EdinburghNLP/nunavut-hansard-plusplus huggingface dataset:
Based on discussions with market experts, it is recommended that the Government of Nunavut consider a hedging strategy to manage the price volatile risks during the hurricane season, which is a purchase period for the fuel use supply.
Before the Government of Nunavut can proceed to use financial instruments to hedge purchases, amendments to the Financial Administration Act are required.
I would be pleased to answer any questions that committee members may have.
I would like to ask you if you have witnesses you would like to bring to the table.
Chairman: Thank you. (interpretation) Sergeant at Arms, can you escort the witnesses to the table?
(interpretation ends) Before we introduce the witnesses, I would like to let members know that Bill 21 has a red sticker for you to keep track on this bill. Mr. Minister, now I ask you to introduce your witnesses.
On my right is Pauloosie Suvega, Assistant Deputy Minister of Finance, and on my left Mr. Green, also with the Department of Finance.
Mr. Tootoo: Thank you, Mr. Chairman. The Standing Committee on Government
Operations and Accountability has reviewed Bill 21, An Act to Amend the Financial  Administration Act #2, with the minister and his officials.
The standing committee recognizes that the issue of energy prices is a challenging one. For some time, members have urged the government to explore innovative ways of addressing this issue, and this bill would allow the Government of Nunavut to use financial hedging instruments to purchase fuel, which could result in cost savings for the government and so on to the consumers.
The standing committee recognizes that there is a degree of risk involved in this approach. During the minister’s appearance before the standing committee, members posed questions on the status of the development of the government’s new risk management policy in this area.
Members were pleased to receive a commitment from the minister that this policy, as well as the government’s new Investment Policy will be tabled here in the Legislative Assembly.
The standing committee would also recommend that the government report annually to the Legislative Assembly on results of its activities in these areas.
The standing committee recommends passage of this bill. We wish to push it over the hedge.
Before we proceed, I would like to remind members again about the following: according to Rule 77(1), you have 10 minutes to speak, and according to Rule 77(2), subject to the discretion of the Chair, a member may speak more than once to a matter under discussion but not until every member wishing to speak has spoken.
This is more of statement.
As well, if the minister wants to answer it; in his opening remarks, to the committee as well as the standing committee, the minister mentioned volatility risks during the hurricane season.
I believe we are...I think there are volatility risks not only for hurricane season. As we know they packed it on.
Maybe the minister can clarify that as well because the results of volatility that are current the respective Middle East situation. I would think that the price of oil would tend to impact it as well.
So, maybe for the record, the minister may want to include that possibility.
Hon. David Simailak: Thank you, Mr. Chairman. Yes, we can certainly include that as another risk factor.
Are there any more general comments from the members?
I think we can proceed to go clause by clause.
We’ll start off with Bill 21, (interpretation ends) An Act to Amend the Financial Administration Act #2.
Mr. Peterson: Thank you, Mr. Chairman, and I welcome the minister and his officials to the witness desk. I would just like to ask the minister if he or one of his officials for the record could provide a clear definition of what hedging entails for the readers of the Hansard.
Mr. Green can give a clear definition.
Basically, I’ll summarize the increments that are Section 3. Basically those are different types of financial interests that you can buy through broker’s firms or financial agencies. And, those types of instruments are used to...each commodity purchase such as fuel, gold, and many other different commodities, so, they’re basically just financial instruments that you can use to offset any increase in some of those types of commodities.
Can the minister or Mr. Green explain how the use of hedging will help us save money on an annual basis?
In terms of the ancient strategies, normally what most...(inaudible)...they can do that. In times when the fuel prices are very volatile and it is a strong indication that the price of fuel would increase over time or even during our current raises by season.
If there is a major disaster on land that results from a hurricane, there tends to be spikes in the fuel prices.
In basically what the financial instruments are doing is they try to buy a few other things that commit to buying fuel at a certain...and those financial instruments are used to try and stabilize the price of fuel during those periods.
A lot of people would think that there is a considerable risk associated with hedging.
My question is why the Government of Nunavut is proposing this.
Could you, for the record, give us an outline of the amount of risk associated with hedging policy to purchase fuels?
As part of the development for the Risk Management Strategy Policy, that is one of the key areas that we would certainly be looking at in terms of when we develop the policies; try to identify the risks to the Government of Nunavut if we were to run into such policies.
We have been provided with a proposal for Risk Management Policy from that consulting group. We received a proposal late yesterday afternoon. We have not had an opportunity yet to sit down and evaluate the costs of that to recommend what they are proposing.
At the same time, we have not had an opportunity to identify the risks, but as part of the Risk Management Policy that will be developed in the Government of Nunavut and approved by both the Financial Management Board and the Cabinet.
We will certainly have those risks identified. So at this point in time, I mean from the information that I am told from those consultant firms, the risks to the Government of Nunavut at this point in time would be if we were to go out and we anticipate the increase in fuel costs because the increase includes all the prices in the markets, and is the price of fuel were to drop there would be a cost incurred by the Government of Nunavut in that regard.
At this point in time, all I can is that we have not...(inaudible)...of all the risks and identified them, but it will be part of the...(inaudible)...Thank you, Mr. Chairman.
I thank the minister and Mr. Green for that answer.
I guess the opposite of that is if he went out and bought fuel of barrel of oil at $70, I think that is the current price, and lock that price in, and then if fuel increase to $80 a barrel over the next year, then you are saving money.
The downside is if it drops from $70 down to $60. There is that risk. But there is the opposite, if you go lock in $70 and go to $80.
I do not think there was a question.
The very same committee review of this particular bill the minister and your officials indicated that, as Mr. Green indicated earlier that you are working on the policy guidelines for this particular legislation.
My question is: can you assure this House that any mechanism or using this particular vehicle will not occur until the Cabinet has fully approved the quality guidelines? Can I get some assurance on that, please?
Yes, any policy would have to be approved by both Cabinet and FMB before its put into use.
Mr. Curley: Yes, I believe that this is a very complex kind of guideline that will be considered by the minister and the Cabinet. Having said that, could the minister assure this House that once the guidelines have been approved by the Cabinet that you will table the policy guidelines to the House?
Yes, I will commit to doing that.
I have a further question. The bill does not contain a provision for making regulations.
I am wondering whether or not the policy guideline, itself, will be the only instrument that you will be using, as we don’t see any regulation mechanism in this bill.
Can the minister explain exactly why the regulation procedure is not particularly enabled in this particular bill?
What we wanted to begin first because of the time involved to develop a mechanism and determine all the regulations.
Basically, what we did our first objective was to try to get the Financial Administration Act revised first to allow for us to proceed with the necessary regulation and development policy, which we would then seek Cabinet and FMB approval.
Chairman: Thank you, Mr. Green. Mr. Curley.
My colleague from Cambridge Bay quite clearly stated the complexity of this tool.
I also would like to ask the minister and his officials that hedging is required will have this particular provision that we’re not putting our eggs in one basket, as you would hedge 100 percent.
I would assume the policy will say that the hedging, if need be, could perhaps will have some flexibility that you use either the percentage of the requirements of financing into the tool in order to also lower the risk that the public is being asked to do.
Could I get some indication of that from you and your officials, please?
Hon. David Simailak: Thank you, Mr. Chairman. Yes, that’s entirely correct. We will not be hedging a total of 100 percent.
If you want purchases all of the time it could be a percentage.
It depends on where the markets are at, at any given time.
Are there any further questions on Clause 3?
(interpretation ends) Bill 21, An Act to Amend the Financial Administration Act #2.
Chairman: Does the committee agree to Bill 21 as a whole?
Are you agreed Bill 21 is ready for third reading?
Chairman: Thank you. (interpretation) Mr. Minister, you can go back to your chair, and I would also like to thank your officials.
(interpretation ends) I would like to ask the Minister responsible for Justice to make his opening remarks.
Bill 22 – Settlement of International Investment Disputes Act – Consideration in Committee
Hon. Paul Okalik (interpretation): Thank you, Mr. Chairman and colleagues. (interpretation ends) I am pleased to appear before the Committee of the Whole to speak about the proposed Settlement of International Investment Disputes Act.
This bill was a Canadian International Investment Transactions and Economic Development by authorizing the Nunavut Court of Justice to recognize and enforce arbitration outcomes made under the Convention on the Settlement of Investment Disputes between states and nationals of other states of 1965.
The convention provides for a specialized kind of arbitration for disputes between participating countries and direct foreign investors. After the provinces and territories have all enacted implementing the legislation, Canada will be in a position to ratify and to pursue dispute resolution under the convention.
The convention has proved effective in providing a trustworthy means of resolving disputes between a foreign investor and a host country, and the number of cases submitted to arbitration has increased significantly in recent years.
Increasing Canadian cross board investment flow will make the convention even more valuable in the years to come.
Canada recognizes the value of the convention and wishes to sign.
The convention would be particularly beneficial to investors in resolving investment disputes in which they might become involved in any of the countries that are members of the convention or are signatories of the convention.
By passing this legislation we are working towards being innovative and resourceful in seeking solutions and are thereby acting in the spirit of Qanuqatigiiniq.
That concludes my opening remarks. I’ll be happy to answer questions that my colleagues may have in Committee of the Whole.
Do you have witnesses you would like to bring to the table?
Chairman: Do you agree to bring in the witnesses?
Chairman (interpretation): Sergeant-at-Arms, if you would escort the witnesses to the witness table.
(interpretation ends) Before we proceed, I would like to remind members that in your white binder (interpretation) it has a blue tab on it that will be Bill 22.
(interpretation ends) Mr. Okalik, please introduce your witnesses.
Hon. Paul Okalik (interpretation): At the witness table I have on my right my Deputy Minister Markus Webber, and on my left is our Legal Advisor Susan Hine.
Chairman: Does the chair of the standing committee have comments?
The Standing Committee Ajauqtiit has reviewed Bill 22, Settlement of International Investment Disputes Act, with the sponsoring minister and his officials.
The convention provides for a specialized kind of arbitration for disputes between participating countries and direct foreign investors.
The standing committee understands that if Nunavut passes this bill, Nunavut will be one of the places that will be able to enforce any decisions resulting from this dispute mechanism.
The standing committee understands that the provinces and territories are in the process of enacting implementing legislation. We look forward to future updates on this issue.
Before we proceed I’d like to remind the members again of the following.
We will proceed clause by clause in the reading of Bill 22, the Settlement of International Investment Dispute Act. Bill 22, the Settlement of International Investment Dispute Act.
I welcome the minister and his witnesses to the witness table.
Just to clarify in my mind. All the provinces and territories in Canada have to first enact legislation and then the Government of Canada would be in the position to ratify it and then we are participants in this convention.
As our Constitution provides the provinces and territories with the ability to deal with property, the provinces and the federal government have asked the territories to ratify this agreement so they could have the authority to sign under our Constitution.
So that’s what we’ve been asked to take part and ratify this convention so that the federal government can sign on behalf of Canada.
Out of the 13 provinces and territories in Canada, how many other provinces and territories currently have enacted legislation?
From what I understand two have ratified officially, and the other provinces and territories are in the process of introducing or passing, implementing legislation.
I don’t know if you will be able to answer this, but on a global basis, how many participating countries are there in this convention.
Hon. Paul Okalik: Thank you, Mr. Chairman. 140.
Going back to Bill 22, Settlement of International Investment Disputes Act.
Chairman: Do members agree that Bill 22 is ready for third reading?
Chairman: Thank you. Mr. Minister, I would like to thank you for making an appearance, and also your officials.
You can return to your seat.
I would like to ask the committee; what is the wish of the committee?
Hon. Leona Aglukkaq: I would like to report progress.
Your committee has been considering Bill 15, 19, 21, and 22. We would like to report that Bill 15, 19, 21, and 22 are immediately ready for third reading.
Thank you. Mr. Evyagotailak is the seconder to the motion.
(interpretation ends) Item 20.
Report of the Committee of the Whole. (interpretation) Please get it over with.
Thank you. (interpretation ends) Item 21.
Bill 20 – Miscellaneous Statutes Amendment Act, 2006 – Third Reading
I move, seconded by the Member for Amittuq, that Bill 20, the Miscellaneous Statutes Amendment Act 2006, be read for the third time.
The motion is carried and Bill 20 has had its third reading.
Bill 11 – An Act to Amend the Fire Prevention Act – Third Reading
I move, seconded by the Honourable Member for Nattilik that Bill 11, An Act to Amend the Fire Prevention Act, be read for the third time.
Bill 07 – An Act to Amend the Liquor Act – Third Reading
I move, seconded by the Honourable Member for Nattilik, that Bill 7, An Act to Amend the Liquor Act, be read for the third time.
Third Reading of Bills. (interpretation) Item 22.
Orders of the Day. (interpretation ends) Mr. Clerk.
A reminder of meetings for tomorrow, at half past eight the Standing Committee on Infrastructure, Housing, and Economic Development in the Nanuq Boardroom, followed by a meeting of the Regular Caucus at half past ten with the Minister of Finance in the Tuktu Boardroom.
Orders of the Day for June 15:
Motion 19 – 2(3)
This House stands adjourned until June 15, 2006 at 1:30.
>>House adjourned at 17:43
Thursday, June 15, 2006
Pages 2108 – 2188
Opening Prayer 2108
Ministers’ Statements 2108
Members’ Statements 2112
Recognition of Visitors in the Gallery 2118
Oral Questions 2119
Tabling of Documents 2139
Notices of Motions 2140
Motions 2141
Consideration in Committee of the Whole of Bills and Other Matters 2141
Report of the Committee of the Whole 2183
Third Reading of Bills 2184
Revert to Item 5: Recognition of Visitors in the Gallery 2185
Third Reading of Bills 2186
Assent to Bills 2186
Orders of the Day 2186
Thursday, June 15, 2006 2108
108 – 2(3): Workers’ Compensation Board Annual Report 2005 (Netser) 2108
109 – 2(3): Additional Support for Seniors and Disabled Homeowners (Akesuk) 2109
110 – 2(3): Congratulations to New RN Graduates (Aglukkaq) 2109
111 – 2(3): Master of Education Program for Nunavut (Picco) 2110
112 – 2(3): Progress at the Baffin Regional Hospital (Aglukkaq) 2110
268 – 2(3): Thank You to Dr. Mitchell Taylor (Alagalak) 2112
269 – 2(3): Cambridge Bay Grade 12 Graduates (Peterson) 2112
270 – 2(3): Flight Incident from Resolute Bay to Arctic Bay (Barnabas) 2113
271 – 2(3): Acknowledgement of Two Pages (Mapsalak) 2114
272 – 2(3): Senior and Disabled Homeowners (Curley) 2114
273 – 2(3): Weather Station Re-opens (Picco) 2115
274 – 2(3): Acknowledgement of Search and Rescue Volunteers (Evyagotailak) 2116
275 – 2(3): Grade Five Graduation (Tootoo) 2116
276 – 2(3): Thanks to Members on Close Working Relations (Okalik) 2117
318 – 2(3): Update on the Seniors’ Fuel Subsidy (Peterson) 2120
319 – 2(3): Update on Additional Rate Increase (Curley) 2121
320 – 2(3): Flight Transportation Assistance to Attend Funerals (Barnabas) 2125
321 – 2(3): Budget Situation for Nunavut (Tootoo) 2127
322 – 2(3): Status of Nunavut’s Film Industry (Barnabas) 2129
323 – 2(3): Update on Meeting with Minister Prentice (Peterson) 2130
324 – 2(3): Investigation Report on Employees (Tootoo) 2132
325 – 2(3): Polar Bear Cannibalism (Curley) 2133
326 – 2(3): Prentice Report (Tootoo) 2134
327 – 2(3): Power Corporation Increase (Barnabas) 2136
328 – 2(3): Energy Consumption Increase (Tootoo) 2137
142 – 2(3): Isaksimagit Inuusirmi Katujjiqatigiit – Embrace for Life Council Annual Report 2004-05 (Aglukkaq) 2139
143 – 2(3): Director of Medical Insurance Annual Report for Fiscal Years 2002-03, 2003-04, 2004-05 (Aglukkaq) 2140
144 – 2(3): Ministerial Meeting Report F/P/T Ministers of Health from Department of Health and Social Services (Aglukkaq) 2140
145 – 2(3): Workers’ Compensation Board of the Northwest Territories and Nunavut – 2005 Annual Report (Netser) 2140
146 – 2(3): Towards a Representative Public Service – Statistics as of March 31, 2006 (Tapardjuk) 2140
020 – 2(3): Improve Air Service to Nunavut’s Smaller Communities – Notice 2140
019 – 2(3): Extended Adjournment (Peterson) 2141
Bill 17 – Supplementary Appropriation (Capital) Act #1, 2006-07 – Consideration in Committee 2142
Bill 15 – An Act to Amend the Senior Citizens and Disabled Persons Property Tax Relief Act – Third Reading 2184
Bill 22 – Settlement of International Investment Disputes Act – Third Reading 2184
Bill 17 – Supplementary Appropriation (Capital) Act #1, 2006-07 – Third Reading 2184
Bill 19 – An Act to Amend the Revolving Funds Act – Third Reading 2185
Bill 18 – Supplementary Appropriation (Operations & Maintenance) Act #1, 2006-07 – Third Reading 2185
Bill 21 – An Act to Amend the Financial Administration Act #2 – Third Reading 2185
Bill 07 – An Act to Amend the Liquor Act – Assent 2186
Bill 11 – An Act to Amend the Fire Prevention Act – Assent 2186
Bill 15 – An Act to Amend the Senior Citizens and Disabled Persons Property Tax Relief Act – Assent 2186
Bill 17 – Supplementary Appropriation (Capital) Act #1, 2006-07 – Assent 2186
Bill 18 – Supplementary Appropriation (Operations & Maintenance) Act #1, 2006-07 – Assent 2186
Bill 19 – An Act to Amend the Revolving Funds Act – Assent 2186
Bill 20 – Miscellaneous Statutes Amendment Act, 2006 – Assent 2186
Bill 21 – An Act to Amend the Financial Administration Act #2 – Assent 2186
Bill 22 – Settlement of International Investment Disputes Act – Assent 2186
Honourable Leona Aglukkaq, Honourable Olayuk Akesuk, Mr. David Alagalak, Mr. James Arreak, Mr. Levi Barnabas, Honourable Levinia Brown, Mr. Tagak Curley, Mr. Joe Allan Evyagotailak, Honourable Peter Kilabuk, Mr. Steve Mapsalak, Mr. Patterk Netser, Honourable Paul Okalik, Mr. Keith Peterson, Honourable Edward Picco, Honourable David Simailak, Honourable Louis Tapardjuk, Mr. Hunter Tootoo.
Speaker (interpretation): Thank you, Mr. Alagalak. Good afternoon, Mr. Premier, Members of the Cabinet, and Regular Members.
I apologize; let’s check the interpreting equipment, please.
Minister’s Statement 108 – 2(3): Workers’ Compensation Board Annual Report 2005 (Netser)
Later today I will table the Workers’ Compensation Board of the Northwest Territories and Nunavut 2005 Annual Report.
I want to know one area of interest to the WCB stakeholders. A change in accounting rules and good stewardship of stakeholders money have resulted in the WCB being one of the best financed boards in Canada with assets totalling $295 million and liabilities of $211 million.
The WCB, Mr. Speaker, is funded to 128 percent. The WCB had investment gains totaling over $17 million in 2005. While gains and investments cannot be expected every year, I am happy to announce the WCB plans to lower assessment rate in 2007.
This is good news for northern employers.
In 2005 the cost of claims was lowered by approximately $1 million from that of 2004.
Although, reasons for reducing claims cost vary from year to year, a healthy return to work run by the WCB’s likely accounts for some of these reductions.
At an average of 43.6 days duration for time-loss accidents, the WCB of the Northwest Territories and Nunavut ranks as one of the top boards in Canada for these programs. Additionally, the WCB has reduced administration costs by $300,000.
I commend the WCB staff for a job well done.
Speaker: Thank you, Minister Netser.
Minister’s Statement 109 – 2(3): Additional Support for Seniors and Disabled Homeowners (Akesuk)
Good afternoon to my colleagues.
Mr. Speaker, I rise today to inform members of the Nunavut Housing Corporation’s continuing efforts to assist our homeowners, who are either seniors or have a disability or experiencing physical or financial difficulty as homeowners.
Mr. Speaker, in addition to providing these homeowners with yearly preventative maintenance service through the senior’s and disabled persons preventative maintenance program, the corporation will now offer counseling services and options for seniors and disabled persons who can no longer operate and maintain a private residence.
Mr. Speaker, program officers of the Nunavut Housing Corporation are available to assist these homeowners in making the most appropriate decision regarding their homes including moving back into public housing.
Mr. Speaker, if any of our constituents are seniors or disabled homeowners and are considering giving up their homes, I encourage you to contact the Nunavut Housing Corporation office in your district for this important assistance.
Minister’s Statement 110 – 2(3): Congratulations to New RN Graduates (Aglukkaq)
I would like to call on members to join me in offering our sincere congratulations to the five new graduates of the Bachelor of Science in nursing programs. Padlulaaq Ford-Kilpatrick, Rebecca Lonsdale, Andrea McCarty, and Susie Pearce are to be commended for their dedication to their studies.
Starting this September, they will be working in our health care system with guidance from a mentor and their colleagues.
Their studies are not yet over; they will all write the Canadian Registered Nurse exam in October.