Agreed.

---Agreed

Is Bill 4 ready for third reading? Agreed?

Agreed.

---Agreed

Thank you. Now we will go to Bill 1. Would the Minister like to introduce this bill.

Minister's Opening Remarks

Thank you, Mr. Chairman. Bill 1, Supplementary Appropriation Act, No. 2, 1991-92. The purpose of this bill is to make supplementary appropriations for the Government of the NWT for the fiscal year ending March 31, 1992. Mr. Chairman, after the standing committee on finance has reported I would like permission to bring in a witness.

Mr. Todd, chairman of the standing committee on finance.

Comments From The Standing Committee On Finance

Mr. Chairman, the standing committee on finance reviewed this bill extensively in its meetings on December 5th, 6th, 8th and 11th. The committee was pleased that the Minister of Finance and his staff were available to answer the many questions of the committee. Responses to our questions, although not always to our liking, were provided in a very efficient manner.

During our meeting on December 11th the committee agreed to recommend this bill to the House for consideration. The committee recognizes that the bulk of this bill was formulated by the previous administration. However the committee did have several concerns. I will speak to the major ones. Members of the committee may have comments on the detail of this bill during the discussions in committee of the whole.

The first concern of this committee was the short amount of time we had to review the bill. The committee received the details of this bill, the evening of December 2, just two days prior to our meeting. The committee recognizes the time constraints that all Members have been under of late, including the Executive Council, but we stress that these bills must be received in ample time to allow for a full and comprehensive review.

Secondly, the committee was concerned about the size of the supplementary appropriations that are coming forward. If this bill is passed, the total supplementary appropriation for the current fiscal year will be over $80 million and we still have three months left at the end of the fiscal year.

Finally, the committee is concerned about the use of special warrants. These expenditures are made without the prior approval of this House. The committee feels that special warrants should only be used in exceptional circumstances. I would like to point out that the former chairman of SCOF, now the Minister of Finance, had similar concerns with special warrants. This is an area we have only touched upon with the Minister of Finance, but one we will be giving close scrutiny to over the next four years.

---Applause

Does the committee agree that the Minister bring in his witness?

Agreed.

---Agreed

Proceed, Mr. Minister. Mr. Minister, would you like to introduce your witness for the record?

Mr. Chairman, Members of the committee, joining me now is Mr. Lew Voytilla, the secretary to the Financial Management Board.

Thank you. The committee will go to details now. Page 5, Supplementary Appropriation No. 2.

Department Of Executive

Ministers' Offices, Total O And M

Executive, Total O and M, Ministers' offices, special warrant, $90,000 not previously authorized $72,000. Mr. Gargan.

Mr. Chairman, we just passed a motion to not increase our travel or indemnities and here we have another to provide funding for the increased costs due to inflationary increases associated with Ministers' home air travel of $72,000. I believe we did accept the principle of restraint. I would like to ask the Minister that the ordinary Members restrict themselves on the increase and the Minister's will get an increase. Perhaps the Government Leader may enlighten me on what this is for.

Thank you. Mr. Minister.

Thank you, Mr. Chairman. The previous Minister of Finance and the Financial Management Board had incorporated a supplementary reserve for inflationary increases into the fiscal framework of the Government of the NWT, and on September 11th when this was brought forward, it was merely seeking those inflationary increases from a reserve that had been set up for that specific purpose.

Mr. Chairman, there are no inflationary increases allowed in the budget or they were not allowed in the O and M, in this particular area, and in other areas of the budget at the last budget session. So it was merely using up reserves that had been allowed for. Thank you, Mr. Chairman.

Mr. Gargan.

Could the Minister enlighten me on the breakdown of the travel? I also wanted to mention that in light of the fact that we were anticipating a deficit, that because we were not aware of those costs or hidden costs, should the Executive realize that we might run into a deficit and practise restraint?

Mr. Minister.

Mr. Chairman, we are, as much as possible, practising restraint, because we are aware of an impending deficit. Thank you, Mr. Chairman.

Thank you. Mr. Gargan.

Mr. Minister.

Mr. Chairman, when the main estimates came before the House last April they were forecasting to be in a deficit position of some eight million dollars. That has increased and it will be in excess of $30 million this year.

Mr. Zoe.