This committee's review of these recommendations indicates that they still have merit, and should be acted upon by this government. Therefore, I move that the committee recommends that the Department of Economic Development and Tourism respond to the recommendations of the Special Committee on the Northern Economy, and provide a status report on the implementation of the N.W.T. Economic Strategy in the preparation of the 1994-95 estimates.

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

Question.

Question is being called. All those in favour? All those opposed? Thank you. Motion is carried.

---Carried

Proceed, Mr. Todd.

Thank you, Mr. Chairman. One of the recommendations on the Northern Economy Report was about the assignment of development officers in the communities. The previous Assembly approved a motion that the department

commence providing funding in 1991-92 to communities to hire development officers as outlined in the Special Committee on the Northern Economy Report.

The committee is pleased, I repeat pleased, that a pilot project involving two communities is under way, and there is active negotiations with several other communities. The Minister indicated that when an area economic development officer leave, the community is given the first opportunity to take over this position, and that he is open to other suggestions for committees that wish to take over these responsibilities.

However, the committee is concerned that none of this shows us an objective in the 1992-93 estimates, and this information may not be trickling down to the communities. Therefore, I move that the committee recommends the Department of Economic Development and Tourism conclude its comprehensive policy for assisting communities, and hiring development officers in time for the review of the 1993-94 main estimates, and include an objective to significantly increase the rate of transfer of these responsibilities, subject to community approval and acceptance.

Thank you, Mr. Todd. The motion is in order. To the motion. Question is being called. All those in favour? All those opposed? The motion carried.

---Carried

Proceed Mr. Todd.

Thank you, Mr. Chairman. I think we started with two positive, so we will continue with a negative. One of the concerns of the committee was with respect to cumbersome paperwork, the department, in the kindest terms, should be focusing on people, and not on paper.

The Department of Economic Development and Tourism, at least to the Standing Committee on Finance, has one simple purpose, to help its clients be successful.

The department's clients could be multi-national giants, you know who they are, native development corporations, the local restaurant owner, or promising new entrepreneurs. If the department is able to help them create some jobs and income and become a success, and that is the criteria in which the department should be judged as being successful.

The committee is concerned that the department has become over taken by paper burden and bureaucratic rules, and has lost sight of its clients. In the debate, when we were discussing this in committee, it was shown by the acting deputy, that there were a number of areas where the paper did flow reasonably quickly. However, we were not going to get into a long debate about where it did not.

The fact of the matter is, we have to find a way to expedite timely flow of paper, to ensure that we can meet the appropriate schedule, particularly in the E.P.A., and the business loan funds, etc.

We have all heard it before. I am sure this is not new. Somebody has to simplify the process, so that we do not continue to frustrate the client.

Therefore, I move that the committee recommends that the Department of Economic Development and Tourism take steps to ensure that the amount of paper to access the department's programs be kept to a minimum, until client responsiveness improves.

Thank you, Mr. Todd. I believe the motion is in order. To the motion. Question is being called. All those in favour? All those opposed? Motion is carried.

---Carried

Please continue, Mr. Todd.

Thank you, Mr. Chairman. Some days I really like this job, and today I really like this job. On the affirmative action, it speaks for itself. The committee is concerned that the department could not provide, repeat could not provide, affirmative action statistics during our hearings, and had limited success with aboriginal senior management positions, though they certainly had success in the salary level.

Therefore, I move that the committee recommends that the Assembly establish a goal of significantly increasing the number of aboriginal people in the Department of Economic Development and Tourism. Further, the committee recommends that the department review options, and develop an action plan with a 1993 main estimates to accomplish this goal, including:

1. Job re-definition, to use the talents available in the north;

One does not have to be a rocket scientist to be an Economic Development Officer.

2. Development of a career pathing; and

3. Advertise and recruit in the south on an exceptional

basis only.

Thank you. I believe that recommendation number 15, as a motion, is in order. To the motion. Question is being called. All those in favour? All those opposed? Motion is carried.

---Carried

Continue, Mr. Todd.

This is about as exhausting as the speech. Thank you, Mr. Chairman. One of the concerns that came up time, and time, and time again, is the turn around time of funding requests, that I talked about earlier. There has been enough said on that. The committee expressed concerns with respect to the amount of time it took to respond to applications for assistance, and the need to devolve more authority to the regional level, to improve the responsiveness.

Now, we do recognize that there are some moves in that area, and we do appreciate the fact that there will be authority at the Superintendent level for $50,000. However, there has to be a way to simplify the turn around time. There was example upon example of people waiting for 4 or 5 months for turnaround in loans, and of course, the deputy showed us where there were thirty days and fifteen, and we commend them for that. It seemed to us, particularly in the level II and III communities, that is where we have to find a way to improve the turn around time, so that we can meet the climatic conditions of business interests in the Northwest Territories.

Therefore, I move that the committee recommends that the Department of Economic Development and Tourism, give increased financial authority to the regional officers, particularly as it relates to contribution and loans, with the objective to improve the turn around time of funding requests.

Thank you. The motion is in order. To the motion. Question is being called. All those in favour? All those opposed? Motion is carried.

---Carried

Proceed, Mr. Todd.

Thank you. On the issue of risk capital, I do not have a copy of speech, but I believe I heard in the speech some reference to this, that the business loan fund has to be self-financing. The committee is concerned, and I have spoken on a number of occasions, as chairman of the committee, that the Business Credit Corporation, in our opinion, should be seen as the lender of last resort.

All of us are aware that the commercial banks and lending institutions, at least for the present, are shrinking their lending exposure. This reduces the accessibility of risk capital for the entrepreneur in Grise Fiord, Whale Cove, Chesterfield Inlet, and some of the other smaller communities. Clearly, at least in the eyes of this committee, there is a need for this government to take greater risks, and not to be seen as competing, or running a lending institution as a bank.

Therefore, I move that the committee recommends that the Department of Economic Development and Tourism review its lending and investment practices, with a view to changing its criteria, and making risk capital more available. The department should also provide a copy of the new policy to the Legislative Assembly by March 31, 1993.

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

I would like a bit more elaboration. Actually, I really liked that speech, you know, it was crafted well.

---Laughter

In the risk capital, I guess I would like to get some idea of just how far you would go, before someone would really be talking about an opportunity to get grants, rather than risk. You can call it risk, but there is a point in time where it is not a risk, and what people really require is a grant, or a forgivable start up.

Thank you. Mr. Todd, would you like to provide further explanation on the motion?

---Laughter

Please provide further explanation on the motion.

Yes, the concern has been expressed, not just with this committee and previous committees, that with the current shrinking of the commercial and banking institutions, and it appears that this is the fact right across the territories, you have to look at programs that are not going to function the same way as banks do.

That is not to say that we should not be looking at getting a return for our investment, but when we talk about risk, I know in my own experience, when we put together the Keewatin Community Futures, we determined on the front end there was a clear requirement for small investment for these entrepreneurs, and as a matter of policy, we determined that we would live with a 20 percent loss factor.

It is that kind of criteria that we would like the Business Credit Corporation, or the lending institutions, to look at. We would also like to see greater authority placed at the regional officer's level, which you are moving on, with respect to contributions and loans. Now, contributions, I know, are tied to jobs, but we would like to see that authority increased there.

We are not suggesting, for one minute, that you go out there and give out money, we are saying that the criteria should be a little less constraining than the current lending institutions.

Thank you. To the motion. I believe the motion was in order. Question is being called. All those in favour? All those opposed? Motion is carried.

---Carried

Carry on, Mr. Todd.