Good afternoon, and welcome back to the continuation of the second session of the 12th Assembly. Orders of the day for Tuesday, June 16, 1992. Item 2, Ministers' statements. Ms. Cournoyea, Government Leader.

Thank you, Mr. Speaker. Since the last session the government has spent a great deal of time considering the direction our Territories should be going. We have been encouraged in this process by the comments of Members of the Legislative Assembly and the recommendations of its committees. Of particular note were several of the recommendations made by the standing committee on finance in its report on the 1992-93 capital budget. I would like to quote a few of them:

1) The committee recommends that the Legislative Assembly, as a whole, work together to change the future course of the Northwest Territories, which will be bleak if we do not do the right things. The committee supports the Minister of Finance and Government Leader in this goal, but with a watchful eye.

2) The committee recommends fundamental changes in the way government does things. This means, among other things, that government must review its management and leadership style at the political level and bureaucratic level in order to achieve more with less. The committee feels that there is a need for a government program of change -- to become more goal-oriented, service-oriented and people oriented.

3) The committee recommends that the Members of the Legislative Assembly look beyond constituency interest and determine what is in the best interests of all Northerners.

These recommendations confirmed to Members of cabinet that change must be its guiding light -- not just in terms of running government with less money, but fundamental change in how government is structured and delivers services.

Cutting back on the number of departments and agencies through consolidation, decentralization of programs and services to regional centres, equalization of budget reductions, community transfer, and returning to a balanced budget within two years are all essential elements of that change.

As you know, cutbacks in federal transfer payments and continued poor economic performance have cut deeply into our budget. We had to move quickly to implement a short-term restraint program last fiscal year. This year's budget is based on similar projections and the need to consolidate wherever possible. The target is a $25 million deficit in 1992-93 and a balanced budget in 1993-94. It can be met if we begin implementation immediately.

The most visible part of our plan is to cut back on the number of departments and agencies through consolidation. For example, plans for merging the Department of Government Services with the Department of Public Works, and the Department of Culture and Communications with the Department of Education are finalized and will be implemented early this summer. The Reshaping Northern Government working group, which includes three MLAs, has provided sound advice and assistance in this area and we will continue to benefit from their input as we move to the next step of consolidations. Consolidation, however, is just the beginning of what must be a comprehensive process of reform. While important and necessary, it does not greatly affect the public, particularly in the regions where people are more concerned about how and where government spends its budget of over one billion dollars.

In many communities government expenditures are virtually the sole economic base. As a result, we tried to avoid reductions affecting the smaller, more vulnerable communities in developing the 1992-93 operation and maintenance budget. Cabinet's focus was to reduce overhead, not programs. We wanted to reduce services to government, not services to the public.

This approach has meant that 160 positions have to be eliminated. Positions that were vacant were selected first for elimination. Others were left vacant so that affected employees could compete for them. Unfortunately, layoff notices will have to be given to 21 of our 5500 government employees. This is not a happy fact and is one we tried to avoid in every possible instance. These employees are eligible for the workforce adjustment program which forms part of the recently negotiated contract between the Union of Northern Workers and the government.

We are prepared to implement the program before ratification of the contract. We believe that this is in keeping with the spirit of the negotiations and a commitment to fair treatment of all employees. The program will be available to union and non-union personnel where jobs are affected by restraint and consolidation. The Minister of Personnel will be speaking on this matter later.

In deciding which areas would be affected by restraint, cabinet did everything it could to protect programs in health, education, social services and housing fields. The most in need, such as the elderly, the youth and those suffering from poor health, must be assisted and given hope. Forced growth requirements must be accommodated and service levels maintained. However, this has meant that we had to reduce expenditures in other areas to a greater degree. Unfortunately, that is the choice we face in sustaining our most important social programs and continuing to offer our rapidly growing numbers of youth the best possible education. We must be prepared to invest in our young people and meet obligations to our elders.

In our determination to equalize the burden of budget reductions across the Territories, it became clear that we must shift more of the economic benefits associated with government spending to centres which are just on the verge of becoming self-sustaining. Communities such as Fort Simpson and Rankin Inlet are stranded in the never-never land of being too small to be big, but too big to be small. Others, like Fort Smith and Inuvik, have seen their economies decline dramatically over the past number of years, They have seen some growth associated with education and health expenditures but have not enjoyed anywhere near the degree of prosperity of Yellowknife.

For example, the recent addition of more specialist services at Stanton Yellowknife Hospital has meant almost 30 high-paying professional jobs in the capital; the number of teachers has increased by over 10; and close to 80 jobs have been created by growth in government spending. In addition, the move of CBC Northern Services has brought nine new jobs. National retail chains and fast-food franchises are establishing themselves. In the capital city there is a fair amount of construction activity such as elementary and junior high schools and a new multi-million dollar Legislative Assembly building. In addition, there is a new Woolco store and plans for a Canadian Tire outlet and other retail and commercial buildings.

All of us welcome these jobs to the North and the enhancement they bring to the quality of life in the city. Yellowknife's excellent economic prospects and improved levels of communications facilities throughout the Territories, now make it possible for the government to devote more time and money to other centres.

Accordingly, we are committed to the development of a decentralization program which will assist in developing those centres which are being more severely impacted by the sluggish economy and are losing positions due to budget reductions. Decentralization will also provide the opportunity for staff to live, work and make decisions closer to the people they serve.

The following facilities and agencies will be decentralized beginning April 1, 1993 and ending in April of 1994:

1) Airport and other transportation programs will be moved to Fort Simpson, Norman Wells and to Baker Lake; 2) To take advantage of existing infrastructure and support services, the head office and administration of Arctic College will be moved to lqaluit and Fort Smith; 3) In recognition of the distinct supply routes for products delivered by the POL division, its headquarter's operation will be placed in Rankin Inlet and in Fort Simpson; 4) Given the availability of the necessary communications and processing facilities and available infrastructure, the health insurance section, which primarily processes health billings, will be located in Inuvik and Rankin Inlet; 5) The Science Institute headquarters will be moved to its laboratory and research facility in Inuvik, Igloolik and/or lqaluit; 6) Recognizing the predominance of transportation and utilities companies in Hay River, the Highways Transport Board and Public Utilities Board will be moved there; and 7) In order to capture the economic benefits of government spending, cabinet is prepared to support the location of an aircraft maintenance facility in Fort Smith for its fleet of water bombers and to develop a training component in conjunction with Arctic College.

Mr. Speaker, this program of decentralization has obvious benefits for recipient communities and businesses but will also have an impact on our budget. We know that decentralization will cost a little more, but it is an investment we think is worth making to provide new job opportunities to people living in smaller centres. To those who might complain that decentralization is too high a price to pay, I would remind them that it would have been more economical to have the territorial capital in Ottawa.

The incremental costs of decentralization will take two forms. The first will be in the training and infrastructure necessary in each community to accommodate the new positions. I would invite all MLAs, mayors, chiefs and local chambers of commerce to help us in the planning process. The second area of incremental cost will be to assist employees to move to new locations or find alternative employment. I can assure all employees affected by decentralization that they will be treated fairly and be provided with transitional assistance, to be determined in consultation with the union.

Mr. Speaker, it is important to note that while our focus regarding government decentralization has been to communities in the Deh Cho, Inuvik, Keewatin and Baffin regions, we are also taking action to work with other regions to maximize benefits associated with mineral development in the North Slave and Kitikmeot regions. New discoveries and encouraging drilling results have confirmed world class deposits of lead, zinc, gold and diamonds. If transportation and energy infrastructure can be developed, the Northwest Territories will be the most exciting mining region in the world, and the employment and economic development opportunities will be enormous.

The Departments of Transportation, Energy, Mines and Petroleum Resources, and Economic Development and Tourism, along with the NWT Power Corporation, are working with communities and companies to explore all opportunities. The options range from traditional economic development strategies such as bebfits agreements and training and business development assistance, to bold new initiatives such as ports and hydro dams built and owned by communities on a joint venture basis. When the drilling results come in, we will be prepared to support initiatives which will maximize local benefits. Mr. Speaker, because of the size of these projects, we will require federal government assistance, and we will continue to lobby the Prime Minister and the responsible federal departments.

Mr. Speaker, infrastructure made it possible for the West to be opened up, and the same holds true for the North. As a sign of our commitment, and in preparation for what we expect will be a new, jointly financed infrastructure program, the government will be completing the Wrigley extension as the first leg of the Mackenzie Valley Highway. The focus of this pilot project will be local involvement and innovative training projects to get people off social assistance and into the work force. The prospects of federal participation are made easier by the significant progress our government has made on the national scene. For the first time, we have been full participants at First Ministers' meetings on the economy and the Western Premiers' Conference. The Northwest Territories is no longer viewed as an outsider looking through a window into the rest of Canada. It is an active participant. This success has been complemented by the progress at national constitutional talks, which the Minister of Intergovernmental and Aboriginal Affairs will be reporting on later in this session.

Another area in which we have spent considerable time in trying to balance out our economy are the smaller communities which have only minimal government services and limited infrastructure. In those cases, we must find ways to maximize every job in every community by increasing local content. Two recent initiatives by the government will go a long way toward making this happen. The first is the new business incentive policy, and the second is the federal government's agreement to our proposal that the business incentive policy be applied to Housing Corporation. projects.

The latter initiative will assist communities in capturing term positions associated with capital projects. Over the longer term, the best way of injecting real employment opportunities into smaller communities will be by transferring greater responsibility and associated jobs to community governments. Community transfer agreements and ownership of programs will mean community priorities are set and delivered locally. By transferring corrections from Social Services to Justice, we will be able to facilitate the development of community justice and corrections programs that are uniquely tailored to the northern environment. By having responsibility for policing, corrections and the justice system under one mandate, the opportunity is there to develop programs that will focus on rehabilitation rather than incarceration. It will also encourage community involvement in the justice system.

In conclusion, Mr. Speaker, people of the Territories are demanding change because the old way of doing things simply does not meet the needs of today's northern society. I believe this need for change is being reflected in how the business of this chamber is conducted. Since the election and through the rest of this fiscal year, the House will sit a record number of days; committees will meet more than ever before; and communities will be given the opportunity for direct input into the capital planning process. What this signals to me is a strong desire by MLAs, mayors, chiefs and other interested parties to be directly involved in the decision making process.

Together, cabinet and the Legislative Assembly have taken a few tentative steps to accommodate these calls for participation by moving to a fall capital budget, by opening the legislative review process to the public, and by creating special committees such as those on reshaping northern government and the constitution.

The package I have presented today will build on these earlier initiatives, move government closer to its constituents, and result in an administration that is more closely tuned to the people it serves. Thank you.

--- Applause

Ministers' statement. Mr. Kakfwi.

Ministers' statements. Mr. Kakfwi.

Mr. Kakfwi, the time allotted for Ministers' statements has expired.

The honourable Member is seeking unanimous consent. Are there any nays? There are no nays. Proceed, Mr. Kakfwi.

Item 3, Members' statements. Mr. Pudluk.

(Translation) Thank you, Mr. Speaker. Recently I became very concerned about the frequency and number of adventurers who tried to make trips to the North Pole by various kinds of transportation, just to show the world they can achieve something. In 1992, there was a group who set out on foot to reach the North Pole. They did not want any help from anybody, and one of their members decided to turn back after they had gone a great distance. There was a great concern for his safety, and a search was initiated using an airplane and a helicopter. They did not find him right away, but when they did he was not in any immediate danger. It cost the taxpayers $200,000 to search for this individual.

I live in the High Arctic, and I know the area quite well. You have to be very well prepared to venture up there, and have training in survival, because of the harsh weather conditions and other dangers. I think it is time for the government to introduce legislation so these people who venture out to the North Pole are aware that there is a law that they have to follow if they want to venture out on their own. There is a danger not only to those who go out but to the people who go out to rescue them. We are concerned about the people who venture out to the North Pole. Before tragedy occurs or it is too late, the government should introduce legislation to make it mandatory for them to insure themselves before they venture out. It is time for our government to take the necessary steps to bring in legislation, as well as informing the federal government to introduce legislation for the benefit of those who venture out in a variety of ways to the North Pole.

Mr. Gargan.

Thank you, Mr. Speaker. I would like to inform this House that on April 7th of this year I met with the Government Leader and the Minister of Finance to discuss the feasibility of a First Nations trust company. We are all aware that the federal government has provided substantial funding, programs and support for aboriginal groups over the years.

Yet, despite this massive support, the aboriginal people of Canada have never really benefited from the dollars flowing from the federal and provincial governments. In order for aboriginal economic development policies to be successful, it is essential that aboriginal people control and be responsible for the capital which is used in their particular ventures.

Most Members of this House are aware that, despite the fact that banking institutions have been utilized by aboriginal institutions, band councils and aboriginal businesses, very few aboriginal people are eligible for loans on an individual basis. Aboriginal communities have also encountered difficulties in obtaining loans and have been forced to rely on government contributions. It is for those reasons, Mr. Speaker, that we have consulted with the Government Leader and the Minister of Finance in regard to establishing a First Nations trust

company. Aboriginal communities and organizations in the Northwest Territories, British Columbia and the northern portion of other southern provinces have expressed a keen interest in a First Nations trust company. I hope this government views the creation of a First Nations trust company as a positive step toward our inherent right to self-government. Thank you, Mr. Speaker.

--- Applause

Members' statements. Mr. Koe.

Mahsi, Mr. Speaker. I would like to congratulate the Gwich'in on the signing of the Gwich'in comprehensive land claim agreement.

--- Applause

Representatives of the Government of Canada, the Government of the Northwest Territories and the Gwich'in Tribal Council signed this historical document on April 22, 1992 in Fort McPherson. I would like to acknowledge the Gwich'in leaders who, under great pressure, decided that they must continue to progress as a society and aggressively sought the tribal land claim. The Gwich'in strength is reflected in their conviction that they could make the agreement work for them, in their unity of purpose that was proven with a 94 per cent vote in favour of the agreement, and in their leadership who worked for and with their people in an open and caring fashion.

I am happy to be part of the negotiations and, today, very proud to be Gwich'in. The Gwich'in agreement gives the region the certainty needed for resource development and the regulatory and management mechanisms to ensure that development is sustainable for our future generations.

Mr. Speaker, I seek unanimous consent to proceed with my statement.

The Member is seeking unanimous consent. Are there any nays? There are no nays. Proceed, Mr. Koe.

Mahsi. The Gwich'in agreement also contains provisions for the negotiations of self-government agreements. Negotiations are beginning to take a partnership approach between government and the Gwich'in. The Legislative Assembly must fully support this initiative because it will set the stage for the development of a new order of government and bring our northern society together. As a current government, we must be aware that the Gwich'in self-government negotiations may override many of our policies, programs, financial arrangements and legislation. This should not be viewed as a negative factor. Rather, as the Government Leader has indicated in Reshaping Northern Government, there is a requirement to change the way we deliver programs and services. Fundamental to that delivery is to recognize community authority. The Gwich'in are pleased with this government's initiative to recognize the need for change and community, or Gwich'in, authorities. The

government has taken a similar approach in the establishment of a Nunavut government, the Inuit form of self-government.

The Gwich'in Tribal Council's goal is to continue to build on their aboriginal and treaty rights. This requires the Gwich'in to work hard during land claim implementation and to develop and deliver programs and services to their people that are culturally relevant and community-based. I hope that governments will support and not suppress Gwich'in initiatives. It is this independence and control that our community members request and have demanded for many years.

Once again, Mr. Speaker, I congratulate the Gwich'in and thank the Government Leader and other government officials for their attendance and contribution at the signing ceremonies, and I look forward to working with the Gwich'in in the implementation of their land claim. Mahsi cho.

--- Applause

Members' statements. Mr. Lewis.

Thank you Mr. Speaker. I am still waiting until tomorrow to make a statement about the "New Directions" statement that the Government Leader made just a few minutes ago. I would like to spend just a couple of minutes in response to what she had to say to us.

Also, I would like to point out, Mr. Speaker, that although we do have a community that was based on gold and gold mining and so on, that the price of gold has been depressed for some time now, and that very few people are optimistic about new mines opening up in the future. Though the Minister has made some moves to decentralize -- and I agree with her that there are some things which obviously can be done just as well somewhere else - I would not want her to paint a picture of Yellowknife which does not conform to the facts because this community is also hurting. There are many people who are suffering in this very deep recession that we have gone through. I would like to correct the facts. Thank you Mr. Speaker.

Members' statements. Mr. Arngna'naaq.

Thank you Mr. Speaker. Since the last sifting of the Legislative Assembly, I have taken the opportunity to be in my riding, meeting and talking to people in Baker Lake and Arviat. Within the last three months, I have had the pleasure of visiting Arviat three times, and all three times I have stayed with a gentleman by the name of Solomon Kugak, and, Mr. Speaker, I am pleased to say that he is here with us today.

Despite the wonderful company of my host, he lives in one of the earlier prefabricated three-bedroom houses which were built in the early to mid-1960s. I used to live in one of these houses when I was growing up in Baker Lake. At that time, they were one of the better houses, but by today's standards they should be condemned. Yet people continue to live in them because of the shortage of houses in the Territories. These houses have no running water; therefore, no flush toilets, only honeybuckets. They have been rehabbed so many times that the layers of panelling are probably as thick as the insulation inside the walls.

The ceiling of Solomon's house is very low, and he uses one of the bedrooms as an office. Like many dart players, he has a dart board in the room. The ceiling is so low that when I throw my darts, one out of five darts will hit the shade of his light bulb which is taped to the ceiling; taped to the ceiling because the shade is a piece of cardboard. The tiles which make up the ceiling are failing apart. This leaves big patches in the ceiling where you can see the insulation of the ceiling.

This is far from the worst scenario in the NWT, because there are other people in other communities which live in shacks or tents. But to experience such conditions again after so many years makes me think that there is more which can be done for our people in the NWT, from my corner of the world. Thank you.

Members' statements. Mr. Zoe.