Benefits of NWT Devolution

Transcription

1 of Lands and Resources in the Northwest Territories Benefits of NWT Devolution This devolution initiative will move administration and control of Crown (public) lands, resources and waters in the Northwest Territories (NWT) from the Government of Canada to the Government of the Northwest Territories (GNWT). It will also provide the territory with tens of millions of dollars in resource royalties each year that currently go directly to the federal government. Devolution will mean: Decision-Making Power: NWT residents will have increased authority to make decisions about the way public lands, resources and waters are managed, the way the economy is developed and the way the environment is protected. New Government Revenues: The NWT just like the provinces and Yukon will receive a share of the royalties from resource development. This money can be used to support public services, grow the economy and invest in infrastructure projects that will improve life in all NWT communities. A portion of these revenues will also go to Aboriginal governments to help build their capacity. Co-ordinated Land Stewardship: There will be increased opportunity for the GNWT, Aboriginal governments and NWT residents to work together on land management and natural resource stewardship strategies. This means decisions about development and the environment will better reflect northern needs and priorities. Responsive Resource Management: Initially, the GNWT will mirror existing federal legislation and processes to ensure a smooth transition. In future, the GNWT will work with Aboriginal governments, regulatory boards and industry to help ensure the NWT regulatory regime provides the efficiency, transparency and certainty needed to support renewed investment. More Jobs and Business Opportunities: New land and resource management jobs will be created throughout the NWT as a direct result of devolution, and indirect economic spin-offs from these new jobs and territorial responsibilities could be as much as $28 million per year. The GNWT will also have added financial capacity to invest in strategic economic growth initiatives that will create more employment and business opportunities throughout the territory. Aboriginal governments will also have new revenues to provide opportunities based on their specific needs.

2

3 of Lands and Resources in the Northwest Territories Frequently Asked Questions Devolution is the transfer of authority from one public government to another. This particular devolution initiative will transfer control over Crown (public) lands and resources, including rights in respect of water, from the Government of Canada to the Government of the Northwest Territories (GNWT). Q. Why is this happening now? Q. What will stay the same? The people of the Northwest Territories (NWT) are ready to take charge of decisions that affect their future. After more than 10 years, we are now in the final stretch towards achieving a devolution agreement that will provide significant benefits for all NWT residents. Aboriginal and Treaty Rights: Aboriginal and treaty rights, including land claim and self-government agreements, are fully protected by the Constitution. Q. What will be different after devolution? There will be two main differences after devolution: Decision-Making in the NWT: Decisions about the use, nature and pace of development of Crown lands and resources will be made here in the NWT. New jobs will be created in the territory to do this work. Financial Benefit from Resource Development: The GNWT will keep 50% of the royalties from resource development on NWT Crown lands. This will provide the territory with a significant source of new revenue. The GNWT has committed to sharing up to 25% of its portion of resource revenue with Aboriginal governments. Aboriginal Land Ownership Rights: Aboriginal governments with settled land claim agreements will continue to have the same rights and authority they already have with respect to their settlement lands. Land and Resource Management Laws: The GNWT will mirror federal legislation immediately after devolution. In future, the GNWT will be able to work with Aboriginal governments, stakeholders and all residents to ensure NWT laws, programs and resource management systems reflect northern needs and priorities. Q. Do we really need devolution? It makes sense that the people of the NWT should make the decisions about NWT public lands, waters and natural resources in their territory. It also makes sense that all NWT residents should benefit from the lucrative resource development that happens here. The provinces and Yukon already have these rights and benefits. continued on reverse

4 Q. Has devolution happened before in the NWT? Yes. Since 1967, the NWT has received administrative authorities for health care, education, social services, highways, airport administration and forestry management in a number of separate transfers. Q. What will happen if we delay devolution? The simplest answer is that delaying devolution would also delay the important decision-making powers and financial benefits that come with it. Every moment we delay is another opportunity for decisions with long-lasting consequences to be made about NWT lands and resources by people who are not directly affected by the results. Every day without devolution, the NWT loses up to $170,000 in potential resource royalties that could be used to support public programs, build muchneeded community infrastructure and create jobs. Q. What will the GNWT use the new resource royalties for? In general, the money will be invested in programs, services, the economy and infrastructure to build the NWT into a selfreliant, economically sustainable territory and provide for future generations. Members of the Legislative Assembly (MLAs) will determine specific priorities once devolution occurs. Q. What involvement have Aboriginal governments had? All NWT Aboriginal governments have been invited to be parties in devolution negotiations throughout the process, and the governments of Canada and the NWT have provided financial support for their participation. Many have been participants in the negotiations since 2001 and were active in drafting the Agreement in Principle (AiP). For more information about Aboriginal participation in NWT devolution talks, visit devolution.gov.nt.ca Q. How long will it take to reach a final agreement? The GNWT hopes to have a final agreement in 2012 and to work on implementing it over the following 18 months. Q. Will the GNWT own all Crown land in the NWT after devolution? As a result of devolution, the GNWT will receive administration and control over the vast majority of Crown lands in the NWT. This will give the GNWT the ability to grant interests as an owner of lands and resources, in the same way the federal government can now. The GNWT will also have the authority to regulate uses of water and administer rights in respect of water in the NWT.

5 of Lands and Resources in the Northwest Territories Devolution Negotiations The devolution of lands and resources has been a goal for the Northwest Territories (NWT) for more than thirty years. There have been several attempts at negotiating an agreement including the development of a draft Northern Accord in the 1980s. The most recent round of devolution talks was initiated at the first NWT Intergovernmental Forum in May 2000, when federal, territorial and Aboriginal government leaders identified lands and resources devolution as a priority. All agreed that transferring control of natural resources from the Government of Canada to the Government of the Northwest Territories (GNWT) would promote the selfsufficiency and prosperity of the NWT and reduce its reliance on federal funding. Q. What has been accomplished so far in devolution negotiations? 2001 Memorandum of Intent The Government of Canada, GNWT, and Aboriginal Summit (a caucus comprised of NWT Aboriginal governments) officially established their intent to negotiate the transfer of Crown lands and resources to the GNWT Devolution Framework Agreement The Government of Canada, GNWT and Aboriginal Summit agreed on the scope of the negotiations Devolution Agreement-in-Principle (AiP) The Government of Canada, GNWT, Inuvialuit Regional Corporation (IRC) and Northwest Territory Métis Nation (NWTMN) agreed in-principle on financial matters and other issues related to devolution. The AiP guides the negotiation of a final devolution agreement, but it is not a legally binding document. The majority of the AiP was developed with significant Aboriginal government participation. Provisions are included in the AiP for other regional NWT Aboriginal governments to sign on when they are ready The Sahtu Secretariat Incorporated (SSI) signed the Agreement in Principle. Final Devolution Agreement (in negotiations) The signatories to the Devolution AiP are currently negotiating a final agreement. Other NWT Aboriginal governments can sign the AiP any time during the negotiations to become full participants in the process. Q. What has happened with the Resource Revenue Sharing Agreement between the GNWT and Aboriginal governments? As part of related but separate negotiations, a Resource Revenue Sharing Agreement-in-Principle was signed in 2007 by the GNWT and participating Aboriginal governments. It states that the GNWT will give up to 25% of its share of resource revenues to NWT Aboriginal governments an agreement unprecedented in Canada. A final Resource Revenue Sharing Agreement is currently under negotiation by the GNWT, IRC, NWTMN and SSI.

6

7 of Lands and Resources in the Northwest Territories What We are Negotiating Devolution will transfer administration and control over Crown (public) lands, resources and rights in respect of water in the Northwest Territories (NWT) from the Government of Canada to the Government of the Northwest Territories (GNWT). It will also transfer existing federal records, assets and funds to support the delivery of related programs and services by the GNWT. As may be expected, a transfer of this magnitude requires the parties to work out many details about what will be transferred and when and how the transfers will be made. Identifying those details and coming to an agreement on them is at the heart of the devolution negotiations. Some of the subjects being discussed include: Transfer of public lands and rights in respect of water Creation of NWT legislation regulating public lands, resources and waters Protection of existing rights holders (e.g. current mining leaseholders) Identification and management of waste sites on public lands Job offers for federal staff working in affected programs Some of the subjects that are, or will be, discussed in side negotiations include: Coordinating administration of onshore and offshore oil and gas resources Federal/territorial cooperation on future projects of national significance Resource revenue sharing between the GNWT and Aboriginal governments Developing a new resource management relationship between the GNWT and Aboriginal governments Transfer of federal buildings and records Annual funding for transferred programs Delineation of the onshore-offshore boundary Resource revenue sharing between the GNWT and Government of Canada

8

9 of Lands and Resources in the Northwest Territories Sharing Resource Revenues Currently, the Government of Canada collects and keeps most of the royalties companies pay to develop resources on Crown (public) lands in the Northwest Territories (NWT). Some Aboriginal governments are also entitled to resource royalties from Crown lands in the NWT through their land claim and self-government agreements. The Government of the Northwest Territories (GNWT) does not receive any royalties from resource development and relies largely on federal transfer payments to deliver public programs and services. Q. What percentage of resource royalties will the GNWT receive after devolution? Parties to the devolution negotiations have agreed that the GNWT will keep 50% of the resource royalties from NWT Crown lands and send the other 50% to the Government of Canada. The NWT s share will be subject to a maximum or cap, consistent with provincial caps under Equalization (an annual transfer of funds from the Government of Canada that enables all provincial governments to provide comparable levels of public services). The cap is based on a formula related to federal transfer funds. In 2012, the cap would have been at about $62 million; this amount is projected to grow each year. When the NWT no longer needs federal transfer payments, there will be no cap. Q. How much will the GNWT share with Aboriginal governments? The GNWT has offered to share up to 25% of the revenues it will receive with Aboriginal governments. Although resource revenues vary each year, in 2012 the seven regional Aboriginal governments in the NWT could have shared up to $15.25 million dollars. Q. Why will the GNWT get to keep more revenues than Aboriginal governments? The revenues from public lands are public resources that must benefit all NWT residents. The GNWT will continue to have responsibility for delivering public services and for investing in territory-wide infrastructure like roads, energy, schools and hospitals that all NWT residents rely on. Right now, the GNWT owns less than 1% of NWT lands and resources, but has the bulk of responsibilities for providing important public programs like education, health care and housing. Q. Do some Aboriginal governments already receive royalties from Crown lands under existing land claim agreements? Yes. The Gwich in, Sahtu and Tłı cho agreements provide them with a share of the resource royalties collected on Crown lands throughout the Mackenzie Valley. The Dehcho government is also entitled to a share of resource royalties through an Interim Resource Development Agreement. Q. After devolution, will Aboriginal governments be required to give up the revenues they already receive from NWT Crown lands? No. The resource revenues Aboriginal governments already receive are part of settlements reached with the Government of Canada. The GNWT is offering Aboriginal governments additional resource revenues from Crown lands throughout the territory after devolution. Aboriginal people will also benefit from the GNWT s remaining revenues, which will be used to fund programs and services for all NWT residents.

10

11 of Lands and Resources in the Northwest Territories The Agreement-in-Principle The NWT Lands and Resources Devolution Agreement-in-Principle (AiP) was signed in 2011 by the Government of Canada, Government of the Northwest Territories (GNWT), Inuvialuit Regional Corporation (IRC) and Northwest Territory Métis Nation (NWTMN). In 2012, Sahtu Secretariat Incorporated (SSI) also signed on. The AiP outlines broad financial terms and other arrangements that the signatories have agreed upon so far. The AiP is an important step in the negotiations process and helps to ensure negotiations continue to move forward. It is not a legally binding agreement. Other NWT Aboriginal governments may sign on to the AiP when they are ready. Major features of the AiP include: Transfer of province-like powers over Crown (public) lands and resources and rights in respect of onshore waters in the NWT, including the right to tax resources and hydropower. $26.5 million for one-time transition costs. $65.3 million for the first year to fund the delivery of land and resource management programs, growing annually thereafter with the NWT s estimated annual spending requirements or Gross Expenditure Base (GEB). Other important features include: Agreement to coordinate onshore-offshore oil and gas administration between the Government of Canada, GNWT and IRC with Canada s commitment to begin negotiating offshore revenue sharing within 60 days of the final devolution agreement. Agreement to develop a post-devolution GNWT-Canada arrangement to cooperatively address projects of national significance and strategic infrastructure. A Net Fiscal Benefit (NFB), consistent with the national Equalization program for provinces, of 50% of resource royalties up to a cap of 5% of the NWT s GEB. The cap is currently at approximately $62 million in 2012 and will grow annually with the GEB. Agreement to develop a post-devolution GNWT-Aboriginal government relationship to coordinate the management of resources, with ongoing federal funds up to $3 million per year for Aboriginal participation and up to $4 million in one time transition costs for Aboriginal governments. Transfer of existing federal Northern Affairs Organization properties and assets including buildings, building leases, and records. Recognition that Aboriginal and treaty rights, including land claim and self-government agreements, are fully protected by the Constitution. Reference to the Resource Revenue Sharing Agreement that offers 25% of the GNWT s share of resource revenues to Aboriginal governments an agreement unprecedented in Canada. This devolution will transfer administration and control for onshore resources in the NWT only. The federal government will retain its authority over offshore resources.

12

13 of Lands and Resources in the Northwest Territories Aboriginal Government Participation Devolution is of particular interest to Aboriginal people in the Northwest Territories (NWT), who are among the most affected by land use and resource development decisions. They are also major land owners in the territory and have legal rights related to lands and resources through historical and modern treaties, including land claim and self-government agreements. These are a number of reasons why Aboriginal governments would benefit from participating in devolution negotiations. It is only by working together that we can achieve the best agreement possible for everyone in the NWT. Q. What involvement have Aboriginal governments had in devolution negotiations so far? NWT Aboriginal governments have been active participants in NWT lands and resources devolution negotiations from the beginning. Since 2001, Aboriginal governments have received almost $8 million from the Government of Canada and the Government of the Northwest Territories (GNWT) to support their participation. The Dehcho First Nations have chosen not to participate or take funding for participation Leaders from the NWT Aboriginal governments, GNWT and Government of Canada identified lands and resources devolution as a priority at the first NWT Intergovernmental Forum The Aboriginal Summit (a caucus comprised of NWT Aboriginal governments), GNWT and Government of Canada ratified a Memorandum of Intent, formally establishing their intention to negotiate the devolution of lands and resources to the GNWT First negotiations among the parties took place The Aboriginal Summit, GNWT and Government of Canada signed a Framework Agreement establishing the scope of the negotiations T he GNWT and participating Aboriginal governments signed a draft Devolution Agreement-in-Principle (AiP). The agreement was not accepted by the Government of Canada. There was a break in the negotiations Negotiations resumed. Some Aboriginal governments that signed the draft AiP now had new leadership and declined to participate at this time The Inuvialuit Regional Corporation, NWT Métis Nation, GNWT and Government of Canada signed the Devolution Agreement-in-Principle (AiP). Final devolution agreement talks began with the signatories to the AiP The Sahtu Secretariat Incorporated signed the Devolution Agreement-in-Principle, and re-engaged in main table negotiations for the final devolution agreement and bilateral negotiations for the Resource Revenue Sharing Agreement.

14

15 of Lands and Resources in the Northwest Territories Aboriginal Rights and Devolution The Government of the Northwest Territories (GNWT) has supported land claim and self-government negotiations since the beginning. The GNWT is proud to have been part of the negotiation of successful land claims in the Inuvialuit, Gwich in and Sahtu regions, and to be a full party to the Tłı cho Agreement, a combined land and self-government agreement. The GNWT continues to look forward to the successful conclusion of negotiations in other regions of the Northwest Territories (NWT). The GNWT s commitment to Aboriginal rights has extended to every aspect of devolution negotiations. There has been a place at the negotiation table for regional Aboriginal government representatives from the very start of negotiations, with funding to support their participation. Provisions recognizing and respecting treaty and Aboriginal rights, settled and future claims and other Aboriginal interests can be found throughout the Devolution Agreement-in-Principle (AiP). The AiP explicitly states that nothing in a final devolution agreement will delay, impair or impede ongoing or future land claims or self-government negotiations, and confirms that devolution will not affect settled claims, as the Constitution of Canada protects these agreements. The AiP also commits the GNWT to a post-devolution relationship with NWT Aboriginal governments to coordinate land management. Devolution is not about settling questions about Aboriginal title over lands, or self-government authority over lands and resources. Those topics are the subject of separate and distinct negotiations, and in some cases have already been settled through land claim and self-government agreements. Devolution is about having the responsibility for managing public lands, resources and waters, currently held by the Government of Canada, moved to the GNWT. Devolution is consistent with, anticipated by, and complementary to existing agreements and will not adversely impact Aboriginal title or ongoing lands, resources and self-government negotiations. Q. Will Aboriginal rights be affected by devolution? Q. Will devolution give the GNWT authority over settlement lands? No. Treaty and Aboriginal rights are fully protected by the Constitution. Devolution will not and cannot change this. No. Devolution will not change the nature of settlement lands or the authority that Aboriginal governments have over their own lands. Q. What will happen with claims settled after devolution? Devolution will not prevent the selection of land for future land claims and the Government of Canada will be able to take back the administration and control of devolved land for national interests, such as land claim agreements. Q. Will devolution affect the amount of money offered as part of ongoing land claim negotiations in regions with unsettled claims? No. Federal offers are based on a framework developed during the comprehensive Dene/Métis claim negotiations that preceded regional claims in the late 1980s. continued on reverse

16 Q. How will Devolution benefit Aboriginal people and governments? More say in decisions about the use and management of public lands, resources and waters throughout the territory, through regionally elected Members of the Legislative Assembly (MLAs). More money for the territorial government to invest in core public services and infrastructure such as health care, education, housing, roads, hospitals, schools and energy projects that will improve life in all NWT communities. More money for Aboriginal governments to invest in community needs and government capacity. Q. Do some Aboriginal governments already receive royalties from public lands under their existing land claim agreements? Yes. The Gwich in, Sahtu and Tłı cho agreements provide a share of the resource royalties collected on Crown (public) lands throughout the Mackenzie Valley. The royalties participating governments receive from the GNWT after devolution will be over and above any royalties received under federally negotiated treaties.

17 of Lands and Resources in the Northwest Territories It s Time for Northerners to Make Land and Resource Decisions Q. Why should all people in the NWT care about devolution? Right now: Ottawa owns and controls almost all of the public land and waters in the NWT. A federal Minister, who is based in Ottawa and was not elected by the people of the NWT, has the power to decide if companies can develop oil and gas, minerals and diamonds on NWT lands. Ottawa keeps almost all of the money companies pay to develop NWT resources. Each day without devolution, up to $170,000 in resource revenues leaves the NWT. The NWT has missed out on an estimated $235 million in resource revenues over the past 5 years. The provinces and Yukon already decide what happens with their natural resources, and keep a share of the wealth from resource development. It s time for the people of the NWT to also have these rights and benefits. After devolution: Decisions about public lands, resources and waters will be made in the NWT instead of in Ottawa. These decisions will be made by the NWT public government elected by all residents, and will be based on northern needs and priorities. The GNWT will work with Aboriginal governments and NWT residents on resource management to help ensure all residents benefit from development and that the environment is protected. Land, water and resource management programs will be delivered by the GNWT and designed to reflect northern priorities instead of federal policies. New jobs will be created throughout the territory to do this work, supported by more than $65 million dollars in federal funding each year. Tens of millions of dollars a year in resource royalties will stay in the NWT. This money can be used to create jobs and business opportunities, invest in infrastructure, and support public programs that all NWT residents rely on.

18

19 of Lands and Resources in the Northwest Territories About the Net Fiscal Benefit Ensuring that the Northwest Territories (NWT) gets a financial benefit from devolution is another important subject for negotiations. The Net Fiscal Benefit (NFB) is the amount the Government of the Northwest Territories (GNWT) will be able to keep from land and resource development royalties after devolution, without affecting federal transfer payments. Q. How much will the Net Fiscal Benefit be after devolution? Right now, resource development royalties from NWT Crown (public) lands are paid directly to the federal government, which keeps most of them. After devolution, the GNWT will collect and keep 50% of these royalties, subject to a maximum or cap, and send the other 50% to the Government of Canada. Q. What is the cap? The cap is the total amount of resource royalties the GNWT can keep each year. Any resource royalties above this amount will go to the Government of Canada. To date, devolution negotiators have agreed that the cap will be 5% of the GNWT s Gross Expenditure Base (GEB). In 2012, the cap would have been at about $62 million, increasing each year with the GEB. Q. Will the NWT miss out on a lot of revenue because of the cap? The cap is high enough that the NWT may rarely reach it. Looking at the twelve years from 1999 to 2011, resource royalties would have exceeded the cap in only two of those years. The cap amount will also grow each year with the GEB. Based on anticipated annual GEB increases, the cap could be as high as $100 million by Q. Why has the GNWT agreed to a cap? A 5% cap is consistent with how provinces are treated under the federal Equalization program, providing national fairness and consistency. Definitions: Equalization: An annual transfer of funds from the Government of Canada to the provinces. Equalization enables all provincial governments to provide comparable levels of service. Territorial Formula Financing (TFF): An annual transfer of funds from the Government of Canada that enables the territories to provide their residents with a range of public services comparable to those offered by provincial governments. Gross Expenditure Base (GEB): A part of the Territorial Formula Financing (TFF) that represents the estimated annual expenditure requirements of the GNWT. The GEB takes into account the higher cost to deliver public programs and services in the NWT.

20

21 of Lands and Resources in the Northwest Territories Resource Management After Devolution After devolution, the Government of the Northwest Territories (GNWT) will be responsible for the management of public lands, resources and waters onshore in the Northwest Territories (NWT). The federal government will retain its authority over offshore resources. The GNWT has made a commitment in the Devolution Agreement-in-Principle (AiP) to develop post-devolution agreements with the Government of Canada and participating NWT Aboriginal governments to foster cooperation and coordination on resource management across jurisdictions. Coordinating Public and Settlement Lands Resource Management Coordinating Onshore and Offshore Resource Management Several regional Aboriginal governments own and control substantial amounts of land in the NWT as part of their settled land claims. Other Aboriginal governments are currently in negotiations on agreements of their own. It will be in the interests of all NWT governments to have as much coordination and consistency as possible in their land management regimes. The AiP calls for the Government of Canada, GNWT and Inuvialuit Regional Corporation to develop a post-devolution agreement to cooperate and coordinate on the administration of onshore and offshore resources. This commitment to collaboration will promote efficiency and foster best practices in the management of these resources across jurisdictions. The AiP also calls for the Government of Canada and GNWT to begin negotiations on the sharing of offshore resource revenues within 6 months of signing a final agreement. The AiP calls for the development of a new relationship between the GNWT and participating Aboriginal governments to facilitate resource management coordination across jurisdictions. Devolution cannot result in any government having a veto over the decisions of another government; however, it will be in northern governments common interest to work collaboratively on land and resource management. Through greater cooperation, northern governments can find efficiencies and share capacity in land and resource management, and help foster best practices to encourage responsible development while protecting the environment.

22

23 of Lands and Resources in the Northwest Territories Industry and Devolution The Government of the Northwest Territories (GNWT) recognizes that resource development investors need information, certainty and security in relation to existing interests, new project approvals and the regulatory system. The Devolution Agreement-inPrinciple (AiP) recognizes that devolution is to be done in a manner that respects existing land, water and resource rights and minimizes disruption to the provision of programs and services. To ensure a smooth transition, the GNWT will create legislation that substantially mirrors federal Aboriginal Affairs and Northern Development Canada (AANDC) legislation and will protect existing rights and interests. We are committed to seeing industry working with familiar people and familiar processes immediately post-devolution. The GNWT will work with AANDC on business process mapping to maximize business continuity and provide for a seamless transfer. The GNWT looks forward to capitalizing on the experience of AANDC staff members who are currently managing AANDC programs, and attracting as many as possible to work for the GNWT post-devolution. To the benefit of NWT residents and industry, devolution will place responsibility for development-related policy in the hands of the GNWT a more nimble, accountable and responsive government that can focus on the needs of a single territory and its investors. The GNWT recognizes that resource development is the foundation of the NWT economy. As such, we will work with NWT residents and industry after devolution to ensure development-related public policy is practical, effective and workable.

24

25 of Lands and Resources in the Northwest Territories Devolution Implementation Once devolution negotiations have successfully concluded, the Government of Canada, Government of the Northwest Territories (GNWT) and participating Aboriginal governments will work together on the detailed planning necessary for devolution to take effect. Devolution implementation is expected to take about 18 months after negotiations conclude. A great deal of planning will be required to ensure a smooth transition on Effective Date: the parties must identify what programs and services will become the responsibility of the GNWT; Canada must repeal or revise existing legislation; and the GNWT must draft and pass mirror legislation in the NWT Legislative Assembly and make job offers to affected federal employees. There are two stages of implementation: 1. Transition This is the time between the signing of the Agreement in Principle (AiP) and a final agreement. Canada has agreed to provide the GNWT $4 million dollars for activity during this period based on activities set out in the AiP, including developing an organizational design, establishing a transition team, assessing information technology (IT) requirements, creating a waste sites inventory, and developing and drafting territorial legislation. 2. Implementation This is the time between a devolution final agreement and Effective Date. Canada has agreed to provide the GNWT with $22.5 million dollars for a range of activities outlined in the AiP including implementation activities, writing job descriptions, communications, recruitment activities, preparing inventories, designing information management structures and installing major systems. For more information on devolution, including implementation funding and activities, please visit our website at devolution.gov.nt.ca

26

27 of Lands and Resources in the Northwest Territories Affected Federal Employees and Devolution Currently in the Northwest Territories (NWT), the Department of Aboriginal Affairs and Northern Development Canada (AANDC) delivers most public programs and services related to the management of NWT public lands, resources and rights in respect of water. After devolution, authority over and delivery of these programs will be the responsibility of the Government of the Northwest Territories (GNWT). Initially, the GNWT will create new positions with responsibilities and locations comparable to existing federal positions, and will mirror AANDC processes and legislation as closely as possible to ensure stability and continuity through the transition. The Government of Canada will provide the GNWT up to $26.5 million for one-time transition costs, along with annual funds of $65.3 million to support the delivery of these programs. Under the terms of the Devolution Agreement-in-Principle (AiP), permanently employed or indeterminate affected employees working in devolved programs will receive offers of employment from the GNWT six months prior to devolution. These offers of employment will be reasonably comparable to the employee s existing federal position with regard to work responsibilities, salary, seniority level and location. Affected federal employees will not be automatically transferred with devolving programs. All affected employees will be laid off from their employment with AANDC on the date devolution takes effect and will have the option to accept or decline the GNWT s offer of employment. Q. What will happen to employees currently working in affected federal programs? Q. What will happen if I accept the GNWT s job offer? Under the terms of the AiP, every permanent or indeterminate affected federal employee working in a devolving federal program will receive a job offer from the GNWT six months prior to devolution. The offer will match as closely as possible the functions, authorities and location of each employee s substantive position and provide reasonably comparable salary and benefits. Affected federal employees will not be automatically transferred and will have the option to accept or decline their offer of employment from the GNWT. Those who accept the GNWT s offer of employment will be laid off by the federal government when devolution takes effect. Affected employees will receive three months of salary from Canada, as outlined in the federal Workforce Adjustment Directive, and begin immediately with the GNWT as a new and separate employer. continued on reverse

28 Q. What does reasonably comparable mean? The terms of the AiP state that the GNWT will make job offers to all indeterminate federal employees working in affected programs that provide reasonably comparable salary and benefits to their substantive federal positions. As the GNWT is a new employer with a differing organizational structure, job evaluation methodology, and salary and benefits package guided by a different collective agreement and employee handbook, the package cannot be an exact match. However, the GNWT is making every effort to ensure that these new positions are as close as possible to existing federal positions and are fair to both new and existing GNWT employees. Detailed criteria around these job offers are currently under negotiation. Q. What will happen with my existing benefits? All accumulated sick days, years of service and pension contributions will be honoured and credited by the GNWT. Accumulated and unused vacation days (up to a maximum of one-year s entitlement) will also be credited by the GNWT. Any excess vacation beyond one year s entitlement will be paid out by the federal government. Q. What if I turn down the job offer? Affected employees who decline their offer of employment from the GNWT will be laid off by the federal government when devolution takes effect and will be subject to and receive all related benefits of the federal Workforce Adjustment Directive. Q. Will term employees receive job offers from the GNWT? Federal employees working under temporary or term contracts in affected programs are not guaranteed GNWT job offers under the terms of the AiP. However, the GNWT recognizes and values the knowledge and experience of these term employees, who make up a significant percentage of the workforce in devolving programs. It is anticipated that many of these positions will be re-created in the territorial government to ensure these programs continue to be delivered effectively. In addition, some term positions may be created as indeterminate positions in the GNWT, providing opportunities for greater stability for those who desire more permanent employment. The GNWT is currently discussing how all federal employees working in affected programs can be welcomed into the new organization. Q. How do GNWT benefits compare to federal benefits? The GNWT benefits package (medical, dental, vacation, sick days, pension etc.) and conditions of employment for all GNWT employees are based on The Union of Northern Workers Collective Agreement and the Excluded Employee Handbook and Senior Manager Handbook, which meet or exceed federal standards in most cases.