MR. BILL BRADEN (MLA - Great Slave): Mahsi, Mr. Speaker. There are seven trillion cubic feet of proven natural gas reserves in the Mackenzie Delta, Mr. Speaker, the object of a very high powered consortium to build a $7 billion project in the Mackenzie Valley. I know I have seen numbers in the neighbourhood of, potentially, 40 trillion cubic feet more natural gas that could be found.

Last week, Mr. Speaker, the value of that product was said at about 1,150 giga jewels, three times the historic average, even in the last few months, I think, Mr. Speaker. So it is astonishing to hear that Imperial Oil, the main proponent behind this pipeline, says that it is still not an economic deal in the long term. It is astonishing that they have gone, in such a late date, to negotiate to wrangle what, I have heard it is estimated, some $2 billion worth of new concessions out of Ottawa through this program.

AN HON. MEMBER: Shame, shame.

MR. BRADEN: Today, these are huge numbers for me to try to comprehend, and try to roll out into the next few decades of the NWT, because that is what this project means to us. Today, there is a report from the Canadian Energy Pipeline Association that says that, over 20 years, if the pipeline is not built, Alberta, especially the industrial sector, stands to lose some $20 billion in spin-offs and benefits. They say that Ontario, especially the residential sector, stands to lose $19 billion. Again, these are big numbers and huge time frames.

Well, let’s get to something that really is realizable. That is the time frame that is coming up in about three weeks, where Imperial Oil has to signal, or has said it would signal, to the regulatory agencies, whether or not it is going to go.

Mr. Speaker, I am standing here, I think, like a lot of northerners in frustration and bewilderment. Is this a real project or not? It is so big. It is so critical to our future. Is it too much to ask for some clarity, and some certainty, from the major players here, from industry, from the federal government, and from the regulatory agencies? Thank you, Mr. Speaker.

---Applause

MR. SPEAKER: Item 6, oral questions. The Honourable Member for Great Slave, Mr. Braden.

Question 228-15(4): Mackenzie Gas Project

MR. BRADEN: Thank you, Mr. Speaker. My questions this afternoon are for the Premier. These are in respect to the Mackenzie Valley gas pipeline. Mr. Speaker, this Assembly is on record as being a proponent of this project. I am as big a proponent of it as anybody, but I have to put it in the context of the current discussions, Mr. Speaker, that are going along, and the volatility and uncertainty of this project. We’ve seen a lot of deadlines come and go with mega projects.

Mr. Speaker, in fact, the first one concerning a pipeline down the Mackenzie Valley was almost 30 years ago. So it’s not something we are not used to. Now we are told that the middle of November is the next deadline, probably, or possibly, or likely, or sort of, or kind of a go/no-go date for Imperial. Just how seriously should we take this latest deadline? Thank you, Mr. Speaker.

MR. SPEAKER: Thank you, Mr. Braden. The Honourable Premier, Mr. Handley.

Return To Question 228-15(4): Mackenzie Gas Project

HON. JOE HANDLEY: Thank you, Mr. Speaker. Just for clarification, I don’t think the middle of November deadline is a go/no-go position. This is the target that industry has set for determining whether or not they are prepared to go into public hearings. That doesn’t mean if they aren’t quite ready then, and they want more time, that they wouldn’t wait a little longer. But it’s not a go/no-go date on the project. Mr. Speaker, I just wanted to clarify that. That is industry’s position.

It’s not the position of the federal government; it’s not the position of our government; and I don’t think it’s the position of the aboriginal governments. That is what industry set as their target when they would tell us whether or not they would go to public hearings.

Mr. Speaker, these are negotiations, but I think every public position that’s taken by any of the parties should be taken very seriously, to answer the Member’s question. Thank you, Mr. Speaker.

MR. SPEAKER: Thank you, Mr. Handley. Supplementary, Mr. Braden.

Supplementary To Question 228-15(4): Mackenzie Gas Project

MR. BRADEN: Mr. Speaker, from this Assembly’s point of view, I think the average person in the Northwest Territories is on the outside looking in, or trying to look in, and get some comprehension of the process that’s underway, and some say in what happens here. We are feeling marginalized and left out. Mr. Speaker, some time ago, we greeted, with enthusiasm and confidence, the direction that Deputy Prime Minister Anne McLellan would be assigned this file.

What is the latest this government has heard from the Deputy Prime Minister? Do we have somebody who is on this and looking after our interests? Thank you, Mr. Speaker.

MR. SPEAKER: Thank you, Mr. Braden. Mr. Handley.

Further Return To Question 228-15(4): Mackenzie Gas Project

HON. JOE HANDLEY: Mr. Speaker, I am speaking quite often with the Deputy Prime Minister on this file. She has, as she represents the federal government, some responsibilities for negotiating some pieces of this very complicated process, but not all of it. We have some responsibility for some pieces, but, again, not all of it, and the aboriginal organizations, the land claim corporations, have some responsibility, but not all of it. So none of us have the whole picture, but industry, who are negotiating with a number of different parties, depending on their area of responsibility. The Deputy Prime Minister is focused on the financial ask by the corporation. She had a meeting with them about a week-and a-half ago. From what I understand, from the limited information she can share with us, the meeting was a very positive one and there was progress made, and she was optimistic about it. She recently confirmed that to me, in the last few days. I have to take her word for it that it’s moving well. I don’t have all the detail of exactly what the discussion was. Thank you, Mr. Speaker.

MR. SPEAKER: Thank you, Mr. Handley. Supplementary, Mr. Braden.

Supplementary To Question 228-15(4): Mackenzie Gas Project

MR. BRADEN: Mr. Speaker, the Alaska gas project, which is, in some order of magnitude, larger than the Canadian one, seems to be getting some momentum. This is a contract with the attitude, the confidence, that we’ve had that even if both projects were to go, the Canadian one would go first. Do we have reason to be looking over our shoulder now, Mr. Speaker? Thank you.

MR. SPEAKER: Thank you, Mr. Braden. Mr. Handley.

Further Return To Question 228-15(4): Mackenzie Gas Project

HON. JOE HANDLEY: Mr. Speaker, on these kinds of big projects, we should always be looking over our shoulder and watching out for what the next alternative might be. The Alaska project has many hurdles to overcome yet. The governor of the State of Alaska is working feverishly on coming up with proposals, alternatives and ideas of how he can give the guarantees to make their project a good economic project. We have to be doing the same in our discussions with the federal government, because it’s going to be on economic terms that both of these pipelines will be decided. Thank you, Mr. Speaker.

MR. SPEAKER: Thank you, Mr. Handley. Final supplementary, Mr. Braden.

Supplementary To Question 228-15(4): Mackenzie Gas Project

MR. BRADEN: Mr. Speaker, if I was a businessperson, or a community looking at making an investment to prepare for a Mackenzie gas pipeline, would it be a good idea for me to continue today, knowing what we know? Thank you.

MR. SPEAKER: Thank you, Mr. Braden. Mr. Handley.

Further Return To Question 228-15(4): Mackenzie Gas Project

HON. JOE HANDLEY: Mr. Speaker, I don’t know if I can give that kind of advice. That’s kind of asking my personal opinion on it, but I will take the liberty of replying and say yes, carry on.

SOME HON. MEMBERS: Whoa!

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