Thank you, Mr. Speaker. Part three, the health billing dispute.

The Report of the Auditor General On Other Matters for the year ending March 31, 1991, made notes of this dispute between the government of the Northwest Territories, the federal government, and D.I.A.N.D., over health care billing.

The amounts owing to the government of the Northwest Territories by the federal government have continued to increase and the reconciliation of the dispute to negotiate has not been possible. Correspondence has been exchanged for several months between the government and the federal government. Meetings have taken place between Ministers and senior officials involved.

In the budget address on August 10, 1992, the Honourable John Pollard assured, in the Legislative Assembly, that he had written to the federal Minister of Indian Affairs and Northern Development to indicate that the government of the Northwest Territories would file court papers by today of this year.

In Committee Report 13-12(2), the Standing Committee on Public Accounts clearly indicated its position that government must keep the Legislative Assembly informed, through regular briefings about the progress of negotiations with D.I.A.N.D., and that they should tell the Assembly how the success, or failure, of the negotiation is affecting the governments overall financial situation.

Since that time, information has been forthcoming from the government when its officials have appeared before the standing committee at success of public hearings. Officials have also submitted detailed accounts of the negotiation process.

The standing committee takes the position that, just as it was important for the government to advise the Legislative Assembly of this committees progress during the negotiation phase, regular information updates on the status of the court proceedings should also be provided.

With respect to the substance of the issue, Members of the standing committee were of the opinion that the position taken by the government of the Northwest Territories in this matter should be strongly supported in principle. Clearly, there are issues in dispute which pertain to the very core of our framework for the delivery of health care to native people in the Northwest Territories.

Indeed, from the public accounts perspective, the standing committee was concerned about the cost to the Government of the Northwest Territories for participating in the failed negotiations and impending court action. Not only in the terms of specific expenditures but in person hours devoted by senior professional staff and departmental officials.

The standing committee was of the opinion that the Government of the Northwest Territories should consider including estimates of direct and indirect costs of these negotiations with its claim. Primarily for the purpose of accountability and the internal information flow. The standing committee would suggest that, in any further negotiation of this type, the Government of the Northwest Territories should be more specific when informing the Legislative Assembly with respect to the composition and mandate of the formal negotiating team.

A chief negotiator should be designated and held accountable for results, and a proposed time frame should be announced at the outset to permit better evaluation of progress. The standing committee was also mindful that the Auditor General's report contained a reservation of opinion on the 1990-91 financial statement.

Relative to this issue, the Auditor General noted that, "We do not disagree with the calculations of the government's claim, but there is not enough audit evidence for us to conclude whether all of this money will be recovered. The government has not provided for any possible laws, as it also does not know the future outcome of its claim."

The Standing Committee on Public Accounts continues to regard the Auditor General's reservations as an extremely serious matter, and was of the opinion that the Government of the Northwest Territories must develop a plan for dealing with the issue, in its financial statement for the year ending March 31, 1992.

Ideally, this plan should be available for review at the time when audited financial statements are tabled at the end of September. The Standing Committee on Public Accounts will continue to monitor the matter as it pertains to the financial statement and fiscal position of this government.

Mr. Speaker, at this time I would like to ask Mr. Koe, to conclude the committee report.