Thank you, Mr. Chairman. With regard to Public Works and Services, the committee supports the department's initiative over the past year to provide new office and housing facilities to the communities of Fort Smith, Hay River, Fort Simpson, Inuvik, Rankin Inlet and Iqaluit, as a result of the decentralization plan. The committee noted that the department has also decentralized ten project management positions to regional and community offices.
The committee also supports the department's initiative to develop comprehensive office plans for accommodating headquarters personnel in Yellowknife. Through departmental consolidation and termination of various leases, the department projected savings in the order of $1 million over the next five years. Based on these estimated savings, the department obtained supplementary funding of approximately $626,000 to complete office renovation and tenant improvement projects in Yellowknife. Members were disappointed to learn that, as of October, very little of this money has been applied to the purpose intended. In addition, forecast spending on Yellowknife renovations and improvement for the fiscal year 1994-95, have been cut by $800,000.
Mr. Chairman, the committee is of the opinion that this development will adversely affect the efficiency of headquarters personnel. The committee would like the department to revisit plans for headquarters office improvements and report back to the committee.
In addition, committee members believe that, given the current commercial real estate market in Yellowknife, by going to public tender rather than over-holding leases, it is likely that headquarters personnel could be accommodated more cost-effectively.