Good afternoon. Before I start orders of the day, I would like to welcome to the Legislative Assembly, Mr. Noel O'Sullivan, chairman; Ms. Debra Simpson, vice-chairperson; and Dr. Loretta Foley, superintendent, of the Catholic school district. The Catholic school district is celebrating 40 years of Catholic education in the city of Yellowknife.

--- Applause

Orders of the day for Tuesday, March 31, 1992. Item 2, Ministers' statements. Ms. Cournoyea.

Mr. Speaker, I have an emergency statement that I would like to proceed with. Mr. Speaker, I am rising to make an emergency statement to the Assembly on the matter of health care in the Northwest Territories. Over the past two weeks, serious allegations about the quality of hospital service and the treatment of patients have been made publicly and in this Assembly. The result has been an undermining of people's confidence in a medical system which I believe is one of the best in the world.

As a result, the Minister of Health came to me this morning and asked that I relieve him of the responsibility for the Department of Health. I have accepted his decision to step down as Minister of Health, and I will assume responsibility for that department on an interim basis, pending the report of the independent inquiry into abortion procedures at Stanton Yellowknife Hospital.

Mr. Speaker, as a former Minister of Health, I am well acquainted with the people throughout the medical system, and I know that all Members of the Legislative Assembly want to ensure the ' best possible care for people in the Northwest Territories. Thank you.

Ministers' statements. Mr. Patterson.

Thank you, Mr. Speaker. Mr. Speaker, I have two statements. Mr. Speaker, the special advisor on gender equality was appointed in early 1991. She has been reviewing gender equality issues relating to the justice system. Her process has included research and extensive consultation with players in the justice system and with communities.

The special advisor was due to report to me today. She has been assisted throughout her review by a full-time project coordinator. Recently, however, a serious medical problem has arisen in the family of the co-ordinator, which has taken him out of the Northwest Territories for an indeterminate time. As a result, the special advisor on gender equality has requested an extension of one month to complete her work, and I have granted the extension. When I receive the report, I intend to distribute it to MLAs at the earliest opportunity. Thank you, Mr. Speaker..

If I may, Mr. Speaker, I wish to announce two new policies which will govern the operations and capital funding programs of the Department of Municipal and Community Affairs for municipalities in the Northwest Territories.

The municipal capital and municipal operating assistance policies are comprehensive in scope and significant to Northwest Territories' municipalities. We have held lengthy discussions and consulted widely with municipal leaders in developing these policies.

In 1989, a discussion paper on financing municipal governments was tabled in this Legislative Assembly, outlining options for funding municipalities for capital, operations and maintenance. This paper represented the culmination of work initiated in 1986 to consolidate the many programs of assistance and was intended as a starting point for discussions with municipal leaders.

Early in 1990, at the request of the NWT Association of Municipalities, the department agreed to form a joint committee to review the various proposals in the discussion paper and to make recommendations on preferred funding approaches. The committee's recommendations were submitted to my predecessor, the Hon. Tom Butters, in early 1991. Building on the original discussion paper and the joint committee's recommendations, the department drafted two policies: one for capital and one for operations funding, which were, then, further reviewed by municipal leaders at a series of regional conferences and discussed by the membership at the last two annual meetings of the NWT Association of Municipalities. Final policy proposals were improved and brought to cabinet for approval.

Mr. Speaker, our municipal leaders were unanimous that current programs of assistance were confusing, with a number of different standards, criteria and rules; lacked the certainty of funding communities sought; did not promote the degree of local authority and autonomy that communities desired; and were often unfair in the distribution of funds.

The new policies are built on principles that address these problems. These policies are sensitive to the fiscal constraints of both this government and the municipal level of governments. They promote efficiency and effectiveness, encourage local revenue generation, and recognize varying costs of doing business in communities and varying abilities of communities to contribute to programs or projects. Above all, these new policies are equitable and equal in their application between the largest and the smallest municipalities Municipal Capital Assistance Policy

Mr. Speaker, I wish to highlight the central features of these two important policies. The municipal capital assistance policy governs all department capital programs and builds on and expands the policy approved in principle by cabinet in 1987.

M-CAP, as we call it, provides for communities to assume greater authority over capital projects. Consistent with many of the recommendations of the standing committee on finance, municipalities can enter contribution agreements with the department for full or partial control of capital projects and programs, or, when implemented, a degree of capital block funding. All communities are treated equally with this provision and may exercise varying degrees of control over a project, dependent on their willingness and ability.

Mr. Speaker, not all communities are equal in the costs they face and their ability to contribute to projects. A northern cost index in the policy recognizes varying costs, and fair and reasonable criteria have been developed to determine the relative ability of communities to contribute. Dependent on a municipality's ability to contribute, different contribution requirements for projects are set.

The department also recognizes that it cannot meet all the needs of all the communities. Facilities and other capital infrastructure have been classified as basic, meeting the core needs of municipalities, or additional, meeting other needs. Priority will be given to meeting basic needs, consistent with the recently passed motion of this Assembly during the review of the department's 1992-93 capital budget.

Municipal Operating Assistance Policy

On the other hand, Mr. Speaker, the department will implement the municipal operating assistance policy on April 1, 1992. This policy governs equalization payments for the seven tax-based municipalities and operations funds for 39 other communities, including all hamlets and several designated incorporated settlements.

Equalization payments will be distributed according to a new formula. This formula includes a northern cost index that recognizes the varying cost of providing government services among the seven tax-based municipalities. As well, the formula no longer includes a factor for municipal expenditures, which tended to favour, in the distribution of funds, those municipalities that spent more. While the total amount of funds for the tax-based municipalities does not change, the new formula will redistribute on a basis that fairly equalizes the resources for communities. Other provisions of the new policy will allow block operations and maintenance contribution funding to these tax-based municipalities.

Credit Units Formula

Mr. Speaker, the previous funding distribution formula had a number of serious shortcomings and was not equitable. As a result, a much improved credit units formula has been developed. The formula also includes a northern cost index that recognizes that the costs of government services vary from municipality to municipality. The formula is also sensitive to population and the extra demands increased population places on municipal government.

Perhaps the single, most significant feature of the credit units formula is that it recognizes all the major functions of a government and applies a number of indices to each functional area to determine the relative cost of these services. The old formula fell far short in this regard, using only a select few functional areas of municipal government and a series of standard factors which had questionable value in determining a community's fair share of the available funds. Functional areas such as recreation, community planning and land administration are now included in this new formula.

The old formula used estimates to determine the funding a community would receive for operating its buildings. Actual fuel and power costs for these buildings, averaged over three years, will be used in the new formula, ensuring the fairest and most accurate recognition of costs.

Mr. Speaker, as I noted at the outset, these new policies do not mean new money, but a fairer distribution of that funding the department has. Redistribution means some communities will receive a greater share of the funds available, other communities a lesser share. To ensure that communities can adjust to these new levels of funding with minimal disruption, both the redistribution of equalization and credit units formula funding will be phased in over four years, thereby minimizing actual increases or decreases in any one year. As well, the department will work closely with those communities where funding is lessened to provide any support or assistance required. Later this session, Mr. Speaker, I will be tabling both the municipal capital and municipal operating assistance policies.

In conclusion, the new policies are a significant improvement in how the department finances municipal government. We now have a single comprehensive and consistent approach built soundly on fundamental principles, with formulae that accurately reflect the relative costs of municipal governments and fairly distribute available funds. Municipal leaders have waited many years and contributed significantly to these new financing policies. Qujannamiik.

Ministers' statements. Item 3, Members' statements. Mr. Lewis.

Thank you, Mr. Speaker. I know you would like to join myself and other Yellowknife MLAs, Mr. Speaker, in congratulating the Separate School Board on 40 years of Catholic education. The board of education for the Yellowknife Catholic schools had its first regular board meeting on July 13, 1951. At this time, there were no schools built and no students. Mr. Norman Byrne was the first chairman of the board, and he worked very hard, with the guidance of Bishop Trocellier, to start this district and to build its schools.

The first school, St. Pat's, was built in 1953. This school was from kindergarten to grade seven. All students from grades eight to 12 went to the public school until St. Pat's High School was built in 1961. In 1964, the original St. Pat's High School burned down and was replaced by the present main building. This building has endured many additions and improvements over the years, consisting of the trailers and portables you now see on the sight.

The original St. Joseph School was built in 1977 and has also had improvements and additions since then. This is a dual track school with grades kindergarten to grade 9 in French immersion and grades K to eight in English.

The staff and students can be very proud of their schools in this district, but they are not stopping with these achievements, Mr. Speaker. In the next few years they are hoping to build a state-of-the -art technology high school that will again be a top-notch school in our district and the Northwest Territories.

The last 40 years for Yellowknife Catholic 'schools have been very positive and forward-looking, and there is a continued vision of success and educational excellence for the future. At the moment, Mr. Speaker, the current enrolments in the district are as follows: St. Pat's Elementary School has 192 students; St. Pat's High School has 373 students; St. Joe's has 191 in the French program and 283 in the English program, for a total of 1039 students. Thank you, Mr. Speaker.

--- Applause

Members' statements. Mr. Nerysoo.

Thank you, Mr. Speaker. I rise today to respond to some of the comments that were made by the Government Leader with regard to the changes in health care. I want to indicate to the House here that the facts prove that there were no allegations about the quality of hospital service in the NWT; they were facts, facts and experiences of women who underwent surgery as a result of practices in our hospital.

The facts also prove that this same particular process or procedure was not the result of a decision by Mr. Whitford; this practice was an inherent practice and a result of practices before he became Minister. I think that the facts will prove that many women suffered the same problems before he became Minister.

I think there has to be a policy change and direction to change that situation. I just want you to understand that there were no allegations in this House, but the facts.

Members' statements. Mrs. Marie-Jewell.

Thank you, Mr. Speaker. I also rise today to express concern shared by the Members of the ordinary Members' caucus toward this entire government, and in particular the Government Leader. We all recognize, as ordinary Members, that it is the Government Leader's ultimate responsibility to ensure her Ministers understand their statutory roles and obligations to the people of the Northwest Territories.

The ordinary Members still want to express, in their strongest terms, their dissatisfaction, for example, with the way the medical procedures for abortions were being handled by the Minister of Health and by senior departmental officials.

Mr. Speaker, I want to assure the Government Leader that if this government does not address our concerns, with respect to the issue of the overall government, the ordinary Members, unfortunately, will be forced to make necessary permanent changes. Thank you.

Members' statements, Mr. Antoine.

Mahsi, Mr. Speaker. (Translation) I am going to speak in my own language. A while ago I received a paper -- regarding the upcoming plebiscite. The paper that I received, I would like to say something regarding that. I would like to think about what I am going to say before I say it.

Next month, on May 4, here in the NWT, we are going to be talking about the upcoming boundary. The question on this plebiscite will be whether you agree to the boundary or not. The people that are 18 years old and over will be able to vote. Tomorrow and the during the next eight days there are going to be people going around enumerating, an enumeration to determine who can vote. I feel that this is very important and that is why I am saying this.

Last week, while I was in Simpson, some people asked me about this. What they were concerned about was that something this important that is coming up - we are not being given much information on it. "I guess this is going to happen, but we would like to know more about it," is what the people said. I thought about it. The people in my constituency voted for me, so I would like to speak on their behalf. I feel there is something important that is being worked on in this government, and they should be talking to the government in this regard. I thought about that very hard.

Mr. Antoine, your time has expired.

Mr. Speaker, I seek unanimous consent to continue.

Unanimous consent is being requested. Are there any nays? There are no nays. Proceed, Mr. Antoine.

(Translation) Thank you, Mr. Speaker. I thought about this very hard. If there is going to be work done on it, we only have about a month to prepare for it. The Ministers that are working in regard to money -- I feel they should be giving the communities more information.

Members' statements. Item 4, returns to oral questions. Mr. Allooloo.

On February 19, 1992, the Member for Baffin Centre questioned why the funding one student received had been reduced from $531.43 to $522.86. This question was answered in this House a week later, on February 26, 1992.

I then indicated to the Member that there has been no reduction in the total allowance paid to students. However, in the 1991-92 school year, the Department of Education changed the monthly allowances payment from an amount which fluctuated somewhat from month to month to an average amount.

In previous years the monthly cheque paid to students fluctuated depending upon whether a month had 30 days or 31 days. For example, a single student received $514.29 for 30-day months and $531.43 for 31-day months. Students raised concerns over the fluctuating rates as they caused budgeting problems. As a result, the department implemented a new schedule to provide students with a consistent monthly cheque rate of $522.86, based on the average of the two previous monthly rates.

The Member for Inuvik and the Member for Aivilik questioned the changes to the school year in relation to in-service days. Over the last two years the Department of Education found that many schools were open for less than the required 190 sessional days. Research in learning has shown that an increase in school days has a positive impact on the academic achievement of students. The department is making every effort to consistently maintain 190 sessional days as the standard. Under the Education Act, the Minister must authorize any change in the length of the school year.

In-service days are ordinarily held without closing a school, and therefore approval to change the school year is not required. However, should a school request a full or half day, the board must request the necessary approval from the Minister.

Returns to oral questions. Mr. Morin.

I have a return to Question O425-12(2), asked by Mr. Pudlat on March 30, 1992. The Northwest Territories Housing Corporation will be constructing 11 public housing units in Cape Dorset, three in Lake Harbour and 10 in Sanikiluaq in 1992-93. Also, Lake Harbour will receive one home-ownership assistance program, HAP, package as well. These allocations were based on the results of the 1990 housing needs survey.

Returns to oral questions. Mr. Kakfwi.