Thank you. Does the committee agree that Bill 5 is concluded? Agreed?

Agreed.

---Agreed

Thank you. Next on the order paper Bill 6, Supplementary Appropriation Act, No. 2, 1993-94. Agreed?

Agreed.

---Agreed

Bill 6, Supplementary Appropriation Act, No. 2, 1993-94

Bill 6, Supplementary Appropriation Act, No. 2, 1993-94. Mr. Pollard.

Introductory Remarks

Thank you, Mr. Chairman. Mr. Chairman, Supplementary Appropriation Act, No. 2, 1993-94 requests additional appropriation authority of $55,590,650. This amount exceeds our supplementary reserves for 1993-94, primarily due to two large costs that could not be forecast. These are $9 million for forest fire suppression and $10 million for capital social housing programs. These large, unbudgeted costs, coupled with the declines in our revenues, have resulted in a forecast deficit for 1993-94 of close to $25 million.

Mr. Chairman, I don't have to remind you that the government's objective for 1993-94 was a balanced budget. I must also caution that the forecast deficit could worsen between now and the end of the fiscal year, if further forced expenditure growth materializes.

The new deficit forecast for 1993-94 also has implications for future years. The expenditure pressures the government has had to deal with could carry forward to 1994-95 and beyond. Mr. Chairman, the fundamental problem is that the rate of forced growth in our expenditure programs is exceeding the rate of growth of our revenues. This must be turned around, if long-term financial stability is to be maintained.

Mr. Chairman, due to improved financial restraint in the past fiscal year, 1992-93, the government started this year with a larger accumulated surplus than planned. Even with a deficit forecast for 1993-94, the government will still be in a surplus position at the end of the year. However, the level of accumulated surplus will have been drawn down, from over $55 million to under $30 million. Mr. Chairman, it is important that corrective action be taken for 1994-95, to deal with this potential deficit problem. Although much of the development of next year's budget has already been completed, the government must reconsider some of its plans. Mr. Chairman, changes of the magnitude required must be based on direction from this Legislative Assembly. We must define our main objectives and our priorities. The Cabinet can not make these major decisions without that direction.

Next week, Mr. Chairman, I will be tabling a paper that I hope will stimulate the discussion that we must have, if the government is to manage the potential deficit situation in a manner that will be acceptable to this House. Based on the direction that results, the government can then prepare detailed action for introduction through the 1994-95 O and M budget in February.

Mr. Chairman, Supplementary Appropriation Act, No. 2, 1993-94 is large. It contains many necessary and worthwhile funding requirements. However, since advancing the supplementary appropriation, we have had the opportunity to review its content with the Standing Committee on Finance and Members at large. As you know, Mr. Chairman, the government announced early in this session that it had established a northern workforce commission. Since that time, we have been listening to concerns expressed by Members of this House and it has become quite obvious that the commission does not have the political support it requires to begin its two year mandate. Because of this, Mr. Chairman, I will be introducing a motion requesting that the money required to operate the commission be deleted from the supplementary estimates.

Mr. Chairman, this will remove $640,000 and 1.5 person years from the Ministers' offices activity of the Department of the Executive, of which $325,000 was in the form of a special warrant which is being rescinded. I would point out to the committee, in all honesty, Mr. Chairman, that the special warrant has not yet been rescinded. It will be rescinded tomorrow morning at FMB and then passed on to the Commissioner for ratification. In addition, Mr. Chairman, $5,000 will be removed from the human resource management activity of the Financial Management Board Secretariat, in the Department of the Executive, related to employee benefit costs associated with the commission. Also, Mr. Chairman, $1,000 will be removed from the staffing activity of the Department of Personnel. A further $3,000 will be removed from the systems and computer services activity of the Department of Public Works and Services, related to telecommunications costs that would have been associated with the commission.

Mr. Chairman, the government has also reconsidered another supplementary funding request that is contained in the 1993-94 Supplementary Appropriation, No. 2, 1993-94. This amount is $49,000 for home travel for the Department of the Executive. At the appropriate time, Mr. Chairman, a motion will be made to delete this amount from the bill.

Mr. Chairman, with these proposed amendments, I now welcome discussion and questions on Supplementary Appropriation Act, No. 2, 1993-94. As has been the practice in the past, I will try to answer Members' questions, but will refer specific or detailed questions to the appropriate Minister, if that's acceptable to the committee, Mr. Chairman. Thank you.

Thank you, Mr. Pollard. Does the Standing Committee on Finance have a presentation? Mr. Antoine.

Standing Committee On Finance Comments

Thank you, Mr. Chairman. The Standing Committee on Finance reviewed Supplementary Appropriation Act, No. 2, 1993-94 at its meetings in Yellowknife on November 22, November 29 and December 6, 1993. The standing committee was pleased that the chairman of the Financial Management Board and his staff were available to answer questions at that time.

Mr. Chairman, this bill represents a further appropriation request of over $36.5 million in operations and maintenance, almost $20 million in capital, for a total of $55,590,650 for the current fiscal year. If this bill is passed, the total supplementary appropriation to date, for the fiscal year 1993-94, will be close to $65.5 million. During the December 6, 1993 meeting of the Standing Committee on Finance, the committee agreed to recommend this bill to the House for consideration. As has been the practice, I will speak to the major issues. Members of the committee may have additional comments on details of this bill when we go through it in committee of the whole.

Committee Members were very concerned to see that a special warrant in the amount of $325,000 was approved to conduct a comprehensive review of labour related matters in the Northwest Territories. Mr. Chairman, this is a matter that we feel is under federal jurisdiction. Members are not aware of any pressing need for the GNWT to spend this money. Mr. Chairman, since the Minister has stated in his opening remarks that he's going to delete it, we'll go with that.

Many of the items contained in the supplementary appropriations are transfers of funding and person years that occurred as a result of the reorganization of the Financial Management Board secretariat and the departments of Personnel, Finance, and the Executive. The committee is concerned about this massive centralization of important government functions. In order to better understand the objectives and rationale behind these changes, committee Members are looking forward to receiving a full briefing.

Higher than anticipated costs for social assistance continue to appear as supplementary appropriation requests. The committee would like to see the Department of Social Services develop and implement more accurate forecasting techniques, as soon as possible. The committee noted substantial requirements for additional funding by the Department of Education, Culture and Employment, which appeared to be due to poor planning and forecasting. Members would like to see the department develop and implement new standards and criteria for planning very quickly.

The standing committee would like to encourage the government to continue in its attempt to restrict the number of items and the total amount of funding requested through supplementary appropriations. That concludes my remarks on Supplementary Appropriation Act, No. 2, 1993-94. Mahsi, Mr. Chairman.

Mahsi, Mr. Antoine. General comments on Bill 6. Does the committee agree that we go into detail?

Agreed.

---Agreed

Line By Line

Legislative Assembly

Page 6 of Supplementary Appropriation Act, No. 2, 1993-94, Legislative Assembly, operations and maintenance, special warrant, $1.035 million. Agreed? Mr. Koe.

Item 4, on page 6, word processing equipment, where is that to be used and what is that equipment for?

Thank you. Minister of Finance.

Mr. Chairman, it is for 12 workstations. It includes a microcomputer, printer, line driver and software, at a cost of $7,530 a piece, for a total cost of $91,000. A total of 11 of these work stations are for the Executive staff and one is for the Legislative Assembly receptionist. That was purchased by the Legislative Assembly and moved into their building. Thank you, Mr. Chairman.

Thank you. Mr. Koe.

Didn't the Executive staff have equipment before we moved? I am just wondering why the sudden need for 12 completely new sets of equipment, complete new work places?

Thank you. Mr. Minister.

Mr. Chairman, yes, there was existing equipment. This equipment still exists. I think the rationale was some of the equipment was getting old and so on. The decision was made to equip the building with new equipment, Mr. Chairman.

Thank you. Legislative Assembly, total department, $1.035 million.

Agreed.

---Agreed

Executive

Thank you. Page 7, Executive, operations and maintenance, Ministers' offices, special warrants, $325,000. Mr. Minister.

Mr. Chairman. I would point to the 1.5 person years and $315,000 on this particular page. That is one of the amounts I made reference to that will be deleted by way of rescinding the special warrant at FMB tomorrow, and hence, the Commissioner's signature put on it. I want to point that out to the committee, Mr. Chairman. Thank you.

Thank you. Not previously authorized, $364,000. Mr. Pollard.

Mr. Chairman, item number two on there, the $49,000 was also mentioned in my opening statement. That is for ministerial home travel and that will be deleted when we get to the bill, Mr. Chairman. Thank you.