Thank you, Mr. Todd. The motion is in order. To the motion.

Question.

Question has been called. All those in favour? All those opposed? Motion is carried.

---Carried

Proceed, Mr. Todd.

Thank you, Mr. Chairman. Motion number two is capital priorities. The standing committee has received the stock answers from government about how well the relative priority of departmental capital programs are evaluated in relationship to critical factors. The standing committee has been told by government on numerous occasions that public housing is the number one capital priority. However, upon review of the specific projects in the 1993-94 Capital Estimates, concerns were raised by Members over and over again about how this government actually allocates capital dollars. The committee was appalled to find, for example, $1.95 million allocated for an addition to the Iqaluit museum when the basic necessities of people at the bottom are not being dealt with satisfactorily.

Agreed. Agreed.

This is an example of the message that this committee has been trying to get across. This government cannot afford to do all the capital projects we would like to do. Basic needs such as housing must come before luxury items...

---Applause

...such as additions to a museum which, incidentally, is already far superior to any other region. The committee would also like to remind the government of the words of the Minister of Health when he told the committee "I want to make it clear at the outset that this plan will be for the system and that your involvement must be with that perspective and not as defenders or advocates for a single board facility or discipline." Evidence indicates that officials and political leaders are not showing the same prudent caution when spending public funds as if it were their own. This simply must change.

Therefore, Mr. Chairman, I move that this committee recommends that the government specifically respond to the Legislative Assembly in the 1994-95 Capital Estimates the measures it has taken to:

1. review and constrain purchasing and construction standards;

2. standardize design for the construction of facilities;

3. communicate capital restraint guidelines and motivate officials to achieve more with less; and

4. rectify capital management problems.

Thank you.

Thank you, Mr. Todd. The motion is in order. To the motion.

Question.

Question has been called. All those in favour? All those opposed? The motion is carried.

---Carried

Proceed please, Mr. Todd.

Recommendation number three is on unorganized committees. Several cases were reviewed and Members noted that small unorganized communities were afforded different levels of treatment for capital projects. It appears that the government and in particular M.A.C.A. have no policy guidelines in place to ensure consistent treatment. We wish to ensure some consistent treatment.

Therefore, Mr. Chairman, I move that this committee recommends that the government develop guidelines for the 1994-95 Capital Estimates for the provision of capital infrastructure to unorganized communities.

Thank you. The motion is in order. To the motion.

Question.

Question has been called. All those in favour? All those opposed? Motion is carried.

---Carried

Proceed, Mr. Todd.

Recommendation number four is in relationship to the O & M costs. Can we afford the O & M costs? The committee believes that the Legislative Assembly should make

its decisions on the Capital Estimates in light of all the facts. Pertinent facts included the ongoing additional O & M costs that result from capital expenditures since these must be accommodated within the Main Estimates in future years. The five year capital plan document would be significantly enhanced with another column showing ongoing O & M costs. In addition, some capital expenditures can be made which will reduce future years' operations and maintenance costs, and consideration should be given to such investments in a manner to support other social economic needs such as job creation and economic development.

Qujannamiik. The motion is in order. To the motion.

Question.

Question has been called. All those in favour? All those opposed? The motion is carried.

---Carried

Mr. Todd.

Recommendation five is the surplus of assets and/or privatization. The territorial government has a lot of money tied up in its investment in capital assets which are not shown on the balance sheet. For example, it is likely conservative to estimate that the government owns as much as $200 million in staff houses and $100 million in petroleum product tank farms. The government is likely unaware of the current volume of investments in all of our capital estimates. On the other hand, the capital needs assessment identifies, based on current standards and criteria, capital needs over the next ten years totalling approximately $3 billion. This points out two things: the Government of the Northwest Territories cannot afford its current capital standards; and we must get creative to meet our realistic needs within the current restraints. Where will this funding come from, we ask? Current Standing Committee on Finance initiatives include working on attracting offshore investment, establishing a heritage fund, a one-time investment of capital dollars and innovative ways to increase tourism and revenues by legalizing some forms of gaming in the north. There are other potential resources, these include: selling surplus assets; encouraging government staff house ownership; privatizing the petroleum products division; and accessing federal programs such as assisting native people with funding applications for the relevant business opportunities under the Canadian Aboriginal Economic Development Fund.

Therefore, Mr. Chairman, I move that this committee recommends that the government specifically respond to the Legislative Assembly in the 1994-95 Capital Estimates with a strategy for identifying and selling surplus assets and related privatization opportunities in order to free up much needed funds currently invested in capital assets. Thank you, Mr. Chairman.

Merci, Monsieur Todd. The motion is in order. To the motion.