Oral Questions, Petroleum Resources Act, Oil and Gas Operations Act, Petroleum Products Tax Act — 13 August 2019 (18th Assembly, 3rd Session, pp. 5945–5992)
2019-08-13, 18th Assembly 3rd Session, pp. 5945–5992
Northwest Territories — Debates (Hansard)
Debates of Aug. 13th, 2019
This is page numbers 5945 - 5992 of the Hansard for the 18th 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 public .
Topics
Oral Questions
Members Present
Prayer
Minister Absent from the House
Income Security Programs Update
Environmental Monitoring and Research Projects Funded
Improving Programs for Inmates in NWT Correctional Facilities
Diversifying the NWT's Economy
Grizzly Bears in Aklavik
Disruptions to Digital Connectivity
Relationship between Kakisa and the Government of the Northwest Territories
Yellowknives Dene First Nation and City of Yellowknife Land Transfer
Premiers' Letter to Prime Minister Trudeau regarding Bill C-68 and Bill C-48
Access to Education in Communities
Status of Services for Seniors In Yellowknife
Prevention of Alcohol Bootlegging
Highway Infrastructure Projects
Salmon in the Arctic
Committee Report 25-18(3): Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act
Motion to Receive Committee Report 25-18(3) and Move into Committee of the Whole
Committee Report 26-18(3): Report on the Review of the Carbon Tax Bills: Bill 42:
An Act to Amend the Petroleum Products Tax Act and Bill 43:
An Act to Amend the Income Tax Act
Motion to Receive Committee Report 26-18(3) and Move into Committee of the Whole
Recognition Of Visitors In The Gallery
Effects of Salmon in the Canadian Arctic
Fibre Optic Infrastructure
Grizzly Bears in Aklavik
New Housing Units for Seniors
Letter to Prime Minister Co-signed with Conservative Premiers
Education in the Sahtu Region
Relationship between Ka'a'gee Tu First Nation/Kakisa and the Government of the Northwest Territories
Highway Infrastructure Projects and Application of Business Incentive Policy
Alcohol Sales and Reduction of Bootlegging
Yellowknives Dene First Nation / City of Yellowknife Boundary Changes
Tabled Document 483-18(3): Follow-up Letter for Oral Question 766-18(3): Aboriginal Sports Circle Funding
Tabled Document 486-18(3): Northern Employee Benefits Services (NEBS) Pension Plan Annual Report for the year ended December 31, 2018 and including updated information to June 2019 Tabled Document 487-18(3): The Natural Resources Conservation Trust Fund Financial Statements for the year ended March 31, 2019
Tabled Document 488-18(3): Community Futures Program 2016-2017 and 2017-2018 Annual Reports
Consideration In Committee Of The Whole Of Bills And Other Matters
Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act - Bills Requiring Federal Concurrence
Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act - Potential Liabilities Arising from Oil and Gas Operations, carried
Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act - Comprehensive Review to Increase Cap for Absolute Liability
Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act - Significant Discovery Licenses
Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act - Government Response to Recommendations
Report Of Committee Of The Whole
Bill 40: Smoking Control and Reduction Act
Recorded Vote
Bill 41: Tobacco and Vapour Products Control Act
Recorded Vote
Bill 54: Standard Interest Rates Statutes Amendment Act
Recorded Vote
Bill 57:
An Act to Amend the Employment Standards Act
Recorded Vote
Bill 58: Justice Administration Statutes Amendment Act
Recorded Vote
Orders Of The Day
Members Present
Mr. Beaulieu , Mr. Blake , Hon. Caroline Cochrane , Ms. Green , Hon. Jackson Lafferty , Hon. Bob McLeod , Hon. Robert McLeod , Mr. McNeely , Hon. Alfred Moses , Mr. Nadli , Mr. Nakimayak , Mr. O'Reilly , Hon. Wally Schumann , Hon. Louis Sebert , Mr. Simpson , Mr. Testart , Mr. Thompson , Mr. Vanthuyne
The House met at 1:30 p.m.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
---Prayer
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Prayer
Prayer
Page 5945
The Speaker
Jackson Lafferty
Good afternoon, Members. Item 2, Ministers' statements. The Honourable Premier .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Minister's Statement 213-18(3): Minister Absent from the House
Ministers' Statements
Page 5945
Bob McLeod
Yellowknife South
Mr. Speaker, I wish to advise the Members that the Honourable Glen Abernethy will be absent in the House today due to illness. Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Minister's Statement 213-18(3): Minister Absent from the House
Ministers' Statements
Page 5945
The Speaker
Jackson Lafferty
Masi. Ministers' statements. Minister of Education, Culture and Employment .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Minister's Statement 214-18(3): Income Security Programs Update
Ministers' Statements
Page 5945
Caroline Cochrane
Range Lake
Mr. Speaker, the Government of the Northwest Territories is responsible for ensuring that Income Security programs respond to the needs and realities of residents. I am proud of how this government has increased its financial support to those in greatest need.
Income Security programs help residents bridge gaps in their ability to support themselves and pursue their personal, educational, and career goals. They are a vital part of our social safety network. During the life of this Assembly, the Department of Education, Culture and Employment has implemented numerous enhancements to its suite of Income Security programs.
In 2016, the department changed the way Income Assistance payments were calculated and restructured the program to ensure that income intended for children was no longer included. These changes resulted in more families with children being eligible to receive assistance and increase their monthly household income.
The high cost of living disproportionately affects our low- to modest-income residents. Our government increased the Northwest Territories Child Benefit to provide additional support to families. As well, we increased the Senior Citizen Supplementary Benefit and the supports available through the Seniors Home Heating Subsidy to support low- to modest-income seniors.
The department reviewed and increased the amount available through the Income Assistance Program to cover rental costs. We also increased the funding available to emergency shelter operators. Together, these improvements help address homelessness, and all of these improvements together support this Assembly's mandate to reduce the cost of living, foster healthy families, reduce poverty, and help seniors age in place.
Mr. Speaker, I am accountable for ensuring that the programs and services offered by the Department of Education, Culture and Employment are helpful to the residents they are intended to serve. I want to make sure that we improve quality of life and expand opportunities for our residents.
The best approach to achieving this is through working together. This past December we convened a meeting that included those who access our programs, non-governmental organizations, and those who provide services to income support clientele. We also solicited input from Members of this House and other orders of government. By working together, we have identified 27 priority actions to further improve the Income Assistance Program. I am pleased to report that we have already started on actions to improve the timeliness of payments, communications materials, and the client experience.
A new client-focused income assistance handbook has been developed as a key resource for those accessing the program and their supporters. The handbook provides a user-friendly, plain-language explanation of the program, with helpful tips and resources. It is currently being finalized. Both online and paper copies will soon be available in all regional offices across the Northwest Territories to empower and equip clients with the information they need.
We recognize that knowledgeable and well-trained front-line staff are critical to delivering programs that respond to the needs of our clients. As a direct response to feedback from our partners, the department will ensure that trauma-informed and disability-sensitivity training is added to the required training that staff currently receives. Through this required training, client services officers will continue to build on their professional development and enhance their client-centred services.
We have also introduced departmental service standards for the Income Security and Labour Branch, which will provide a benchmark for the quality of service that clients can expect of employees and senior managers. Materials to make this information readily available has been developed. They will be accessible online in every regional office, and will also be shared with all clients.
We heard from our partners that they want to be just that, partners in supporting people who need it most and working towards solutions that provide better-integrated services. The department is continuing to connect with non-governmental organizations. We will establish regular meetings to share information, learn from each other, and advance our collective goals.
Mr. Speaker, we are committed to improving the efficiency and effectiveness of internal administration, and significant work has been done to ensure Income Security programs meet the needs of residents, but we still have work to do. Change does take time. Through solution-based discussions with those who understand the issues, ongoing evaluations of our programs, and building strong community partnerships, we are making positive steps to reach our goals. Mahsi cho, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Minister's Statement 214-18(3): Income Security Programs Update
Ministers' Statements
Page 5946
The Speaker
Jackson Lafferty
Masi. Ministers' statements. Minister of Environment and Natural Resources .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Minister's Statement 215-18(3): Environmental Monitoring and Research Projects Funded
Ministers' Statements
Page 5946
Robert C. McLeod
Inuvik Twin Lakes
Mr. Speaker, I am pleased to announce that the Northwest Territories Cumulative Impact Monitoring Program is providing $1.7 million this year to support 28 monitoring and research projects. Funding recipients include Indigenous governments and organizations, universities, and territorial and federal government departments.
This year, seven new projects are receiving funding over three years to address key cumulative impact monitoring priorities for caribou, water, and fish. Results will provide valuable scientific and traditional knowledge for resource managers, governments, and communities to use for decision-making.
Mr. Speaker, recommendations on project funding were made by a steering committee comprised of representatives from Indigenous governments and organizations and territorial and federal governments.
Northwest Territories Cumulative Impact Monitoring Program results are available online and at an annual results workshop later this year. Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Minister's Statement 215-18(3): Environmental Monitoring and Research Projects Funded
Ministers' Statements
Page 5946
The Speaker
Jackson Lafferty
Masi. Ministers' statements. Minister of Justice .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Minister's Statement 216-18(3): Improving Programs for Inmates in NWT Correctional Facilities
Ministers' Statements
Page 5946
Louis Sebert
Thebacha
Thank you, Mr. Speaker. During my time as Minister of Justice , I have often spoken about the Corrections Service and the important work they are doing to improve the programming and supports available in our facilities to help address the needs of individuals in our corrections system.
I know that Members of the Legislative Assembly share with me the hope that people in our care are able to return to their communities on their way to becoming healthier members of our society. Over the past four years, we have made fundamental changes to the programs available to inmates, have been investing in our correctional facilities, and have been advancing legislative changes to better position inmates for success.
Knowing that some of the most prevalent risk factors for incarceration are substance abuse, violence, and relationship violence, evidence-based programs have been implemented that address these root causes of why some individuals find themselves in contact with the criminal justice system.
By working in close collaboration with elders, traditional liaison officers, and Indigenous staff, our Corrections Service continues to take special care and attention to ensure that programs delivered in our corrections facilities recognize the importance of Indigenous cultures and traditions. We are also delivering a suite of programs aimed at supporting inmates to become better aware of the triggers that lead them to engage in unhealthy and unsafe behaviours. Specific programs include Substance Abuse Management, Living without Violence, and the Respectful Relationships programs.
More recently, the Corrections Service has implemented the Northern Addictions Sessions at the South Mackenzie Correctional Centre. Work is also under way to develop a northern module to be included as part of the Living Without Violence and Respectful Relationships programs, as well.
Mr. Speaker, changes have been made to the release planning process to ensure that case managers are considering which community programming options for inmates are available upon release. Where possible, clients are matched with similar programming that they received while in custody so that they can continue to build the skills that they need to become successful once at home.
We also recognize the importance of offering programs and opportunities to inmates so that they may advance their educational goals while in our corrections facilities. Inmates have access to adult literacy, basic education and upgrading, high school and exam preparation, trades exam preparation, life and employment readiness skills, and assistance with pursuing post-secondary studies.
Mr. Speaker, I would be remiss if I did not recognize the critical role that the men and women working in the corrections field do to provide the high-quality correctional programming and care to inmates we have put so much effort into developing in the Northwest Territories. The reality is that there are few others in our society who are closer in contact, on a prolonged basis, with members of our society who are facing such challenging and complex social issues than those working in the Corrections Service.
As the NWT Corrections Service has evolved to find new and innovative ways to better support inmates, it is the dedication and professionalism of our corrections staff that has been, and will always be, key to our current and future successes.
Hand-in-hand with modernizing our legislative framework and improving our programming and supports, we have also focused on modernizing our correctional facilities. Later this month, the grand opening of the newly constructed women's unit of the Fort Smith Correctional Complex is planned, with building occupancy scheduled for later this fall. The design for this facility reflects the current and future needs of adult female offenders in the Northwest Territories.
Access to family support to aid the healing process and to improve reintegration of inmates into their communities; access to northern-developed and northern-specific programming; and limiting access and connection with southern inmates, where gangs, drugs, and organized crime are prevalent, are all factored into the design and creation of the new women's unit.
Mr. Speaker, I am very pleased to advise that our government is moving forward with work to transition the South Mackenzie Correctional Centre in Hay River into a facility that operates under a Therapeutic Community model. Under this model, substance abuse is seen as a symptom of much broader problems and, as such, a holistic approach is used that touches on every aspect of an offender's life. With an emphasis on social learning and mutual self-help, individual participants take on some of the responsibility for their peers' recovery. Providing help and support to others is seen as an important part of changing oneself under this model.
The transition of the facility to this new model is anticipated to take place in the spring of 2020 and, in the coming weeks, officials with the Department of Justice will be making presentations on the Therapeutic Community model to the Town of Hay River, Indigenous governments, and community groups.
Mr. Speaker, the people of the Northwest Territories have been clear. They want inmates prepared and ready to rejoin their communities. The programming, facilities, and legislative changes that we have worked hard to advance during the 18 th Legislative Assembly have laid a strong foundation for an improved NWT Corrections Service. Through the efforts of our dedicated staff and the continued partnerships that we have with other departments and stakeholders, our Corrections Service is making a difference in the lives of Northerners and helping to create safer and healthier communities throughout the Northwest Territories. Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Minister's Statement 216-18(3): Improving Programs for Inmates in NWT Correctional Facilities
Ministers' Statements
Page 5947
The Speaker
Jackson Lafferty
Masi. Ministers' statements. Minister of Industry, Tourism and Investment .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Minister's Statement 217-18(3): Diversifying the NWT's Economy
Ministers' Statements
Page 5947
Wally Schumann
Hay River South
Thank you, Mr. Speaker. Strong economies must encourage economic diversity and, while our economy relies on the resource sector as its foundation, our government has committed to fostering an economic environment where our residents can find success across a variety of sectors.
It is also this government's view that true economic diversity for the Northwest Territories also means getting the most out of secondary industries arising from our diamond sector, while also working to branch out and encourage the responsible development of new resources.
Through the life of this government, Mr. Speaker, I can say that we have made strides towards building this kind of strong, diverse economy. I would like to highlight some of the commitments that this government has met in that area.
Our tourism sector has reached new heights, and the numbers speak for themselves. In 2017-2018, visitors spent more than $203 million in the Northwest Territories, more than $36 million in gains since this government took office. Over the same period, we welcomed more than 112,000 visitors to our territory, roughly 25 percent more than we did at the start of our mandate. This is, in part, a reflection of the ongoing investments that we have made in world-class tourism and parks facilities and the destination marketing work that we have invested in through Northwest Territories Tourism.
By working together, our government has welcomed new entrepreneurs to our territory through the Nominee Program and implemented the Government of the Northwest Territories Immigration Strategy, which included streamlining the application for those looking to make the Northwest Territories their home. People in Hay River and Yellowknife have seen the positive effects of those efforts firsthand.
We have developed and are implementing an agriculture strategy to encourage local food production and shepherd the sector towards commercial viability. We have since leveraged the new Canadian Agricultural Partnership and other funding programs to support growing agriculture businesses.
We are implementing a strategy to revitalize the Great Slave Lake Commercial Fishery. Since the release of this strategy, we have secured funding and went out to tender to build a cutting-edge fish processing plant in Hay River, worked closely with the Northwest Territories Fishermen's Federation on laying the foundation for a sustainable business, and taken leadership in representing the Northwest Territories' interests as the federal government sets a new path for the freshwater fishery in Canada's North.
We have committed to investing in building the profile of Northwest Territories art, both at home and abroad. Our revamped Northwest Territories Arts website now includes a Where to Buy feature, which connects regional, national, and international customers to Northwest Territories-made art. Together, the Departments of Industry, Tourism and Investment and Education, Culture and Employment engaged the public on putting the Arts Strategy into action with the principles of the Northwest Territories' arts community in mind.
Mr. Speaker, our support of the arts extends to the commitments that we have made to grow our territory's film industry. Eleven film projects have received support under the Northwest Territories Film Rebate Program since the program launched in 2015. Those rebates have leveraged around $1.5 million in economic investment by film projects in the Northwest Territories.
We have connected the local industry with new opportunities to develop below-the-line skills and build a future in film. Just last year I was proud to announce our investment in the Northwest Territories Professional Media Association's apprenticeship pilot program. We have invested in shining a light on producers, their films, and our industry more broadly through national and international marketing efforts.
We worked with industry to expand manufacturing by developing a Manufacturing Strategy. We released this strategy with partnership from the Northwest Territories Manufacturers Association this year, and work is already being done to reach our ambitions.
We have worked to advance the knowledge economy in this territory, and we have once again seen results. We supported the establishment of the exciting Arts, Crafts, and Micro-manufacturing Centre in Inuvik, along with other partners. I am pleased to report that ITI has been asked to sit on the board of directors for this initiative to help ensure its continued success in the Beaufort Delta. A number of agencies from other countries are working in Inuvik and benefitting from the region's geographic advantages for satellite transmissions, made possible from the investment in the Mackenzie Valley Fibre Optic link.
The resources are now in place, and work has already begun to develop a strategic framework to advance the knowledge economy in the Northwest Territories.
We have committed to connecting our furs with international markets to help encourage the traditional economy. Our continued investment in the Genuine Mackenzie Valley Fur brand has brought trappers' goods to market throughout the life of this government.
Mr. Speaker, we have also done a great deal to diversify our resource sector. First and foremost, I am pleased to say that Almod Diamonds, one of our approved Northwest Territories Diamond Manufacturers, has announced that their factory has established its team, and its first diamonds are now being polished right here in our capital. I encourage everyone to look for their grand opening in 2020.
This good news comes in the wake of our changes to the Northwest Territories Diamond Policy Framework, which is designed to encourage diverse investments from businesses looking to generate local benefits from the diamonds that our mines make available for local manufacturing.
Throughout this government, we have delivered on our commitment to implement the Mineral Development Strategy and our Petroleum Resources Strategy to build a stronger resource sector, and I am pleased to say that we have seen progress that will build on what we already have with our strong, resilient diamond mines.
Our Mining Incentive Program has leveraged millions in additional work from commodities running the gamut from precious metals, like gold, to technology metals, like lithium or cobalt. We are also seeing exciting results coming to light in regions like the Sahtu for gold, where bigger players are now getting involved. Mr. Speaker, I would like to seek unanimous consent to conclude my Minister's statement.
---Unanimous consent granted
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Minister's Statement 217-18(3): Diversifying the NWT's Economy
Ministers' Statements
Page 5949
Wally Schumann
Hay River South
Mr. Speaker, we have also committed to working to diversify our resource mix by developing a long-term strategy for oil and gas in our territory. We have delivered, releasing our Petroleum Resources Strategy with two key outcomes in mind: local benefits, like heating and power generation; and a healthy export market in the future. We have made progress since.
I am pleased to see the Inuvialuit Regional Corporation defining a way forward for their regional natural gas heat and electricity initiative, which has a vision to provide reliable, affordable energy in the area. Our government has supported this project since its conception and looks forward to exciting things in the future. We have also received positive feedback from the global industry as we tell a new story about future of our territory's export natural gas sector.
Mr. Speaker, as this government's tenure draws to a close, I can say with confidence that we have laid the groundwork for the future governments to achieve even more. I am proud of the actions that we have taken to build a broad, diverse economy for the benefit of all Northwest Territories residents and conclude this Assembly feeling positive about our territory's economic future. Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Minister's Statement 217-18(3): Diversifying the NWT's Economy
Ministers' Statements
Page 5949
The Speaker
Jackson Lafferty
Masi. Ministers' statements. Item 3, Members' statements. Member for Mackenzie Delta .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Grizzly Bears in Aklavik
Members' Statements
Page 5949
Frederick Blake Jr.
Mackenzie Delta
Thank you, Mr. Speaker. We have a grizzly bear problem in Aklavik. Like last year when I brought up this issue, at the moment, we have up to 13 grizzly bears hanging around at the dump site. Also, as it is starting to get dark now, the bears are starting to bother around the community. This is a threat to the community, as bears are very unpredictable.
Mr. Speaker, my constituents want some action taken to either relocate or put some of the bears down to detour the bears from hanging around the community. In the past, the NR officer was able to put down problem bears and hire residents to keep them out. From what I was told, this can only be done when the bear is a threat.
Well, Mr. Speaker, I think it is pretty clear that 14 grizzly bears are a threat. Let's not wait until something serious happens. Let's take some action to keep Aklavik safe. Thank you, Mr. Speaker. I will have questions later today.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Grizzly Bears in Aklavik
Members' Statements
Page 5949
The Speaker
Jackson Lafferty
Masi. Members' statements. Member for Kam Lake .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Disruptions to Digital Connectivity
Members' Statements
Page 5949
Kieron Testart
Kam Lake
Mr. Speaker, today I rise to address a sadly reoccurring issue: disruptions to our digital connectivity. Since the beginning of 2019, we have dealt with three roughly day-long service interruptions; May the 8 th , July 13 th , and yesterday, August 12 th . I must acknowledge that the incidents are still under investigation by the RCMP, and I trust that they will do their utmost while investigating these matters.
However, I am concerned about the bigger issues these incidents have brought to the forefront of our attention. Every time we have an outage of this severity, it first and foremost affects our businesses. Transacting any form of electronic payment becomes unreliable or impossible. As the mayor of Yellowknife said yesterday, "It's not just, 'Oh shoot, Facebook is down.' It's people's livelihoods. We need something more reliable." Point-of-sale devices, business and government operations, emergency contact numbers, just to name a few, were all affected by this outage.
Connectivity in the North and other rural areas of Canada has been a hot topic for years. I wonder what steps the GNWT, Ottawa, Northwestel, and other potential governments and service providers have and are considering as a solution to not only secure our tech infrastructure, but also what plans have been explored concerning the building of redundancy measures with greater bandwidth than currently exists.
We know that the bandwidth of the existing redundancy measures is nowhere near sufficient to handle the average daily throughput we need here in the North. This is a problem which must be addressed by the existing service provider with joint effort from the GNWT, Ottawa, and other industry partners alike. Infrastructure protection is a tough topic in Canada, and especially in the North, as we have such vast expanses through which to protect our physical infrastructure. It should be noted that it is incredibly difficult to protect individual assets from malicious damage.
If we wish to overcome this over the next few years and diversify towards a true knowledge-based economy, then we must have quality digital infrastructure and uninterrupted connectivity, with sufficient redundancy in place to ensure that. We have to increase remote learning opportunities and truly build a North that can access the full breadth of information that is out there.
I will have further questions later today for the Minister responsible for our telecoms in the Northwest Territories. Hopefully, he can shed some light on what we are doing to improve our quality of service in the NWT. Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Disruptions to Digital Connectivity
Members' Statements
Page 5950
The Speaker
Jackson Lafferty
Masi. Members' statements. Member for Deh Cho .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Relationship between Kakisa and the Government of the Northwest Territories
Members' Statements
Page 5950
Michael Nadli
Deh Cho
Mr. Speaker, small communities are constantly fighting for services that are taken for granted in larger centres. Their voices can be lost, and the government spends less time considering their needs. Ka'a'gee Tu First Nations have been working hard to advance their key initiative. While some have been addressed, including local housing concerns and establishment of a new dock, there are still pressing concerns about the local water supply and the need for a new office.
Recognition of treaty rights and Aboriginal titles to lands and resources and the right to self-determination of local governments matter. Protocols need to be based on mutual recognition and respect, and consultations with the community are critical to advance priorities of both the community and the GNWT.
Mr. Speaker, the respect, recognition, and responsibility strategy states that "The GNWT is committed to building and maintaining mutually respectful government-to-government relationships with Aboriginal governments." I will have questions for the Premier on how he sees the relationship between Ka'a'gee Tu First Nation and the GNWT evolving and how it will follow the respect, recognition, and responsibility strategy. Mahsi, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Relationship between Kakisa and the Government of the Northwest Territories
Members' Statements
Page 5950
The Speaker
Jackson Lafferty
Masi. Members' statements. Member for Yellowknife North .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Yellowknives Dene First Nation and City of Yellowknife Land Transfer
Members' Statements
Page 5950
Cory Vanthuyne
Yellowknife North
Thank you, Mr. Speaker. Today I'd like to talk about the recent agreement between Yellowknife City Council and the Yellowknives Dene First Nation to change a boundary between the city and the YKDFN land. I would like to compliment both the city and the Yellowknives Dene on this agreement. With respect to both parties, it is a solid achievement. It is good to see the positive engagement and collaboration between the city and YKDFN to serve their people's best interests.
It also raised questions, Mr. Speaker, and constituents of Yellowknife North are looking for answers. How will this agreement affect residents of Yellowknife North? What kind of impacts will there be for houseboaters in Yellowknife Bay? What effect will there be on the negotiation of the Akaitcho land rights agreement? Is there any potential downside?
Mr. Speaker, it is important that the people affected by this agreement are consulted. Residents deserve the opportunity to review, consider, and contribute to the discussion about the impact the changes may have on their lives. They want to know who will make sure that there is an effective and thorough conversation among everyone who will be affected.
Over the years, there has been vigorous discussion about the management and access to the harbour front of Yellowknife Bay. Residents and visitors alike use the lake for boating, fishing, sightseeing, business, and pleasure. Considerable work was put into developing a waterfront plan through a city-led harbour planning committee. How will that plan inform the new agreement? Is it time for a harbour commission?
We will also certainly have to consider the effect this agreement might have on the Akaitcho land rights negotiation, as well as the Yellowknife periphery recreational land use plan. It is important to consider the impact it may have on the city's general plan. All of these plans will describe the future of the lands and waters where we all live and where many of us work. It is essential that everyone's interests are fully discussed and considered when creating new boundaries that may affect land use in the future.
I recognize that the consultation and final decisions on this agreement may ultimately fall to the 19 th Assembly. However, on this important initiative, robust public engagement and discussions is essential. That is why I am raising it today. Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Yellowknives Dene First Nation and City of Yellowknife Land Transfer
Members' Statements
Page 5951
The Speaker
Jackson Lafferty
Masi. Members' statements. Member for Yellowknife North .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Premiers' Letter to Prime Minister Trudeau regarding Bill C-68 and Bill C-48
Members' Statements
Page 5951
Kevin O'Reilly
Frame Lake
Merci, Monsieur le President. On June 10 th , our Premier co-signed a letter, along with premiers of Ontario, New Brunswick, Manitoba, Saskatchewan, and Alberta, to the Prime Minister of Canada. That letter warned that national unity would be threatened if the federal government did not accept numerous changes to federal Bills C-69 and C-48 as dictated by the oil and gas industry.
This action came as a total surprise to this MLA and many residents of the Northwest Territories. I will be the first to defend the Premier in expressing any personal views he may have on such matters, but he signed this letter as the duly elected head of this government, meaning he was speaking on behalf of this government. He was once again significantly breaching the guiding principles of consensus government as approved by himself as Premier and all MLAs in October 2016.
More specifically, these guiding principles state, "Except under extraordinary circumstances, Members of the Legislative Assembly should be made aware of and have opportunity to discuss significant announcements, changes, consultations, or initiatives before they are released to the public or introduced to the Legislative Assembly. Use of the element of surprise is inconsistent with consensus government."
Bill C-69 begins to rebuild federal environmental assessment to restore a modicum of public confidence and decision-making around areas of federal jurisdiction after the virtual destruction of these processes. It actually has very limited application in the Northwest Territories and comes into play only when there is a trans-boundary project or a development of national interest.
Bill C-48 deals with shipping off the west coast of Canada and has nothing to do with the Northwest Territories. It is not clear to me why the Premier felt it necessary to align this government with such a partisan effort, as represented by the letter that he signed.
Later today, I will ask the Premier whether he consulted or informed his Cabinet colleagues about this letter and why he continues to breach the guiding principles of consensus government. Mahsi, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Premiers' Letter to Prime Minister Trudeau regarding Bill C-68 and Bill C-48
Members' Statements
Page 5951
The Speaker
Jackson Lafferty
Masi. Members' statements. Member for Sahtu .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Access to Education in Communities
Members' Statements
Page 5951
Daniel McNeely
Sahtu
Thank you, Mr. Speaker. Over the course of this government, I have had ongoing concerns about the education system in general and specifically about the quality of education delivered in our communities I am here to serve. I believe strongly that a solid education system is the necessary foundation required to move our youth forward and to provide our labour market with the workers it needs to fill new positions and complete succession planning that result in more northern people in northern jobs.
Mr. Speaker, we are obligated, both in a fiduciary sense and a moral one, to ensure that all youth throughout the Northwest Territories have access to high-quality education that equips our youth to reach their fullest potential and be able to find meaningful, well-paid employment. I have been heartened to see the technology advances in education that are making education more accessible in our rural and remote regions, and I want to see youth in the communities that I serve benefit from this progress.
The NWT has seen all kinds of progress from before and during my time in this Assembly, with land claim settlements, self-government agreements, and greater understanding that we have reached through the truth and reconciliation process and the release of the Final Report on Missing and Murdered Indigenous Women. We know that we have need to do a better job for our youth. Over my term, I have worked diligently to improve education in the communities I serve. I have brought the concerns of my constituents forward and have worked with the Sahtu leadership, the Minister responsible, and my colleagues to find solutions. Mr. Speaker, I seek unanimous consent to conclude my statement. Mahsi.
---Unanimous consent granted
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Access to Education in Communities
Members' Statements
Page 5952
Daniel McNeely
Sahtu
Mr. Speaker, just this past month, I came together with the Sahtu leadership in the beautiful community of Deline to discuss the delivery of education in our region and benefitted from the work of my esteemed colleague from the Deh Cho riding, Mr. Nadli , in this area. Through these discussions and many others, I have greater appreciation of the challenges we face and will have questions for the Minister responsible later. Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Access to Education in Communities
Members' Statements
Page 5952
The Speaker
Jackson Lafferty
Masi. Members' statements. Member for Yellowknife Centre .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Status of Services for Seniors In Yellowknife
Members' Statements
Page 5952
Julie Green
Yellowknife Centre
Mahsi, Mr. Speaker. Seniors are the heart of my constituency and, through the next decade, their population will grow by 134 households in Yellowknife each year. The fact that the seniors population is growing is not news. Our lack of preparedness to meet their needs is today's headline.
The NWT Housing Corporation has a suite of programs for seniors to repair their homes and complete retrofits so they can stay in their homes as they age. That is all good, obviously. The problem is that, while the seniors population has been increasing, program funding has not. The same amount of money is available this year as it was last year for programs such as CARE. The total budget for the NWT for aging in place retrofits is just half a million dollars. In our mandate, we said we would help seniors to age in place, but the truth is there are a lot of gaps.
Mr. Speaker, here in Yellowknife we have a crisis of available and affordable housing for seniors. Not one, and let me say that again, not one new unit has been added to the inventory during the term of this Assembly. There are 60 people on the waiting list for AVENS Court; 49 on the waiting list for public housing; and there is a backlog of seniors in emergency shelters, as well. We need at least 100 new units for independent living, and we need them now.
We also need new investments in homecare to help people age in place. I am looking forward to the paid family and community caregiver project, and I am pleased that Yellowknife is one of the pilot communities, given the size of our senior population, but this program does not include nursing and personal care. We need a plan that addresses the growing need for professional care by people who are trying to retain their independence by living at home.
Last but not least is the day program. Almost three years after it closed, the GNWT still has not found a replacement for the adult day program. I realize the Minister has looked at various options and there is now a survey out for seniors to complete, but the fact is there is nothing in place.
Mr. Speaker, as we age along with the rest of the population, we are going to need increasing support, whether that is help to say where we are, a smaller unit that is more affordable and accessible, services to help us with everyday tasks, specialized nursing, or social inclusion activities. On all of these fronts, the next Assembly must do better than we have. Mahsi, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Status of Services for Seniors In Yellowknife
Members' Statements
Page 5952
The Speaker
Jackson Lafferty
Masi. Members' statements. Member for Tu Nedhe-Wiilideh .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Prevention of Alcohol Bootlegging
Members' Statements
Page 5952
Tom Beaulieu
Tu Nedhe-Wiilideh
Marsi cho, Mr. Speaker. Alcohol is a big issue in our communities, including regional centres and Yellowknife. In the last government, I was the Minister of Health and Social Services for two years. I could not believe that we were spending well over a million dollars a day in that department.
As I travelled to the communities, I asked the nurses what they thought were the biggest cost drivers in their communities. In almost all cases, they said alcohol.
I believe the causes of alcohol abuse in small communities, some of the causes, can be attributed to bootlegging. Mr. Speaker, I think it is time for us as a government to look at ways of preventing bootlegging from running a thriving business at the expense of our citizens.
Recently the City of Yellowknife discussed liquor store hours. Maybe there is merit in looking at changing liquor store hours one way or the other. Maybe you have liquor store open hours longer that will have the customers go to the liquor store instead of a bootlegger, or maybe we shorten the hours, I have not thought about that fully, to get away from the bootleggers, or maybe we shorten the hours. I do not know what it should be, but it certainly should be reviewed, Mr. Speaker.
The one thing our government may want to look at is the restriction on the amount of liquor that a customer can buy. A person should not be allowed to buy cases and cases of hard liquor, take them home for after the liquor store hours are closed, and then they have it for resale. We put restrictions on the purchase of cannabis and the possession of cannabis. I think we can do the same with alcohol.
We must find a way to prevent the bootleggers from going to the liquor store and buying all kinds of alcohol, and everybody knows it's for resale, without affecting the average citizen who wishes to go to the liquor store and buy some wine or some beer or even some hard liquor for themselves, for their own consumption in their homes, so we must find a happy medium. Allowing bootleggers to buy unlimited amount of alcohol from liquor stores is not correct, and that should be stopped. Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Prevention of Alcohol Bootlegging
Members' Statements
Page 5953
The Speaker
Jackson Lafferty
Masi. Members' statements. Member for Nahendeh .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Highway Infrastructure Projects
Members' Statements
Page 5953
Shane Thompson
Nahendeh
Thank you, Mr. Speaker. I rise in the House to talk about a couple of infrastructure projects on Highway No. 1 and locations on Highways No. 3, 5, 6, and the Hay River Reserve access road this year. Unfortunately, the tenders were awarded to two southern companies. It was my understanding the bid difference was less than a million dollars, so we are seeing approximately $17.5 million leaving the Northwest Territories.
Mr. Speaker, I am not sure how many northern and local contractors are being used on this work, but I know I have witnessed a lot of BC and Alberta plates on equipment as I have driven by. It is my understanding that the old way we implemented the business incentive policy was to use the full amount of the contracts. However, the new way only allows contractors to use a few million dollars of the whole contract.
Mr. Speaker, it is frustrating for Northern contractors, because the GNWT are making contracts larger, and BIP does not help keep the work in the North.
Companies from BC and Alberta have no ties in the North, and with contracts being awarded, the majority of the money is going south, with no benefit to NWT besides the project itself. These are unfair practices and have a huge impact on northern contractors. I have heard some talk that it would be beneficial to leave the territories and become absentee contractors so they are not subject to the high cost of living in working in the North.
Without northern companies hiring northern people, the tax base of the Northwest Territories will continue to shrink. Without the tax base, many of the projects the NWT would like to complete would no longer be done without the assistance of the federal government. The BIP in its current format does not work for large contracts. An example method that does work is, when an out-of-province contractor bids on projects in BC, they are subject to extreme penalty costs from the BC government. This penalty protects BC contracts, and ensures the contract awarded stays in BC.
The government should either make the contracts smaller, so they are less attractive to out-of-province companies, or reinstate the BIP back to the original format and intent. The original intent was to ensure money spent in the North stays in the North. This is the only way to ensure that the NWT grows both in local services and population.
We know we are dependent on federal funding, and every person has a value. Every person we lose has an impact on us. I will have questions for the Minister of Infrastructure later on today. Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Highway Infrastructure Projects
Members' Statements
Page 5953
The Speaker
Jackson Lafferty
Masi. Members' statements. Member for Nunakput .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Salmon in the Arctic
Members' Statements
Page 5953
Herbert Nakimayak
Nunakput
The ocean currents have been warming and allowing species that do not usually migrate to the Arctic to traverse the waters through the high seas, affecting the ecosystem on and offshore. We see the effects of climate change with the sporadic and unpredictable weather patterns all over the globe. The warm ocean currents are bringing species such as salmon to colder water, which means that they are changing the balance of the ecosystem in the Arctic.
Fish farming in Alaska is likely contributing to this increase, and we must work with our co-management groups across the Northwest Territories and abroad to ensure that we are doing our best to support the rivers, lakes, and communities along the rivers and coast to ensure that this does not become a food security issue.
Mr. Speaker, I believe there is a need to take a look at this and get involved and partner with Indigenous governments, hunters and trappers in the Northwest Territories, and the federal government to ensure that we can take a picture of this invasion of salmon and do our best to understand the underlying causes that are affecting the harvesters' catch in Nunakput and across the Northwest Territories. Partnering on projects and collaboration and cooperation has never been as important as we learn why this is occurring. We need to understand this from a global prospective to ensure that we do our best to protect our way of life in the Arctic.
Mr. Speaker, local Indigenous knowledge is key to the planning, conservation, and protection of the species in the Northwest Territories and across Canada. Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Salmon in the Arctic
Members' Statements
Page 5954
The Speaker
Jackson Lafferty
Masi. Members' statements. Item 4, reports of standing and special committees. Member for Yellowknife North .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 25-18(3): Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act
Reports Of Standing And Special Committees
Page 5954
Cory Vanthuyne
Yellowknife North
Thank you, Mr. Speaker. Your Standing Committee on Economic Development and Environment is pleased to provide its Report on Bill 36,
An Act to Amend the Petroleum Resources Act , and Bill 37,
an Act to Amend the Oil and Gas Operations Act.
Introduction
Mr. Speaker, Bill 36,
An Act to Amend the Petroleum Resources Act , and Bill 37,
An Act to Amend the Oil and Gas Operations Act , provide the framework for the administration and management of the exploration and production of onshore petroleum resources in the Northwest Territories. The Petroleum Act governs how the Government of the Northwest Territories will act as the owner and manager of petroleum resources and sets the rules for companies to acquire the rights to explore for and produce oil and gas in public lands in the Northwest Territories. The Oil and Gas Operations Act regulates oil and gas activities and promotes safety, the protection of the environment, and the efficient extraction of oil and gas resources.
The amendment of oil and gas legislation is part of the mandate of the Government of the Northwest Territories 2016-2019. Under mandate point 1.3.2, the Department of Industry, Tourism and Investment committed to develop and propose amendments to both acts. The department expressed that the proposed bills are a first step towards a larger review aimed at modernizing legislation and improving transparency of petroleum production in the Northwest Territories.
The Standing Committee on Economic Development and Environment, "the committee," commends the Minister for the development of these bills. Bill 36 and Bill 37 make amendments to existing legislation and propose to increase transparency and public accountability in the Petroleum Resources Act and the Oil and Gas Operations Act.
Both bills received second reading and were referred to the committee on February 22, 2019. Public hearings were conducted during May and June 2019, and the clause-by-clause review was held on August 2, 2019. During the review, the committee passed seven amendments to address concerns identified by the stakeholders and committee.
Overall, stakeholders indicated support of the bills. Many stakeholders were concerned for each bill to achieve the most appropriate balance between information to be made public and confidentiality to be provided. Stakeholders also raised concerns about the term for Significant Discovery Licences (SDL) and suggested additions to the proposed reporting requirements on hydraulic fracturing fluid recovered from a well.
The work of the standing committee to amend Bill 36 and Bill 37 is set out in this report. The remainder of this report addresses concerns from stakeholders and committee, provides rationale for the motions brought forward by committee and recommends several courses of action. Motions are listed in order of their appearance in the bills in the
chapter of clause-by-clause review of the bills, and are referred to in this report by the number assigned.
Requirement for Federal Consent
Bill 36 and Bill 37 are among the legislation for which federal consent in certain instances is required. For the purposes of the Oil and Gas Operations Act, the National Energy Board continues to be the regulator for onshore development in the Inuvialuit settlement region. The Office of the Regulator of Oil and Gas Operations generally performs this function in the onshore in other parts of the Northwest Territories.
According to
section 22(2) of the Northwest Territories Act, the Northwest Territories Legislature is required to seek federal consent for amendments that would change the regulatory functions of the National Energy Board, if these functions apply to the onshore portion of the Inuvialuit settlement region. This requirement is in effect for 20 years from the day on which the act came into force in 2014.
Committee learned in a later stage of the legislative review process that federal consent had already been sought by the department and been granted for several amendments proposed in Bills 36 and 37 . Committee would have preferred that committee's efforts to improve the bill through making amendments based on public consultation had been considered and committee's oversight and accountability role been taken into account. Committee therefore makes the following recommendation.
Recommendation 1
The Standing Committee on Economic Development and Environment recommends that, should any portion of a bill require federal concurrence, a statement to this effect be included in the legislative proposal and that the relevant clauses be identified at the time of introduction to the appropriate standing committee. Committee further recommends that a bill should not be submitted to the federal government for their concurrence until after it has been reported back to the House following committee's review.
Public Consultation
The committee held public meetings in Inuvik, Norman Wells, and Yellowknife. A scheduled hearing for Fort Simpson was cancelled on request of the community. Numerous representatives of Indigenous governments, non-governmental organizations, and individuals made public representations to the committee, either in person or via written submissions. Written submissions are attached as Appendix 1.
Comments were received from seven stakeholders, including:
Alternatives North, Ecology North, CPAWS-NWT, and the Canadian Arctic Resources Committee (CARC) joint submission;
The Information and Privacy Commissioner of the Northwest Territories;
Non-Profit Governance Solutions (Dr. Cody Sharpe) on behalf of Ecology North;
NWT Metis Nation;
NWT Chamber of Commerce;
Sahtu Secretariat Incorporated; and
Todd Slack (as individual).
The standing committee heard general support for the bills from presenters and received recommendations for improvements. Committee thanks every individual and organization who attended these meetings to share their views on Bill 36 and Bill 37 .
The committee appreciates the plain-language material supplied by the Minister's office for the public hearings.
After having sought clarification from the sponsoring department, the committee considered the comments received during public hearings and discussed these matters amongst its members. Committee submitted eight motions in total to amend Bill 36 and Bill 37 .
Mr. Speaker, at this time, I will turn the reading over to my honourable colleague from Nunakput, MLA Nakimayak. Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 25-18(3): Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act
Reports Of Standing And Special Committees
Page 5955
The Speaker
Jackson Lafferty
Masi. Member for Nunakput .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 25-18(3): Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act
Reports Of Standing And Special Committees
Page 5955
Herbert Nakimayak
Nunakput
Thank you, Mr. Speaker.
What We Heard
This part of the report is organized around the key themes or subject areas raised during the committee's public hearings and in the written submissions received.
Confidentiality in Bill 36
Committee appreciates the steps taken by the Department of Industry, Tourism and Investment to improve and modernize Bill 36 and Bill 37 by amending the confidentiality provisions in both bills. Improving accountability and transparency is a fundamental component of the Government of the Northwest Territories' Mandate. Ensuring in legislation that all information is made available while determining certain criteria for confidentiality is contributing to achieving a better balance between increasing transparency and the need to protect confidential information.
Stakeholders commented on the importance of transparency in all aspects of regulating oil and gas-related activities in the Northwest Territories. One stakeholder remained unconvinced that the bills strike the appropriate balance between confidentiality of proprietary information and public transparency. Currently, all information provided for the purposes of the Petroleum Resources Act and the Oil and Gas Operations Act, and the regulations under those acts, is deemed privileged and kept confidential, with few exceptions.
Bills 36 and Bill 37 change this and reverse the process in that all information required to be provided will be made available to the public unless the recipient of the information, which would be either the Minister or the Regulator, determines the information meets the test for confidentiality. Committee recognizes and supports this important step in the modernization of the legislation.
Role of Minister and Regulator
The Regulator is designated by the Commissioner in Executive Council under the Oil and Gas Operations Act (OGOA). The Minister has designated the regulator, however, delegated those powers to the Executive Director of the Office of the Regulator of Oil and Gas Operations (OROGO). Generally speaking, the Minister of Industry, Tourism and Investment has stronger responsibilities under the Petroleum Resources Act, and the regulator has a more robust role under the Oil and Gas Operations Act.
Committee received several comments on the importance that the roles of Minister and regulator do not overlap or interfere with either mandate. For example, where the Minister has the authority to classify information as confidential, this discretion must not overlap or infringe on the authority of the regulator. It was pointed out clearly that the regulator must be an independent decision-maker, if its rulings are to be viewed by the public as being free from political interference.
However, there also was a clear desire expressed for more clarity around what information the Minister and the regulator should make publicly available. Committee considered carefully these concerns when discussing publication and annual report requirements.
Publication Requirement in Bill 36
Committee heard a number of comments on what is required to be published in the Petroleum Resources Act. Currently, the Minister is required to post notices in the Government of the Northwest Territories Gazette and "in any other publication the Minister deems appropriate"; this was seen as too vague. Stakeholders asked to improve the transparency of government decisions by setting out where the notices should be published.
Committee also wanted to ensure that information is being made accessible consistently and is user-friendly. Committee therefore moved Motion 1, which requires the administering department to publish information in the Gazette, make information public more widely, and publish it in a timely manner on a website.
Mr. Speaker, I now pass this on to the honourable Member for Hay River North . Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 25-18(3): Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act
Reports Of Standing And Special Committees
Page 5956
The Speaker
Jackson Lafferty
Masi. Member for Hay River North .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 25-18(3): Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act
Reports Of Standing And Special Committees
Page 5956
R.J. Simpson
Hay River North
Thank you, Mr. Speaker.
Content of Annual Report
A commitment to improving accountability and transparency is one of the key priorities of the 18 th Legislative Assembly. Public information is expected to be clear, concise, and easily understood. Committee agreed with submitters of comments that making information available will increase public confidence in the regulatory process.
Having the information, year over year, compiled in one place proves of interest and value in the context of accountable and transparent governance. The value of an annual report is the ability to have flexibility around how information is presented so as to allow the reader to put it clearly in context. The regulator already voluntarily prepares and publishes annual reports on activities, which is not required by legislation. The Minister is required to prepare a report with respect to the administration of the Petroleum Resources Act. The committee is of the view that contents of the report should be set out in legislation.
To provide greater clarity for the annual report that is required under the existing legislation, the licences and information issued, for example, can be provided by the Minister. Committee developed two motions that would link several sections and result in collaboration between the regulator and the Minister and annual reporting. This is reflected in Motion 2. The committee also proposed amendments that would set forth a list of information that should be included in the annual report of the Minister, which is reflected in Motion 6 amending Bill 36 .
Well Abandonment and Financial Responsibility in Bill 37
Committee heard concerns and sought clarification on the commencement of the one-year period during which an operator must maintain proof of financial responsibility. Committee also had questions on the environmental remediation triggers within the respective reporting year.
During committee's deliberations on how the timing of the one-year period is determined, it was confirmed that abandoning a well is included in the definition of well operation, and that all operations require approval from the regulator. The holder of an authorization must maintain proof of financial responsibility for one year after the Office of the Regulator of Oil and Gas Operations has given notice to the proponent that all authorized works in respect of the abandonment of a well are completed. The extent of reclamation to be carried out before the notice would be issued depends on the approved work plans rather than statutory
definitions respecting reclamation.
While committee is confident that concerns regarding the one-year period are addressed in regulations, the general question of assessing financial liability in resource management was raised. Committee is of the view that there needs to be further consideration of how to best ensure that end-of-life obligations are addressed in order to protect the government and residents of the Northwest Territories from potential liabilities.
Due to recent court cases, such as the Redwater case, committee is of the view that decisions which relate to terms of financial responsibility need to be reviewed on their consistency with recent court decisions. Therefore, committee makes the following recommendation.
Recommendation 2
The Standing Committee on Economic Development and Environment recommends that, in the second phase of the review of oil and gas legislation, consideration should be given to recent court decisions and best practices to ensure that the Government of the Northwest Territories and the public are protected from potential liabilities arising from oil and gas operations.
Committee is of the view that the cap for financial liability, which is currently set out in regulations, needs to be reviewed and aligned with Canadian practices. The Oil and Gas Spills Debris Liability Regulations were inherited from the federal government with devolution and have not been updated. Since 2014, however, the federal legislation governing offshore oil and gas exploration was updated to increase the absolute liability cap to $1 billion following a review by the Auditor General of Canada. Committee therefore makes the following recommendation.
Recommendation 3
The Standing Committee on Economic Development and Environment recommends that the Government of the Northwest Territories undertake a comprehensive review of oil and gas-related regulation with the expressed purpose to increase the cap for absolute liability.
I will now pass the reading on to the Member for Frame Lake . Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 25-18(3): Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act
Reports Of Standing And Special Committees
Page 5957
The Speaker
Jackson Lafferty
Masi. Member for Frame Lake .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 25-18(3): Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act
Reports Of Standing And Special Committees
Page 5957
Kevin O'Reilly
Frame Lake
Merci, Monsieur le President.
Significant Discovery Licences in Bill 36
Bill 36 establishes a term of 15 years for significant discovery licences (SDL) where previously exclusive rights to petroleum lands were granted for an indefinite time. Committee received submissions that questioned the 15-year term and were seeking answers on why this number was chosen. Considering term limits in other jurisdictions while taking into account the unique conditions of the Northwest Territories, committee believes that 15 years is a time limit that would allow industry to do work and still insert a time-bound requirement.
Several submissions accepted the 15-year term of SDLs, however expressed a preference for a set time limit on the renewal term for SDLs. Bill 36 provides the Minister with the discretion to make a decision that would have an SDL being considered for an extension. This discretion was seen by several stakeholders to be concerning for two reasons: first, placing the authority with the Minister allows the possibility of political interference in what should be a regulatory function; and secondly, the ability to indefinitely renew an SDL would allow companies to potentially hold territorial lands indefinitely.
Committee shares these concerns and believes that a licence renewal should be time-bound. Consequently, committee proposed in Motion 3 to amend the current wording and require that an extension of the term of a SDL licence is for one or more terms of 15 years.
Committee had intensive discussions on the mechanism of SDLs and whether it is the best approach to ensure that the Northwest Territories will benefit from oil and gas exploration. Making SDLs time-bound by setting a time limit on the term of licence and licence renewal was considered a positive step toward a more transparent and accountable system. However, to maximize benefits to the Northwest Territories, committee is suggesting a more comprehensive review of the SDL system, including consideration of models for oil and gas exploration in other jurisdictions.
Therefore, committee is making the following recommendation.
Recommendation 4
The Standing Committee on Economic Development and Environment recommends that, in phase two of the review of Northwest Territories oil and gas legislation, a comprehensive evaluation of options related to Significant Discovery Licences (SDLs) be conducted, providing alternatives for consideration, and table its findings during the 19 th Legislative Assembly. Committee further recommends that this report identify how the findings will inform any future changes to be made by the Government of the Northwest Territories with respect to its oil and gas resources.
Environmental Studies Management Board in Bill 36
Several submissions commented on the new provisions on the Environmental Studies Management Board (ESMB). Committee heard that the ESMB's public legitimacy would be improved by setting terms for the appointment of the members. Currently, members are appointed by the Minister and hold office during pleasure. Committee gave this suggestion consideration, however is not able to propose term requirements. The term of board members is determined under subsection 70(2) of the Petroleum Resources Act, and this subsection is not included for amendment. Therefore, a motion to set terms would be out of scope and not applicable.
Committee heard that, for the appointment of members to the ESMB, a clear definition of number of appointments by interest group should be provided in legislation. Stakeholders asked that public representation should be ensured. The definition of membership representation was seen as an improvement to the public legitimacy of the ESMB.
Committee agreed with the need for clarity on board membership and proposed an amendment that would ensure that at least one member from the public will be serving on the ESMB. To further ensure that the appointment of members from the public would allow for a balanced representation, committee moved Motion 4, which requires the Minister to appoint one member from the public for a board with the size of five or less members, and two members from the public for a board with six or more members.
Definition of Hydraulic Fracturing Fluid in Bill 36 and Bill 37
Committee received several submissions from Indigenous governments and organizations, as well as non-government organizations, asking for an addition to the definition of hydraulic fracturing fluid. Bills 36 and 37 propose a comprehensive definition for hydraulic fracturing, including the requirement that the cubic metre volume of water injected into a well be measured. In their submissions, some stakeholders proposed to include the requirement to collect data on volume of fluids recovered from wells.
Committee agreed that knowledge of the volume of fluids recovered is important to better understand how much fluid may be left underground. Committee therefore moved Motion 5 to Bill 36 and Motion 2 to Bill 37 to amend the definition of hydraulic fracturing fluid information to be collected and to include information on the fluid recovered from wells.
In the context of hydraulic fracturing in the Northwest Territories, committee members discussed initiatives of past Legislative Assemblies. It was noted that, during the 17 th Assembly, the Government of the Northwest Territories proposed to improve the regulatory framework by drafting new regulations. In its current mandate, the Government of the Northwest Territories committed to "ensure that residents have meaningful opportunities to participate in the assessment of potential benefits and risks associated with resource development, including hydraulic fracturing."
Committee is making the observation that the Government of the Northwest Territories has chosen to address mandate commitment 1.1.10 through the amendment of its oil and gas legislation and presentation of Bill 36 and Bill 37 .
Mr. Speaker, I would like to turn over the next part of the report to the honourable Member for Kam Lake . Mahsi.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 25-18(3): Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act
Reports Of Standing And Special Committees
Page 5958
The Speaker
Jackson Lafferty
Masi. Member for Kam Lake .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 25-18(3): Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act
Reports Of Standing And Special Committees
Page 5958
Kieron Testart
Kam Lake
Thank you, Mr. Speaker. Thank you, colleagues.
Public Hearings by the Regulator in Bill 37
Bill 37 proposes that the regulator be authorized to hold public hearings, however, leaves it to the discretion of the regulator to determine when a public hearing would be in the public interest. Committee members discussed regulatory practices in the Northwest Territories, where public hearings are obligatory. In resource development, thresholds are set, for example, for various types of water use and waste disposal, which determine when public hearings must be advertised and conducted.
Committee is of the view that the regulator should establish a threshold to identify when public hearings should be conducted. This would create consistency and certainty for applicants and other stakeholders as to when public hearings must take place. It would also allow consistency with other regulators and their approach.
Committee prepared a motion proposing that a subclause be added to require that the regulator issue and publish guidelines setting out the circumstances in which a public hearing must be held. The Minister did not concur on this motion.
Clause-by-Clause Review of Bills 36 and 37
The clause-by-clause review of the bill was held on August 2, 2019. The committee thanks the honourable Minister of Industry, Tourism and Investment, and members of his staff, for their appearance before the committee.
At this meeting, the committee moved six separate motions to amend Bill 36 , which were all concurred with by the Minister. Committee moved two separate motions to amend Bill 37 , and one found concurrence by the Minister.
Committee moved the following motions to amend Bill 36 :
Motion 1:
That clause 4 of Bill 36 be amended:
(
a) in proposed clause 18 by striking out
"must be published in the Northwest Territories Gazette and in any other publication the Minister considers appropriate" and substituting "must be published in a timely manner in the Northwest Territories Gazette and on a website maintained by the department responsible for the administration of this act"; and
(
b) in that portion of proposed clause 18.1 preceding paragraph (a), by striking out
"shall make publicly available" and substituting "shall publish, in a timely manner, on a website maintained by the department responsible for the administration of this act."
The motion was carried, and the Minister concurred. The bill will be amended accordingly.
Motion 2:
That clause 4 of Bill 36 be amended by adding the following after proposed clause 18.1:
8.2. A report prepared by the Minister under
section 98 shall include a list of
(
a) the notices published under
section 18; and
(
b) the information made available to the public under
section 18.1.
The motion was carried and the Minister concurred. The bill will be amended accordingly.
Motion 3:
That clause 9 of Bill 36 be amended in that portion of proposed subclause 32(4) preceding paragraph (a), by striking out "extend the term of a significant discovery licence if" and substituting "extend the term of a significant discovery licence, for one or more terms of 15 years, if."
The motion was carried, and the Minister concurred. The bill will be amended accordingly.
Motion 4:
That clause 14 of Bill 36 be amended by striking out subclause (5) and substituting the following:
(5) Notwithstanding subsections (2) to (4), if the number of members of the board is fixed
(
a) at five or less, the Minister shall appoint one member of the public to the board; or
(
b) at six or more, the Minister shall appoint two members of the public to the board.
The motion was carried, and the Minister concurred. The bill will be amended accordingly.
Motion 5:
That clause 16 of Bill 36 be amended in proposed subclause 91(1) in the proposed definition "hydraulic fracturing fluid information" by adding the following after paragraph (k):
(k.1) the total volume of fluid, in cubic metres, recovered from the well,
The motion was carried, and the Minister concurred. The bill will be amended accordingly.
Motion 6:
That clause 16 of Bill 36 be amended by adding the following after proposed subclause 91(9):
(9.1) A report prepared by the Minister under
section 98 shall include a list of the information made available to the public by the Minister under this section.
The motion was carried, and the Minister concurred. The bill will be amended accordingly.
Committee moved the following motions to amend Bill 37 :
Motion 1:
That clause 5 of Bill 37 be amended by renumbering proposed clause 19.1 as subclause 19.1(1) and adding the following after that renumbered subclause:
(2) The regulator shall issue and publish guidelines setting out the circumstances in which a public hearing must be held.
The motion was carried by committee. The Minister did not concur. Not carried.
Motion 2:
That clause 7 of Bill 37 be amended in proposed subclause 22(1) in the proposed definition "hydraulic fracturing fluid information" by adding the following after paragraph (k):
(k.1) the total volume of fluid, in cubic metres, recovered from the well,
The motion was carried, and the Minister concurred. The bill will be amended accordingly.
Now I will turn the reading of this report over to the honourable Member for Yellowknife North . Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 25-18(3): Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act
Reports Of Standing And Special Committees
Page 5960
The Speaker
Jackson Lafferty
Masi. Member for Yellowknife North .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 25-18(3): Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act
Reports Of Standing And Special Committees
Page 5960
Cory Vanthuyne
Yellowknife North
Thank you, Mr. Speaker.
Conclusion
The committee commends the Minister for his willingness to work with committee to further amend Bill 36 and Bill 37 in response to public interest and to work collaboratively with committee on the amendments.
The committee thanks all those who took the time to appear before committee to share their thoughts on this legislation.
Following the clause-by-clause review, motions were carried to report Bill 36,
An Act to Amend the Petroleum Resources Act , and Bill 37,
An Act to Amend the Oil and Gas Operations Act , as amended and reprinted, as ready for consideration in Committee of the Whole.
Rule 100(5) of the Rules of the Legislative Assembly of the Northwest Territories requires Cabinet, in response to a motion by committee, to table a comprehensive response that addresses the committee report and any related motions adopted by the House. As required by this rule, committee usually includes a recommendation in each report, which is moved as a motion in the House, requesting a response from government within 120 days. Given that the 18 th Legislative Assembly will dissolve prior to the conclusion of the 120-day time period allowed by the rules, committee has opted to forego this recommendation.
Committee nonetheless requests, to the extent that it is possible before the dissolution of the 18 th Assembly and for the public record, that government provide a response to this recommendation, even of a preliminary nature, that committee may publicly disclose.
This concludes the standing committee's review of Bills 36 and 37 . Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 25-18(3): Standing Committee on Economic Development and Environment Report on the Review of Bill 36:
An Act to Amend the Petroleum Resources Act and Bill 37:
An Act to Amend the Oil and Gas Operations Act
Reports Of Standing And Special Committees
Page 5960
The Speaker
Jackson Lafferty
Masi. Reports of standing and special committees. Member for Yellowknife North .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Motion to Receive Committee Report 25-18(3) and Move into Committee of the Whole, Carried
Reports Of Standing And Special Committees
Page 5960
Cory Vanthuyne
Yellowknife North
Thank you, Mr. Speaker. I seek unanimous consent to waive rule 100(4) and to have committee report 25-18(3), Standing Committee on Economic Development and Environment Report on the Review of Bill 36,
An Act to Amend the Petroleum Resources Act , and Bill 37,
An Act to Amend the Oil and Gas Operations Act , moved into Committee of the Whole for consideration later today. Thank you, Mr. Speaker.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Motion to Receive Committee Report 25-18(3) and Move into Committee of the Whole, Carried
Reports Of Standing And Special Committees
Page 5960
The Speaker
Jackson Lafferty
Masi. The Member is seeking unanimous consent to waive rule 100(4) to have Committee Report 25-18(3) moved into Committee of the Whole for consideration later today.
---Unanimous consent granted
Bill 36,
An Act to Amend the Petroleum Resources Act , and Bill 37,
An Act to Amend the Oil and Gas Operations Act is now moved into Committee of the Whole for consideration later today. Reports of standing and special committees. Member for Kam Lake .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 26-18(3): Report on the Review of the Carbon Tax Bills: Bill 42:
An Act to Amend the Petroleum Products Tax Act and Bill 43:
An Act to Amend the Income Tax Act
Reports Of Standing And Special Committees
Page 5960
Kieron Testart
Kam Lake
Thank you, Mr. Speaker. Your Standing Committee on Government Operations is pleased to present its Report on the Review of the Carbon Tax Bills, Bill 42,
An Act to Amend the Petroleum Products Tax Act , and Bill 43,
An Act to Amend the Income Tax Act , and commends it to the House.
INTRODUCTION
The Standing Committee on Government Operations ("the committee") is pleased to report on its review of Bill 42,
An Act to Amend the Petroleum Products Tax Act , and Bill 43,
An Act to Amend the Income Tax Act , collectively referred to as the carbon tax bills.
The carbon tax bills, sponsored by the Government of the Northwest Territories (GNWT) Department of Finance, were given second reading in the Legislative Assembly and referred to the Standing Committee on Government Operations for review on March 8, 2019. When passed, these bills will implement a carbon tax in the Northwest Territories.
Bill 42 proposes to amend the Petroleum Products Tax Act to:
Impose a carbon tax on petroleum products and natural gas;
Clarify that all existing provisions in the act related to the current fuel tax are noted as such;
Provide an exemption from the fuel tax for petroleum products delivered to or purchased by an Indian or Indian band on a reserve; or used by a designated municipal authority that is recognized by the Minister as representing a community;
Make the necessary amendments for collection and administration of this tax in the same manner as the current fuel tax, which requires purchasers to pay the tax, and vendors and collectors to remit the tax to the GNWT;
Allow the Minister to provide in regulations for rebates and grants;
Increase the maximum fines and penalties which may be imposed as administrative penalties or on
summary conviction; and
Set out a process for the appeal of an assessment of tax, interest, or administrative penalties under the act.
Bill 43 proposes to amend the Income Tax Act to provide a cost-of-living offset as a mechanism for returning carbon tax revenues to Northwest Territories residents.
Bill 43 also proposes to amend the Income Tax Act to make changes in non-refundable tax credits claimed by multi-jurisdictional tax filers, including changes that restrict the Northwest Territories pension credit to NWT residents and changes that allow full pension and dividend credits to be claimed by NWT residents with business income earned outside the Northwest Territories.
This amendment, which is not related to the implementation of the carbon tax, arises out of discussions between the Department of Finance and the Canada Revenue Agency aimed at harmonizing the provincial-territorial tax treatment of pension and dividend tax credits for multi-jurisdictional tax filers. It will have the effect of denying NWT pension credits to non-residents with business income earned in the NWT and allowing full pension and dividend tax credits to NWT residents with business income earned outside the NWT.
BACKGROUND
As a signatory to the Pan-Canadian Framework on Clean Growth and Climate Change, the GNWT made a commitment to implement carbon pricing in the Northwest Territories. This tax on fuels that emit greenhouse gases (GHGs) is intended to encourage residents and businesses in the Northwest Territories to reduce fuel consumption. Along with the provinces and other territories, the GNWT was given the option by the federal government to implement its own approach to carbon pricing, provided that approach is consistent with the federal approach.
For those jurisdictions choosing not to implement their own approach, Canada advised that it would impose its approach, often referred to as the "federal backstop." The GNWT opted to implement its own approach to carbon pricing, the details of which were publicly released in July 2018.
Lack of Meaningful Engagement with Committee
The GNWT communicated early and frequently with committee on this work as it progressed, including providing three presentations on the GNWT's proposed approach prior to its public release. The first of these took place in June 2017, prior to the public release of the GNWT's Discussion Paper on Implementing Pan-Canadian Carbon Pricing in the Northwest Territories.
During this time period, committee wrote twice to the Finance Minister raising concerns that the GNWT's approach did not set out options for public debate; the proposed 75 percent direct rebate for large emitters was too high; there was no rebate or special measures for small businesses; and the policy objectives of the carbon tax were not clearly articulated.
According to the GNWT's plain-language
summary of Bill 42 , the "federal government reviewed and approved the planned approach in September 2018, and Bill 42 and Bill 43 , which are needed to implement carbon pricing, were tabled in the NWT Legislative Assembly in March 2019." Committee was not advised that the federal government had "approved" the planned approach in September, which occurred while the committee was in the process of considering the legislative proposal for the carbon tax bills.
In November 2018, the committee again wrote to the government, advising that it does not support the proposal in its current form and reiterating its concerns that the 75-percent rebate for large emitters is too high and that there are no specific measures for small businesses. To this, committee added its concern that the rebates to individuals can only be claimed by filing taxes. Committee also expressed its concern that there was no indication from government as to whether or not the carbon tax legislation would mandate public reporting to enable transparency, increase public awareness of how the tax revenue is being used, and measure the impact of the carbon tax on emissions in the NWT.
While the GNWT was very forthcoming with respect to its discussions with the federal government on the GNWT's proposed approach, there was little actual engagement with committee to allow Regular Members to have input into the development of this approach. As noted, committee wrote several letters to the Minister raising committee's concerns with the proposed approach. In retrospect, committee does not feel that its input was given due consideration, nor was it made clear to committee that the information being shared was for information purposes only and that the input of Regular Members was not being sought.
Committee understands that the GNWT's proposed approach to carbon pricing in the Northwest Territories was negotiated with the federal government, leaving little room for input from Regular Members once that process had commenced. The lesson here, from the committee's perspective, is that earlier engagement of Regular Members, including engagement on the discussion of whether or not the GNWT should pursue its own approach, should have taken place.
This would have afforded Members the opportunity to debate issues such as the relative merits of differing policy approaches to reducing greenhouse gas emissions, such as a cap-and-trade system versus a carbon tax. It would have also allowed for dialogue about lessons learned from other jurisdictions such as British Columbia, which has had a carbon tax in place since 2008 and where the Minister is required to present annual plans to the provincial legislature setting out the amount of tax revenue anticipated.
Bills 42 and 43 were introduced in the Legislative Assembly, given first and second reading, and referred to committee for review on March 8, 2019.
Now, Mr. Speaker, I will turn the reading of this report over to the honourable Member for Sahtu .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 26-18(3): Report on the Review of the Carbon Tax Bills: Bill 42:
An Act to Amend the Petroleum Products Tax Act and Bill 43:
An Act to Amend the Income Tax Act
Reports Of Standing And Special Committees
Page 5962
The Speaker
Jackson Lafferty
Masi. Member for Sahtu .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 26-18(3): Report on the Review of the Carbon Tax Bills: Bill 42:
An Act to Amend the Petroleum Products Tax Act and Bill 43:
An Act to Amend the Income Tax Act
Reports Of Standing And Special Committees
Page 5962
Daniel McNeely
Sahtu
Thank you, Mr. Speaker.
The Public Review of Bills 42 and 43
Timing of Review
Rule 75(1) of the Rules of the Legislative Assembly provides that a bill referred to a standing committee "shall not be proceeded with until the Assembly receives the report of the committee or 120 calendar days pass from the day the bill was given second reading." Convention provides that, should the 120-day period expire while the House is not sitting, committee must report the bill on the first day of the next sitting of the Legislative Assembly.
On June 5, 2019, the Finance Minister made a statement in the Legislative Assembly advising that the GNWT now intended to implement a carbon tax in the Northwest Territories on September 1, 2019. This statement, which appeared to be directed at the federal government, suggested that there was a delay in the legislative process and that "this delay was unintended and in no way should be considered as a lowering of the government's commitment to implementing the NWT carbon tax."
Given that the 120-day period allowed for the review of Bills 42 and 43 expired well after the spring sitting of the Legislative Assembly, committee is of the view that it has been required, from the outset, to report the bills on August 12, 2019, the first day of the final sitting of the 18 th Legislative Assembly, regardless of the GNWT's planned July 1, 2019 carbon tax implementation date. While it is perhaps moot at this point in the terms of the 18 th Assembly, committee nonetheless encourages Cabinet Ministers to keep in mind the time allowed by the rules for standing committee review of bills when planning its legislative calendar.
Challenges in Comparing Options
Before commencing its review of Bills 42 and 43 , committee undertook to analyze and compare the GNWT's approach with the federal backstop, which is based on Canada's output based pricing system. This system establishes emission intensity standards for various large industrial sectors based on average emissions per unit of output.
Committee found it challenging to assess the salient differences between the two approaches. While Finance provided ample material regarding the GNWT's proposed approach, the key features of the federal backstop were more difficult to ascertain. For example, Finance provided committee with a figure indicating the estimated "effective carbon tax" for small emitters under the GNWT's approach, which is the average carbon tax per tonne of emissions. Committee asked both Finance and Environment and Climate Change Canada for the corresponding figure under the federal backstop.
Committee also requested information on the annual net carbon tax revenues deriving from small emitters under the federal output based pricing system.
Mr. Speaker, I pass the rest of the reading on to the Member from the Deh Cho . Thank you.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 26-18(3): Report on the Review of the Carbon Tax Bills: Bill 42:
An Act to Amend the Petroleum Products Tax Act and Bill 43:
An Act to Amend the Income Tax Act
Reports Of Standing And Special Committees
Page 5963
The Speaker
Jackson Lafferty
Masi. Member for Deh Cho .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 26-18(3): Report on the Review of the Carbon Tax Bills: Bill 42:
An Act to Amend the Petroleum Products Tax Act and Bill 43:
An Act to Amend the Income Tax Act
Reports Of Standing And Special Committees
Page 5963
Michael Nadli
Deh Cho
Mahsi, Mr. Speaker.
Confidential Information and Nature of the Bills Inhibited Public Consultation
Committee originally planned to hold public meetings in Fort Providence, Hay River, Inuvik, and Yellowknife. However, on May 8 th of this year, two thirds of the way through the formal 120-day review period, committee was notified in writing by the Finance Minister that the GNWT had revised its carbon tax approach for large emitters, those emitting 50,000 tonnes or greater of annual greenhouse gas emissions. This was of concern to committee, which already felt that the GNWT's proposed approach to large emitters was too generous.
Committee was advised that this adjustment was necessary to better align the GNWT's approach with the federal backstop, details of which were only released by Canada in December 2018.
Committee had hoped that additional information about this change in approach would be made public by the Minister during the May-June sitting, including details provided in confidence to committee. When this information was not shared with the public, committee subsequently issued a news release on June 7 th advising of its decision to postpone the planned public consultations until more information was provided by the Department of Finance.
Committee asked that as much detail as possible related to the committee's specific questions be shared with the public. Unfortunately, as with much of the other information shared by Finance with committee, the responses to these questions were marked "Confidential - Not for Distribution." This is particularly vexing with respect to Bills 42 and 43 , where the majority of the GNWT's proposal is not contained in the legislation itself but in regulations and other public policy instruments.
Committee is not at liberty to disclose information provided in confidence by Cabinet Ministers. Unfortunately, the large majority of the correspondence received by committee from the Finance Minister on this initiative, including responses to committee's questions, was marked confidential, thereby prohibiting committee from publicly disclosing its contents. This also inhibited committee's ability to engage in a meaningful consultation. For example, committee's inability to disclose the information contained in Finance's May 8 letter rendered committee unable to explain to the public, even with the writing of this report, how the GNWT's approach to large emitters has changed.
Plain-Language Summaries Provided
Committee wrote to the Minister requesting plain-language explanations of Bills 42 and 43 that could be shared with the public.
Committee wishes to take this opportunity to thank the Minister for responding positively to the committee's request by preparing plain-language summaries of both bills that could be shared with the public. It is committee's experience, based on consultations undertaken over the course of the 18 th Assembly, that simple, straight-forward information for NWT residents outlining the purposes of changes to the law and the impact of those changes is vital to obtaining meaningful input from the public.
Too often, committee finds itself having to explain government-sponsored bills, leading to confusion about the role of standing committees and the legislative process. Accordingly, committee makes the following recommendation.
Recommendation 1
The Standing Committee on Government Operations recommends that, for all bills proposing to establish, replace, or make significant changes to territorial legislation, a plain-language
summary be prepared and made available to the appropriate standing committee at the time the bill is introduced in the Legislative Assembly.
Committee sent out a second news release on July 15 th , indicating that it still lacked sufficient detail to enable committee to adequately answer questions from the public on these Finance-sponsored bills. This consideration, along with timing constraints, led committee to the decision to request written submissions from the public and hold a single public meeting in Yellowknife on August 1 st .
Mr. Speaker, I now pass on the reading responsibilities to my honourable colleague, to my colleague for Hay River North.
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 26-18(3): Report on the Review of the Carbon Tax Bills: Bill 42:
An Act to Amend the Petroleum Products Tax Act and Bill 43:
An Act to Amend the Income Tax Act
Reports Of Standing And Special Committees
Page 5964
The Speaker
Jackson Lafferty
Masi. Member for Hay River North .
Please select the issue you noticed * :
Misattribution
Formatting
Missing Words
Other
If Other, please indicate the problem: (Optional)
Submit
Thanks!
We'll take a look into it.
Sorry!
There was a problem with your submission. Please try again later.
Copy Copied
Committee Report 26-18(3): Report on the Review of the Carbon Tax Bills: Bill 42:
An Act to Amend the Petroleum Products Tax Act and Bill 43:
An Act to Amend the Income Tax Act
Reports Of Standing And Special Committees
Page 5964
R.J. Simpson
Hay River North
Thank you, Mr. Speaker.
PUBLIC INPUT AND COMMITTEE RECOMMENDATIONS
Committee received four submissions on Bills 42 and 43 . These submissions from the NWT Association of Communities (NWTAC), the City of Yellowknife, Arctic Energy Alliance, and a joint submission from Ecology North and Alternatives North are appended to this report. A representative of the NWTAC also attended committee's public hearing to present the association's submission.
While the submission from the NWTAC indicates general support for the GNWT's approach over the federal backstop, it points out that, without a cost-of-living offset, the carbon tax will end up costing municipalities. This is occurring at a time when the GNWT has acknowledged a significant gap between municipal funding needs and funding support received from the territorial government.
In fact, the NWTAC submission alleges that when this concern was raised with the Department of Finance, municipalities were advised that they would "just have to increase their property taxes." Committee is dismayed to hear such a report and feels that more should have been done in the GNWT's approach to mitigate the impacts of the carbon tax on underfunded local authorities. Accordingly, committee makes the following recommendation.
Recommendation 2
The Standing Committee on Government Operations recommends that the Government of the Northwest Territories, led by the Department of Municipal and Community Affairs, complete its work to assess the municipal funding gap on an urgent basis, taking into consideration the increased costs of the carbon tax to all local authorities, and that additional forced growth funding to compensate for these costs be included in the 2020-2021 budget.
The City of Yellowknife's submission also notes chronic underfunding by the GNWT and points out that, while the NWT houses 50 percent of the territories' population, none of the projects identified in the 2030 energy plan over the next five years are scheduled for Yellowknife. The city recommends making revenues available to community governments in order to support actions set out in their Community Energy Plans. Committee notes that the GNWT's Department of Infrastructure administers a GHG Grant Program for Government, which is designed to fill a gap in funding for larger GHG reduction initiatives.
Under this program, in place until March 31, 2022, applicants may be eligible to receive up to 75 percent of eligible project costs.
The City of Yellowknife's submission points out that "if the proposed carbon pricing regime does not accomplish a reduction in GHG emissions it has merely created an unnecessary administrative burden and cost to residents and businesses," recommending that "the GNWT re-evaluate the program after implementation to ensure that it is making a difference."
This recommendation for program evaluation is also contained in the joint submission from Ecology North and Alternatives North, which recommends that there should be "an annual reporting mechanism that evaluates and measures the effectiveness of the tax in meeting its purpose."
Committee fully agrees that there should be both annual reporting on the carbon tax and program evaluation to determine the effectiveness of reducing GHG emissions in the Northwest Territories and to guide future policy decisions. Committee raised these issues during its in-camera discussions with and correspondence to the Department of Finance.
Committee also sought the advice of the law clerk regarding the potential to amend Bill 42 to include reporting requirements. Committee was advised that such an amendment would likely be ruled out of the scope of the bill given that there are no provisions currently contained in the Petroleum Products Tax Act mandating reporting and that the scope of the bill is narrowly defined to allow for the imposition of the tax and the provision of grants and rebates through regulation.
During the clause-by-clause review of Bills 42 and 43 , the Minister indicated that he had made a commitment to committee that the department would undertake annual reporting on the carbon tax. While committee is pleased to hear this, a commitment made during an in-camera discussion did not carry the weight of a public commitment. Therefore, to provide for this public commitment, committee makes the following recommendation.
Recommendation 3
The Standing Committee on Government Operations recommends that the Department of Finance table an annual report in the Legislative Assembly on the carbon tax that provides details on total carbon taxes collected; carbon taxes collected from large emitters; total rebates provided; number and nature of grants provided; costs of administering the carbon tax; reinvestment of carbon tax revenues; projected tax revenues for coming year; and an annual plan for future year reinvestment of carbon tax revenues.
With respect to program evaluation, committee makes the following recommendation.
Recommendation 4
The Standing Committee on Government Operations recommends that the Department of Finance undertake an annual assessment of the impacts of the carbon tax on greenhouse gas emissions in the Northwest Territories to be reported in the annual report. This should be integrated with the reporting on GHG emissions under the Climate Change Strategic Framework and energy projects under the Energy Strategy. This will allow an evaluation of whether the carbon tax is effective in reducing GHG emissions.
Recommendation 5
The standing committee further recom