Thank you, Mr. Speaker. I have two returns to oral questions. One asked by Mr. Dent on November 22, regarding the NWT Association of Municipalities' concerns with respect to the dissolution of municipal councils. The Department of Municipal and Community Affairs has procedures, well-established in legislation, for monitoring the financial and overall viability of municipal corporations and, in extreme cases, for the appointment of municipal administrators.

The Cities, Towns and Villages Act, the Hamlets Act and the Chartered Communities Act require municipal inspectors, appointed by the Minister of MACA, to perform annual municipal inspections. Each municipal inspection includes financial management, administrative and operational reviews. Each municipal inspection results in a written report which is forwarded to the Minister.

The written report, consistent with the requirements of the act, contains recommendations on the corrective actions to be taken by the municipal corporation or the Minister. A copy of the municipal evaluation report is also always forwarded to the mayor. A covering letter, summarizing the most significant concerns of the department, is sent by the deputy minister in the case of cities, towns and villages, and by the superintendent in the case of hamlets and chartered communities. It is the responsibility of council to ensure that the recommendations are implemented or responded to.

In most instances, the department and the municipal corporations are able to implement the recommendations in a cooperative manner. Failure to implement municipal evaluation recommendations, in addition to be the failure of council to exercise their duty, often may result in serious financial, legal or administerial problems by the municipal corporation.

In addition to conducting annual municipal inspections, the department monitors the financial position of all municipal corporations. Yearly audited financial statements are analyzed by the department. In addition, those municipal corporations which are not cities, towns or villages must furnish to the department monthly financial information. In almost all cases, the department is able to assist municipal corporations in resolving their financial difficulties.

Under section 192 of the Cities, Towns and Villages Act, section 192 of the Hamlets Act, and section 196 of the Charter Communities Act, a municipal administrator may be appointed when a municipal corporation is incapable of meeting its financial obligations. When the council of a municipal corporation fails to perform a duty required of it by legislation, or if the Minister is of the opinion that for other reasons it is in the best interest of the municipal corporation that it be under the control of a municipal administrator.

It is on this legal basis that a municipal administrator was appointed for the town of Iqaluit.

The present procedures provide extensive periods of time for the department and a municipal corporation to resolve problems and to agree on corrective action arising from municipal evaluations. The process ensures frequent and extensive dialogue. The mandate assigned by Cabinet for the Department of Municipal and Community Affairs and the departmental establishment policy is for the development and maintenance of local governments, responsive and responsible to the residents. The emphasis of the department has been on positive collaboration with municipal governments, with a view to increasing their authority and responsibility.

The procedure for the appointment of a municipal administrator and the dissolution of a municipal council, although provided for in the municipal legislation is, and always has been regarded as an extreme and unfortunate remedy of last resort. Even then, the mission of the municipal administrator is always to get the administrative matters back in order as quickly as possible so that the elected municipal government can be restored.

The policy focus of the department should continue to concentrate on regular municipal inspections, cooperative dialogue and other preventive measures to avert situations requiring the appointment of municipal administrators, rather than on making procedural modifications which might actually have the effect of making conditions easier for the appointment of municipal administrators.