Mr. Villeneuve . Item 3, Members' statements. The honourable Member for Kam Lake , Mr. Ramsay .

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Secondary Diamond Industry

Item 3: Members' Statements

Page 1392

David Ramsay

Kam Lake

Thank you, Mr. Speaker. It has been a few days since I have last brought up the word diamonds in this House, and I would like to begin...

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Secondary Diamond Industry

Item 3: Members' Statements

Page 1392

Some Hon. Members

Hear! Hear!

---Applause

...my Member's statement, again addressing diamonds and the secondary industry here in the Northwest Territories. I have listened intently to both the Minister of Finance and the Minister of Resources, Wildlife and Economic Development as they spoke about the failed bid by the Leviev Group to take over the Sirius diamond factory.

Mr. Speaker, I haven't been satisfied with the responses I have gotten to date, nor given any assertion of where we go from here and what exactly is the game plan going forward.

Mr. Speaker, as one Member of this Legislative Assembly, I believe we must support the secondary diamond industry here in the Northwest Territories. As I have mentioned in a previous statement to this House, I was in Israel in July to see what could be the future of a secondary industry here in the Northwest Territories. I was, and still am, of the opinion that as a government we can make things happen here in the Northwest Territories to encourage the secondary industry. We have to diversify our economy, create new jobs, grow our manufacturing industry and firmly put the Northwest Territories on the map as a global diamond centre.

In getting to where we are today, the Government of the Northwest Territories has spent a tremendous amount of time, effort and financial resources on growing and supporting the secondary industry. What I would like to see the Government of the Northwest Territories do is conduct an investigation or an inquiry into why we have not had the success that we had envisioned for this industry. Some of the items an inquiry or an investigation could get to would be: what happened to the deal with the Leviev Group and why didn't the producers want to sell to the world's largest cut and polish manufacturer?

Exactly what was the Government of the Northwest Territories' involvement in the process and why didn't we step in? What has the Government of the Northwest Territories spent on developing this secondary industry in the Northwest Territories for the period of 1998 to 2005 -- and this should include loan guarantees -- Aurora College courses like valuation, cutting, polishing and jewellery making, the total cost to staff, to operate and maintain the diamond projects division at RWED, and costs of consultants worldwide?

I wonder about other costs like travel, legal and professional fees and other O and M for advertising, promotion, research and any other government support to the secondary industry.

Mr. Speaker I seek unanimous consent to conclude my statement.

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Secondary Diamond Industry

Item 3: Members' Statements

Page 1392

The Speaker

Paul Delorey

The Member is seeking unanimous consent to conclude his statement. Are there any nays? There are no nays. You may conclude your statement, Mr. Ramsay .

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Secondary Diamond Industry

Item 3: Members' Statements

Page 1392

David Ramsay

Kam Lake

Thank you, Mr. Speaker. What the Government of the Northwest Territories needs to do -- and I would like to demand of it -- is that it get a handle on a true cost-benefit analysis of this industry. I believe that we need to know the true costs and we should have some options that are presented to us and the sooner the better. Thank you, Mr. Speaker.

---Applause

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Secondary Diamond Industry

Item 3: Members' Statements

Page 1392

The Speaker

Paul Delorey

Thank you, Mr. Ramsay . Item 3, Members' statements. The honourable Member for the Inuvik Twin Lakes , Mr. McLeod.

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Inuvialuit Regional Corporation Hockey Tournament

Item 3: Members' Statements

Page 1392

Robert C. McLeod

Inuvik Twin Lakes

Thank you, Mr. Speaker. I would like to congratulate the new daduk, Calvin.

---Applause

Mr. Speaker, this weekend in Inuvik, the 14th Annual IRC Cup Native Hockey Tournament was held. The tournament brings together teams from the Beaufort-Delta and Deline who have always tried to make the trip. This is a good opportunity for people in the region to get together and see old friends and classmates and compare weight gain and grey hair. I lost on both counts.

I was told, Mr. Speaker, that at least 600 people took in the final game on Sunday. On the "A" side, Northwind Industries of Inuvik defeated Tuktoyaktuk. On the "B" side, Paulatuk defeated Fort McPherson, which goes to show the improvement of some of the smaller communities, and that bodes well for the future of the tournament.

---Laughter

---Applause

Special thanks, Mr. Speaker, has to go to the Inuvialuit Regional Corporation for their financial sponsorship of the tournament and Donny and Wilma Hendricks for their efforts in organizing the tournament. Mr. Speaker, that concludes today's sports report. Thank you.

---Applause

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Inuvialuit Regional Corporation Hockey Tournament

Item 3: Members' Statements

Page 1393

The Speaker

Paul Delorey

Thank you, Mr. McLeod. Item 3, Members' statements. The honourable Member for Great Slave , Mr. Braden .

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Status Of Secondary Diamond Industry

Item 3: Members' Statements

Page 1393

Bill Braden

Great Slave

Mr. Speaker, from the sports desk we will go over to the business desk and...

---Laughter

...take a look at the status of our secondary diamond industry in the Northwest Territories.

Mr. Speaker, this government has made some very sound and very good investments and great policy moves in the secondary diamond industry. We have established internationally recognized standards in our training programs for diamonds. We have boldly, and I think correctly, gone into some areas regarding the branding and the certification of diamonds, something again that was new to the world and seems to be well received. We have used the diamond industry to our advantage in cultivating the image of the Northwest Territories in our tourism product and we certainly set a strong line, when we sought a 10 percent allocation from diamond miners of their product to stay behind here in the NWT.

Mr. Speaker, these areas, while they have been a sound and very intelligent support of the industry, we have made some real blunders in the risk side, in the actual frontline involvement in the diamond cutting industry itself. We initially had to come back in and back up a loan guarantee for the Deton'Cho Diamond Corporation in the $1 million neighbourhood. We got involved in a very protracted and expensive Polar Bear trademark issue with the Sirius diamond company and now we face a $3 million and growing tab with the coverage of our loan guarantee at Sirius.

It is folly, Mr. Speaker, for our government to continue to paper over our mistakes with taxpayers' money. We need to realize that things are not going well for us as investors, as frontline players, in the secondary diamond industry. It is indeed important for us to continue to support the secondary diamond industry with initiatives like training and the business environment, but we cannot afford any longer to risk taxpayers' money on high-risk ventures that we do not understand. Thank you, Mr. Speaker.

---Applause

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Status Of Secondary Diamond Industry

Item 3: Members' Statements

Page 1393

The Speaker

Paul Delorey

Thank you, Mr. Braden . Item 3, Members' statements. The honourable Member for Yellowknife Centre , Mr. Hawkins .

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Vacancies In The Public Service

Item 3: Members' Statements

Page 1393

Robert Hawkins

Yellowknife Centre

Thank you, Mr. Speaker. Mr. Speaker, something that came as a real surprise while reviewing the budget this year was the number of budgeted positions, salaries and benefits that don't consistently account for how many positions are both vacant and filled. Mr. Speaker, in some cases we are being asked to approve money for ghost positions that have been vacant for many years and months. Mr. Speaker, two weeks ago I tabled some comments with regard to how long the Audit Bureau has had missing positions. Mr. Speaker, this budget year, 2005-06, we have $186 million in salaries and benefits.

That doesn't include the money that's going directly to the health and education authorities to pay their staff. It's just a simple snapshot. On September 30, 2004, we had 406 vacant positions in the government and Aurora College out of our 2,534 positions. Mr. Speaker, that makes about a 16 percent vacancy rate. If we applied 16 percent across the board against our $186 million budget for salaries, we roughly come up with $30 million. That's $30 million and I wonder where it's going.

Mr. Speaker, some people call this unused salary money as their unofficial slush fund. It's not the real money accounted for positions, it's money that could be going to who knows where. I could give you a few good examples of where that money could be used, but it was meant to be used on salaries. It could either go to employ the public service as promised, or it could go to projects like for my good colleague here has suggested, on the Nahendeh gym.

---Applause

Mr. Speaker, we have kids out there that this money could be better used for. We could make them active and we could keep them out of trouble and, as mentioned earlier, we could also help to keep them healthy.

I know in some cases these vacancies are short term and I'll be honest by recognizing that some only last a few weeks, but I'm concerned with the potential abuse by some departments that recognize this loophole and keep these positions vacant to provide them with a source of funding at their discretion that gets passed in this Assembly. I find this very troubling, Mr. Speaker, because later on this month we will be voting on our budget with the impression that that money is going to staff our hard-working public service. Mr. Speaker, it bothers me seriously and I have to admit, are we truly being accountable? Thank you, Mr. Speaker.

---Applause

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Vacancies In The Public Service

Item 3: Members' Statements

Page 1393

The Speaker

Paul Delorey

Thank you, Mr. Hawkins . Item 3, Members' statements. Item 4, returns to oral questions. The honourable Minister of Finance , Mr. Roland .

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Further Return To Question 395-15(3): GNWT Audit Bureau Reporting Model

Item 4: Returns To Oral Questions

Item 4: Returns To Oral Questions

Page 1393

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. I have a return to oral question asked by Mr. Hawkins on February 16, 2005, regarding GNWT Audit Bureau reporting model.

The Audit Bureau is administratively located in the Financial Management Board Secretariat. The director of the Audit Bureau reports to the comptroller general/secretary to the Financial Management Board on administrative matters.

Operationally the Audit Bureau receives direction from the Audit Committee composed of deputy ministers of Education, Culture and Employment, Health and Social Services, Public Works and Services, the secretary to Cabinet and the secretary to the Financial Management Board. The Audit Committee, chaired by the secretary to the Financial Management Board, reports to the chairman

of the Financial Management Board through Financial Administration Manual directive number 603 providing further detail on the internal Audit Bureau. Thank you, Mr. Speaker.

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Further Return To Question 395-15(3): GNWT Audit Bureau Reporting Model

Item 4: Returns To Oral Questions

Item 4: Returns To Oral Questions

Page 1394

The Speaker

Paul Delorey

Thank you, Mr. Roland . Item 4, returns to oral questions. The honourable Minister of Education, Culture and Employment , Mr. Dent .

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Further Return To Question 352-15(3): Aurora College Palmistry Course

Item 4: Returns To Oral Questions

Item 4: Returns To Oral Questions

Page 1394

Charles Dent

Frame Lake

Thank you, Mr. Speaker. I have a return to oral question asked by Mrs. Groenewegen on February 9, 2004, regarding the Aurora College palmistry course.

Mr. Speaker, Aurora College does not have a specific policy on the use of campus facilities by religious organizations. It is the policy of Aurora College to provide space for continuing education courses to be run in college facilities as a public service, provided that this activity does not interfere with either private enterprise or with college activities. Thank you, Mr. Speaker.

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Further Return To Question 352-15(3): Aurora College Palmistry Course

Item 4: Returns To Oral Questions

Item 4: Returns To Oral Questions

Page 1394

The Speaker

Paul Delorey

Thank you, Mr. Dent . Item 4, returns to oral questions. Item 5, recognition of visitors in the gallery. The honourable Member for Hay River South , Mrs. Groenewegen .

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Item 5: Recognition Of Visitors In The Gallery

Item 5: Recognition Of Visitors In The Gallery

Page 1394

Groenewgen

Thank you, Mr. Speaker. Mr. Speaker, in the carrying out of our duties as MLAs it necessarily often involves the support and participation of our spouses, and, on that note, Mr. Speaker, I would like to say how much I have appreciated your wife, Mr. Speaker, Davida Delorey. She's your wife, but she's my constituent and I've enjoyed working with her very much.

---Laughter

---Applause

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Item 5: Recognition Of Visitors In The Gallery

Item 5: Recognition Of Visitors In The Gallery

Page 1394

The Speaker

Paul Delorey

Thank you, Mrs. Groenewegen . Item 5, recognition of visitors in the gallery. The honourable Member for Kam Lake , Mr. Ramsay .

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Item 5: Recognition Of Visitors In The Gallery

Item 5: Recognition Of Visitors In The Gallery

Page 1394

David Ramsay

Kam Lake

Thank you, Mr. Speaker. I would like to recognize Ms. Julie McNeice who is with us today, a constituent of mine. Thank you.

---Applause

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Item 5: Recognition Of Visitors In The Gallery

Item 5: Recognition Of Visitors In The Gallery

Page 1394

The Speaker

Paul Delorey

Thank you, Mr. Ramsay . Item 5, recognition of visitors in the gallery. It's with great pleasure today that I would like to recognize some very special guests in the gallery, again, I'd like to recognize our very good friends from Scotland who are over here visiting with us and have spent the weekend with us, Gordon Walker and Lynda Brise, and it gives me great pleasure to introduce to you today my wife who is in here with us today. Welcome to the Legislative Assembly, Davida.

---Applause

Also with them is my assistant from Hay River, Deb Mageean.

---Applause

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Item 5: Recognition Of Visitors In The Gallery

Item 5: Recognition Of Visitors In The Gallery

Page 1394

The Speaker

Paul Delorey

Welcome to the House. It was indeed a pleasure to have you over here, Lynda and Gordon, for the weekend. We took them out on Great Slave Lake and gave them some experiences in our northern playtime that I think they really appreciated. Item 5, recognition of visitors in the gallery. Item 6, oral questions. The honourable Member for Range Lake , Ms. Lee .

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Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1394

Sandy Lee

Range Lake

Thank you, Mr. Speaker. Mr. Speaker, as I stated earlier in my statement, the insurance industry made a profit in one year -- just in one year -- in the amount of $4.2 billion and in case I didn't repeat that enough, that is four times more than the money we need to run our government annually. That is a lot of money, especially in light of the fact that we all had to pay into that. We have been seeing rising costs of insurance on everything and, Mr.

Speaker, this is an issue that I've raised many times in various forums and I've been told that the regulation of the insurance industry is not within our jurisdiction, but that is not, I don't believe, Mr. Speaker, to say that there is nothing we can do. One of the things that is being done by a group called CFIB, which is the Canadian Federation of Independent Business, are asking the federal government to hold hearings to get to the bottom of the rising costs of the insurance industry and I would like our government to get involved with that as well.

So could I ask the Minister responsible for insurance, the Honourable Floyd Roland , to see if the government could intervene? Thank you, Mr. Speaker.

---Applause

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Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1394

The Speaker

Paul Delorey

Thank you, Ms. Lee . The honourable Minister of Finance , Mr. Roland .

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Return To Question 432-15(3): Record Profits In The Insurance Industry

Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1394

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, we could I guess with interest, see what the federal government would do and see how we could plug into anything that they've adopted and move forward in the area of insurance regulations. Thank you.

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Return To Question 432-15(3): Record Profits In The Insurance Industry

Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1394

The Speaker

Paul Delorey

Thank you, Mr. Roland . Supplementary, Ms. Lee .

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Supplementary To Question 432-15(3): Record Profits In The Insurance Industry

Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1394

Sandy Lee

Range Lake

Thank you, Mr. Speaker. Mr. Speaker, I stated the results from the survey done by CFIB and I would like to know if our government does any statistical surveys or analysis to see what the cost of insurance is in the North for the individuals, businesses and even governments and what the impacts of that are on business. Do we keep any record of that? Thank you, Mr. Speaker.

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Supplementary To Question 432-15(3): Record Profits In The Insurance Industry

Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1394

The Speaker

Paul Delorey

Thank you, Ms. Lee . Mr. Roland .

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Further Return To Question 432-15(3): Record Profits In The Insurance Industry

Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1395

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, we have, as a government, looked at the impact of the insurance industry and the rising costs on us as a government. We haven't done a territorial survey on the impact of individuals. We know the general trends and have kept track of them, but we haven't done any specific survey across the North on individuals. Thank you.

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Further Return To Question 432-15(3): Record Profits In The Insurance Industry

Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1395

The Speaker

Paul Delorey

Thank you, Mr. Roland . Supplementary, Ms. Lee .

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Supplementary To Question 432-15(3): Record Profits In The Insurance Industry

Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1395

Sandy Lee

Range Lake

Thank you, Mr. Speaker. Mr. Minister made a commitment to see how we could get involved and, Mr. Speaker, I don't think we can play a meaningful role at the federal level or any other industry level unless we have good information ourselves. So could I ask the Minister to commit to doing our own territorial study on the insurance rates and the impact of insurance for everybody, not just for the government? Thank you, Mr. Speaker.

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Supplementary To Question 432-15(3): Record Profits In The Insurance Industry

Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1395

The Speaker

Paul Delorey

Thank you, Ms. Lee . Mr. Roland .

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Further Return To Question 432-15(3): Record Profits In The Insurance Industry

Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1395

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, I did commit to the Members of the House to put some information together and provide a briefing to Members about the impacts of the insurance and what we've been doing. Also, we're encouraged to work with CFIB, I believe it is called, and have agreed to do that. Through the department, we have made some initial contacts and will be getting back to Members with what we've found. Thank you.

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Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1395

The Speaker

Paul Delorey

Thank you, Mr. Roland . Final supplementary, Ms. Lee .

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Supplementary To Question 432-15(3): Record Profits In The Insurance Industry

Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1395

Sandy Lee

Range Lake

Thank you, Mr. Speaker. I noticed that the Minister cleverly avoided my question. In doing that background work that he has committed to, could I get the Minister to at least commit to looking at the possibility of doing a statistical study to see what the rising cost of insurance has been for the last three years? Also, to see what negative impact it has on the businesses, as well as individuals. Thank you, Mr. Speaker.

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Supplementary To Question 432-15(3): Record Profits In The Insurance Industry

Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1395

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Paul Delorey

Thank you, Ms. Lee . Mr. Roland .

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Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1395

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, we have done some work on looking at the trends of the industry, much like we have in a number of other areas that we, as a government, have tried to keep a pulse on in the sense of the costs that impact the residents of the Northwest Territories. So I guess the first step is to get the material together that I had committed to, sit down with Members and, at that time, if there's a feeling that we need to go the next step, then we'll look at doing that. Thank you.

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Question 432-15(3): Record Profits In The Insurance Industry

Item 6: Oral Questions

Page 1395

The Speaker

Paul Delorey

Thank you, Mr. Roland . Item 6, oral questions. The honourable Member for Great Slave , Mr. Braden .

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Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1395

Bill Braden

Great Slave

Thank you, Mr. Speaker. My questions this afternoon are for the Minister of Finance, and they follow up on the issue of our involvement in the secondary diamond industry. Mr. Speaker, we are currently in the midst of trying to resolve the sale of one facility, the Sirius diamond facility, to a new owner. We've recently had an unsuccessful deal with what I believe is called the Leviev Group in the secondary diamond industry. Now, the question that I would like to ask is whether the GNWT is still involved in any way with the Leviev Group in the sale of this failed venture; the disposal of the Sirius plant. Thank you, Mr. Speaker.

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Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1395

The Speaker

Paul Delorey

Thank you, Mr. Braden . The honourable Minister of Finance , Mr. Roland .

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Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1395

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, our involvement has been through the receiver. Once we had gone through the courts and asked that one be appointed, we were involved through the receiver. The last bit of information we were looking for was a waiver from the Leviev Group so that the receiver can go on with the process. That's been the final bit of communication that they've had, is my understanding. Thank you.

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Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1395

The Speaker

Paul Delorey

Thank you, Mr. Roland . Supplementary, Mr. Braden .

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Supplementary To Question 433-15(3): Sirius Diamonds Receivership

Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1395

Bill Braden

Great Slave

Mr. Speaker, it has, I think, been at least two weeks now since Mr. Roland advised us of the unfortunate news that we didn't have a deal with Leviev, yet it still seems that we're encumbered by this deal and we can't go on with a new sale. So I just want to seek some clarification here. Are we indeed hung up on some paperwork and restricted or curtailed in any way from trying to move this sale along? Thank you.

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Supplementary To Question 433-15(3): Sirius Diamonds Receivership

Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1395

The Speaker

Paul Delorey

Thank you, Mr. Braden . Mr. Roland .

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Further Return To Question 433-15(3): Sirius Diamonds Receivership

Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1395

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, through the receiver, they have been working with the lawyers from all the parties and we have received the release. The receiver is now making contacts with interested parties regarding the Sirius facility. Thank you.

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Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1395

The Speaker

Paul Delorey

Thank you, Mr. Roland . Supplementary, Mr. Braden .

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Supplementary To Question 433-15(3): Sirius Diamonds Receivership

Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1395

Bill Braden

Great Slave

Mr. Speaker, we continue to put money in to continue to maintain the plant as a going concern, hoping that there will be a qualified buyer out there. Does the Minister have any sort of criteria on this; for instance, any deadlines, any drop-dead dates? At what point, Mr.

Speaker, might we be making a decision that there is no qualified buyer out there and we have to go to plan B? What kind of criteria are we looking at? Thank you.

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Supplementary To Question 433-15(3): Sirius Diamonds Receivership

Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1396

The Speaker

Paul Delorey

Thank you, Mr. Braden . Mr. Roland .

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Further Return To Question 433-15(3): Sirius Diamonds Receivership

Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1396

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. Ultimately, the criteria would be a financial one if it was, in fact, still financially viable to continue with this process, or if it was time to pull the plug, as they say. Thank you.

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Further Return To Question 433-15(3): Sirius Diamonds Receivership

Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1396

The Speaker

Paul Delorey

Thank you, Mr. Roland . Your final supplementary, Mr. Braden .

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Supplementary To Question 433-15(3): Sirius Diamonds Receivership

Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1396

Bill Braden

Great Slave

Mr. Speaker, in any of these moves, are we going to continue to expose the taxpayer -- unnecessarily, in my view -- to try to attract new businesses in the secondary diamond trade? Thank you, Mr. Speaker.

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Supplementary To Question 433-15(3): Sirius Diamonds Receivership

Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1396

The Speaker

Paul Delorey

Thank you, Mr. Braden . Mr. Roland .

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Further Return To Question 433-15(3): Sirius Diamonds Receivership

Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1396

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, our focus has been to continue working with the ones that are in the Northwest Territories. There is a policy within the government about the secondary industry and we have avenues for that support. Our goal is to minimize that area of the Government of the Northwest Territories and tighten it up. Through this process, we have done that. For example, any loan guarantee would have a lifetime of five years before we'd have to be released from that.

So that's one of the things that we've done in that area, but our goal is to work with the existing operations we have and we're not going out and seeking further parties for new operations at this time. Thank you.

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Question 433-15(3): Sirius Diamonds Receivership

Item 6: Oral Questions

Page 1396

The Speaker

Paul Delorey

Thank you, Mr. Roland . Item 6, oral questions. The honourable Member for Hay River South , Mrs. Groenewegen .

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Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1396

Groenewgen

Thank you, Mr. Speaker. Mr. Speaker, my questions today are for the Minister of Education, Culture and Employment . In my Member's statement, Mr. Speaker, I mentioned that it was Education Week and there's a lot to celebrate. But I think there's also a need to turn our attention to the lack of support for alternatives to mainstream schooling.

Mr. Speaker, I believe that there are alternatives out there that are being employed -- perhaps here in Yellowknife and in the South -- and the time is now for alternative solutions in the community of Hay River.

Mr. Speaker, on May 31, 2004, I stated to the Minister that the special needs funding available is not sufficient for programming for the community of Hay River and its school. As an alternative solution, I asked if they could make application for additional funding. The Minister commented that special needs funding had grown from $6 million to $16 million and he would be issuing a directive in the fall to the DEC chairs outlining what is an acceptable use of these special needs funds. So today, Mr. Speaker, I'd like to ask the Minister if he could please advise this House as to the nature of that directive that was contemplated. Thank you, Mr. Speaker.

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Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1396

The Speaker

Paul Delorey

Thank you, Mrs. Groenewegen . The honourable Minister of Education, Culture and Employment , Mr. Dent .

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Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1396

Charles Dent

Frame Lake

Thank you, Mr. Speaker. We have been working with our colleagues in the DECs to try and come up with an accountability structure, to make sure that the funding that we provide to the boards is being spent as it should be -- to provide needs to students with special needs -- and it hasn't been issued as a directive at this point, but we are working with them.

I'm hoping that fairly shortly we will be able to outline better what our expectations are. The boards now clearly understand what we're looking for. There's been a significant amount of discussion. The important factor is to define how the money should be spent, while leaving enough flexibility for local boards to deal with the local problems that they face; that's where we are right now with it.

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Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1396

The Speaker

Paul Delorey

Thank you, Mr. Dent . Supplementary, Mrs. Groenewegen .

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Supplementary To Question 434-15(3): Alternative Schooling Options For Hay River

Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1396

Groenewgen

Thank you, Mr. Speaker. Mr. Speaker, I'd like to ask the Minister, at this time, if there are alternative school options for students in Yellowknife. Thank you.

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Supplementary To Question 434-15(3): Alternative Schooling Options For Hay River

Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1396

The Speaker

Paul Delorey

Thank you, Mrs. Groenewegen . Mr. Dent .

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Further Return To Question 434-15(3): Alternative Schooling Options For Hay River

Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1396

Charles Dent

Frame Lake

Thank you, Mr. Speaker. I'm not certain as to the answer to that question. If there are students in the public system or publicly-funded system, their board would have to be responsible for assisting or for allocating funds to put a student in a special service, if that was found, and that would have to be acceptable to the parents. So it has to be a local solution, because the DEC or DEA has the money to work with kids with special needs and they would have to allocate how it is being spent. Thank you.

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Further Return To Question 434-15(3): Alternative Schooling Options For Hay River

Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1396

The Speaker

Paul Delorey

Thank you, Mr. Dent . Supplementary, Mrs. Groenewegen .

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Supplementary To Question 434-15(3): Alternative Schooling Options For Hay River

Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1396

Groenewgen

Thank you, Mr. Speaker. I assume from that answer that the Minister doesn't actually know if there is funding that is being allocated for students to attend alternative schools. Maybe the Minister could please tell us whether alternative schools can be financed

at this time, today, through special needs funding. Thank you.

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Supplementary To Question 434-15(3): Alternative Schooling Options For Hay River

Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1397

The Speaker

Paul Delorey

Thank you, Mrs. Groenewegen . Mr. Dent .

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Further Return To Question 434-15(3): Alternative Schooling Options For Hay River

Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1397

Charles Dent

Frame Lake

Mr. Speaker, it could be financed through contributions from DECs or DEAs. The department does not provide funding directly to any institution to provide schooling to NWT residents, but we do know that there are some DECs and DEAs that provide, by way of contract, funding to alternate schools to provide schooling to some of their students. Thank you.

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Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1397

The Speaker

Paul Delorey

Thank you, Mr. Dent . Final supplementary, Mrs. Groenewegen .

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Supplementary To Question 434-15(3): Alternative Schooling Options For Hay River

Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1397

Jane Groenewegen

Hay River South

Thank you, Mr. Speaker. Mr. Speaker, would the DEA in Hay River right now be able to divert special needs funding for alternative school options? Something within the community not under contract to someone else, but within the mandate of their school budget, could they develop an alternative? Thank you.

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Supplementary To Question 434-15(3): Alternative Schooling Options For Hay River

Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1397

The Speaker

Paul Delorey

Thank you, Mrs. Groenewegen . Mr. Dent .

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Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1397

Charles Dent

Frame Lake

Mr. Speaker, I suspect that they could. It would have to work within the parameters that we are setting up. But I think that the discussions are far enough along in terms of what's expected for school districts to be able to know whether or not what they're proposing would fit into the system. So I would suggest that the DEA needs to talk to the South Slave Divisional Education Council to get an understanding, but in all likelihood the answer is yes.

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Question 434-15(3): Alternative Schooling Options For Hay River

Item 6: Oral Questions

Page 1397

The Speaker

Paul Delorey

Thank you, Mr. Dent . Item 6, oral questions. The honourable Member for Kam Lake , Mr. Ramsay .

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Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1397

David Ramsay

Kam Lake

Thank you, Mr. Speaker. I want to direct my questions today to the Minister of Finance , Mr. Roland . It gets back to diamonds and the Government of the Northwest Territories' involvement in the secondary diamond industry here in the Northwest Territories. I've heard the Minister of Finance and the Minister of RWED stand up here in the House and say maybe we have to re-evaluate where we're going. My questions get back to that re-evaluation. I think any time you have a look at something you have to know exactly what it is you're talking about in order to make a decision.

I haven't seen much in terms of evidence to indicate one way or another what Regular Members on this side of the House should do with the secondary diamond industry. So I'd like to ask the Minister of Finance when Members might be able to expect a cost-benefit analysis of the secondary industry here in the Northwest Territories. I'm talking about the government's investment from 1998 to 2004. Thank you, Mr. Speaker.

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Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1397

The Speaker

Paul Delorey

Thank you, Mr. Ramsay . The honourable Minister responsible for the Financial Management Board Secretariat, Mr. Roland .

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Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1397

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, as part of the process that we have initiated within FMBS is to review just what the Member has been discussing and beginning to put that work together on doing a cost-benefit analysis around the secondary industry around diamonds. Thank you.

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Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1397

The Speaker

Paul Delorey

Thank you, Mr. Roland . Supplementary, Mr. Ramsay .

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Supplementary To Question 435-15(3): Analysis Of The Secondary Diamond Industry

Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1397

David Ramsay

Kam Lake

Thank you, Mr. Speaker. Mr. Speaker, I mentioned in my statement today that I believe there should be an inquiry, an investigation as to what happened with the Leviev Group and why their proposal to take over the Sirius plant failed. They weren't able to get diamonds from the producers. Coupled with that is the discussion around what the investment the Government of the Northwest Territories has into the secondary industry and I'd like to ask the Minister of Finance if he would support an inquiry, an investigation to get to the bottom of what exactly happened and what the GNWT's role in all of this was. Thank you.

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Supplementary To Question 435-15(3): Analysis Of The Secondary Diamond Industry

Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1397

Some Hon. Members

Hear! Hear!

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Supplementary To Question 435-15(3): Analysis Of The Secondary Diamond Industry

Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1397

The Speaker

Paul Delorey

Thank you, Mr. Ramsay . Mr. Roland .

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Further Return To Question 435-15(3): Analysis Of The Secondary Diamond Industry

Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1397

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. As we look at the picture, we know what the problem was between the group that we'd selected going forward and the mining operations. They could not come to an agreement and that's what scuttled the deal. So that side of it is pretty well straightforward. We might not like what happened, but that's the fact. The other side of it, we are doing some work on the cost-benefit analysis of that secondary industry in the Northwest Territories. Thank you.

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Further Return To Question 435-15(3): Analysis Of The Secondary Diamond Industry

Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1397

The Speaker

Paul Delorey

Thank you, Mr. Roland . Supplementary, Mr. Ramsay .

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Supplementary To Question 435-15(3): Analysis Of The Secondary Diamond Industry

Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1397

David Ramsay

Kam Lake

Thank you, Mr. Speaker. Mr. Speaker, my assertion is that the government doesn't know what the problem is today. Nobody seems to know. There are two sides to this story and the government is caught in the middle. I believe an investigation or inquiry would get to the bottom of why the world's largest producer of cut and polished diamonds couldn't get a deal done with our producers here in the Northwest Territories and the government stood by and watched it happen. Thank you, Mr. Speaker. I'd like to ask the Minister when we might

expect some answers and when he will call an inquiry into what happened here. Thank you.

---Applause

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Supplementary To Question 435-15(3): Analysis Of The Secondary Diamond Industry

Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1398

The Speaker

Paul Delorey

Thank you, Mr. Ramsay . Mr. Roland .

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Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1398

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, I will not be calling an inquiry into this area. We have done some internal work. We're aware of where our situation is and we continue to work on the cost-benefit analysis. Hopefully we'll be able to come forward with that by early spring and be able to provide the layout of what's happened right from when we got involved as a government and all the programs involved and try to see if, in fact, it was a wise decision or not by the government. That will help formulate where we go as a government.

We also know, for example, the socioeconomic agreement that's in place with one of the operations is not very strong for the Government of the Northwest Territories and is a very broad one. So we already have impacts and know where things haven't quite worked and are working on those fronts. Thank you.

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Further Return To Question 435-15(3): Analysis Of The Secondary Diamond Industry

Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1398

The Speaker

Paul Delorey

Thank you, Mr. Roland . Final supplementary, Mr. Ramsay .

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Supplementary To Question 435-15(3): Analysis Of The Secondary Diamond Industry

Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1398

David Ramsay

Kam Lake

Thank you, Mr. Speaker. Mr. Speaker, any type of work like this, an inquiry, an investigation, the work that the Minister spoke of that FMBS is going to be doing, that's a huge piece of work, Mr. Speaker, and I'd like to know if we're just going to use resources that are in house or if we're going to bring in somebody to finally find out where we're at, what we've spent and where we go from here. Thank you.

---Applause

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Supplementary To Question 435-15(3): Analysis Of The Secondary Diamond Industry

Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1398

The Speaker

Paul Delorey

Thank you, Mr. Ramsay . Mr. Roland .

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Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1398

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, it's our goal to try to do the work internally; to work with what we have, the knowledge we have and the personnel we have and if we find that we are unable to do it, then we will look at bringing in other resources to do this. Thank you.

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Question 435-15(3): Analysis Of The Secondary Diamond Industry

Item 6: Oral Questions

Page 1398

The Speaker

Paul Delorey

Thank you, Mr. Roland . Item 6, oral questions. The honourable Member for Great Slave , Mr. Braden .

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Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Item 6: Oral Questions

Page 1398

Bill Braden

Great Slave

Mr. Speaker, to continue on the area of the diamond traffic here, how much money are we losing, Mr. Speaker? My question is for the Minister of Finance again. How much money are we losing as we keep the Sirius factory open and seek another buyer? Thank you, Mr. Speaker.

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Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Item 6: Oral Questions

Page 1398

The Speaker

Paul Delorey

Thank you, Mr. Braden . The honourable Minister responsible for the Financial Management Board Secretariat, Mr. Roland .

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Return To Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Item 6: Oral Questions

Page 1398

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, we have calculated that and we're aware of the ongoing costs between keeping a receiver in place, as well as keeping the plant operational until we have a new buyer. The receiver has entered into calls now with other interested parties and I don't feel it appropriate to give you the actual number here as that might impact on final numbers that we can come to agreement on hopefully with a new buyer. Thank you.

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Return To Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Item 6: Oral Questions

Page 1398

The Speaker

Paul Delorey

Thank you, Mr. Roland . Supplementary, Mr. Braden .

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Supplementary To Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Item 6: Oral Questions

Page 1398

Bill Braden

Great Slave

Okay, Mr. Speaker. Respecting the confidentiality of that number right now, surely, Mr. Speaker, the government must have some sense of when enough is going to be enough. Could the Minister give us any sense at what point we're going to declare that this is a business that we should not be in and say, okay, enough is enough? When is that point going to be, Mr. Speaker? Thank you.

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Supplementary To Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Item 6: Oral Questions

Page 1398

The Speaker

Paul Delorey

Thank you, Mr. Braden . Mr. Roland .

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Further Return To Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Item 6: Oral Questions

Page 1398

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, as we move down this process and I feel that we don't have a solid proposal on the table, I would bring a recommendation back to my FMBS colleagues by the end of March, early April. Thank you.

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Further Return To Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Item 6: Oral Questions

Page 1398

The Speaker

Paul Delorey

Thank you, Mr. Roland . Supplementary, Mr. Braden .

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Supplementary To Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Item 6: Oral Questions

Page 1398

Bill Braden

Great Slave

Thank you, Mr. Speaker. Related to this has been the belief and advantage, at least on the surface, that the 10 percent allocation of diamonds by value, I believe, is a great advantage to northern cutting and polishing shops. But as my colleague Mr. Ramsay has pointed out, this has been very troublesome for the Northwest Territories and cutters and producers to really work with. Is this a good thing for us to continue to work with, Mr. Speaker, or is the 10 percent allocation, as strong and beneficial as it may have been, really not the way for us to go? Thank you, Mr. Speaker.

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Supplementary To Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Item 6: Oral Questions

Page 1398

The Speaker

Paul Delorey

Thank you, Mr. Braden . Mr. Roland .

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Further Return To Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Item 6: Oral Questions

Page 1398

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. The 10 percent allocation has been problematic in a number of ways. One, from our side of it and from the information available through the cutting and polishing plants we're involved with, all the plants, I believe, actually, cut and

polish in the Northwest Territories runs about 2.5 to three percent. Now, the mining companies state that in fact they supply much more than that and they may do that. We're unaware of that final amount, but we know that the quality or the size of those stones are not economically cut in the Northwest Territories and are returned. So when we talk about numbers of 2.5 to three percent, that's what is able to be cut in the Northwest Territories at a viable place. So it is one of the areas of concern.

If the companies could fully utilize 10 percent, we'd be doing a lot more business in the Northwest Territories, but they have not been able to, based on the economics of cutting some of those stones. Thank you.

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Further Return To Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Item 6: Oral Questions

Page 1399

The Speaker

Paul Delorey

Thank you, Mr. Roland . Final supplementary, Mr. Braden .

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Supplementary To Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Item 6: Oral Questions

Page 1399

Bill Braden

Great Slave

Mr. Speaker, the dilemma over this is something that a lot of us face. We try to read and understand and listen to all sides of the story, but quite frankly I don't know really who to believe in this. What kind of advantage or leverage do we have as the Northwest Territories government, to try to make this deal work? Is there anything that we have yet to try? Thank you.

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Supplementary To Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Item 6: Oral Questions

Page 1399

The Speaker

Paul Delorey

Thank you, Mr. Braden . Mr. Roland .

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Further Return To Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Question 436-15(3): Costs Of Keeping Sirius Diamonds Operational

Item 6: Oral Questions

Page 1399

Floyd Roland

Inuvik Boot Lake

Thank you, Mr. Speaker. I believe there are a number of areas that are of benefit to the Northwest Territories. The stones out of the Northwest Territories are seen as quality stones. Through the industry, Canadian diamonds are one of the things to talk about. They're of just quality and the marketing of them has been a benefit to us. As well, through the work that's been done, a certification process has been established for those taking part. It also represents where their stone has come from and cut from.

There are some benefits to the Northwest Territories but, at the same time, as we've heard around the table, there's a concern about how this is operating and do we have to go back to the days when the first diamond mine was being talked about in Canada and the Minister of the day talked about enough tax to choke a mule. Is it time to revisit that? It may be. Thank you.

Ple