Thank you, Mr. Lewis. Orders of the day. Item 2, Ministers' statements. Madam Premier.

Mr. Speaker. Statements made by Mr. Allooloo that were broadcast this morning over CBC radio have placed me in a position of having to elaborate on the circumstances surrounding my decision to ask for the Member's resignation.

While I had hoped that this matter would have already been dealt with and that we could get on to other business, I believe that I must respond to the public reports.

As you know, Mr. Allooloo told this House last week that he attended a federal/provincial meeting in Saskatoon. During a meeting I had with him the next day to review a comprehensive chronology that was being prepared, Mr. Allooloo repeated his remarks and added further details.

Mr. Allooloo reported that he left Edmonton at 7:00 am on November 15 to attend the meeting in Saskatoon, and that he returned to Edmonton in time to catch a late evening flight to Yellowknife. He did not travel to Saskatoon to attend the meeting.

Mr. Allooloo told me he met with his deputy minister of Renewable Resources in Edmonton the evening before his departure to Saskatoon. He didn't. He hadn't spoken to his deputy minister since November 9.

Mr. Allooloo subsequently admitted that he had missed the flight to Saskatoon and that he didn't attend the meeting. Mr. Allooloo then stated he participated in a conference call at noon hour on November 15 with delegates to the federal/provincial meeting. There is no record of a conference call taking place.

Mr. Speaker, in a statement on Monday I explained that the House and the public must be able to rely upon the truthfulness of statements given by Members of the Executive Council. I emphasized that this is a principle that I am not prepared to compromise.

Furthermore, my decision to ask for the Member's resignation from Cabinet had nothing to do with his handling of the Iqaluit situation. It was based entirely on the misrepresentation he made to this House about the Saskatoon meeting and to myself the following day during preparation of the chronology I had promised to table in this House.

Item 2, Ministers' statements. Mr. Todd.

Thank you, Mr. Speaker. Since the introduction of the economic development strategy in 1990, there have been dramatic changes in the environment in which the Department of Economic Development and Tourism operates. In response to this changing economic environment, the department commissioned an independent consulting firm to undertake a review to identify major issues, concerns, priorities, opportunities and constraints which face the department today.

This review considered: the organizational structure of the department; the function of headquarters and the regional offices; the department's approach to meeting client needs and expectations; and, the department's funding policies to identify gaps, deficiencies and overlaps in programming.

During the review, the consultant conducted 103 interviews with regional and headquarters staff members, clients and representatives of other departments and non-GNWT agencies.

Mr. Speaker, I will be providing copies of the executive summary of this review to the Standing Committee on Finance. I would like to take a few minutes to outline some of the highlights of the document to the House and talk about some of the changes which have already been implemented as a result of the review.

The review shows that the department was becoming a rule driven organization. It seems that administrative requirements were extremely time-consuming and overly burdensome to both staff and clients. Time was being spent serving the system rather than effectively serving clients.

The consultants also report that the department rarely measured the benefits which were generated from grants and contributions. However, it is absolutely imperative to track grants and contributions and measure the results of these expenditures in order to effectively determine whether we are achieving our goals and objectives, and whether the economic strategy and our funding programs are still relevant.

The report also revealed that the public viewed the department as being too bureaucratic, ineffective and inefficient. Too many levels of management slowed down the decision-making process, usually at the client's expense.

Also, the department was viewed as a reactive organization, spending money to solve problems rather than an organization which studies current economic circumstances and trends, and plans activities and expenditures to effectively address these circumstances.

Mr. Speaker, based on the findings of the review, it is clear that the department needs to make changes in the way it operates to respond to the unique economic circumstances in the NWT, address the needs and expectations of the small business community and recognize regional priorities for economic development initiatives.

Mr. Speaker, I am happy to report that already a number of the recommendations outlined in the review have been implemented.

A participatory management structure has been introduced into the department. Regional superintendents are now included as an integral component of the senior management team. Regional superintendents are front line managers and have the knowledge and expertise to address local objectives and initiatives. By having the regional superintendents involved in policy development as well as program delivery, departmental activities will better reflect reality in the regions and communities.

At headquarters, some senior management positions have been eliminated and some staff positions realigned. Headquarters is now responsible for coordinating territorial-wide activities, developing economic sector strategies and implementation plans, and monitoring and evaluating policies and funding programs. Significant emphasis will be placed on developing new, or updating existing sectoral and regional economic strategies. These changes are in direct response to the demands from communities and this House, that the department plan expenditures according to relevant regional and sectoral economic plans.

An important accountability system for all the department's funding sources has been introduced and a more effective program evaluation system will be developed.

In order to better inform clients of the funding programs and economic development activities, the department is developing a public relations plan. More emphasis will be placed on face to face communication rather than printed promotional material which our clients have found too bureaucratic and too difficult to understand. And I don't blame them.

Although each of these changes are essential to effectively address client needs and to meet expectations, Mr. Speaker, the key element to the success of any organizational change is not only a change in the structure and functions within the organization, but the creation of new tools which will allow the organization to do a job better.

Therefore, the department is reviewing all its policies and funding assistance programs to better reflect the unique economic circumstances in the NWT and establish a program delivery and decision making authority at the regional level where it is closest to the client base.

Program approval and expenditure authority has already been delegated to the regional superintendents. Most applications for funding assistance will be considered in Yellowknife and not forwarded to Yellowknife. Therefore, clients will receive a quicker response and decisions will be more reflective of local and regional economic circumstances.

Already changes have been made to some funding programs to better address the business needs of all NWT entrepreneurs, from the very small individual arts and crafts producer or commercial renewable resource harvesters to the larger, more sophisticated businesses.

Human and financial resources will be redeployed within the department to ensure that the regions will be fully qualified to assume the new program delivery responsibilities. Staff members who are assigned new duties will be provided training so they are fully capable of performing these duties and skillfully serving clients.

In closing, Mr. Speaker, it is clear that many positive changes to the way the department operates have been implemented and more are yet to come. However, all these changes have one goal in mind, to serve the NWT business community more effectively.

In the days to come, I will speak in more detail about some of the changes made to the department's funding programs and various departmental reorganization activities. Thank you.

Mr. Todd.

Mr. Speaker, I believe that my position on northern and local involvement in government contracts is well known to most Members of this House. Government contracts are the major force in our economy. We must take all reasonable steps to maximize the benefits these contract dollars provide, in terms of northern and local training, employment and business opportunities.

I would like to let the Members know what the Department of Transportation has done and plans to do in this area.

For the fiscal year 1992-93, the department awarded 512 contracts valued at almost $48 million. Over 92 per cent of the dollar value went to northern contractors.

---Applause

Thank you. Of course, Mr. Speaker, the question I asked the department, is what are they doing with the other eight per cent? On review, it turns out that most of these contracts were for specialty services not available from northern businesses, like highway line painting, structural steel and the purchase of calcium and chloride. Taking these contracts into account, northern firms won 97 per cent of the contracts they bid on. In fact, only one major contract was awarded to a southern firm when northern firms had also bid. In that case, the price premium was simply too high.

Results so far for 1993-94 are similar. As of September, northern firms have been successful in gaining over 94 per cent of the $35 million in contracts. Once again, most of the remainder appears to be in the specialty areas where no northern firms are established.

Mr. Speaker, I think this record of northern involvement is a remarkable achievement for government contracting policy, for the department and, not least of all, for northern companies.

My objective is now to do better in the area of local involvement. For 1992-93, 29 per cent of our contract dollars went to local companies. The results for 1993-94 show 31 per cent. I want to see more of our contract dollars flow to local economies. I believe that local business, particularly aboriginal businesses, can do more in providing jobs, experience and training to local residents.

We have the tools to achieve this objective. We have the business incentive policy which is constantly being refined and improved. In addition, we will continue to use a variety of special contracting procedures which incorporate training programs and incentives to maximize local employment and subcontracting opportunities. As Minister, I have not been reluctant to seek Cabinet approval to negotiate contracts directly with local development companies, where appropriate.

We often pay a premium for these special approaches, but I believe this is an investment worth taking. Negotiating contracts involves an element of risk, like any business venture. There have been some failures and I am sure there will be more. Again, I believe the risk is worth taking.

I trust when the Members examine our record, they will look at the overall picture and see the many successes, along with the few that did not work well.

In conclusion, Mr. Speaker, I hope my colleagues in the House are as pleased as I am with the contracting record of the Department of Transportation. More importantly, I hope the Members will continue to support our efforts to improve local benefits of our contracting expenditures. Thank you.

Item 2, Ministers' statements. Mr. Kakfwi.

Item 2, Ministers' statements. Madam Premier.

Mr. Speaker, caucus met in Fort Providence on April 4-6, 1993 and in Cambridge Bay on October 4-8, 1993. These strategic planning workshops were held to provide Members with a less formal setting to deliberate the many issues related to division of the Northwest Territories and the operation of the legislature and the Government of the Northwest Territories in meeting the challenges of the future.

Later today the caucus chairman, Mr. Fred Koe, will table a report summarizing the results of the Fort Providence and Cambridge Bay deliberations, principles of agreement and the ongoing work of caucus on these matters. The report will serve as a foundation for further work by the Legislative Assembly and the Government of the Northwest Territories and as a guide for the work of the Nunavut Implementation Commission and the western constitutional process.

Mr. Speaker, I also would like to advise the House that I'll be leaving the House today at 4:00 pm to attend the western premiers' conference in Canmore, Alberta. I will be back on Friday, November 26 at approximately 11:00 am. Thank you.

Item 2, Ministers' statements. Mr. Nerysoo.

Thank you, Mr. Speaker. Mr. Speaker, in October of last year, the Financial Management Board approved the decentralization plans of Arctic College to divide into two institutions, one serving Nunavut and the other serving the western Northwest Territories. I would like to bring this Assembly up to date on the progress made on this project.

The establishment of two colleges requires considerable organizational change, which is occurring while normal business continues. The college is currently undergoing a year of transition, during which the staff are working to establish two new head offices -- one in Fort Smith and one in Iqaluit - while continuing to administer college operations in the current headquarters in Yellowknife.

The first phase of the transition has already been completed, with the transfer of responsibilities for financial administration to the new head offices in November.

Other college staff will begin work in the new head office locations during the first half of 1994. Mr. Speaker, there is still much to be done to establish two colleges in the Northwest Territories, but this work is well under way and will be completed in the coming months. Thank you, Mr. Speaker.

Thank you, Mr. Nerysoo. Item 2, Ministers' statements. Item 3, Members' statements. Mrs. Marie-Jewell.

Thank you, Mr. Speaker. Mr. Speaker, on behalf of the Members of the Ordinary Members' Caucus, I want to advise this House that Members are very concerned about the process which took place leading to the dissolution of the town of Iqaluit. The chronology of events tabled in this House yesterday, the various answers given to this House on this issue, and news reports call into question the accuracy of information we have received to date.

Our perception of the chronology of events is as follows. The previous Minister of MACA brought forth an option paper on Iqaluit to FMB on September 22. Departmental officials, who had worked on the issues and situation in Iqaluit, did not recommend the dissolution of the town council. However, Cabinet advice regarding the indication of clause 192 of the Chartered Communities Act was given. As a result of the Cabinet's advice, the town council was dissolved by the Minister.

Mr. Speaker, the decision to dissolve the town council was made on November 5 and the MLA for the Iqaluit riding was not informed until November 12, one week later. To date, Mr. Speaker, no clear explanation has yet to be given as to the reason the MLA was not informed. Press reports suggest that the Minister was told by Cabinet not to inform the MLA about the dissolution of the town council and the appointment of the public administrator.

Mr. Speaker, Members of the Ordinary Members' Caucus are very concerned and disappointed with the chronology of events tabled in this House. The Premier stated in this House that a detailed chronology would be made available. This document is vague at best.

Ordinary Members will pursue this issue in the House until the truth and the facts are obtained. This is a very serious matter, Mr. Speaker, and we hope to get to the heart of it. Thank you.

Item 3, Members' statements. Mr. Whitford.

The honourable Member is seeking unanimous consent. Are there any nays? There are no nays. Please proceed, Mr. Whitford.

Thank you, Mr. Whitford. Item 3, Members' statements. Mr. Gargan.

Mr. Speaker, I was going to make a statement on aboriginal policing, but the information that I gave to research didn't reflect what I was going to say. So I will do one on trucking.

Today I wish to speak on some of the regulations that affect truckers operating on highways in the Northwest Territories. I believe some of these regulations do not deal realistically with operating conditions found in the Northwest Territories during its short construction season. For example, truckers who are working on a construction project are only allowed to work 70 hours per week before they must take a day off. Persons working as grader or bulldozer operators can work 12 hours per day, seven days a week for a total of 84 hours without taking a break or taking a day off. They are working on the highway. They are working for the same contractor.

In Alberta, truckers can work up to 13 hours per day, seven days a week if they have the right exemption from the Alberta Labour Board. Why can't we have something like that, except that we limit it to vehicles working on construction projects only? In the winter-time the government has made allowance for truck drivers involved in winter road hauls because of the short season. Why can't we do the same for truck drivers involved in the equally short construction season?

Now, you might say that the truckers have to be restricted in the amount of hours they work in the interest of highway safety. But, I submit that we are not dealing with long-haul drivers who need to be legislated, as to how much they work, to keep the road safe for all of us. We are dealing with a group of drivers who drive from the gravel pile to the job site, a distance that is rarely more than ten miles away. They are already in the construction zone. People should be watching for them.

I think with a little bit of common sense, we can deal with the problem of how many hours a truck driver can work in the Northwest Territories.

Another thing about the regulations that govern truck drivers in the Northwest Territories...

Mr. Gargan, your allotted time has elapsed.

Mr. Speaker, I would like unanimous consent to continue my statement.