Thank you, Mr. Speaker. Mr. Speaker, I move, seconded by the honourable Member from Nunakput, that Bill 6, Supplementary Appropriation Act, No. 2, 1993-94, be read for the second time. Mr. Speaker, this bill makes supplementary appropriations for the Government of the Northwest Territories for the fiscal year ending March 31, 1994. Thank you, Mr. Speaker.

Mr. Pollard, your motion is in order. To the principle of the bill.

Question.

Question has been called. All those in favour? All those opposed? Motion is carried.

---Carried

Bill 6 has had second reading. Bill 5 and Bill 6 have had second reading and, accordingly, the bills stand referred to the committee of the whole. Item 18, consideration in committee of the whole of bills and other matters: Minister's Statement 3-12(4), Sessional Statement; Bill 1, Appropriation Act, No. 1, 1994-95; Bill 2, An Act to Amend the Charter Communities Act; Bill 3, An Act to Amend the Cities, Towns and Villages Act; Bill 4, An Act to Amend the Hamlets Act; and, Committee Report 3-12(4), Review of the 1994-95 Capital Estimates. By the authority given to me by Motion 1-12(4) regarding sitting hours, I will put the Assembly into committee of the whole until the committee is prepared to report progress. Mr. Pudluk will be in the chair.

This committee will come to order. What does this committee wish to deal with this afternoon? Member for Thebacha.

Thank you, Mr. Chairman. We would like to attempt to address the Department of Municipal and Community Affairs. If we conclude that department, we would like to look at Economic Development and Tourism. And, if we're fortunate to conclude that, we'll do the Workers' Compensation Board and Safety and Public Services. Thank you.

Is that agreed?

Agreed.

---Agreed

Department Of Municipal And Community Affairs

Thank you. We're in the capital book on page 11-9 and the committee report on page 27. I wonder if the Minister has opening remarks at this time?

Thank you, Mr. Chairman. Yes, I do. May I proceed?

Yes.

Introductory Remarks

Mr. Chairman, the department is proposing total capital estimates of $35.254 million for 1994-95. I am proud to point out that the identification of proposed municipal infrastructure priorities is based on an extensive annual consultation process with mayors, chiefs, council chairpersons, councils and their administrations.

The department's consultation process has been in place for several years, and we continually review it to look for ways to improve the opportunities for community governments to have full input at the critical stages of capital planning during each year.

Building new water and sanitation infrastructure, and improvements to existing infrastructure, remain the highest priority, in the interests of public government and environmental health. This amounts to about 29 per cent, or $10.108 million, of our proposed capital estimates.

Another 23 per cent, or $8.079 million, is proposed for the construction of community recreation facilities. Our government continues to see the great social value of recreation infrastructure in making possible wide community participation in sports, games and community events, vital to a strong sense of community and personal well-being.

A further eight per cent or $2.956 million, is proposed for the provision of mobile equipment for road maintenance, public health and fire protection. Mobile equipment supports many of the municipal services offered by community governments. Funding of $2.294 million or about 7 per cent is proposed for the construction of community fire halls. Funding of $2.987 million, or eight per cent of the proposed capital estimates, is identified for the construction of public buildings, including municipal parking garages, maintenance garages, warehouses, staff houses and community offices.

For Members' information, I would note that capital funding provided by this department to the city of Yellowknife for ongoing municipal programs under the municipal capital assistance policy is provided through the GNWT/City block funding agreement, which runs from April 1, 1993 to March 31, 1996. The block funding under this agreement is voted under the O and M estimates. Total funding proposed for 1994-95, under the agreement is $4.1 million.

I must point out that the department's capital resources in 1994-95 can not respond to all identified infrastructure needs. We need to respond to community population growth and to assist local governments to replace aging capital infrastructure when necessary and possible.

Effective April 1, 1994, eligible communities will be required to make contributions to the Department of Municipal and Community Affairs for capital projects implemented under the municipal capital assistance policy. One of the principles of this policy is that communities should contribute to the capital costs of their municipal infrastructure. Contributions are based on a community's ability to pay, as described in the policy. Earlier this year, Cabinet approved amendments to the policy to allow community governments to make a portion of the required contribution by way of in-kind goods or services. This amendment gives community governments added flexibility in meeting their obligations, by offsetting the total cash contribution required.

We are continuing to make local governments aware of the opportunities available for them to take more authority for the management and delivery of municipal capital projects. The level of authority is based on the willingness and ability of each local government to accept full, partial or limited authority for these capital projects. Our support often involves direct capital contributions to local governments. In 1993-94, for example, approximately $10.7 million was transferred to local governments, through municipal capital contributions, a good stimulus to local business and employment and greater community management.

In response to last year's Legislative Assembly recommendations, the department has emphasized the assistance to the smaller communities in attaining a basic level of community infrastructure. The department has developed capital and O and M assistance policies specially geared to the needs of settlements and other small communities. I will be bringing these policies forward to Cabinet in the very near future.

Mr. Chairman, we believe that the department's comprehensive capital planning process has identified, through consultation with local councils, the most urgent needs. Thank you.

Thank you. The Standing Committee on Finance wants to make comments. Mr. Dent.

Standing Committee On Finance Comments

I appreciate that, Mr. Dent.

Thank you. The motion is in order. To the motion.

Question.

Question has been called. All those in favour? All those opposed? Motion is carried.

---Carried

Before we go on to the general comments and questions, I wonder if the Minister would like to bring in his officials. Mr. Todd.

Mr. Chairman, I would appreciate that, yes.

Does the committee agree?

Agreed.

---Agreed

Thank you. Please proceed, Minister Todd. Thank you. For the record, Mr. Minister, would you like to introduce your witnesses at this time?