Debates of June 4th, 2009

This is page numbers 3249 - 3282 of the Hansard for the 16th 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 work .

Topics

Oral Questions

Members Present

Prayer

Minister’s Statement 86-13(6): Healing And Reconciliation

Minister’s Statement 87-16(3): Economic Incentives For Small Business

Minister’s Statement 88-16(3): Investments In Northern Housing

Minister’s Statement 89-16(3): 52nd Mine Rescue Competition

Congratulations To High School Graduates

Financial Security For Environmental Remediation On Commissioner’s Lands

Upcoming Constituency Events And Meetings

Opportunities For Subcontractors On Large Infrastructure Projects

Yellowknife Association For Community Living Family Initiatives

Report Of The Auditor General Of Canada On Contracting For Goods And Services

Impact Of Funding Reductions On Cbc North Radio And Television

Rare Earth Minerals

Tuktoyaktuk All-Weather Gravel Source Access Road

Reflections On The Improved Quality Of Life In The North

Recognition of Visitors in the Gallery

Jim And Marion Wylie 60th Wedding Anniversary

Felicito And Cristina Domingo 50th Wedding Anniversary

Edward And Mabel Gruben 50th Wedding Anniversary

Opportunities For Subcontractors On Large Infrastructure Projects

Opportunities For Subcontractors On Large Infrastructure Projects

Yellowknife Association For Community Living Family Project

Increase To Minimum Wage

Community Funding For Downriver Monitoring

Rare Earth Mineral Developments

NWT Association Of Communities Energy Efficiency In Public Housing

Fluoridation Of Community Drinking Water

Benefits Accrued From Fort Good Hope School Construction

Dust Suppression Efforts In Small Communities

Subcontractors On Inuvik School Project

Petition 9-16(3): Student Financial Assistance Scholarship Program

Tabled Document 62-16(3): NWT Housing Corporation Annual Report 2006-2007: Blueprint For Change

Tabled Document 63-16(3): 2020: A Brilliant North, NWT Public Service Strategic Plan Tabled Document 64-16(3): Action Plan - 2020: A Brilliant North, NWT Public Service Strategic Plan

Tabled Document 65-16(3): Memorandum Of Understanding On Development Of Residual Heat Distribution System Between The GNWT And The NWT Power Corporation

Tabled Document 66-16(3):

Summary Of Members’ Absences For The Period October 18, 2007 To May 26, 2009

Reducing Transportation Costs And Increasing Safety In Small Communities

Student Financial Assistance Scholarship Program

Recorded Vote

Referral Of On-Line Petitions Issued To The Standing Committee On Rules And Procedures, Carried As Amended

Motion To Amend Motion 23-16(3): Referral Of On-Line Petitions Issued To The Standing Committee On Rules And Procedures

Income Exemption For Newly Employed Housing Tenants

Reducing Transportation Costs And Increasing Safety In Small Communities

Consideration in Committee of the Whole of Bills and Other Matters

Report of Committee of the Whole

Bill 13:

An Act To Amend The Commissioner’s Land Act

Prorogation

The House met at 1:37 p.m.

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---Prayer

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Prayer

Prayer

The Speaker

Paul Delorey

Good afternoon, colleagues. Welcome back to the Chamber. Orders of the day. Item 2, Ministers’ statements. The honourable Premier , Mr. Roland .

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Minister’s Statement 86-13(6): Healing And Reconciliation

Ministers’ Statements

Inuvik Boot Lake

Floyd Roland

Premier

Thank you, Mr. Speaker. Mr. Speaker, next Thursday, June 11th , will mark

The Assembly of First Nations has called on provincial, territorial and national governments to celebrate this day annually, as ‘the National Day of Reconciliation’. This reconciliation is currently honoured and recognized across our country on a variety of dates between May 26th , as recognized

by the 15th Assembly, and June 21st , National

Aboriginal Day.

The residential school experience is an indelible part of our history and our culture In the Northwest Territories. As Northerners, we continue to work together to heal the many ills that were created during this

chapter of our society.

As a government, we are working to support this healing, through our work with the Residential Schools Interagency Committee.

Through the Department of Health and Social Services, we continue to provide trauma support, counselling and referral to advanced psychological services. The Department of Justice funds community programs that support and encourage healing. Meanwhile, the Department of Education, Culture and Employment continues to work with former students to provide records related to their school years and the topic is now covered at age-appropriate levels at several points in the NWT’s Social Studies and Northern Studies curriculum.

Mr. Speaker, as we reconcile the history of residential schools, it is important that our children understand the full legacy of these schools in the

Northwest Territories. As communities, families and educators, we must not shy from discussions of this topic.

We need to work together to ensure that the children of tomorrow are confident and empowered, and that the cycle of misfortune that was created from the residential school experience is now over.

Bishop Murray Chatlain’s apology to NWT Dene last week and the appointment of new individuals to lead the work of the Truth and Reconciliation Commission for residential schools are other important steps that have recently been taken in this journey.

This anniversary is an opportunity for us all to consider this part of our history and the much more positive future that we can build from the closure that was begun by the Prime Minister’s apology, one year ago.

It will represent an opportunity for all Canadians, political and aboriginal leaders, to join together and declare their broad commitment to acknowledge the past and work together for a better future. I encourage all NWT residents to recognize and embrace the National Day of Reconciliation as part of the journey of healing that we must all take together.

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Minister’s Statement 86-13(6): Healing And Reconciliation

Ministers’ Statements

The Speaker

Paul Delorey

Thank you, Mr. Roland . The honourable Minister responsible for Industry, Tourism and Investment , Mr. Bob McLeod .

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Minister’s Statement 87-16(3): Economic Incentives For Small Business

Ministers’ Statements

Bob McLeod

Yellowknife South

Mr. Speaker, many small businesses in the Northwest Territories are now experiencing the impacts of the economic downturn and commercial credit crunch. As a government we recognize that one of the roles that we must fill in an economic downturn is to take steps to encourage and assist the business sector to maintain employment levels and expenditures so as to sustain economic activity levels.

I am pleased today to advise Members of this House that the Department of Industry, Tourism and Investment and the Northwest Territories Business Development and Investment Corporation have introduced new initiatives to assist Northwest

Territories small businesses, while encouraging investments and expenditures in our economy.

The sector support initiative under the department’s Support for Entrepreneurs and Economic Development Program provides an interest incentive of up to $15,000 per year for a maximum of two years for businesses in designated sectors that borrow money to establish or expand. Given the economic challenges that Northwest Territories businesses face, I have designated all sectors as being eligible for this assistance for the current year.

The Business Development and Investment Corporation has also launched some new lending initiatives including variable interest rate financing, a Working Capital Guarantee Program, winter/summer resupply financing, and BDIC seasonal production financing. Each of these initiatives is designed to bring greater flexibility in tailoring business credit to meet the needs of northern businesses.

In addition to these programs, I am very pleased to announce today that the Business Development and Investment Corporation will offer to all borrowers an interest rate renewal option to renew their loans at the current base rate of prime plus 2 percent, subject to some conditions. This is another important measure that will assist our northern business community during challenging economic times.

We have stated as an Assembly that we are committed to developing a diversified economy that provides all communities and regions with opportunities and choices.

I would like to thank the members of the Standing Committee on Economic Development and Infrastructure for their suggestions and ongoing support. These new tools are designed to enable us to better support small businesses in all of our communities and regions. I encourage all small businesses to take advantage of the programs and services that are in place to help them manage through the challenging times and position themselves for the future.

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Minister’s Statement 87-16(3): Economic Incentives For Small Business

Ministers’ Statements

The Speaker

Paul Delorey

Thank you, Mr. McLeod. The honourable Minister responsible for the NWT Housing Corporation , Mr. Michael McLeod .

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Minister’s Statement 88-16(3): Investments In Northern Housing

Ministers’ Statements

Michael McLeod

Deh Cho

Mr. Speaker, I rise today to provide details on the federal and territorial investments in social housing over the next two years.

On May 22nd , 2009, I, along with my fellow housing

Ministers the Honourable Jim Kenyon of Yukon and the Honourable Hunter Tootoo of Nunavut, and the Member of Parliament for Prince Albert,

Saskatchewan, Randy Hoback, attended an announcement and signing ceremony here at the Legislative Assembly. On that date the governments of Canada and the Northwest Territories announced in excess of $117 million in investments in housing in the Northwest Territories over the next two years. These investments are intended to be an economic stimulus and job creation initiative, as well as an important investment in social housing.

As Members may be aware, the bulk of the federal investment comes through funding dedicated to northern housing. The NWT will receive $50 million of the $200 million provided to the three territories.

In addition to the Northern Housing Fund, the NWT will receive allocations under four other housing initiatives. The NWT will receive $520,000 over two years specifically for low income seniors and a further $100,000 will be provided for housing solutions for persons with disabilities.

In addition, the federal government’s extension of housing construction and renovation programs originally scheduled to lapse on March 31, 2009, will provide another additional $3.68 million over two years. I am also pleased to inform the House that the NWT will receive a $4.68 million contribution to complete renovations and energy retrofits on existing public housing. These investments recognize that the unique housing needs of the Northwest Territories cannot be solved through per capita funding arrangements.

All dwellings constructed or repaired with federal funding must be built to a high standard of energy efficiency. The NWT Housing Corporation’s new EnerGuide 80 housing designs will exceed the minimum standards being asked for by Canada. Our new construction standards, together with the energy audits and retrofits we will complete this year, are an important part of the Housing Corporation’s contribution to achieving the 16th Assembly’s goal of an environment that will sustain present and future generations.

Our government is also making a substantial investment in housing over the next two years. The Government of the Northwest Territories will provide in excess of $55 million in new construction and repairs in order to make substantial improvements in the quality of our housing stock. Every community in our Territory will see investments in housing. We will build units through the Public Housing Program, as well as our Housing Choices Home Ownership Program. The NWT Housing Corporation has recently announced improvements to these programs.

The income levels used to determine eligibility have increased to include more of our households and the subsidy levels have been increased to better reflect the true cost to operate a home. Our programs are now even more flexible and will help provide home

ownership and repair assistance to households, while helping to reduce the cost of living for our residents.

Our investments in housing over the next two years will go a long way in achieving the goals we have set out as the 16th Assembly to improve the lives of

our residents now and into the future. Housing is a key contributor to the goals of sustainable, vibrant, and safe communities, environmental sustainability, improved health and education rates, as well as being a key economic contributor in every community in our Territory. Our housing investments, together with the other initiatives of our government, are the right approach for these times of economic challenge.

I would also like to extend thanks to this Assembly for the role that you played in this effort. In May of 2008, this Assembly unanimously passed a motion calling for the federal government investments in housing to be extended beyond March 31, 2009. In the months since this motion, Members have actively raised this issue of federal housing funding both in public and during Legislative Assembly proceedings, and have been supportive of our efforts to lobby for renewed investment. It is clear evidence of the successes we can achieve when we speak with a common voice to bring more focus to the issues facing our Territory.

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Minister’s Statement 88-16(3): Investments In Northern Housing

Ministers’ Statements

The Speaker

Paul Delorey

Thank you, Mr. McLeod. The honourable Minister responsible for the Worker's Safety and Compensation Commission, Mr. Robert McLeod .

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Minister’s Statement 89-16(3): 52nd Mine Rescue Competition

Ministers’ Statements

Robert C. McLeod

Inuvik Twin Lakes

Thank you, Mr. Speaker. This month we celebrate our rich northern history. Alongside the many events planned to mark Yellowknife’s 75th birthday, the Mine Rescue

Competition of the Northwest Territories and Nunavut commemorates the North’s 52 years of mining safety success.

The Workers’ Safety and Compensation Commission will host the Mine Rescue Competition on Friday, June 12, and Saturday, June 13, in Yellowknife. The competition is an excellent venue to evaluate and compare the quality and effectiveness of mine rescue training programs in the NWT and Nunavut. It is an open event and all mines operating in the NWT and Nunavut are welcome to compete for the surface and underground Commissioner’s trophies.

The Mine Rescue Competition is part of Mining Week, which runs from June 8 to 13. Mining Week recognizes the many contributions our leading industry makes to building and sustaining a sound northern economy. Friday’s events take place at the Giant Mine site and are closed to the public.

Saturday’s competition runs from 9:00 in the morning to 3:30 in the afternoon at the Yellowknife Community Arena. The public is welcome to attend and support our northern miners. Over the lunch hour the NWT and Nunavut Chamber of Mines will host its annual miner’s picnic, a free community barbeque.

In closing, I encourage your participation in Mining Week events and the Mine Rescue Competition on Saturday, June 13th . Join the WSCC in celebrating

the many safety achievements of our fellow Northerners.

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Minister’s Statement 89-16(3): 52nd Mine Rescue Competition

Ministers’ Statements

The Speaker

Paul Delorey

Thank you, Mr. McLeod. Item 3, Members’ statements. The honourable Member for Nahendeh , Mr. Menicoche .

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Congratulations To High School Graduates

Members’ Statements

Kevin A. Menicoche

Nahendeh

Thank you very much, Mr. Speaker. This is the time of year for our graduations. The Thomas Simpson School in Fort Simpson is holding theirs this weekend and I’m proud to be attending, to wish our students well into the future. There will be 14 students attending graduation ceremonies in Fort Simpson and in the community of Fort Liard, six.

These students are to be congratulated because they have worked very hard to complete their high school requirements. This can be especially challenging in a small community with few library resources and fewer teachers and students to study and share learning. I think today, however, the Internet has given students in remote communities a leg up in this learning.

More than the Internet, though, it is the teachers, principals, superintendents, and other school staff who deserve recognition for the work they have done to teach and support these students. In last week’s Deh Cho Drum there was a report on two activities, one at the Thomas Simpson School, a motivational presentation called Turtle Camp and talks about careers with Aurora College in mining, oil, and gas, by volunteers Mr. Wilbert Antoine and Mr. Bob Norwegian.

I also have to commend the community for all the activities it has been involved in to give the young people opportunities. They have had the opportunity to participate, gain confidence, and learn new skills in many school and community events. I’m referring to activities like learning to play an instrument at the Kole Crook Fiddle Camp and fun competitions at the Beavertail Jamboree.

And, of course, we cannot forget the support from families. It is time for parents, grandparents, aunts, and uncles to be proud of their graduates.

Finally, I’d like again to congratulate every student. This is just the beginning. I look forward to seeing their future accomplishments in education and at the workplace. I wish them well and hope they enjoy their lives in whatever path of lifelong learning they take.

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Congratulations To High School Graduates

Members’ Statements

The Speaker

Paul Delorey

Thank you, Mr. Menicoche . The honourable Member for Weledeh , Mr. Bromley .

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Financial Security For Environmental Remediation On Commissioner’s Lands

Members’ Statements

Bob Bromley

Weledeh

Thank you, Mr. Speaker. I want to follow up on the proposed Bill 13,

An Act to Amend the Commissioner’s Land Act. Following committee review of the bill, including a public hearing with submissions, the bill was sent back for further amendment to correct a crucial deficiency. The issue was specific: the act must be amended to include a requirement for financial security adequate to cover the cost of abandonment and remediation of industrial and commercial sites throughout the full phases of development, operation, and closure.

Any one of us could rattle off a list of the cases that have taught us this harsh lesson: Giant Mine, Rayrock, DEW line sites, Colomac. The list goes on and on. On lands under territorial control, examples include the $23 million and annual ongoing liability left to the GNWT for the Giant Mine remediation; up to a million dollars to clean up the abandoned Treminco Ptarmigan Mine property on the Ingraham Trail; and the potential for millions more dollars for the Norman Wells project and pipeline cleanup.

The taxpayers have had enough of this and the environment can’t take it. The solution is simple and can be easily achieved. As a priority in the next session, we need to approve a legislative amendment that lays out the specific conditions for the posting of financial security, together with amendments providing for the mandatory writing of regulations.

The delay is frustrating and possibly costly. The committee has been working on this since the legislative proposal a year ago. However, we need to get this done and I have to say that I am pleased by the Minister’s commitment to incorporate this essential feature beginning this fall.

When use of the NWT land is granted, the government is acting in trust. In carrying out this trust, government’s decision must be based upon sound risk management, environmental stewardship, and full cost accounting. The taxpayers and environment have had enough of the resources of tomorrow paying for the mistakes of today.

Again, I am very pleased with the Minister’s commitment to address this crucial need. I urge prompt action to bring this forward in the fall so that we can close this gap as soon as possible.

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Financial Security For Environmental Remediation On Commissioner’s Lands

Members’ Statements

The Speaker

Paul Delorey

Thank you, Mr. Bromley . The honourable Member for Tu Nedhe , Mr. Beaulieu .

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Upcoming Constituency Events And Meetings

Members’ Statements

Tom Beaulieu

Tu Nedhe

Mahsi cho, Mr. Speaker. [Translation] Today what I’m working with with all the people working here, the Tu Nedhe people, I would like to thank everybody for that. [Translation ends]

Today I would like to take the opportunity to let my constituents know what I have planned for the coming months. From June 17th to 19th I will be in

Fort Resolution to meet with constituents and hold a public meeting to update the community. On June 23rd to the 25th I hope to attend the Akaitcho

General Assembly. On June 30th I’ll be visiting

Lutselk’e with the honourable Minister of Health and Social Services , Sandy Lee .

In August from the 17th to the 19th I’ll be in Lutselk’e

to meet with constituents, hold a public meeting, and from the 25th to the 28th I’ll be in Fort

Resolution to visit with constituents and community leaders.

On behalf of the important committee work that we do as Members of the Legislative Assembly, I’ll be travelling to various communities over the next few months. I would like to take this opportunity to acknowledge those Ministers that were able to make it to my riding to meet directly with my constituents and I look forward to continuing this important working relationship with Ministers and the constituents of Tu Nedhe.

I’d like to take this opportunity to thank the hardworking staff here at the Legislative Assembly. There are many people behind the scenes that make our jobs much easier.

Finally, I’d like to thank the many constituents that have brought forward important issues to my attention and I encourage them to keep doing so. I am working on all issues and together we’ll make Tu Nedhe a better place to live.

With that, I would like to wish you and the rest of the hardworking colleagues here in the House a safe, productive, active summer break until we see you again in October.

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Upcoming Constituency Events And Meetings

Members’ Statements

The Speaker

Paul Delorey

Thank you, Mr. Beaulieu . The honourable Member for Mackenzie Delta , Mr. Krutko .

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Opportunities For Subcontractors On Large Infrastructure Projects

Members’ Statements

David Krutko

Mackenzie Delta

Thank you, Mr. Speaker. I got a call from a rate contractor out of Inuvik, Mr. Mike Baxter, in regards to his business. He provides welding services out of Inuvik. He was in business for 25 years, yet he is nowhere closer to getting any benefit from a $100 million school which is presently being constructed out of Inuvik. After being told or getting the run around, he was told to call Jim Carter out of Whitehorse. Apparently Mr. Carter is managing the project now from Whitehorse. This individual was told, well, we’ll hire you for $25 an hour as a welder. Excuse me, he said his labourer makes more than $25 an hour in Inuvik.

At the same time, the contract to this company is $100 million in Inuvik. The same company has two contracts with the one they just completed in Tulita for $22 million and now they have another negotiated contracted for $24 million in Fort Good Hope. This company has negotiated contracts of $146 million, yet they are not hiring Northerners, contractors, and people who basically have made their life’s work in the Northwest Territories, established their businesses. They basically are trying to find whatever they can.

There was a $6 million contract that was let to do the foundation work. Again, the majority of that work was done by southern companies. Again Mr. Baxter received 24 hours of work on that jobsite, yet there were welders there from Newfoundland who were working in excess of 200 hours. Again I have to ask, what is this government thinking when they think they can get away with a $100 million contract, telling us that it is a negotiated contract, it’s going to benefit the North, it’s going to benefit the community and, more importantly, benefit the contractors who make it their business to take advantage of these opportunities and not being heard.

I believe Mr. Baxter has spoken to the Premier and Mr. McLeod on this issue, yet he is getting nowhere. I think as a government we have a duty to consult on any of these large-scale projects in excess of $100 million. Yet when the little dinky curling rink in my riding was reamed over by the media, the Construction Association of the Northwest Territories from $900,000…

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Opportunities For Subcontractors On Large Infrastructure Projects

Members’ Statements

The Speaker

Paul Delorey

Mr. Krutko , your time for Member’s statement has expired.

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Opportunities For Subcontractors On Large Infrastructure Projects

Members’ Statements

David Krutko

Mackenzie Delta

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

---Unanimous consent granted.

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Opportunities For Subcontractors On Large Infrastructure Projects

Members’ Statements

David Krutko

Mackenzie Delta

In regards to the contract that was let in my riding for a curling rink, as I stated, was scrutinized by the NWT Construction Association

and the media. Yet with regard to a $100 million contract and a company that has a $146 million in negotiated contracts with this government and nothing is being said, yet they continue to break our rules in regard to preferential treatment and ensuring those benefits flow to Northerners.

With that, I will be asking the Minister of Public Works questions on this matter later.

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Opportunities For Subcontractors On Large Infrastructure Projects

Members’ Statements

The Speaker

Paul Delorey

Thank you, Mr. Krutko . The honourable Member for Hay River South , Mrs. Groenewegen .

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Opportunities For Subcontractors On Large Infrastructure Projects

Members’ Statements

Jane Groenewegen

Hay River South

Thank you, Mr. Speaker. I wasn’t planning to make a statement today, but this is the beauty of politics in the North. I also received a call from Mr. Baxter in Inuvik. I don’t know the details of the contract. I don’t live there and it’s not my constituency, but there are some basic questions that could be asked about this, because there is a principle involved here.

We recently had a situation in Hay River where there was a large contract that looked like it was going to go outside of the Territories, but due to some complications with the Alberta bidder, the work stayed in the North and we were very happy to hear that. And I really appreciate the Minister of Public Works and Services understanding, as he does, of these kinds of issues.

We do fight to ensure that maximum opportunities for northern residents and businesses do accrue. If the processes are not in place to ensure that contracts are benefiting Northerners, then we need to ask questions about it.

As I said, although this is not my constituency, we have all agreed to a process with respect to the Inuvik school on the premise and commitment that this work and these contracts would benefit NWT companies and that the content would be northern. The phone call that I received alleges that components of the work related to the Inuvik school was not even tendered and that the contract for the work that Mr. Krutko speaks of actually is being provided through a company in the Yukon.

I really hope that this is not the case and, as I said, of course, I don’t know all the details, but there are a few questions that can be asked which are very straightforward and should have straightforward answers. I will be asking those questions to the Minister of Public Works and Services today.

The relevant questions are: Was this work contracted? Was this work put out to tender as per the specifications of the northern content which lead this to be a negotiated contract with the general contractor? I’ll be asking those questions. If the answer’s no then we do have an issue.

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Opportunities For Subcontractors On Large Infrastructure Projects

Members’ Statements

The Speaker

Paul Delorey

Thank you, Mrs. Groenewegen . The honourable Member for Great Slave , Mr. Abernethy .

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Yellowknife Association For Community Living Family Initiatives

Members’ Statements

Glen Abernethy

Great Slave

Thank you, Mr. Speaker. I’d like to draw attention today to the positive impacts of the Yellowknife Association of Community Living’s Family Project has on our Territory. Over the last 10 years, work of the federally funded Family Project has resulted in increased services for people with intellectual disabilities and their families.

Some of its recent initiatives offer families of persons with disabilities opportunities to learn from each other, share information about resources available to them, and help families better address their children’s special needs in the K to 12 school system.

Publications such as the Social and Recreational Inclusion Guide help businesses and service providers include people with disabilities. Through Family Project funding, the Yellowknife Association for Community Living can hold workshops for people with disabilities, parents, professionals, and the general public. Family Project publications are available for free and are an excellent resource for the implementation of programs for inclusive living.

Two Family Project services, the Employability and respite services, are being expanded across the Northwest Territories. The Employability service provides a full range of employment possibilities for persons with disabilities and their employers. Respite services offer social respite for families caring for disabled individuals.

The Yellowknife Association for Community Living is committed to providing quality programming for persons with disabilities and their families. The goals of the Family Project are in keeping with our strategic vision for a healthy, educated people and to work with families, communities, and schools to improve the physical and mental well-being of our youth. That includes persons with disabilities.

In the past, GNWT support for the Yellowknife Association for Community Living’s family activities has created much greater positive impact on individuals with disabilities and their families. The support we provide has a ripple effect across our Territories. It has resulted in the expansion of services throughout the Northwest Territories. It has helped us work towards being truly inclusive people.

At the appropriate time I will have questions for the Minister on funding for the Yellowknife Association of Community Living’s family initiative.

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Yellowknife Association For Community Living Family Initiatives

Members’ Statements

The Speaker

Paul Delorey

Thank you, Mr. Abernethy . The honourable Member for Kam Lake , Mr. Ramsay .

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Report Of The Auditor General Of Canada On Contracting For Goods And Services

Members’ Statements

David Ramsay

Kam Lake

Thank you, Mr. Speaker. This afternoon I’d like to discuss the 2009 June Report of the Auditor General of Canada Respecting the Contracting for Goods and Services by the Government of the Northwest Territories. The Auditor General used 40 random contracts from across three departments -- Public Works and Services, Health and Social Services, and DOT -- to develop this report.

This is a very interesting and important piece of work for this government. During the 2007-2008 fiscal year, this government spent upwards of $163 million of public funds. The government’s objectives for contracting are to acquire goods and services in a way that enhances suppliers’ access to contracts, encourages competition, reflects fairness, transparency, and accountability in the spending of public funds. Therefore, it is vitally important that contracting be carried out in accordance with policies and regulations designed to achieve those objectives.

The GNWT’s policy framework is what governs the procurement of goods and services in our Territory. The Auditor General’s review points out that we are missing a couple of key things.

Firstly, we do not have an independent dispute resolution process for suppliers. Also, we have policies and guidelines that are disbursed throughout numerous documents and sources government wide, making it very difficult for government employees to be aware of all the necessary components of the contracting process.

The Auditor General found that between 78 and 93 percent of contracts in the three departments that were examined were awarded in a fair and open manner. I would suggest that 100 percent of contracts should be our goal and anything less, as suggested by the Auditor General, should get our full attention.

The most alarming claim of the Auditor General’s report was in the administration of contracts after they were awarded. There were deficiencies or weaknesses of one sort or another in the majority of contracts that were audited. These included, for example, receiving goods or services before the contract was issued, not issuing a contract change order in accordance with GNWT policy, exceeding spending authority, and approving payments prior to obtaining required certifications. Although no one single type of error was more pervasive than any other within or across departments, one or more of

these types of errors were present in over 57 percent of the contracts that were sampled. For an organization of our size and the amount of public money we spend every year, how is it possible…

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Report Of The Auditor General Of Canada On Contracting For Goods And Services

Members’ Statements

The Speaker

Paul Delorey

Mr. Ramsay , your time for your Member’s statement has expired.

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Report Of The Auditor General Of Canada On Contracting For Goods And Services

Members’ Statements

David Ramsay

Kam Lake

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

---Unanimous consent granted.

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Report Of The Auditor General Of Canada On Contracting For Goods And Services

Members’ Statements

David Ramsay

Kam Lake

For an organization of our size and the amount of public money that we expend every year, how is it possible that in more than half of those contracts there were some serious and very serious issues with those? The sample size and the fact that it was conducted in three different departments make me believe that the serious issues raised in the Auditor General’s report run rampant throughout our government’s procurement effort. I’ll be interested in hearing how this government is going to act on these findings.

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Report Of The Auditor General Of Canada On Contracting For Goods And Services

Members’ Statements

The Speaker

Paul Delorey

Thank you, Mr. Ramsay . The honourable Member for Frame Lake , Ms. Bisaro .

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Impact Of Funding Reductions On Cbc North Radio And Television

Members’ Statements

Wendy Bisaro

Frame Lake

Thank you, Mr. Speaker. Today I want to speak to the plight of our dear old Canadian Broadcasting Corporation. The Mother Corp, I think the employees call it. Some months ago the federal government announced major funding cutbacks to the CBC; cuts which will hit the CBC hard and will impact news, drama, radio, and TV programs all across Canada.

The CBC is part of the cultural fabric of our country and it’s a service which is particularly important to Canada’s three northern territories. The CBC links us as individuals and communities to each other and to the world. The radio is often the one and only information link in our small and remote communities. For those of our residents who spend time on the land, the radio, our CBC, is their connection to news and information about their community, their Territory, and the rest of the world.

Northerners have relied on the CBC for generations and this valuable service to Northerners is in jeopardy due to the funding cuts. The northern division of CBC, the CBC North, has indicated that there will be layoffs here and that, with a smaller staff and a smaller budget, something will have to give, to quote them. Experience shows that it is northern programming that will give, and by that I mean that programs will be eliminated.

Earlier this year the Government of the Yukon passed a motion in their Assembly urging the federal government to provide sufficient resources to the CBC; resources that would keep northern

radio and television services intact; resources that would maintain the excellent high standard of service that we now have and need to keep. We can do no less, Mr. Speaker.

The CBC in the NWT, as CBC North, is an essential communication link and it cannot and should not be diminished or reduced in any way. This government, this Assembly, must urge the Canadian Broadcasting Corporation to reconsider its reduction of funding for the CBC and, as a result, the reduction of our northern programming.

I ask that the Premier write to the head of the CBC, Mr. Hubert Lacroix, advising him of our concerns and demanding a reinstatement of CBC North funding to its previous levels.

I look forward to seeing a copy of the Premier ’s letter very soon. Thank you, Mr. Speaker.

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Impact Of Funding Reductions On Cbc North Radio And Television

Members’ Statements

The Speaker

Paul Delorey

Thank you, Ms. Bisaro . The honourable Member for Yellowknife Centre , Mr. Hawkins .

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Rare Earth Minerals

Members’ Statements

Robert Hawkins

Yellowknife Centre

Thank you, Mr. Speaker. Canadians live in a very increasingly smaller world and everywhere we look, we need partnership and understanding. As such, the global world increasingly needs Canada and especially the North. Mr. Speaker, Canada ships and receives goods, material and minerals all over the world. What is hot today in the world market changes on a dime and this can affect the North.

Today I would like to speak about a particular case in point. I will start with the consumer’s side of the market. We hear a lot about greening our world and working on reducing reliance on fossil fuels. To that end, new and expanding industries are emerging from environmental technologies. These industries certainly need raw materials. One resource that is in great demand is called rare earth minerals. This resource, according to the Wall Street Journal, is an important element for wind turbines, especially hybrid cars, and certainly is indispensable for the world if we want to convert to electronic vehicles.

Japan is the world’s biggest importer of rare earth metals and it is companies like Toyota and Honda that use these metals. Right now, China has a near monopoly on the raw materials, with 95 percent dominance of the world’s supply. China is planning to reduce its export quota. Experts in Australia predict that the global supply will crash in three years.

Mr. Speaker, now does the name Thor Lake ring a bell? What about Avalon Rare Metals Incorporated? Avalon Rare Metals is a mineral exploration and development company and owner of the lake zone deposit on Thor Lake. That is just 100 kilometres southeast of Yellowknife. According to the

Canadian Mining News, the Thor Lake find is emerging as one of the largest undeveloped rare earth elements resources in the world. That makes the NWT one of the few potential sources, outside of China, for rare earth elements.

Mr. Speaker, many people in the NWT see this as an opportunity to help broaden our economic face, but the reputation sometimes it has in the view of many is the NWT is one of the worst environments to work in when you want to bring, discuss and develop economic opportunities.

Mr. Speaker, our government needs to tear down those walls, push aside those roadblocks and, certainly, snip that red tape. Mr. Speaker, with ever decreasing corporate revenues which are certainly taking a beating, we need to seize an opportunity such as this that will bring good corporate taxes and jobs to the North. Mr. Speaker, an environment that could either tax cut, I would say let’s foster growth for our northerners and get them jobs. Thank you, Mr. Speaker.

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Rare Earth Minerals

Members’ Statements

The Speaker

Paul Delorey

Thank you, Mr. Hawkins . The honourable Member for Nunakput , Mr. Jacobson .

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Tuktoyaktuk All-Weather Gravel Source Access Road

Members’ Statements

Jackie Jacobson

Nunakput

Thank you, Mr. Speaker. We in Nunakput would like to express our satisfaction with the progress made on construction of our all-weather access road from Tuktoyaktuk to Source 177.

---Applause

Approximately 10 kilometres of the 22-kilometre access route has been completed this winter. The work was completed in high technical standard, in an environmentally sensitive manner, safely and without any major incidents, with the greatest levels of local Inuvialuit employment and business participation. This success was achieved only through close cooperation and excellent working relationships established between the Department of Transportation, the Hamlet of Tuktoyaktuk, local contractors, the Inuvialuit Regional Corporation and myself.

We believe a cooperative model used before the construction of this access road to be continued on our other highway projects within our region such as the construction of the Tuktoyaktuk-Inuvik Highway, which leads me to ask the Premier and the Minister of the Department of Transportation to clarify the government’s position with respect to the continuation of this road project. We understand the GNWT Highway Strategy and, in particular, the construction of the Mackenzie Valley Highway remains a high priority for the GNWT. It considers the Mackenzie Valley Highway project among the

highest priorities in discussions for infrastructure funding for the federal government.

We have previously been informed by this government that the Inuvik-Tuktoyaktuk Highway is an integral component of the Mackenzie Valley Highway proposal and the completion remains an essential part of this proposal. However, at times it appears that the Inuvik-Tuktoyaktuk Highway is not being supported or advocated by this government at the same degree as the other NWT road construction projects.

Therefore, I would like to ask the Premier and the Minister of Transportation to confirm that the Inuvik-Tuktoyaktuk Highway remains an important component of the Mackenzie Valley Highway project and the GNWT Highway Strategy and will be pursued for infrastructure funding and priority basis within the GNWT Highway Strategy. Thank you, Mr. Speaker.

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Tuktoyaktuk All-Weather Gravel Source Access Road

Members’ Statements

The Speaker

Paul Delorey

Thank you, Mr. Jacobson . The honourable Member for the Sahtu , Mr. Yakeleya .

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Reflections On The Improved Quality Of Life In The North

Members’ Statements

Norman Yakeleya

Sahtu

Thank you, Mr. Speaker. As I mentioned earlier in the House, this spring I had the opportunity to spend some time with my family up at Old Fort Point, just 30 miles south of Tulita. Old Fort Point is a special place for my family, Mr. Speaker. It is a place where there is a real connection to my family. My mother had a cabin there and over the past number of years, before she passed away, she always went to Old Fort Point during the spring and fall times. So when I go back, it is a very spiritual place for me. It is where I connected.

I am really happy that I show a lot of gratitude to my mother for bringing us there and showing us the importance of life by coming to Old Fort Point. Certainly when I go there, I certainly miss my mother when I am there, and the rest of my family.

Mr. Speaker, in these times when I get back to Old Fort Point, I sometimes sit there and wonder and look at things that I need to be grateful for, grateful for some of the things that are happening in the Northwest Territories. One of the things I really look at are the single parents. This year students are going to be graduating from high school, post-secondary school, colleges, certificate institutions, all kinds of programs that are happening in the Northwest Territories and in Canada.

The single parents, the mothers and fathers, day in and day out, make sure the children get up, have breakfast, get them to school, pick them up, look after them when they are sick. I am really grateful for the parents for doing that.

We in the Legislative Assembly sit here and we are very busy. We are doing good work for our people. There are very fine MLAs here to speak very strong

on their issues for their people. I am grateful for the families that support these MLAs here in this House and, more importantly, for getting the children to the school, for pushing them through and disciplining. Sometimes it is very hard. I am very grateful for these kinds of things that happen. I am grateful for the good Lord for giving us some of the strength to be here every day and to fight hard and for some of the responses we get. Sometimes they are not always ones that we want to hear. Sometimes we win some and lose some.

Sometimes it is very difficult to lose, but it is also very appreciative when you can get the chance to represent your people in this forum and to thank mothers and fathers who have raised us. I hope we do the same thing for our children. I want to say thank you to my mother and my father.

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Reflections On The Improved Quality Of Life In The North

Members’ Statements

The Speaker

Paul Delorey

Thank you, Mr. Yakeleya . Item 4, reports of standing and special committees. Item 5, returns to oral questions. Item 6, recognition of visitors in the gallery. The honourable Member for Yellowknife South , Mr. Bob McLeod .

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Recognition of Visitors in the Gallery

Recognition of Visitors in the Gallery

Bob McLeod

Yellowknife South

Thank you, Mr. Speaker. I am very pleased to recognize the delegation from the Pacific Northwest Economic Region who are currently visiting the Northwest Territories. The Pacific Northwest Economic Region is a public/private partnership composed of legislators, governments and businesses from Alaska, Idaho, Montana, Oregon and Washington, British Columbia and Alberta, Yukon and Saskatchewan.

The delegation consists of John van Dongen, Member of the British Columbia Legislative Assembly for Abbotsford-Clayburn and president of PNWER; representative George Eskridge, representative for Idaho State District 1 and United States vice-president of PNWER; Honourable Jim Kenyon, Minister of Economic Development, Government of Yukon and past-president of PNWER; Mr. Matt Morrison, executive director of PNWER; and accompanying them is Mr. Garry Singer, director of trade and investment from the Department of Industry, Tourism and Investment. Welcome.

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Recognition of Visitors in the Gallery

Recognition of Visitors in the Gallery

The Speaker

Paul Delorey

Thank you, Mr. McLeod. The honourable Member for Tu Nedhe , Mr. Beaulieu .

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Recognition of Visitors in the Gallery

Recognition of Visitors in the Gallery

Tom Beaulieu

Tu Nedhe

Mr. Speaker, I would just like to recognize the Pages from Lutselk’e that were with us all week: Morning Star Catholique, Jasmine Desjarlais-McCallum, also Jasmine’s mother is the person travelling with the two Pages, chaperone Prairie Desjarlais. I would also like to recognize Chipewyan interpreter Tom Unka and also my CA, Joe Bailey, who has been working with me for two years. His grandmother is from Lutselk’e and his grandfather is from Fort Resolution. Thank you.

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Recognition of Visitors in the Gallery

Recognition of Visitors in the Gallery

The Speaker

Paul Delorey

Thank you, Mr. Beaulieu . The honourable Member from Inuvik Twin Lakes , Mr. McLeod.

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Recognition of Visitors in the Gallery

Recognition of Visitors in the Gallery

Robert C. McLeod

Inuvik Twin Lakes

Mr. Speaker, I, too, would like to recognize the work of the Pages. We have two of them here from Inuvik Twin Lakes. We have Mr. Colton Chinna and Mr. Davis Neyando. Mr. Speaker, I would like to recognize this day as my daughter and son-in-law’s fourth wedding anniversary. Thank you.

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Recognition of Visitors in the Gallery

Recognition of Visitors in the Gallery

The Speaker

Paul Delorey

Thank you, Mr. McLeod. The honourable Member for Frame Lake , Ms. Bisaro .

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Recognition of Visitors in the Gallery

Recognition of Visitors in the Gallery

Wendy Bisaro

Frame Lake

Mr. Speaker, it gives me great pleasure to recognize some long-time residents of Yellowknife, who happen to be constituents of the Frame Lake riding, Mr. Jim and Mrs. Marion Wylie sitting up there. Accompanying them is their daughter Lea and their nephew Robert Collinson.

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Recognition of Visitors in the Gallery

Recognition of Visitors in the Gallery

The Speaker

Paul Delorey

Thank you, Ms. Bisaro . Honourable Member for Weledeh , Mr. Bromley .

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Recognition of Visitors in the Gallery

Recognition of Visitors in the Gallery

Bob Bromley

Weledeh

Mr. Speaker, I would like to recognize visitors Don and Fran Ford, who are parents of Debbie Doody, the operator of The Ledge Cafe and our very own caterer. I would also like to recognize Jim and Marion Wylie. They are long-term residents and I am sure they reluctantly and recently moved from the Weledeh riding. We are proud to have them here. Thank you.

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Recognition of Visitors in the Gallery

Recognition of Visitors in the Gallery

The Speaker

Paul Delorey

Thank you, Mr. Bromley . The honourable Member for Nahendeh , Mr. Menicoche .

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Recognition of Visitors in the Gallery

Recognition of Visitors in the Gallery

Kevin A. Menicoche

Nahendeh

I, too, would like to commend the Legislative Assembly on their Page Program. I have two young students from the community of Wrigley, Miss Amber Clillie and Raylene Peter. Welcome and I am sure glad you had a good week. Thank you.

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Recognition of Visitors in the Gallery

Recognition of Visitors in the Gallery

The Speaker

Paul Delorey

If we have missed anyone in the gallery today, welcome to the Chamber. I hope you are enjoying the proceedings. It is always nice to have an audience in here. Item 7, acknowledgements. The honourable Member for Frame Lake , Ms. Bisaro .

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Acknowledgement 7-16(3): Jim And Marion Wylie 60th Wedding Anniversary

Acknowledgements

Wendy Bisaro

Frame Lake

Thank you, Mr. Speaker. As the MLA for Frame Lake, it gives me great pleasure to be able to acknowledge two of my constituents who are long-time residents of Yellowknife. Jim and Marion Wylie will celebrate their 60th wedding

anniversary two weeks from today, on June 18th .

---Applause

This couple has demonstrated a wonderful commitment to each other and to their marriage. A 60th anniversary is no small achievement and

should be greatly admired. Jim tells me that the reason that they have had a successful marriage is due to the fact that they never argued about money. I would like to recognize the accomplishment of Mr. and Mrs. Wylie and offer my congratulations to them on reaching this significant and enviable milestone. Thank you, Mr. Speaker.

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Acknowledgement 7-16(3): Jim And Marion Wylie 60th Wedding Anniversary

Acknowledgements

The Speaker

Paul Delorey

Thank you, Ms. Bisaro . The honourable Member for Yellowknife Centre , Mr. Hawkins .

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Acknowledgement 8-16(3): Felicito And Cristina Domingo 50th Wedding Anniversary

Acknowledgements

Robert Hawkins

Yellowknife Centre

Thank you, Mr. Speaker. It gives me great pleasure to personally acknowledge a significant milestone of special constituents of mine in the House today. Felicito and Cristina Domingo have had the occasion of celebrating their 50th anniversary on December 27, 2008. For this special occasion, their many loving children and grandchildren organized a deserving second wedding to renew their vows back in their home country of Philippines. They were, of course, surrounded with many loved ones, both family and friends, to share this special milestone.

May I close today by saying that this is a truly amazing thing to see their love continue on as strongly as ever. I would hope that many more wonderful milestones continue to be reached and surpassed with good health, support of their family and friends and along with their personal devotion to God. On behalf of my wife, Susan, and my two children, McKinley and Hudson, may we all wish them a heartfelt blessing for the future. Thank you, Mr. Speaker.

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Acknowledgement 8-16(3): Felicito And Cristina Domingo 50th Wedding Anniversary

Acknowledgements

The Speaker

Paul Delorey

Thank you, Mr. Hawkins . The honourable Member for Nunakput , Mr. Jacobson .

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Acknowledgement 9-16(3): Edward And Mabel Gruben 50th Wedding Anniversary

Acknowledgements

Jackie Jacobson

Nunakput

On behalf of all Nunakput and Paulatuk residents, it gives me great pleasure to acknowledge the 50th wedding anniversary of

Edward and Mabel Gruben. They celebrated their 50th wedding anniversary on May 9th of this year.

Edward was very much involved in the Inuvialuit Final Agreement through the Committee on Original People’s Entitlement. Edward travelled frequently to the Nunakput communities, particularly during the ratification of the final agreement. Mr. Speaker, he is a really well-respected community leader, sitting on numerous boards and helped to benefit his people in the community of Paulatuk. Mr. Speaker, I

wish to extend to him and his family best wishes for him and Mabel and their family. All the best on their next 60 years. Thank you.

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Acknowledgement 9-16(3): Edward And Mabel Gruben 50th Wedding Anniversary

Acknowledgements

The Speaker

Paul Delorey

Thank you, Mr. Jacobson . Item 8, oral questions. The honourable Member for Mackenzie Delta , Mr. Krutko .

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Question 412-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

David Krutko

Mackenzie Delta

Thank you, Mr. Speaker. My questions are directed to the Minister of Public Works and Services in light of being the project management department on the $100 million school being expended in Inuvik. As part of that, this was a negotiated contract which was pretty well given to the contractor with some understanding that there were going to be some socio-economic benefits flowing to the local community and the local business community to take advantage of this $100 million investment.

I would like to ask the Minister in regards to the negotiated contract with a conclusive list of the subcontractors for those contracts. What guarantee do those people who are on that list have that they are going to be used for those specific contracts and the work that is taking place on those contracts?

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Question 412-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

The Speaker

Paul Delorey

Thank you, Mr. Krutko . The honourable Minister of Public Works and Services , Mr. Michael McLeod .

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Question 412-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

Deh Cho

Michael McLeod

Minister of Public Works and Services

Thank you, Mr. Speaker. I listened with interest to the Member’s statement regarding this issue, especially the mention that nobody responded even though the two MLAs from Inuvik were notified, Mr. Speaker. I want to clarify that. Both MLAs have raised this issue with me. The Member is correct; there is a list of subcontractors. There are roughly 20-plus subtrades listed on the list in the agreement or the appendix that was provided to us. For the most part, we expect and have seen that these are the subtrades that the general contractor is using.

In this situation, there is a requirement by code for fabrication of the metal to be in a certified steel shop. There is no such place in Inuvik. There is no certified steel shop and the welders have to have a certain designation. That is the reason this contract went to a company in Whitehorse. They have come back to the community and have posted notice that they will hire the services of the welding companies in Inuvik but, at the present time, there is not a company that can do this specified type of work. Thank you.

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Question 412-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

David Krutko

Mackenzie Delta

Mr. Speaker, I raised in this House before on this particular matter in which the

Gwich’in Development Corporation, which has a trucking company out of Inuvik which got four loads of gravel for the site where we expended some $6 million. Now we find out we have a welding company out of Inuvik who received some 24 hours of employment on the jobsite and again we are not using those contractors who are listed as subs in regards to this contract. Regardless, we used a company out of Whitehorse and whatnot with all the expertise in the world, the contract is clear.

This is a negotiated contract which had a byproduct of the contract which specifically states who the subs were going to be on those sites, not bring somebody in after the fact and say, well, we are sorry. We don’t really need you now but we will use you later. That is not the way…

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Question 412-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

The Speaker

Paul Delorey

Do you have a question, Mr. Krutko ?

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Question 412-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

David Krutko

Mackenzie Delta

Is there going to be a report tabled in this Legislative Assembly which will clearly stipulate who is receiving what dollars on the $100 million contract so we can see exactly what the benefit is to the Northwest Territories?

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Question 412-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

Deh Cho

Michael McLeod

Minister of Public Works and Services

Mr. Speaker, I understood that the Member had already seen the list. I certainly can provide him again with the list of subcontractors.

Mr. Speaker, I am not sure what we expect the general contractor to do if there is no certified facility in the community to provide this certain type of fabrication. They were obligated to go where it was available. They did so. They went to the closest resource and that was in Whitehorse. We certainly can go back to the developer and ask them to update their list. The project is still in its early stages. They are doing quite a bit of work. Some of it has not been rolled out yet. The training programs and the number of training initiatives are scheduled to be coming out this July. It is really early.

We can have that discussion with the developer as to if they plan to hold true to their word. I expect them to do so. They have listed a number of contractors. In the area of transportation and gravel hauling, they have listed eight. Did they hire the one that the Member is raising or did they hire another one on the list? I have to go back and confirm that. Thank you.

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Question 412-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

David Krutko

Mackenzie Delta

Mr. Speaker, I am glad the Minister brought up the question about the list, because the list that you provided to us, I talked to the majority of those people on that list and they are not getting any work from this contract. I think it is important to realize that you have contracts there where, basically, camps were supposed to be supplied. They are not being used. You have people that basically are coming in from other parts of Canada which are being housed in the principal residence of the contractor, but yet they are not using what is listed in the contract. That is the point here. I think

that we have to do a better job of assessing this contract. It is $100 million. There should be some scrutiny in regards to how this contract is being managed and handled but, more importantly, ensure that the benefits flow to the residents of the Northwest Territories and local contractors.

I would like to ask the Minister again: Are you going to file a report and update us on the first phase of this project for $6 million? How many of those dollars were basically flown into the Northwest Territories and how many exited the Northwest Territories for southern contractors?

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Question 412-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

Deh Cho

Michael McLeod

Minister of Public Works and Services

Mr. Speaker, so far all the contractor has done is put in the pilings and started some of the early construction work. This is the first construction season. We are barely off the ground. It would be difficult to file a report. I would be glad to come back at the end of this construction season and provide an update to all the members through committee or specifically to this Member, if that is required. I think it is very early to start filing a report of what the contractor has used. It has only been maybe two or three significant contracts let so far. Thank you.

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Question 412-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

The Speaker

Paul Delorey

Thank you, Mr. McLeod. Final, short supplementary, Mr. Krutko .

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Question 412-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

David Krutko

Mackenzie Delta

Thank you, Mr. Speaker. Again, when we start getting phone calls from people that basically are trying to acquire work on these jobsites and being told, sorry, you have to phone up a company out of Whitehorse to acquire work in the Northwest Territories, I believe there is something wrong with the system where a Yukon company can manage a project in the Northwest Territories and this government doesn’t seem to do anything about it.

I would like to ask the Minister again: Will you ensure that those companies which are listed in regards to the subcontractors on this project, this site, and see exactly how much benefit are they receiving regardless if it is the first phase of the project or the last phase? I think we learned from the Deh Cho Bridge. We will put the pillars in and then we will design it later. It does not work in regards to a $100 million scope.

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Question 412-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

Deh Cho

Michael McLeod

Minister of Public Works and Services

Mr. Speaker, I am not sure it is a fair comment to make. There is only one fabricator that…or the closest one that could do it was in Whitehorse. They, in turn, are going to subcontract to the welding companies in Inuvik. They have a poster. It hasn’t even closed yet and the Member is stating that there is nobody hired. Well, give it time. It has to come to conclusion here. They are offering to hire the welding companies. They are offering to hire welders that are in the community. I don’t know. The project is scheduled to start down the road in a couple of weeks. We can certainly provide and talk to the developer and get what will end up happening. I can’t give him that

information until we see this come to a point where they have actually hired everybody. Thank you.

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Question 412-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

The Speaker

Paul Delorey

Thank you, Mr. McLeod. The honourable Member for Hay River South , Mrs. Groenewegen .

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Question 413-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

Jane Groenewegen

Hay River South

Thank you, Mr. Speaker. As I said in my Member’s statement, of course I don’t know every detail of what this constituent’s concern was who felt it necessary to call MLAs and talk about the situation, but I do know that we require fairness and transparency in the way that our government spends public money. When the Inuvik school project came before this House for approval, we were told that to negotiate a contract of this magnitude was a good thing to sole source it, because it would ensure NWT northern content in this project. On that premise, we bought into this.

I would like to ask the Minister of Public Works and Services , after a contract like this is awarded, what process or mechanism is there in place to ensure the continuation of monitoring of the work as it progresses to ensure that the spirit and the intent of the negotiated contract is lived up to? What recourse do people have if they feel that they were going to have an opportunity to participate through a tender or through being named on that original list, and if that is not lived up to, what recourse do those folks have? Thank you.

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Question 413-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

The Speaker

Paul Delorey

Thank you, Mrs. Groenewegen . The honourable Minister of Public Works and Services , Mr. Michael McLeod .

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Question 413-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

Deh Cho

Michael McLeod

Minister of Public Works and Services

Thank you, Mr. Speaker. I am glad the Member raises this question, because there has been a number of meetings, public and some private discussions with our people and with contractors in the community on this initiative. There is a list of companies that have been selected by the developer from the community. There is more than 20 listed on this list. They are also working with Arctic College to do training. They have a market development list. They are trying really hard to ensure all the work stays local.

I would expect that, as we go along, we are going to hear issues come forward. We will raise them with them. We have already done so on a number of other issues and claims that have been filed. As we move forward, we want them to stick to the agreement that they have. We believe they are. It is quite interesting that the person complaining is a regular contractor to this developer. If he is not getting work, I would certainly be interested to see why they didn’t hire him. We will follow up on that. At this point I don’t know why that specific individual

is not hired as he is a regular subcontractor to the developer.

We certainly stay, on a continual basis, in contact with this project. We have people on the ground. We are quite familiar with what is happening on a day-to-day basis. Again, I have to mention that it is very early in this project. It is difficult to start saying, well, this company didn’t get a contract. Some of these are just coming out. Thank you.

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Question 413-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

Jane Groenewegen

Hay River South

Just so that we understand then, once the contract is awarded to the developer, as the Minister calls him -- and there was a list provided, say, with 20 companies on there who are going to be participating with that developer to deliver this project for the Government of the Northwest Territories -- is there any tendering that goes on within that process or is that, once the main contract is negotiated, is everything that is subcontracted beneath that all negotiated as well or is there actually a requirement for any tendering for the initial award? Thank you.

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Question 413-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

Deh Cho

Michael McLeod

Minister of Public Works and Services

As we move through the negotiated process, most of the costs have been provided by…would be specified companies on the subtrades. I don’t believe very many areas would go to a tender. It is my understanding that these are already fairly well set, and in this instance it was recognized that this is a service they can’t get for fabrication as there is no certified shop in Inuvik. So it’s kind of an understanding that they would go to the closest provider and that’s what they’ve done. Thank you.

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Question 413-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

Jane Groenewegen

Hay River South

Mr. Speaker, I understand the need for some of this work to be done in a shop that is certified in fabrication. However, it sounds to me like there is onsite welding that is taking place too. So if there is one welder in Inuvik that is not working and people are bringing...And I’ve heard it’s in the neighbourhood of 25 welders have been brought in from Whitehorse to actually work onsite. Just because the fabrication takes place in Whitehorse does that mean that it follows that the people welding onsite would also have to come from the same company where the fabrication takes place?

Because it would be disappointing to me if there are welders out of work in Inuvik and people are being brought in from Whitehorse to work onsite, and I understand that is the case. Thank you.

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Question 413-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

Michael McLeod

Deh Cho

Mr. Speaker, the subcontract for the welding services and the structural fabrication for this school has gone to a Whitehorse company and they fully intend to hire...I have a copy that was provided to me on the ad that they are using for trying to attract welders and/or welding companies from Inuvik. They are going through that exercise right now and I can’t say, because it hasn’t been wrapped up yet, how many people from Inuvik are being hired. It’s my

expectation, and I believe that the company from Whitehorse is intending to provide the work to the Inuvik welders, but they have to remain the main contractor as they’re the only one’s certified and they’re the only ones with a certified shop to do it. Thank you.

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Question 413-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

The Speaker

Paul Delorey

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

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Question 413-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

Jane Groenewegen

Hay River South

Thank you, Mr. Speaker. Mr. Speaker, as a government we’re in the fortunate position right now of having a lot of capital projects to deliver and I don’t expect the Minister to manage and be the general on every contract we’ve let in the Northwest Territories. However, somewhere in his system, in the Department of Public Works and Services, there must be someone -- and I had asked this question earlier -- who is in charge of monitoring, to ensure that if people getting negotiated contracts and say I will do this that, in fact, that is what happens.

I would like a more clear explanation so people don’t have to come to the Minister with their concerns. To whom may people appeal? What is the recourse if you feel like the general contractor is not living up to the terms of the contract they received? Thank you.

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Question 413-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

Michael McLeod

Deh Cho

Mr. Speaker, I’m glad the Member recognizes that as a Minister I can’t be involved in every aspect of all the contracts we have, but we do have people on the ground, we do have people in the communities. Each project that is under our responsibility has a project manager. We also have engineers and they should be the first point of contact. They all have supervisors as we progress up the ladder, and at any point any one of those people can be contacted with concerns. If it...(inaudible)...or hear a satisfied response, of course, you could go to their managers and my office is usually where it ends up anyway. A lot of times people come directly to us. Thank you.

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Question 413-16(3): Opportunities For Subcontractors On Large Infrastructure Projects

Oral Questions

The Speaker

Paul Delorey

Thank you, Mr. McLeod. The honourable Member for Great Slave , Mr. Abernethy .

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Question 414-16(3): Yellowknife Association For Community Living Family Project

Oral Questions

Glen Abernethy

Great Slave

Thank you, Mr. Speaker. Mr. Speaker, my questions today are for the Minister responsible for Health and Social Services and they are in follow-up to my Member’s statement of earlier today. I was wondering if the Minister of Health and Social Services can tell me whether the Department of Health and Social Services has plans to provide ongoing support to the Family Project as delivered by the Yellowknife Association of Community Living to help them meet the needs of families supporting a member with a disability.

And, if so, can the Minister please tell me what those plans are? Thank you, Mr. Speaker.

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Question 414-16(3): Yellowknife Association For Community Living Family Project

Oral Questions

The Speaker

Paul Delorey

Thank you, Mr. Abernethy . The honourable Minister of Health and Social Services , Ms. Lee .

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Question 414-16(3): Yellowknife Association For Community Living Family Project

Oral Questions

Range Lake

Sandy Lee

Minister of Health and Social Services

Thank you, Mr. Speaker. Mr. Speaker, the government and the Department of Health and Social Services has a very strong and long relationship with the Yellowknife Association of Community Living and we currently fund about $1.74 million for them to deliver four different programs: Supported Independent Living, Respite Program, Community Skills and Supported Living. So we expect that we will continue to have a very strong and healthy working relationship with the association. Thank you.

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Question 414-16(3): Yellowknife Association For Community Living Family Project

Oral Questions

Glen Abernethy

Great Slave

I’d like to thank the Minister for that response. I’m happy to hear that they’re going to have a continued relationship with the association, especially with respect to this Family Project. The Yellowknife Association of Community Living receives about $80,000 a year in federal funding to support its Family Project. Much of this money goes to service provider salaries -- the people who work for the association -- limiting the project’s capacity to improve and expand this important service. Will the Department of Health and Social Services consider matching these funds in order to increase the Family Project services throughout the Northwest Territories? Thank you.

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Question 414-16(3): Yellowknife Association For Community Living Family Project

Oral Questions

Range Lake

Sandy Lee

Minister of Health and Social Services

Mr. Speaker, I’m not familiar with what the Family Project is. I understand it’s federal funding. It would be ideal for the federal government to step up to the plate and continue to fund that. We will do our part to support the Yellowknife Association of Community Living.

I happened to be talking to the executive director a couple of weeks ago and she did not indicate that there was any issue with the funding situation. I am also aware that my acting deputy minister had a chance to discuss just general issues of the organization with her last week. We were not told that there was any issue with the funding issues. I’m always ready and willing to meet with any NGOs and I do on a regular basis. If they want to make a proposal to us, we would always be willing to look at those. Thank you.

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Question 414-16(3): Yellowknife Association For Community Living Family Project

Oral Questions

Glen Abernethy

Great Slave

I thank the Minister for that. The Family Project is an important project and right now it’s funded primarily through the feds. They’re looking for some matching funds on that. I would encourage the Minister, rather, can I get the Minister to commit to meeting with the executive director and some staff from the Yellowknife Association of Community Living and maybe her department staff, as well, to talk specifically about this Family Project and the possibility, well, first off, learning what the project does, the advantages it has to the Northwest Territories as a whole and

possibly working out some funding arrangements, if appropriate? Thank you.

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Question 414-16(3): Yellowknife Association For Community Living Family Project

Oral Questions

Range Lake

Sandy Lee

Minister of Health and Social Services

Mr. Speaker, as I indicated, we fund the Yellowknife Association of Community Living and many other organizations such as the NWT Council for Persons with Disabilities and many others. I think we are doing our part to provide them with the funding that they need. As far as I’m aware, they have not expressed issues with their funding. If they are, I would encourage them to contact the Yellowknife Health and Social Services Authority, who is the funding-through organization, and we will, through that way, be willing to look at any issues they may have. Thank you.

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Question 414-16(3): Yellowknife Association For Community Living Family Project

Oral Questions

The Speaker

Paul Delorey

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

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Question 414-16(3): Yellowknife Association For Community Living Family Project

Oral Questions

Glen Abernethy

Great Slave

Thank you, Mr. Speaker, and thanks to the Minister for that. The executive director from the association has talked to me and she has outlined their Family Project and has indicated that they would be interested in talking to the department about some matching funding. So rather than waiting, can I encourage or seek the Minister’s commitment to be proactive and have her departmental staff contact the Yellowknife Association of Community Living to discuss the Family Project and its future in the Northwest Territories? Thank you, Mr. Speaker.

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Question 414-16(3): Yellowknife Association For Community Living Family Project

Oral Questions

Range Lake

Sandy Lee

Minister of Health and Social Services

Mr. Speaker, I’m hesitant to make a commitment to say that we will match a federal funding project because I would like to encourage the federal government to continue to fund the projects that they are in many of our organizations. As I have indicated to the Member already, I did...Actually, I was quite proactive in talking to the specific executive director. I asked the deputy minister to call her last week. We asked her if there were any issues and she indicated to us that there were not. The executive director of the association knows that we are always there to listen to any of the concerns they may have, as we appreciate the partnership we have with that organization.

Mr. Speaker, I just want to add that this is Disabilities Awareness Week and I will be hosting a tea in honour of the work that the Persons with Disabilities community do in Yellowknife and the Territories, and I would invite all Members to join us for tea tomorrow at noon at the Great Hall, if they are in town. Thank you, Mr. Speaker.

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Question 414-16(3): Yellowknife Association For Community Living Family Project

Oral Questions

The Speaker

Paul Delorey

Thank you, Ms. Lee . The honourable Member for Frame Lake , Ms. Bisaro .

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Question 415-16(3): Increase To Minimum Wage

Oral Questions

Wendy Bisaro

Frame Lake

Thank you, Mr. Speaker. My questions today are addressed to the Minister for Education, Culture and Employment . The Minister

has heard me a number of times in the last 18 months or so encourage him to consider an increase to the minimum wage and that this government needs to look at the minimum wage and do something about the level. I understand that there has been some work by the department and I’d like to ask the Minister as to the status of the consideration by the department of an increase to minimum wage. Thank you.

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Question 415-16(3): Increase To Minimum Wage

Oral Questions

The Speaker

Paul Delorey

Thank you, Ms. Bisaro . The honourable Minister of Education, Culture and Employment , Mr. Lafferty .

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Question 415-16(3): Increase To Minimum Wage

Oral Questions

Jackson Lafferty

Monfwi

Mahsi, Mr. Speaker. Mr. Speaker, yes, I appreciate the Member’s questioning in this area. Since our last session that we had, she did raise this issue and I did commit to her that my department is going to look into the area and work on what needs to be done. Certainly, my department has been working diligently on this specific area, a wage increment. Certainly, we’ve been in the process of having consultation with small businesses, because we have heard from small communities and also from a couple Members that we should consult with the small businesses in the communities because they will be impacted.

We’re hearing correspondence from those businesses, saying that if we do increase the minimum wage that we may not be able to hire students. So those are taken into consideration and we still have a lot of work ahead of us. But, certainly, we are making progress in that area. Mahsi, Mr. Speaker.

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Question 415-16(3): Increase To Minimum Wage

Oral Questions

Wendy Bisaro

Frame Lake

Thank you to the Minister. I appreciate the work that the department has been doing, but it begs the next question: When will there be some report of the investigations that have been ongoing and when can we expect a decision relative to an increase in the minimum wage? Thank you.

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Question 415-16(3): Increase To Minimum Wage

Oral Questions

Jackson Lafferty

Monfwi

Mr. Speaker, as I stated, the discussion is ongoing and we’re hoping to finalize our final discussion with the various parties within a month or two. Then we are hoping to have a final decision by the fall. That was the plan before we were approached to say do your consultation with the small businesses. That’s the initial plan that we’re working with and if there are any changes, we’ll certainly let the standing committee and the Member know that there are going to be changes coming. Mahsi.

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Question 415-16(3): Increase To Minimum Wage

Oral Questions

Wendy Bisaro

Frame Lake

That’s good news. I think that’s a little behind the timeline that I was advised of earlier, but things are still moving forward, so that’s a good thing and I’m appreciative to the department and the Minister for that. I guess I would just like to note, though, that in the considerations that are being done by the department, are they looking at an ongoing mechanism to adjust minimum wage so that we don’t have to have Members stand up in the

House for 18 months running and demand an increase. Will there be some mechanism set in place where the wage will be reviewed on a regular ongoing basis? Thank you.

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Question 415-16(3): Increase To Minimum Wage

Oral Questions

Jackson Lafferty

Monfwi

Certainly those are the types of discussions that we’re having currently and creating some options on if we’re going to increase minimum wage, how much increase. It was mentioned here in the House possibly $10 an hour compared to other jurisdictions. Or could we give them $9.25 and then the following year $10? So those are the options we’re working with. But certainly we’ll come back to the standing committee to give them an update as soon as we finalize our consultation. We’ll certainly be prepared to do that. Mahsi.

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Question 415-16(3): Increase To Minimum Wage

Oral Questions

The Speaker

Paul Delorey

Thank you, Mr. Lafferty . Final supplementary, Ms. Bisaro .

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Question 415-16(3): Increase To Minimum Wage

Oral Questions

Wendy Bisaro

Frame Lake

Thank you, Mr. Speaker. Thanks to the Minister again. I guess I would just like to push a little further and be a little more specific in my question. I appreciate that the minimum wage may be incrementally increased -- a certain amount one year, a certain amount the next year -- but as the years go by, five, 10 years down the road, will there be a mechanism in place to constantly review the minimum wage? Thank you.

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Question 415-16(3): Increase To Minimum Wage

Oral Questions

Jackson Lafferty

Monfwi

Mr. Speaker, those are the mechanisms that we’ll certainly be discussing and that will be part of the package that we will bring forward to the standing committee. Mahsi, Mr. Speaker.

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Question 415-16(3): Increase To Minimum Wage

Oral Questions

The Speaker

Paul Delorey

Thank you, Mr. Lafferty . The honourable Member for Tu Nedhe , Mr. Beaulieu .

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Question 416-16(3): Community Funding For Downriver Monitoring

Oral Questions

Tom Beaulieu

Tu Nedhe

Mahsi, Mr. Speaker. Mr. Speaker, with the development of the Slave River Athabasca tar sands development, the Fort Resolution people are becoming very concerned with the degradation of the environment. I’d like to ask the Minister of ENR if there is any money available for the people of Fort Resolution to monitor the waters of the Slave River. Thank you.

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Question 416-16(3): Community Funding For Downriver Monitoring

Oral Questions

The Speaker

Paul Delorey

Thank you, Mr. Beaulieu . The honourable Minister of Environment and Natural Resources , Mr. Miltenberger .

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Question 416-16(3): Community Funding For Downriver Monitoring

Oral Questions

Michael Miltenberger

Thebacha

Thank you, Mr. Speaker. Yes, there are some funds available for those in unsettled claims areas. It’s there on an application base and Lutselk’e and Resolution have applied for it in the past. Thank you.

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Question 416-16(3): Community Funding For Downriver Monitoring

Oral Questions

Tom Beaulieu

Tu Nedhe

Mr. Speaker, my understanding from the community was that the environment money that was received for monitoring the water in

Fort Resolution gave them enough money to monitor with one boat with two people for two weeks during the summer. That’s insufficient. I was wondering if the government is looking at increasing that amount of money that would be given to the community for that type of work. Thank you.

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Question 416-16(3): Community Funding For Downriver Monitoring

Oral Questions

Michael Miltenberger

Thebacha

Yes. In fact, there’s a meeting on June 24th between ENR

officials and INAC officials to talk about these types of situations and there is going to be a discussion with them about the need and interest on the part of the federal government to see if, on this cost-shared program, there’s an interest and willingness on their part to see if there’s any additional funding so that, in fact, we could expand the type of monitoring that the Member has been referencing. Thank you.

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Question 416-16(3): Community Funding For Downriver Monitoring

Oral Questions

Tom Beaulieu

Tu Nedhe

Mr. Speaker, if there’s a meeting on June 24th , then I’d like to ask the Minister how

soon after that can the community of Fort Resolution expect to see some more money flowing into that budget in order for them to increase their monitoring? Thank you.

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Question 416-16(3): Community Funding For Downriver Monitoring

Oral Questions

Michael Miltenberger

Thebacha

That would depend on the outcome of the meetings with the federal government. If there is willingness, then there has to be the identification of the resources on their part and ours and we’d have to see how soon that money could flow. But the first step would be to have that particular meeting. Thank you.

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Question 416-16(3): Community Funding For Downriver Monitoring

Oral Questions

The Speaker

Paul Delorey

Thank you, Mr. Miltenberger . The honourable Member for Yellowknife Centre , Mr. Hawkins .

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Question 417-16(3): Rare Earth Mineral Developments

Oral Questions

Robert Hawkins

Yellowknife Centre

Thank you, Mr. Speaker. Mr. Speaker, in my Member’s statement today I talked about the issue of rare earth and the wall they’re hitting, but it also speaks to the underlying issue of how industry wants to invest in the North and sometimes hits that wall and doesn’t necessarily see it as a friendly environment to operate in. Mr.

Speaker, I could ask the questions to the ITI Minister for mining reasons, the Finance Minister for tax reasons, MACA for land reasons or even the Power Corp Minister, but ultimately I think it really focuses in on the Premier as to the methodology and the whole thinking of this government and how we are treating opportunities. As my last words in the Member’s statement talked about, we could either tax cut or foster development of broadening economic industries.

Mr. Speaker, I’d like to know what the Premier ’s vision is through Cabinet discussion in trying to attract industries to further develop here in the North, recognizing that rare earth is here, they want

to do some work, there’s definite demand in the world and I’d hate to see this opportunity slip by. So what is the Premier doing to help lead a positive attitude on this file? Thank you.

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Question 417-16(3): Rare Earth Mineral Developments

Oral Questions

The Speaker

Paul Delorey

Thank you, Mr. Hawkins . The honourable Premier , Mr. Roland .

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