I am pleased to introduce the 1992-93 main estimates for the Department of Personnel. Before I get into some detail, I believe it is important to note that almost all of the recommendations of the Public Accounts Committee were implemented during the year, to the satisfaction of the committee. In order to implement these recommendations, the department had to make some fundamental changes to its operation to strengthen financial management.

Tight budget control is extremely important, especially in a department like Personnel. If high cost items, such as employee benefits are not effectively administered, there could be a drain on program funds across the government.

As I am sure you know, our negotiations with the unions earlier this year were successful. In the spirit of restraint, both unions were responsible in their demands. The Teacher's Association, for instance, settled for a two year agreement, with no wage increase in the first year, and 1.8 in the second year. The collective agreement was ratified by a large majority of the membership in April. The negotiations with the Union of Northern Workers were equally productive, with a similar settlement, that is expected to be ratified in early October. The major achievement during these talks was agreement on changes to the method of paying vacation travel assistance. This will result in cash payments to all employees.

Negotiations will continue over the next few months with the Union of Northern Workers on the issue of pay equity. The government cannot afford to pay a large settlement, but if there is goodwill on both sides, Mr. Chairman, I am confident that we can, and will, negotiate a mutually beneficial agreement. However, we have taken measures to provide displaced employees with career alternatives. The Work-force Adjustment Program, and the decentralization support positions negotiated with the U.N.W. have contributed to improved employee morale. These programs provide staff with positive options which allow them to continue their careers, take retraining programs to enter alternative fields, or to find jobs outside government.

Affirmative action continues to make steady improvements in the representation of aboriginal people in government. The percentage of aboriginal employees has increased from 33 percent in 1990 to 35.2 percent. This is an increase from 1,759 to 1,902 employees in a total establishment of approximately 5,400. The Standing Committee on Finance has recommended that the government establish a goal of 50 percent aboriginal employment by 1997. In keeping with my earlier comments on the northern hiring strategy, it is important to remember that 80 percent of unemployed aboriginal residents have less than a grade nine education. Therefore the achievement of this goal will depend on a large degree on the determination of our people to succeed, and the success of our education efforts, to assist them in the next few years.

I have made a commitment, in my recent statement on northern hire, to produce a public document, outlining government strategies to improve northern employment in all sectors.

The expanded staffing appeals process was well used by existing staff, and by members of designated groups from outside the government, in the past year. A total of 92 appeals were heard in 1991. Sixteen appeals, or 17 percent of the total, were upheld. This is down from 1990, when 30 percent were upheld. This downward trend tells me, that at least initially, that the staffing process is working more effectively, and that we have a fair and more equitable process of hiring.

The appeal process has undergone a major overhaul in the past year. Appeal committees are well trained, and are becoming much more familiar with the standardized process we have developed, in consultation with the unions. The process is now much less objective, not only does it clearly define the roles of all the actors, but also the remedies that are available to committees.

My priorities for 1992-93 include completing the negotiations for pay equity, and implementing the new job evaluation system. The handbook will be finalized for employees who are excluded from the union, which outlines their terms and conditions of employment. This will complement the senior management handbook, completed in 1991-92, and will mean that all groups of employees in the government have access to information on benefits and rights of employment.

A new removal tariff will be implemented in 1992-93, which will outline definitive rules and regulations for the removal of an employee's personal effects. The tariff is based on the federal government's regulations, and should save some money, perhaps of $10 million a year. Moving companies have been given an additional month to respond to tender calls on the tariff, but we cannot continue to do business with them, in my view, on the existing terms, as we currently pay 35 to 40 percent more than the federal government for similar moves. I know it costs more to move in the north, but any additional money that we spend on moving people from place to place, reduces the money available for programs.

I have also commissioned a study to provide information on the turnover rates of aboriginal employees. It will survey existing, and former, aboriginal employees to find out how they feel about government employment, and the measures that the government might take to improve retention rates. The study should improve comprehensive information, and the reasons for turnover of aboriginal staff, and provide useful advice on career development options, and how to improve the quality of work life for the aboriginal civil servant.

Finally, I will be coming forward this fall with a comprehensive long-term staff housing strategy. This strategy is the combined effort of a number of government departments, and it is aimed at providing solutions to long-standing problems in staff housing, selling surplus units, promoting a private market, dealing with the need for links with the public housing programs, and rationalizing the rental and utility payment structures. Because of the budget implications for 1993-94, I will be tabling this strategy with the Standing Committee on Finance as part of the 1993-94 budget exercise.

The budget for 1992-93 has been reduced from its 1991-92 level of $29.852 million to $27.406 million, for a total reduction of $2.446 million.

The 1992-93 budget includes a number of changes:

1. A reduction of $333,000 and five person years from the

headquarters establishment;

2. A reduction of $404,000 in other O and M, including a

reduction in travel, material and supplies and equipment

advertising;

3. A net reduction of $818,000 in removal costs as the result

of implementation of the new removal tariff;

4. A reduction of $259,000 in other O and M funds in the job

evaluation activity after the completion of the pay equity

study;

5. Transfer of $1.325 million in other O and M to the Deh Cho and Inuvik school boards, to allow them to pay benefit costs for the employees after the boards are established;

6. An increase of $178,000 for benefits for language

consultants after they become members of the Teacher's Union;

7. An increase of $195,000 in other O and M to cover the increase costs of second vacation travel assistance entitlements for N.W.T.T.A. members.

Mr. Chairman, I am confident that we can have a productive year ahead of us, and that other necessary controls will be in place to make it possible to achieve our objectives. Thank you.