Guest comment by Kevin O'Reilly, MLA for Frame Lake
I would like to thank Gary Vivian for his guest commentary on my track record as an MLA and the Yellowknifer for an opportunity to respond.
Let’s be clear, I support responsible mining as a part of our economy. Government’s role is to ensure there is an effective, efficient and fair system for regulating the extraction of our one-time natural capital. My role as a regular MLA is to hold Cabinet and Ministers accountable. This means working with Ministers in our consensus government and questioning. Mr. Vivian’s comments show a misunderstanding of my work as a regular MLA. Unfortunately, questioning of how our government manages mining has been misinterpreted as criticism of the industry.
As for my comments about government revenues from mining, the independent expert hired by the GNWT said: “… the NWT has one of the world’s most charitable fiscal regimes for the mining sector, one that captures between 20-30 per cent of economic rents from mining projects, net of costs. This is compared to between 30-35 per cent in South Africa, 45-60 per cent in Peru and 50-80 per cent in Western Australia.” Over $30 billion in diamonds have left the NWT, yet our Heritage Fund stands at about $17 million. Yes, mining companies are charged taxes like everyone else, have benefit agreements and contribute in many other ways. But, are we maximizing the benefits for today and future generations? That is government’s job and involves many trade-offs, worthy of public debate.
The economic benefits of mining are undeniable, but a public review of our royalty regime is long overdue, something that Mr. Vivian supported in his Nov. 10 guest commentary. Unfortunately, the Industry, Tourism and Investment Minister has said this is not going to happen during the 18th Assembly despite promising to do so as part of the Mineral Resources Act.
With regards to my comments on infrastructure, it is no secret that I have disagreed with cabinet’s fiscal strategy of cutting programs and services for people to fund infrastructure, especially without looking at revenues. Our government cannot afford all the large infrastructure projects it has promised without looking at revenues, our funding arrangements with the federal government and the debt wall. I have advocated for a more balanced approach to infrastructure that includes tourism, arts and culture and more investment in housing and post-secondary education.
As an MLA, I carefully reviewed ITI’s development of the Resources and Energy Development Information (REDI) initiative including the background materials. I attended the Open Houses held in Inuvik and Yellowknife. Constructive feedback on a more balanced approach that included better information on the costs and trade-offs with resource development was offered. This feedback included appointment of a science adviser to support informed decisions by cabinet, establishment of an intervener funding program to ensure the public can meaningfully participate in resource development decisions and re-establishment of a round-table on Economy and Environment to facilitate a dialogue between NGOs and business interests. Unfortunately, the ITI Minister did not take up any of these recommendations for a more balanced approach.
The very first meeting I had after being elected as an MLA was with Mr. Vivian and the chamber. It was an engaging discussion. I suggested that the chamber consider changing its messaging that the NWT was not a good place to do business due to perceived regulatory red tape. I am very pleased to see the chamber now defending our world-class integrated resource management system as providing the kind of certainty that is lacking in many other areas.
I continue to read the monthly chamber newsletters and numerous news releases. I’ve also participated in the Geoscience Forum for many years as there is always more to learn about mining.
While Mr. Vivian and the chamber are free to say whatever they may want about my work as an MLA, I’ve lived here for 32 years, raised a family and continue to serve our community. I am not going to apologize for questioning how our government regulates mining. That’s my job and in the best interests of Frame Lake residents and all the NWT.
It’s easy for the chamber to pigeon-hole me as anti-mining. The more challenging and worthwhile discussion is about what role mining should play in our economy, how we can retain the most benefits and what contribution mining can and should make to sustainable development. That’s a discussion I’m always happy to engage in and I trust the chamber is too.