MLA puts fuel cost under spotlight
Savings from decreased oil prices not yet seen in territory
Michele LeTourneau
Northern News Services
Monday, March 23, 2015
IQALUIT
Iqaluit-Tasiluk MLA George Hickes questioned Finance Minister Keith Peterson on the implications of a global decrease on oil prices for the territory March 13.
"The decrease in oil prices, however impact it has on other jurisdictions and shortfalls of their revenue, doesn't impact our revenue," said Hickes.
"If anything, it gives us an opportunity with regard to our annual fuel resupply purchase. I know that the final numbers will not be available until the delivery occurs this summer, but I would like to ask the minister: what was the budget allocated for the fuel resupply for this upcoming year and what is the anticipated real cost?"
Peterson explained the Government of Nunavut is always looking for ways to reduce costs.
"I know that the petroleum products division under Community and Government Services has been actively purchasing fuel in anticipation of providing some savings in the future," he said. "We have talked in the past about hedging. Our form of hedging is pre-purchasing and stockpiling the fuel in other jurisdictions for delivery later in the fiscal year."
The following week, at the Baffin Mayors' Forum in Iqaluit, Community and Government Services Minister Tom Sammurtok reportedly stated, "While we won't see any impact on pricing until next fall, we are optimistic that when the 2015 resupply is completed, that savings will remain positive for Nunavut."
GN officials estimated the saving in fuel costs to be approximately $32 million when it resupplies communities later in the year.
Hickes suggested in the legislative assembly that any dollars from savings, which would be substantial, be invested into alternative energy.
"Why don't we show that we are serious about alternative energy and take this year's savings that we can save on in the re-supply and invest in smaller scale alternative energy projects like solar and smaller scale wind projects," he asked.
Peterson, who is known not to commit in the house, said the suggestion would be taken into consideration, noting the government has many priorities.
"We have got so many demands in the Government of Nunavut that the savings from pre-purchasing fuel could be used in other priority areas. We have talked here about health centres, community halls, ice arenas, office buildings, you name it, we have priority areas everywhere. As the minister responsible for the Qulliq Energy Corporation, I am an advocate for alternative energy. I'm also an advocate for efficiencies and effectiveness."
