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These changes have brought about improvements in the department’s operations and its ability to deliver on its mandate in business development, tourism, cultural industries, and community economic development.
Mr. Chairman, the department’s proposed main estimates and business plan for the 2011-12 fiscal year reflect the priorities spelled out in the Tamapta Action Plan as well as our commitment to developing Nunavut’s economy and maintaining and improving Nunavut’s transportation system.
Mr. Chairman, I welcome comments and questions from members.
Thank you. Qujannamiik.
Hon. Peter Taptuna: Yes, Mr. Chairman.
Minister Taptuna, for the record, please introduce your officials. Minister Taptuna.
On my right is Deputy Minister Bob Long and to my left is Assistant Deputy Minister for Transportation Methuselah Kunuk.
Chairman (interpretation): Thank you, Minister Taptuna. I welcome your officials, (interpretation ends) Deputy Minister Bob Long (interpretation) and Methuselah Kunuk, (interpretation ends) ADM. (interpretation) Chair of the standing committee, Mr. Rumbolt.
I am pleased to provide opening comments on behalf of the Standing Committee on Community and Economic Development on its review of the 2011-12 main estimates and 2011-14 business plan of the Department of Economic Development and Transportation.
The standing committee notes that the department’s proposed 2011-12 operations and maintenance budget of $58,355,000 has increased by approximately 9.5 percent since the introduction of the department’s 2010-11 main estimates.
The number of positions in the department is 135.
This is an increase of 5.0 PYs from its 2010-11 business plan.
Mr. Chairman, the department’s proposed 2011-14 business plan indicates that one of its 2011-12 priorities is to “Complete the second and third stages (regional roundtables and poverty summit) of public engagement and complete the Nunavut Poverty Reduction Action Plan.
Begin implementation of the Action Plan focusing on comprehensive community initiatives to address the effects of poverty on those most at risk.”
The department’s proposed 2010-11 main estimates had allocated $1,312,000 towards its Anti-Poverty Secretariat.
However, during the minister’s recent appearance before the standing committee, members were informed that $562,000 of this funding will be put towards the Government of Nunavut’s new Country Food Distribution Initiative.
The standing committee supports the GN’s new Country Food Distribution Initiative and looks forward to ongoing updates on the status of this new initiative.
While the standing committee is supportive of the government’s efforts to address poverty in Nunavut, members encourage the minister to look into alternate ways of drafting a strategy without an overreliance on the use of outside consultants.
Mr. Chairman, the Government of Nunavut’s most recent annual reports on departmental contracting, procurement and leasing activities were tabled in the Legislative Assembly on October 28 and 29 of 2010.
To date, these annual reports have not included information on the procurement, contracting and leasing activities of the government’s major Crown corporations and agencies, including the Nunavut Development Corporation and the Nunavut Business Credit Corporation. The standing committee strongly recommends that information concerning these Crown corporations’ activities also be tabled in the Legislative Assembly on an annual basis.
On October 29, 2010, the 2010-11 Ministerial Letters of Expectation to the GN’s five major Crown corporations and agencies were tabled in the Legislative Assembly by the Minister of Finance.
These letters instructed them to prepare annual reports on their contracting, procurement and leasing activities for tabling in the Legislative Assembly. During the minister’s recent appearance before the standing committee, members were informed that the annual reports for the Nunavut Development Corporation and the Nunavut Business Credit Corporation will be tabled.
The standing committee looks forward to their tabling and reviewing them in detail.
Mr. Chairman, the standing committee also notes with disappointment that neither the Nunavut Business Credit Corporation nor the Nunavut Development Corporation have provided business plans to the standing committee for its review since 2008-09.
The standing committee also urges the minister to table the 2011-14 business plans for the Nunavut Development Corporation and the Nunavut Business Credit Corporation in the House at the earliest opportunity.
The department’s proposed 2011-14 business plan indicates that “The review of the Policy on Program Partnerships will be complete by March 31, 2011 and will clarify the role of the Community Economic Development Officer.”
The standing committee looks forward to the minister providing the results of this review to the standing committee at the earliest opportunity.  The department’s proposed 2011-14 business plan also indicates that one of its 2012-13 priorities will be to “Initiate the preparation of a renewed Nunavut Economic Development Strategy, 2013-2023.”
Members look forward to receiving updates on the department’s progress on this issue.
The standing committee notes that the minister recently tabled the NNI Review Committee’s Summary of the 2008-2009 Comprehensive Review Report.
The standing committee looks forward to the minister tabling the complete version of the 2008-2009 Comprehensive Review Report of the NNI Policy in the Legislative Assembly and reviewing it in detail.
The standing committee also encourages the minister to clarify which, if any, of the report’s recommendations will be accepted by the government.
The standing committee also notes the 2008-2009 NNI Contracting Appeals Board Annual Report was not tabled in the Legislative Assembly until March 22 of 2010.
The standing committee urges the minister to table the annual reports of the Contracting Appeals Board in a timely manner.
The department’s proposed 2011-12 main estimates include $1,145,000 in funding for the new Country Food Distribution Initiative.
However, during the minister’s appearance before the standing committee, members were informed that $562,000 in funding that was allocated towards the Anti-Poverty Secretariat will be transferred to this new initiative.
The total budget for the Country Food Distribution Initiative will be $1,707,000 for the 2011-12 fiscal year. Members were pleased to see additional funding allocated towards this new initiative and look forward to ongoing updates on this initiative.
The department’s proposed 2011-12 main estimates include $1,050,000 in funding for Nunavut’s three business development centres.
The department’s 2010-13 business plan stated that “A working group, consisting of Business Development Centre and departmental staff has prepared an implementation plan and begun work on specific action items.”
During the minister’s recent appearance before the standing committee, members were informed that these action items were completed.
The department’s proposed main estimates for 2011-12 include $2.1 million in grants and contributions funding for the Tourism Development Program and the Nunavut Arts and Crafts Association.
The department’s proposed 2011-14 business plan indicates that one of its 2011-12 priorities will be to “Complete draft of a comprehensive Tourism Strategy for Nunavut.”
The business plan also indicates that one of its 2012-13 priorities will be to complete the Tourism Strategy with a cost implementation plan and “commence implementation, including development of tourism policies and programs.”
The standing committee also looks forward to the minister resuming the practice of tabling Nunavut Tourism’s annual reports, which have not been tabled since October 23, 2003, when the 2001-02 Nunavut Tourism annual report was tabled in the Legislative Assembly.
The department’s draft 2011-14 business plan indicates that two of its 2011-12 priorities will be to “Continue discussions with Baffinland Mines (or successor) on the Mary River Project” and “Negotiate a Development Partnership Agreement for the Mary River and Doris projects.”
The standing committee looks forward to receiving ongoing updates on both of these issues.
The department’s 2010-13 business plan indicated that one of its priorities was to “Compile and collect information on poverty through the Socio-Economic Monitoring Committee (SEMC) indicators” and “Use SEMC indicators to support the preparation of the antipoverty strategy.”
The department’s proposed 2011-14 business plan indicates that the indicators and information coming out of the SEMC meetings “will be used in preparation of the Nunavut Poverty Reduction Action Plan.”
The standing committee was pleased by the minister’s tabling of the Nunavut Transportation Strategy on June 5, 2009 in the Legislative Assembly.
The department’s proposed 2011-14 business plan indicates that one its priorities for 2011-12 will be to “Complete the Implementation Plan for the Nunavut Transportation Strategy.”
The members note that there has been a delay on the implementation plan and hope these issues have been resolved and looks forward to the progress on its implementation of the strategy.
The department’s proposed 2011-14 business plan indicates that one of its 2011-12 priorities will be to “Conclude policy development for the new Traffic Safety legislation.”
The department’s 2010-13 business plan indicated that one of its priorities was to continue work in relation to a number of significant megaprojects, including the Bathurst Inlet Port and Road, the Iqaluit Marine Facility, and the Nunavut-Manitoba Road.
The department’s 2010-13 business plan also indicated that it would continue to work on having the recommendations on the Nunavut Small Craft Harbours Report implemented.
The department’s proposed 2011-14 business plan indicates that one of its 2011-12 priorities is to “Bring Transport Canada and the Department of Fisheries and Oceans Canada into partnership to design harbour/dock facilities.”
Mr. Chairman, the department’s proposed 2011-12 main estimates include $20,809,000 in grants and contributions expenditures.
In 2009-2010, the department’s actual spending on grants and contributions was $19,918,000.
Members were informed that the department is ensuring that measurable results will be a part of the department’s grants and contributions programs. The standing committee recommends that the minister provide detailed information to the House on exactly how the department measures and evaluates its grants and contributions expenditures.
Mr. Chairman, that concludes my opening comments on the 2011-12 main estimates and 2011-14 business plan of the Department of Economic Development and Transportation.
Are there any general comments from the committee before we go to the page-by-page review?
There being none. We will go to page K-4. (interpretation ends) Corporate Management.
On October 29, 2010, the 2010-11 Ministerial Letters of Expectation to the GN’s five major Crown corporations and agencies were tabled in the leg. by the Minister of Finance.
When will the 2011-12 Letters of Expectation for the Nunavut Business Credit Corporation and the Nunavut Development Corporation be tabled in the leg.?
Once they are ready for the next session, they will be tabled at that time.
Will the 2011-12 business plans for both of those corporations also be tabled in the leg.?
Also, your department’s 2009-2010 main estimates include $167,000 in funding for a new subsidiary investment for the Nunavut Development Corporation. However, in your department’s draft 2011-12 main estimates, you did not include any funding for a new subsidiary investment.
Is the NDC still looking for setting up a new subsidiary and, if not, why not?
Yes, they’re going to be doing that, but at this time, they haven’t used the $167,000 yet.
Also on June 12, 2010, you tabled the Nunavut Business Credit Corporation’s 2007-08 and 2008-09 annual reports in the Legislative Assembly.
When will you table NBCC’s 2009-2010 annual report in the leg. and when will you anticipate that the Nunavut Business Credit Corporation will receive a clean audit opinion from the Auditor General?
I anticipate to table that report and the business plan this session.
For the other question that Mr. Schell asked, I anticipate that we will be getting a good audit for 2009-2010.
I just wanted to ask questions on K-7, which is under the grants and contributions for corporate management. So on K-7, just before we end up approving, the country food distribution, and so there is no confusion in my mind, you are saying that that should say $1,707,000 instead of $1,145,000.
Yes, that’s the correct figure under K-7, $1,145,000.
Mr. Elliott: Okay, so the dollar value that’s there for the $1,145,000 is correct, but in your statement, you said that the country food distribution system is $1,707,000.
Where are the other dollars coming? It’s not an actual grant but it will be in with the corporate management on page K-4.
Again, with the country food distribution, in your member’s statement, you mentioned that it included innovation in food storage technology, inter-settlement trade, and support for distribution of country food.
My understanding is if it’s under K-7, community grants, it is $1,145,000 that communities will be able to write proposals to and access funds within the communities for, I’m assuming, community freezers.
Hon. Peter Taptuna: Mr. Chairman, I would like to bring in another witness to respond to that question.
Chairman (interpretation): Do the members agree to bring a different witness in?
Chairman (interpretation): Sergeant-at-Arms, please escort the official in.
Minister Taptuna, please introduce your new witness for the record.
This is Ed McKenna. He’s the director for the Anti-Poverty Secretariat and he will be responding to Mr. Elliott’s question.
Chairman (interpretation): Welcome, Mr. McKenna.
There is a question on the floor if you would like to respond.
I’ll have Mr. McKenna respond to that question.
Mr. McKenna.
Mr. McKenna: Thank you, Mr. Chairman.
The Country Food Distribution program, which has a total of $1,145,000 allocated to it, will be used for a variety of activities, including food storage technology, inter-settlement trade, the storage of food in community freezers, and in addition to that, some low-level processing within the community freezers.
Chairman (interpretation): Thank you, Mr. McKenna.
Was I correct in that to access those funds, it would require contacting the community economic development officer and the production of a proposal?
Do they actually have to have a full-fledged business plan to access these funds?
Yes, there will be eligibility requirements and an application to be completed and information about those, if the program is approved, can be had locally through the economic development officer or they can contact the Nunavut Anti-Poverty Secretariat directly.
For the $750,000 that’s being allocated to the Anti-Poverty Secretariat, I was just wondering if the minister could actually explain how those dollars will be spent.
I’m assuming it’s in the creation of the Anti-Poverty Strategy.
I’m just wondering: is it for engaging communities for travel to the communities? My understanding was it’s for setting up a communication network within the community and having the communities get the funding to set up a network, or if you could give an explanation as to how that would be allocated.
The $750,000 for the budget for the Nunavut Anti-Poverty Secretariat will be allocated for three positions, which will be in a range of about $350,000.
We have allocated about another $300,000 to permit the communities to participate in the public engagement process, which would be largely used to offset the cost of their travel to regional round tables, and then finally to the poverty summit that has been scheduled for November this year.
There is about another $100,000 which will go towards materials and supplies, purchased services, and a few contract services.
I figured as well, while you’re here, if you could help shed some light on how the partnerships are working with NTI, the regional Inuit organizations, and hopefully the federal government in terms of that’s one of the key aspects that they keep promoting with country food in the new Nutrition North Canada Program, how your department’s working with those agencies to sort of bring everybody to the table. I know sometimes it’s hard when you’ve got a huge territory like we have and different policies and different agendas.
How is that going in terms of bringing all of the partners together?
It’s going well. At times, it doesn’t go as quickly as everyone would hope, but it is going well. We have created an entity we call the Nunavut Round Table for Poverty Reduction, which is a table at which we all sit as equals.
That includes, of course, NTI, who serves as co-chair of that round table, and it includes the regional Inuit associations as well as representatives from businesses and a number of non-profit groups. Each step of the way that we take we ensure that NTI is right at our side. So far, we’ve had excellent support for this initiative from NTI and they have been a very important partner, including, by the way, some cost sharing of the round table expenses.
With the Government of Canada, we have a very good partnership with the Rural Secretariat. We also have participation on the round table of two senior staff from the Canadian Northern Economic Development Agency.
That was all of the questions in regard to that, so I don’t know whether you’re going to change the line-up again with my next question.
In terms of the Nunavut Business Credit Corporation, I know there were some outstanding loans in the past and just from different things I have read in the media, the possibility that those loans wouldn’t be able to be collected.
Is collection going well with the outstanding loans and them?
Yes, NBCC has been a very difficult file to work with. We’re cleaning up the situation that we had there with NBCC and collecting part of the loans that you read in the newspaper is one of them.
Beyond that, I can’t really discuss the exact details of these loans as some of these things are confidential with the clients.
Mr. Elliott: Thank you, Mr. Chairman. For the corporation, it’s gone from $450,000 to asking for $600,000. I was wondering: for those added costs, what is the department looking to add?
The additional cost is for O&M. There have been no increases for the O&M side of that entity since the earlier days.
With the increased costs of everything, space rental, supplies, and so forth, just to keep the entity moving forward, as in anything else, the costs do go up and we have to try and alleviate some of these pressures that are put on the entity due to lack of funds. Yes, it’s an increase in the O&M.
I have no other names on my list. Do you have any questions?
Please notify me ahead of time if you are going to be asking additional questions. If you don’t have any further questions, we will move on to the next person.
And I’ll raise my hand when I’m finished.
My next question is specifically for O&M, and you had mentioned leases and whatnot. Is any of it going to increased salaries or is it just operational costs?
Hon. Peter Taptuna: Thank you, Mr. Chairman. I’ll have my deputy minister respond to that question in detail.
Mr. Bob Long.
The Nunavut Business Credit Corporation has now fully staffed up all six positions and their operation costs beyond that have not increased significantly. In the past, the organization has taken $450,000, but the entire O&M budget has been in excess of $1 million, so bringing our contribution towards that to $650,000 more realistically reflects the government supporting that.
In the past, the deficit has been covered off by taking the interest earned from loans and using that to cover operational costs.
In the future, if there is a surplus in the interest earned, it will be added to the loan portfolio as funds available to lend out.
My understanding was that the Nunavut Business Credit Corporation moved from one of the smaller communities into Iqaluit. I would have thought that their operation budget would kind of go down because it’s moving to a bigger centre where you had hoped things would be a little bit cheaper.
I know that’s what we have been told that sometimes pulling resources to the bigger centres brings down costs.
In this case, that’s not what’s happening. Is that the case?
Costs have always traditionally been too high and they haven’t been funded properly. Is that what you’re saying? Thanks.
I’m not sure who you’re directing your question to. Minister Taptuna.
I’ll have my deputy minister respond to that question in detail.
Yes, I believe we have underfunded them for their costs. Over the past year, there has been less travel than there was in the past due to their change of location.
This increase in money is more of a realistic balance between their costs and what we’re providing them as a Crown agency to operate with.
They are now also fully staffed up with employees, so there is some increase in costs in that regard, but I suspect that there’s a corresponding decrease in the use of consultants and that sort of thing.
Again I’m still on K-7 for the contributions under Corporate Management.
You had mentioned that the Nunavut Business Credit Corporation has sort of been underfunded. Another really good corporation is there and I know they provide Internet access to us year after year after year. We’re providing $300,000 to the Nunavut Broadband Development Corporation every year.
Are they underfunded as well and should we be bumping up their contribution?
I would like to remind members that you have to go through the Chair so that it will be easier for the interpreters.
Mr. Long.
I believe a year ago, we increased the funding to the Nunavut Broadband Development Corporation from $200,000 to $300,000, and that is a current request that we continue at that level of funding.
They have not asked for additional funding for the operation at their office.
There was a name on my list, but the question was posed already.
We’re on (interpretation ends) Corporate Management.
K-4. $13,131,000. (interpretation) Do you agree?
Chairman (interpretation): Thank you. (interpretation ends) K-5.
Economic Development. $21,557,000.
Yesterday the Premier informed us that the government’s upcoming public forums on uranium development will take place in Iqaluit, Baker Lake, and Cambridge Bay in March and April of this year.
Will your department take the lead in developing a formal GN policy on uranium development or is the Department of Executive and Intergovernmental Affairs going to take the lead in developing a formal GN policy on uranium development?
To develop a policy, yes, it’s going to be ED&T as we do have the expert geologists and the experts in mining, but also included in the group will be, of course, the Department of Environment, CGS, and EIA that’s made up of the Sustainable Development Committee.
On page K-7 again under Economic Development for the summary of grants and contributions, there’s a contribution to a Visitor’s Centre program.
Is that for funding that communities can apply for to receive funding to operate their visitor’s centre?
It’s funding for the existing centres that are out there within the three regions.
In years previous, has that funding been distributed to all three regions or are there certain communities that apply to receive it?
The distribution went to the visitor’s centres in Pond Inlet, Arviat, Baker Lake, and Pangnirtung.
I think this is the appropriate place to ask the question. Each hamlet, I think, receives a contribution agreement of funds allocation every year for running economic development programs in their community.
Most hamlets hire an economic development officer, and then there is extra funding to do certain projects.
Is that one case of it as well, the Community Capacity Building program of $4,454,000?
Yes, that’s exactly what it’s for.
For the distribution of those funds, how is the money allocated? I know, from working on the Economic Development Committee in Arctic Bay, it is $190,000, but does every community across Nunavut receive $190,000?