EdinburghNLP/nunavut-hansard-plusplus huggingface dataset:
Bill 24 – Appropriation (Capital) Act, 2017-2018 – First Reading
I move, seconded by the Hon. Member for Arviat South, that Bill 24, Appropriation (Capital) Act, 2017-2018, be read for the first time.
The Hon. Minister of Finance, Hon. Keith Peterson.
Bill 24 – Appropriation (Capital) Act, 2017-2018 – Second Reading
I move, seconded by the Hon. Member for Arviat South, that Bill 24, Appropriation (Capital) Act, 2017-2018, be read for the second time.
Mr. Speaker, this bill authorizes the Government of Nunavut to make capital expenditures for the fiscal year ending March 31, 2018.
Bill 24 with Mr. Akoak in the Chair.
>>House recessed at 15:22 and Committee resumed at 15:50
Chairman (Mr. Akoak): Good afternoon, colleagues, Nunavummiut watching the televised hearings and listening to the radio.
In Committee of the Whole we have the following item to deal with: Bill 24.
Good afternoon to you and my fellow committee members.
Mr. Chairman, we wish to commence with Bill 24, beginning with the review of the capital estimates for the Department of Economic Development and Transportation.
Are we in agreement that we first deal with Bill 24?
Bill 24 – Appropriation (Capital) Act, 2017-2018 – Economic Development and Transportation – Consideration in Committee
I would now like to ask the Minister of Economic Development and Transportation if she has officials that she would like to appear before the committee.
Hon. Monica Ell-Kanayuk: Yes.
To my left is Sherri Rowe, my Deputy Minister, and to my right is Art Stewart, Director of Transportation Policy and Planning.
Minister Ell-Kanayuk, proceed with your opening comments.
Good afternoon. I am very pleased to be here to review the Department of Economic Development and Transportation’s capital estimates for 2017-18 with the Committee of the Whole.
The Department of Economic Development and Transportation is proposing $61,332,000 in spending in our capital estimates for the 2017-18 fiscal year.
To help answer the committee’s detailed questions on the proposed capital projects, I have key members of the department’s senior management team with me: Sherri Rowe, Deputy Minister; Art Stewart, Director of Transportation Policy and Planning; and Tanya Winmill, Director of Finance and Administration.
I will begin this review by discussing the capital estimates related to the Airports Division.
A significant portion of this budget, $8,472,000, is funding for the Iqaluit International Airport Improvement Project.
As my colleagues know from their last tour of ongoing construction, this project is the largest and most complex project that the Government of Nunavut has ever undertaken.
(interpretation ends) Mr. Chairman, I am pleased to report that the project is proceeding on time and on budget.
With this phase of the improvement project wrapping up in 2017, the 2017-18 fiscal year will be the last year of major capital funding for this project.
Another airport improvement project, not as big as the Iqaluit project, but just as important for local residents, is the Taloyoak Air Terminal Building project.
I am pleased to announce that $3,960,000 has been allocated to the construction of this much-needed facility in 2017-18.
Parking garages play an essential role in the protection of Nunavut Airports’ substantial investment in airport mobile equipment. To this end we are providing $900,000 to complete mechanical and electrical systems for parking garages in Arctic Bay and Igloolik.
Mr. Chairman, in addition to the funding for the previously mentioned projects, there are other airport projects, more precisely airport equipment purchases under $250,000, which are grouped together under the heading of Small Capital Projects.
Further, we have allocated $700,000 to complete six projects, which will include runway inspection vehicles for Gjoa Haven and Taloyoak, snow blower attachments for Whale Cove, Coral Harbour, and Kugaaruk, and loader attachments for Rankin Inlet.
Several larger equipment purchases will be made under the Transportation Equipment and Facilities project heading. Under this heading we have allocated $1.7 million to purchase graders for Baker Lake and Kugluktuk and a multitasking high-speed airport unit for Rankin Inlet.
This will help us address recurring runway friction problems at the Rankin Inlet Airport caused by climate change.
As the next item I would like to discuss the Kivalliq Regional Visitor Centre.
Construction of the facility, which will be located at the Williamson Lake area of Rankin Inlet, began this year.
Funding in the amount of $2 million has been allocated to continue the construction phase in 2017-18. Completion is expected in the fall of 2017.
Our next items relate to marine infrastructure.
Mr. Chairman, I am pleased to announce that the large marine infrastructure projects for both Iqaluit and Pond Inlet are proceeding as planned.
The $6.2 million funding appropriated for these projects for fiscal year 2016-17 has allowed the engagement of a prime consultant and related initiation of environmental and geotechnical work at both sites.
An additional $3 million has been allocated to further these projects in the fiscal year of 2017-18.
We have also included $500,000 in this capital plan to make minor improvements to community marine facilities across Nunavut under our own small craft harbours budget.
We propose making the majority of the funding for community marine facilities available to communities under contribution agreements so that communities can work on the priority projects that they have identified.
Mr. Chairman, this capital plan was put together with much consideration given to prudent spending and with a primary focus on safety, which is our number one concern.
I believe that this [plan] is in line with the department’s mandate as we continue to strengthen partnerships with the federal government, industry, and our communities to ensure that the investments we make in Nunavut have a lasting impact on our transportation system as well as the economic and social future of our territory.
Mr. Chairman, I am pleased to provide opening comments on behalf of the Standing Committee on Government Estimates and Operations concerning its review of the proposed 2017-18 Capital Estimates of the Department of Economic Development and Transportation.
The department’s proposed capital budget for 2017-18 is $61,332,000.
The department’s capital budget was $68,325,000 for the 2016-17 fiscal year and $81,426,000 for the 2015-16 fiscal year.
Mr. Chairman, some of the objectives of the government’s current Nunavut Transportation Strategy, which was tabled in the Legislative Assembly on June 5 of 2009, are to “Assure the integrity of the Nunavut transportation system by ensuring every community has infrastructure adequate for its needs within that system” and to “Enhance the current airport system.”
On September 20 of 2012 a federal-territorial news release announced that the P3 Canada Fund would contribute “up to $77.3 million” to the Iqaluit International Airport Improvement Project.
On September 17 of 2013 the Department of Economic Development and Transportation announced that the Government of Nunavut had “signed the contract with Arctic Infrastructure Partners to design, build, finance, operate and maintain the Iqaluit International Airport Improvement Project.”
On July 10 of 2014 the Government of Nunavut issued a news release to “mark the start of construction for the new Iqaluit International Airport Project.” The release indicated that the project “is scheduled to open and begin operations in late summer 2017.”
The Government of Nunavut’s total proposed capital estimates for the 2017-18 fiscal year is $200,644,000. The Department of Economic Development and Transportation’s capital estimates include $48,472,000 in funding for the new Iqaluit International Airport.
This single project represents approximately 24 percent, or one-quarter, of the government’s total capital budget.
This project’s share of the government’s 2016-17 capital estimates was approximately 30 percent. This project’s share of the government’s 2015-16 capital estimates was approximately 37 percent.
The standing committee urges the minister to provide regular updates to the Legislative Assembly concerning the status of this project, including the extent to which Inuit employment targets are being met.
The standing committee also urges the minister to be mindful of the needs of smaller communities.
For example, the Nunavut Airports 20-Year Infrastructure Needs Assessment: 2014-2034 report indicates that new airport terminal buildings are required for the communities of Chesterfield Inlet, Naujaat, and Whale Cove, and that major renovations are required for the airport terminal buildings in Baker Lake and Cape Dorset.
On February 25 of 2016 the federal Minister of Transport tabled the final report of the Canada Transportation Act Review Panel.
The report recommended that the federal government provide “targeted financial support for runway extensions and surfacing (e.g. paving), as well as for 24-hour automated weather systems and modern landing and approach systems in applicable communities in the territories.
To facilitate these improvements, an investment of $50 million per year over ten years is recommended to address the most significant infrastructure gaps, either by augmenting the Airports Capital Assistance Program, or by creating a new ‘Northern Airports Capital Assistance Program.’”
The standing committee encourages the Minister of Economic Development and Transportation to vigorously lobby her federal counterpart for implementation of the panel’s recommendations.
On March 11, 2016 the Minister of Economic Development and Transportation tabled the Nunavut Airports 20-Year Infrastructure Needs Assessment: 2014-2034.
This important report recommended that “a feasibility study be undertaken to determine the cost and benefits of constructing a new high arctic hub airport at Pond Inlet for civil and military purposes.”
The report also identified Kimmirut’s airport as being a priority for relocation.
The department’s proposed 2017-18 capital estimates include $2.5 million in funding for small capital projects and transportation equipment. The majority of this funding is for the acquisition of mobile equipment for Nunavut airports.
However, the extent to which the department’s mobile equipment acquisitions reflect the needs identified in the Nunavut Airports 20-Year Infrastructure Needs Assessment: 2014-2034 report is unclear.
In August of 2015 the department’s Community Transportation Initiatives Program Policy was revised.
Schedule A of the policy details departmental support for “Access Roads and Community Marine Infrastructure.”
Schedule B details departmental support for “Small Craft Harbour Capital Contributions.”
This policy requires the Minister of Economic Development and Transportation to “table annually in the Legislative Assembly a summary of contributions detailing the amount of each contribution, the type of initiative being supported, and community.”
The Department of Economic Development and Transportation’s proposed 2017-18 capital estimates include $500,000 in funding for small craft harbour capital contributions. This amount has been included in the department’s annual capital estimates since the 2009-2010 fiscal year.
Members have noted that the department’s current practice appears to be based on providing contributions to the greatest possible number of applicants rather than focusing on fully funding a smaller number of projects during each fiscal year.
Members have recommended that the department reconsider this approach.
The standing committee is pleased to note that the major marine infrastructure projects for Iqaluit and Pond Inlet are moving forward.
A number of capital carryovers have been approved by the Legislative Assembly in recent years for this project.
The department’s current five-year capital plan indicates that it will spend a total of approximately $5.95 million on this project, with $2.0 million being allocated for this project in the 2017-18 fiscal year. $3.0 million was allocated for this project in the 2016-17 fiscal year.
The department’s proposed 2017-18 budget for small capital projects also includes $100,000 for transportation-related studies.
The standing committee encourages the minister to report annually to the Legislative Assembly on the results of these studies.
The department’s 2014-15 capital estimates included $2.8 million in funding for the replacement of the government’s Motor Vehicle Information System. Its 2015-16 capital estimates included $1.2 million in funding for this project. The department’s 2016-17 capital estimates included $500,000 in funding for this project.
In June of 2015 the Legislative Assembly approved a $2.8 million capital carryover for this project.
During the winter 2016 sitting of the Legislative Assembly $3,079,000 in supplementary funding was approved for the project.
Information provided by the department indicated that the total system cost would be approximately $7,579,000.
In June of 2016 the Legislative Assembly approved a $4.0 million capital carryover for this project.
In some cases, residents, especially in smaller communities, have had to wait up to one year for their documents to arrive.
This is unacceptable, and members are hopeful that the department’s new Motor Vehicle Information System will resolve these problems.
Mr. Chairman, that concludes my opening comments on the proposed 2017-18 Capital Estimates of the Department of Economic Development and Transportation.
I would first like to welcome the minister and her officials.
In looking through, the most expensive one is always obvious, which is the Iqaluit airport project.
Looking at the initial plans, they had indicated that the proposed airport would include a jet bridge, especially for people with disabilities.
It became clear afterward that those were taken off the project without changing the cost of the project.
How can people with physical disabilities and elders be assisted in boarding and disembarking airplanes at this very expensive airport?
Hon. Monica Ell-Kanayuk (interpretation): Thank you, Mr. Chairman. I also thank the member for that question.
Our department has had discussions because this was an ongoing concern for the airport terminal building and how we can put in structures for disabled people.
The airlines should be working more on this, but I’m happy to say that the work was kept ongoing and we will be establishing jet ramps next year to provide access for people with disabilities.
This is currently being developed, and we anticipate the materials to arrive on the first sealift ship that breaks through to the town next summer.
Mr. Okalik (interpretation): Thank you, Mr. Chairman. I also thank the minister for pushing for that.
The airport terminal building costs a lot of money. It’s a little over half a billion dollars.
To my knowledge this is not a normal project.
Can the department conduct a study on what would have been the result if the government had constructed this independently?
If it had been a project by government only, what would have been the result and what is the result of the way the project is handled today budget-wise?
I would like the Director of Policy and Planning, Art Stewart, to respond.
We have not looked into his question.
We can look into how we can consider it and we will be going through you to respond to the question and look into the details of the question.
Mr. Okalik (interpretation): Thank you, Mr. Chairman. (interpretation ends) The project is over half a billion dollars now, according to Schedule 4. I would like to find out how much it would have cost if it was a regular government project as opposed to a P3 project.
Can the department undertake an independent review of the actual costs of the project if it were undertaken through the normal government processes so that we can learn from this project, if we want to do more P3 projects, if they’re more cost-effective?
If not, we can make a decision in the future as to the proper ways of undertaking such huge projects in our territory.
Can the department commit to doing an independent study on this particular project?
We are on page K-3 questions already.
If I can get a different earpiece, I think one of the earpieces isn’t working properly.
I can respond to him that yes, our staff can do a study on what he’s requesting, an independent study.
I think the mic was turned off.
>>Committee recessed at 16:20 and resumed at 16:22
We just had some technical issues.
Mr. Okalik (interpretation): Thank you, Mr. Chairman. I would like to thank the minister for willing to take an independent study.
Now, in reviewing the plans and since I have visited quite a number of communities throughout Nunavut, some of the terminals are minute in size. As an example, Naujaat, Chesterfield Inlet, and Whale Cove have airports today that are not up to standards. The terminals get very cold and luggage is offloaded outside of the terminal.
Passengers have to wait outside as well since the terminals are very small, with some having to stay outside in the winter.
The plans, as I reviewed them, don’t even mention when these communities will be placed on the plan for air terminals.
I would like to know what the department has planned for these three communities in particular. I would like to find that out first.
I will refer this question to Art Stewart.
The following communities were identified as being priority candidates for airport terminal buildings that includes Chesterfield Inlet, Kimmirut, Naujaat, Taloyoak, and Whale Cove.
Under the current capital plan only the funding for Taloyoak was approved.
We did identify the other projects as being priorities and we will continue to submit these projects for consideration in the following five-year capital plans.
In reviewing the contents of (interpretation ends) Schedule 4, (interpretation) nothing is written in the report about the communities that are identified for planning purposes and there is no reference.
How will these communities be able to commence the work? They are still waiting for air terminal project start dates.
Prior to requesting funds for capital projects, the Minister of Finance is familiar with the process, but at this time we anticipate this fall where we will get the request to identify the key capital projects we wish to pursue.
My department will obviously push to complete these projects.
Although we are aware of the urgency of the situation, our projects don’t get approved when other more urgent work is required.
We will work to keep pushing for these projects and that is all we can speak to at this time.
Now I wish to move on to another subject, as one of the issues affects part of my constituency regarding the proposed port.
I am happy to hear of this project as it will provide many benefits to our community, as most communities require ports or breakwaters to provide assistance to their local hunters. They are the ones who are most affected.
Nonetheless, we also hear of the issues faced by private homeowners on the beachfront that may be impacted. What is the plan to provide assistance to them as this project moves forward? I would like to find that out first.
We have met already with some of the residents that had concerns. We will consult with them.
The project has not advanced far enough to actually answer your question as to what is going to happen.
We will continue to consult as the design stage goes forward.
I would appreciate it if we are kept up to date on the project and what is going to be happening, especially for those private homeowners who have houses down by the shore, so I’ll be able to keep them informed about what’s happening.
Chairman: That was just a comment. We are on page K-3.
Minister Ell-Kanayuk and your officials, welcome first all.
I wish to speak to the Taloyoak Air Terminal project. I am pleased and grateful that the government started the project.
I don’t really have a question pertaining to that terminal, but I do have detailed questions and I will ask them at the appropriate time, Mr. Chairman.
At this time I can only smile, but when I hear the details about the interior work or problems related to the project, I may not be smiling at that time.
Thank you, Mr. Chairman, for the opportunity to speak.
I didn’t hear a question, Mr. Chairman.
He indicated that he will ask questions at the appropriate time.
Ms. Angnakak: I believe we’re on K-2, Transportation.
I wanted to talk a little bit about our new airport. I know my colleague, Mr. Okalik, raised some of the issues. Just so that everybody understands and gets a clear idea of where we sit now with the construction of the new airport, can we get a status update, please, on where we are with the new airport for Iqaluit?
It’s proceeding as planned and we’re on budget for the next year.
It is expected to be completed by the fall and we’re looking at completing it in August 2017.
In your department’s substantiation sheet for the Iqaluit International Airport Improvement Project it indicated that “Prior to the commencement of procurement, the project team sought and received Cabinet approval regarding the proposed strategy for complying with Article 24 of the Nunavut Land Claims Agreement. The approach taken focused around guaranteed minimum levels of Inuit labour during construction and operations, with incentives for increasing levels of Inuit labour.”
As of today, how many beneficiaries are working on the project?
This agreement is based on the employers who have attained the 10 percent aboriginal employees’ requirement or who have surpassed it. Nonetheless, I cannot state how many companies have attained that, although I can state it is roughly 15 percent, but I don’t have the actual numbers with me.
If you don’t know the numbers, then who is providing the oversight?
I think that’s a number that you should know because it’s part of the contract.
How the process works right now is that, according to the contract, there must be a minimum of 15 percent of the value of the work undertaken by Inuit employees.
What happens is that the company has to report their Inuit engagement numbers to the GN monthly and who looks at that is our NNI Policy division.
Currently what’s happening right now is they are working on the 2015 report.
What they do is they go through the numbers to confirm and make sure that what they are reporting monthly to us is actually correct.
That is in the process right now and once that is completed, it will then be able to be tabled.
That leads to my next question and that is: when you said 15 percent, what does that equal to in dollar value that is going out to Inuit employment?
Hon. Monica Ell-Kanayuk: Thank you, Mr. Chairman. (interpretation) With respect to the employees and their rates, I can state that with the contracts held by Inuit businesses, including subcontracts, at this time we have heard that they have earned approximately $42 million.
That’s quite a big number going to Inuit who are working on the project.
What’s the turnover rate like? I would imagine that with those kinds of dollars, maybe it’s pretty stable.
I would say yes because, going back to the Inuit employment numbers, they are supposed to be at 10 percent or more. They have exceeded that. We’re currently reporting at 17.5 percent Inuit employment. (interpretation) Right now they’re at 15 percent.
I want to talk about something else, a little bit about the Iqaluit improvement project again.
The Iqaluit International Airport Improvement Project, I believe, is the official name.
It’s something I think that we have spoken about in the House a bit before, but I would like to go back to it and ask a question on it.
It’s to do with “In the long term, a second land swap will be needed for the eventual growth of the airport.”
The land swap involves the “airport acquiring additional land owned by the City and commonly referred to as North 40.” We all know that that land is pretty contaminated by the previous landowner, who was the federal government.
Before any land swap can take place, a full environmental clean-up will have to undertaken.
At this time I don’t think there is an agreement in place for such a clean-up.
What actions have been taken to enter into an agreement for the clean-up of the site?