Premier Bob McLeod – Sessional Statement

Ministers' Statements and Speeches

Mr. Speaker. I would like to welcome all Members back for the resumption of the Fifth Session of the 17th Legislative Assembly.

Last month, Mr. Speaker, the Government of the Northwest Territories announced that it would cover the expected $20 million dollars in increased operating costs that the Northwest Territories Power Corporation faces due to extremely low water levels in the Snare Hydro System.

Our government took this extraordinary step because we are serious about addressing the high cost of living people in the Northwest Territories face. Without this decision, the added cost of using diesel to supplement hydro generation on the Snare system would have been paid by electricity users in every community of the Northwest Territories.

As an Assembly, we share a vision of a strong, environmentally sustainable and prosperous Northwest Territories that provides opportunities for all its residents. Making the Northwest Territories an attractive place to live, work and do business is an essential part of achieving that vision. We cannot achieve that unless we address the high cost of living, and doing business, in our communities. Energy is one of the biggest components of that cost and we have to do what we can to make it more affordable.

But we have to be clear, Mr. Speaker, that subsidizing consumers by taking on the additional costs of generating and distributing energy is not an effective, or affordable, long-term solution. If we really want to address the high costs of energy in the Northwest Territories, we need to make fundamental changes to how we approach energy specifically and how we think, more generally, as a government.

Identifying and harnessing new ideas is why the Government of the Northwest Territories will be hosting a second Energy Charrette early next month. The first Energy Charrette brought a broad range of energy experts and stakeholders together, including representatives from communities and Aboriginal governments. Together they discussed a long-term energy future for the Northwest Territories that resulted in an Energy Action Plan and a Power System Plan released late last year.

While those documents set out a long-term energy vision for the Northwest Territories, it is clear from recent circumstances that we also need to identify some more immediate and less expensive actions for addressing the high costs of generating and distributing energy right now. Our communities and businesses need the relief and it will be critical to growing a strong, diversified economy.

A second Energy Charrette will give us the opportunity to identify those solutions, while accessing the input of stakeholders and good advice of energy experts. To help focus the discussion on finding practical solutions, we will be putting three questions forward:

  • Is there more that the Government of the Northwest Territories can do in the short term to help Northwest Territories residents and businesses cope with rising costs?
  •  Are there new projects, programs or technological solutions that could be effective in the immediate term?
  •  What should be the approach to transforming our energy systems to ensure they are affordable and sustainable in the long-term?

This Charrette will look at generation options, rather than the large-scale transmission projects that emerged from the last one. We need to find ways to meet our energy needs closer to home, making better use of alternative energies like wind, biomass and solar. With ongoing advances in alternative energy technology, small-scale generation projects in communities, and even homes, are an affordable and feasible way we can help meet some of the demand, particularly in the North Slave where our current systems are at full capacity.

We need to do things differently, and the Charrette will give us an opportunity to make a start in an area that is of great concern to all Northerners.

Mr. Speaker, energy is not the only area where the Government of the Northwest Territories needs to be doing things differently. We continue to face challenges that limit the choices we can make as an Assembly and hamper our ability to create the prosperous future we want for our residents. Even with devolution, the unpredictability of resource revenues will always affect our fiscal plans. Climate change will continue to affect our infrastructure and create challenges like longer fire seasons and low water levels at hydro facilities, placing more demands on our budgets and our people. Personal challenges like irregular school attendance leading to low educational attainment levels and mental health and addictions will continue to hold our people back.

We will only be able to realize our vision of a strong, sustainable and prosperous territory if we make some fundamental changes that free us from these external limits. We need to grow GDP and government revenues by transforming the territorial economy, creating something more diversified and less dependent on volatile resource revenues. We need to address the high costs of factors like energy that continue to be a drag on our economy and affect the standard of living of our residents. We need to effect social change that creates an environment our people can thrive and prosper in.

More money is not the answer. Increased flexibility in the form of a higher borrowing limit or more revenues would help address these challenges, but we cannot simply depend on finding more money that just may not be there. Increasingly, we need to realize that we will have to make managed and strategic investments calculated to make the fundamental changes we need for a successful future. At the same time, we need to maintain fiscal discipline, ensuring that we are not mortgaging our future at the same time as we are trying to transform it.

The growth and health of our economy depends on many factors. It depends on a skilled and educated workforce. It depends on competitive tax and royalty rates. It depends on affordable housing, energy and other costs that make it attractive for businesses to locate and stay here. It depends on vibrant, sustainable communities offering the kind of infrastructure and services residents and businesses need.

With so many factors in play, it is clear that we need to think creatively and broadly if we want to promote the kind of change in our economy that will create long-term, sustainable prosperity for our residents.

That is the kind of thinking that underlies our decisions to develop and implement an Economic Opportunities Strategy and Mineral Development Strategy. It informs our decision to make strategic investments in infrastructure like the Inuvik-Tuktoyaktuk Highway and Mackenzie Valley Fibre Optic Line that will help support economic growth and development. It is what is behind our decentralization initiative and our objective to grow the Northwest Territories population to help sustain economic growth in all communities and regions.

At the same time, we continue to actively seek partnerships, recognizing that economic development is broader than just the Government of the Northwest Territories alone. We are particularly interested in seeking the opportunities that might come from engaging with forums that link governments and businesses with a shared interest in sustainable economic development and prosperity in our region.

Examples include the Arctic Economic Council, recently established by Minister Leona Aglukkaq in her capacity as Chair of the Arctic Council, and PNWER, or the Pacific Northwest Economic Region. The Northwest Territories recently took over the Presidency of PNWER, giving us a unique platform for promoting the economic potential of our region to a broad range of business and political leaders from several US states and Canadian provinces and territories in the Pacific Northwest and to gain the benefit of their experience.

New thinking and new ways of doing things are not just being applied to the economy. Our government is also taking new approaches designed to promote the same kind of fundamental, positive changes for the territory and its residents in the areas of education and health and wellness.

If we want the people of this territory to live healthy, educated lives free from poverty, we cannot simply address symptoms, we have to address causes. We have to create change at a fundamental level that positions our residents for success and we have to do it early on.

That is why our government has introduced the Early Childhood Development Initiative, Mr. Speaker. We know that the right kind of support provided to children in the years before they are five will pay off exponentially with long term success in later years and reduce demands for more intensive and expensive interventions later.

The need to do things differently is also driving education renewal across the territory. We need to ensure our youth are prepared for the challenges of the future and ready to take advantage of the opportunities that a thriving economy will provide for them. Education renewal is working with our citizens to re-imagine the structure of the education system so it better reflects Northern realities and leads to improved student achievement.

Our government has also been talking about the need to make fundamental change to the Northwest Territories Health and Social Services System. We need to make sure that we are providing the best care possible to the residents of the Northwest Territories and that we are doing everything we can to encourage them to make healthy choices. We also need to make sure that we are using our resources wisely and that our system is as effective and efficient as it can be. We have been talking to people around the territory, outlining our vision for an improved and integrated system that will help ensure best health, best care, for a better future.

Our government has also been pleased to support the establishment of a Wellness Court by the Territorial Court of the Northwest Territories. This alternative to conventional court has been created to help offenders deal with the underlying mental health, addictions and cognitive issues they struggle with. By addressing causes and contributing factors, we hope to create lasting change that will allow offenders lead healthier lives.

Mr. Speaker, these are just some examples of how the Government of the Northwest Territories is doing things differently to help create long-term social and economic prosperity for all the people of this territory. It is going to take sustained and focused effort to do things a different way, but it is what we have to do if we want to achieve this Assembly’s vision of a prosperous and sustainable territory with healthy, educated people and healthy environment. As we prepare for the remaining months of our term, I invite all Members of the Legislative Assembly to join with us in creating a better future for the people we serve.

Thank you, Mr. Speaker.