Thank you, Mr. Speaker. The standing committee on finance is pleased to present its report on the review of the 1992-93 capital estimates. Good financial management should not be something we just talk about; it should be something we do. If we do not do something now, this government will be $38l million in debt by March 31,1995. More people will be homeless, uneducated and out of jobs. That is the bad news, and it is a sobering thought. The standing committee on finance wants the Legislative Assembly, the civil service and the public to clearly recognize this problem.
The good news is, we can change it. That is why we are here. Not just by talking about it but by taking responsible, results-oriented action. Our stakeholders, the public, investors, the federal government, to name just a few, want to see a well thought out recovery plan to turn this government around in these leaner times. Our stakeholders want to see a plan that will ensure that this government will be in a modest surplus position by March of 1995 and that more people will have homes, more people will be educated, and more people will be employed. And they, the stakeholders, the public, want to see what is planned to ensure the basic needs of our constituencies are met. They will, and should, hold us all accountable when they next vote.
---Applause
It is incumbent on the standing committee on finance to offer criticism to our colleagues in cabinet, provided that criticism is constructive and done professionally. If we are going to criticize, we must also offer possible solutions.
During the week of February 11, 1992, the committee expressed a number of serious concerns with the capital estimates in advance of the Minister of Finance's budget. This was done to give the government the opportunity to review our recommendations and determine an appropriate course of action. We are pleased that the cabinet responded to our concerns and demonstrated a will to work with the committee. Of course, some of the responses, Mr. Speaker, may not have gone far enough, in our opinion, but we respect the decisions, and these matters we will bring forth in the coming days when we address the budget. This report reflects these same concerns, and reflects the guiding principles of this committee; that is, the need for fairness and good value for public money.
Some of the major issues of concern include: the Department of Education's budget in many respects; public housing; the Departments of Economic Development and Tourism, and Transportation in general; specific matters in other departments and related matters of principle which we will deal with in the departmental reviews; a general lack of vigilance in spending; and the responsibility to ensure that the effects of balancing the budget are not placed on the backs of those people who are most in need.
---Applause
Mr. Speaker, it is important to remember that this budget is a creation of past and present governments. None of us can abdicate our responsibilities. Government should and must respect previous commitments which are still justified prior to proceeding with new initiatives.
---Applause
It is the committee's observation that departments tend to be activity-driven, not results-driven. There are numerous examples of this, but the most obvious is the Department of Education, which measures success by statistics with little reference to achievement. Current graduation statistics and comparative testing show quite the opposite. In order that we may make our decisions in light of all the facts, it is the committee's intention to incorporate results measures in future reports to the Legislative Assembly. This is consistent with the position of the previous standing committee on finance. All departments and agencies must be challenged to achieve more with less, not just do more.
Special Warrants Approval Process Needs Improvement
We also want to be assured that immediately after this capital budget is approved in the Assembly, the government does not issue many special warrants, as was past practice. This concern is, again, consistent with the previous standing committee on finance, who raised the use of special warrants, abusing the process and circumventing the Assembly.
---Applause
A method has to be determined to include the committee's involvement in the approval process of special warrants.
It is the committee's belief that developing a long-term strategy with respect to our financial obligations must be a priority. Long-term planning is essential to good government. It is essential that with future capital budgets, a multi-year plan be presented. When capital estimates come in front of the committee again in October, we will want to see a five-year plan.
---Applause
Cabinet should also consider doing a thorough evaluation of the capital management planning and allocation process. It is obvious to this committee that the current system is not working as well as it should. Finally, and I have said it many times, the committee does not want the burden of balancing the budget to fall on the backs of the people who are in most need...
---Applause
...the homeless, the unemployed, the uneducated in small communities and in large. In coming up with our recommendations the committee considered that if sacrifices must be made, they must come from areas of surplus and enhancements; things we might like to do but cannot really afford to do.
If we cannot afford it, maybe we should not be renting four boardrooms where two will do; maybe we should not be building large arenas when medium arenas are satisfactory; enhancing a park or paving a road, and the list goes on and on. If we cannot afford it, then do not buy it.
The standing committee on finance feels that there is a need for fundamental change in the way that the government does things. We want to be a part of the process, with the Legislative Assembly, to bring about this change for the benefit of all Northerners.
---Applause
It is obvious that a long-term action plan is essential if we are to determine what our short and long-term financial obligations are. This, in the committee's opinion, should be the priority. We are prepared to work with cabinet to achieve this. We propose that cabinet and ordinary Members of the Legislative Assembly undertake a one-week strategic planning workshop in order to develop a shared vision that we can all work toward. This is unprecedented in other Assemblies.
---Applause
We cannot continue to run this government without some indication of what our priorities are, how we are going to achieve them, who is going to get us there, and what it ultimately costs. The responsibility lies with all of us. The challenge is our ability to look beyond constituency interests and determine what is in the best interest of all Northerners.
---Applause
The standing committee on finance accepts this challenge and awaits your response. We must be part of a solution, not part of the problem.
---Applause
Mr. Speaker, the standing committee on finance respectfully submits a list of 52 recommendations for consideration of this Assembly. Specific concerns have also been identified in the departmental reviews which are part of this report.
Motion To Move Committee Report 3-12(2) To Committee Of The Whole, Carried
Mr. Speaker, that concludes the report and, therefore, I move that the report of the standing committee on finance be received and moved into committee of the whole for discussion, in conjunction with Bill 14. Thank you.
---Applause