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.