MLAs debate financial relief for N.W.T's Sahtu region, gripped by affordability crisis - Action News
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MLAs debate financial relief for N.W.T's Sahtu region, gripped by affordability crisis

The NWT Assembly held an emergency debate Thursday to consider the crisis of rising costs in Norman Wells and how to respond.

Legislative Assembly held an emergency debate Thursday to consider how to respond

a oil derrick against a clouded sky
In Norman Wells, N.W.T. The territory's legislative assembly held an emergency debate Thursday to consider the affordability crisis in Norman Wells and how to respond. (Julie Plourde/Radio-Canada)

Danny McNeely, MLA for the Northwest Territories'Sahtu region, said it costs his constituents about $6,200 a month's paycheck, for many to fill a standard residentialfuel tank.

McNeely pointed to that as a symptom of the affordability crisis in the region's hub, Norman Wells, which wasthe subject of an emergency debate in the territory'sLegislative Assembly on Thursday.

During the first day of the fall sitting, members voted to set aside orders of the day to discuss the emergency and the need to support residents in Norman Wells contending with rising costs of fuel and other goodsafter low water on the Mackenzie River this summer meantcancelled barges.

McNeely said the rising costs threatenresidents' ability to continue living in the region.

The solution? Some MLAssay the territory should cut a cheque.

Norman Wells Mayor Frank Pope said this week the town is asking for $6.6 million to cover the cost of getting more heating fuel into the community.

According to Kieron Testart, MLA for Range Lake, bailing out Norman Wells would amount to about0.3 per cent of the territory's budget.That's somethinghe said the territory should be able to prioritize for a crisis he compared to a hurricane or earthquake.

But another MLA cautioned against signalling to Imperial Oil the main fuel supplier to Norman Wells that the government has "bottomless pockets" to deal with fuel costs.

A bright orange sign declares a local state of emergency on the side of a blue building, while snow falls.
Town councillors in Norman Wells have asked the territorial government to step in with more support, as the town grapples with increasing costs in the wake of barge cancellations. (Julie Plourde/Radio-Canada)

Shauna Morgan, MLA for Yellowknife North, said that although Imperial is incurring additional costs by flying fuel into the region, there's no way to know whetherthe private company is keeping costs to a minimum for customers.

"So the problem that I see with cutting a cheque to Imperial Oil is that we have no way to guarantee that they still won't unfairly raise prices from what they were previously, while pocketing some of the government subsidy as profit," she said.

"They could cite all sorts of reasons that they need to raise their prices at any time."

She said that's an unsustainable precedent and it wouldn't support residents in the long run.

'A cheque to whom?'

Caroline Wawzonek, the minister of finance and deputy premier, said it's also just not thatsimple.

"A cheque to whom, and a cheque towhat amount?" Wawzonekasked during the debate.

Wawzonek painted a picture of increasing climate change challenges and crises that continue to befall the territory year after year, andsaid there needs to be money to respond to those emergencies. She said it's difficult to imagine cutting a project fromthe budget.

Wawzonekalso said the government has been planning for this possibility for months and came up with the $1.8-million relief package to carry residents through to the winter road season.

She said that too is costing more with the need to increase traffic with heavier loads.

Wawzonek said she is looking to the federal government for support, and also to Imperial Oil. She said she spoke with the companyThursday morning and expects to meet with officialsagain in the coming days.

"I want to emphasize to the residents that there's a lot happening," she said.

"There's a lot of plates that are in the air. We are keeping them spinning."

Clarifications

  • A previous version of this story said that the MLA for Yellowknife North warned against any kind of subsidy. In fact, she said the government should set clear limits.
    Oct 18, 2024 8:55 AM CT