Thank you, Mr. Speaker. I am pleased to give the Report of the Standing Committee on Finance on the 1992-93 main estimates. In our report on the 1992-93 capital estimates, the Standing Committee of Finance stated that there was a need for a fundamental change, in the way in which government does business in the North. The Standing Committee feels that the status quo is no longer acceptable, it simply does not work.
On balance, the changes proposed in the 1992-93 main estimates, represents a move towards this direction. Proposals for reshaping government, eliminating departments and unnecessary levels of bureaucracy, and devolving programs and services to the community level hold some promise. The standing committee will continue to offer constructive criticism and, hopefully, some possible solutions to the Cabinet to help guide them along the path to better and more effective government.
The Standing Committee on Finance met with the Minister of Finance, and the government's departments, in July and August, to discuss a number of concerns that we have noted in our report. We trust that Cabinet noted our concerns during the sometimes lively discussions, and are prepared for a full and frank discussion during this session.
During our departmental reviews, we were pleased that the majority of the information we requested, was forwarded in a timely manner. However, Members noted that some of the more experienced Ministers were unable to answer some of our most basic questions about their budgets. In other words, Mr. Speaker, they were ill prepared. The committee will expect that all Ministers are fully prepared to answer our questions during future reviews.
The committee recognizes that this review will have minimal impact on the current budget given the unique timing of the process this year. By the time the Assembly has completed the review of this budget in committee of the whole, we will be a full six months into the current fiscal year. However, we expect that our concerns and recommendations will be incorporated into the Operations and Maintenance budget for 1993-94.
Reshaping Northern Government
On major issues, the standing committee identified several issues, and they are as follows. On reshaping northern government, reshaping northern government is moving forward. However, the committee is concerned that the government is not managing the change very well. Activity is happening at the centre, but we have not seen much evidence that it is trickling down to the people who are most affected by this fundamental change.
When is consultation with community, and regional leaders going to occur? The committee feels that this should be one of the priorities of the reshaping project. It cannot simply be an academic exercise, if consultation does not take place with the people most familiar, and most affected, by the government programs and services, we feel that the project will prove to be costly and a time-consuming failure.
Growing Cost Of The Civil Service
On the growing costs of the civil service. The government pays almost $350 million annually to pay for the civil service, a full one-third of the Operations and Maintenance Budget. While we search for ways to make reductions in this budget, the overall cost of the civil service, the "deliverers", continues to increase. In reality, the cost of the civil service cannot continue to increase, or soon there will be nothing left to deliver.
The previous Assembly approved a motion to control government expenditures, by reducing total person years by five percent within two years. During our review, we did not find a significant reduction. The government's response was that organizational change may yield person year reductions. This is little comfort to the unemployed, the uneducated, and the people without houses.
If we need money for programs, and we clearly do, this government must come to grips with the cost of running the civil service. The committee feels that it is time for the government, and the various unions, to sit down and design a "made-in-the-north" pay and benefits package for all our employees. We can no longer rely on an antiquated system that was designed at a time when the north was considered but a mere outpost by the rest of Canada. On support to local bodies, at a time when we are looking for innovative ways to decentralize government, we are concerned with the cuts to local and regional bodies. What we are supposed to be doing is preparing local governments for the evolution, we are also cutting duty travel, and training funds in the Department of Municipal and Community Affairs. Surely this will have an adverse affect on the support that we can give these communities, if we are going to devolve, and decentralize more responsibility. Clearly, there is something fundamentally wrong with this strategy. If it is allowed to persist, this government will stand fairly accused of off-loading programs to the communities, without providing sufficient training and funding for them to do the job properly. We must look at enhancing training and support to the communities, so they have the ability to take over responsibility for programs, and services as they are devolved to them.
Social Issues
On the social issues, the standing committee is concerned about some of the cuts, and funding deficiencies that we have seen within the Department of Social Services. As we have stated many times, we will not support any reduction that will adversely affect those most in need. The committee recognizes that some of the social programs will be phased out, and are directly related to problems in society, higher levels of unemployment, overcrowding, housing shortages, and low educational levels. However, in trying to solve these problems, we cannot continue to underfund social services. We must ask ourselves, what would be the human and financial costs if we do not do anything? For example, in the budget, it is the committee's feeling that we must put more money into programs for suicide and A.I.D.S. prevention, yet, we cut a suicide position. The committee sometimes feels that we are so busy putting our fingers in the dike, there is no time left for resources to enact some kind of preventative measures to assist the people in the north. In addition, we must also provide adequate after-care treatment programs for those people caught within the vicious circle of social problems that we see in the north. If we do not pay today, you can be sure we will pay much more in the future. The community is equally concerned with the growing trend to underfund programs delivered by other people, for example, alcohol and drug workers, and workers with the aged and handicapped, who are grossly underpaid in comparison with the civil service. Wages for these essential workers must be brought into line immediately, before more dedicated people are lost at the community level. The committee will expect the government to show us that they are going to address these problems when we review the 1993-94 Operation and Maintenance Budget in January. On hire north, the committee remains concerned about the insufficient number of northerners and affirmative action candidates in the public service, particularly, in senior positions. We note that the Assembly passed the motion during the summer sitting, that directed the government to take immediate action to tackle this problem. It must become the exception to look south to fill jobs in the north. We must find new and creative approaches to fill our public service positions with northerners. This is but one way that we can begin to solve some of the serious social and economic problems, as we head into the next century.
Measuring Output And Effect
On measuring output and effect, the standing committee noted, during our review of 1992-93 Capital Estimates, that we must plan a way to quantify what the permits will accomplish with the money we are spending on programs and services. We have already stated that we will not recommend approval of programs that do not, or cannot, show they work. During our review of the budget, we noted time and time again, that Minister's could not give us the simple information. This is unacceptable. For example, in the Department of Economic Development and Tourism, and its Arts and Crafts Program, it could not relate program activity to the sales pool, or other output measures. In other words, we are spending money. What are we getting back for it? This remains a serious concern of the Standing Committee on Finance, one which we will be giving serious consideration to, during future reviews. If the government does not set measurable goals for future budgets, the committee will be left with no alternative, but to set them for them.
Committee Initiatives
On committee initiatives, as we have noted on a number of
occasions, this committee feels that our role is not just to review and advise, but to offer practical solutions to some of the financial difficulties that we face. After all, we are all in this together. To this end, the committee has taken several initiatives to create, or explore, creative ways to raise investment capital and stimulate the economy. We are currently working on attracting offshore investment to build badly needed public housing. Mr. Antoine, my colleague, is looking at the establishment of a heritage investment fund, so we can have resource revenues for reinvestment, and to target sectors of the economy. Mr. Dent is looking at a large one-time investment of capital dollars to build infrastructure, and we are also looking at innovative ways to increase tourism and revenues by legalizing some forms of gambling in the north.
Value For Money Audit Program
On value for money audit program to assist the Assembly in holding department's accountable, would acquire a better system of cheques and balances in the financial area. A second opinion on how we do things. To accomplish this, we will be presenting a plan for the Auditor General to perform value for money audits in key areas, during the life of the Assembly.
Conclusion
In conclusion, Mr. Speaker, the Standing Committee on Finance recognizes that the government has put much effort into this budget, and has tried to respond positively to our recommendations. However, the committee remains concerned that the government does not have a clear set of priorities. Something is simply not right, when we put resources into needless capital projects such as Expo, and the development of library legislation, but squeeze essential programs that attempt to deal with the crippling social programs we have got, like suicide, and alcohol and drug abuse. Although, we have been told many times that we will be seeing an overall new approach to government, the committee feels that the departments still have tunnel vision when it comes to the budget. Each department vying for their piece of the pie. The committee feels that the government needs an integrated, cooperative approach to dealing with those problems. Then, and only then, can we begin to deal with some of these problems.
The committee has expanded upon its concerns, and the departmental reviews reform the support, along with its 97 recommendations. We expect that the government will respond in time for a review of the 1993 Main and Capital Estimates.
Finally, as Members are aware, the standing committee is trying to meet outside of Yellowknife, whenever possible. We believe it is important that Members of the committee receive a fresh perspective from the people that we serve. Sometimes we seem to forget that. Something that is not always possible when we meet here in Yellowknife. During our review of our current budget, the committee travelled to Fort Simpson for three days of meetings. During our visit, we were able to meet with the Village Council of Fort Simpson, and in addition, on our return, we visited Nahanni Butte, and met with members of the band council in that community. Both these meetings proved very informative. The committee would like to thank the people of Fort Simpson, Nahanni Butte, and the honourable Member for Nahendeh, for the generous hospitality during our visit.
Mr. Speaker, that concludes the standing committee's report on finance, I would therefore move, seconded by the honourable Member from Inuvik, that the Report of the Standing Committee on Finance is moved into committee of the whole for consideration. Thank you.
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