Agreed.

---Agreed

Thank you. Does this committee agree that the Department of Economic Development and

Tourism is concluded?

Agreed.

---Agreed

Thank you. I would like to thank the witnesses at this time. We will now go on to Municipal and Community Affairs. Would the Minister like to make an opening remark?

Department Of Municipal And Community Affairs, Introductory Remarks

The Department has been responsible and accountable for underwriting and/or providing municipal, capital and operation and maintenance assistance programs to community governments for over a quarter of a century. These programs have evolved and have generally been effective in meeting the basic needs of municipal governments for infrastructure, administration and service and program delivery.

For the 1993-94 fiscal year, estimates for operations and maintenance of $65.104 million are proposed, an increase of 9.6 per cent over 1992-93. There are 147.8 permanent person years proposed in 1993-94, a decrease of one person year from 1992-93. My department continues its efforts to look at better ways of utilizing its financial and human resources. We are continuing to ensure that value for money is obtained in all of the department's programs.

For this year, the department's budgetary growth is largely directed toward the following major areas.

The first major direction supports community self-government. On February 16, 1993, the first ever municipal block funding agreement was signed by the Government of the Northwest Territories and the city of Yellowknife. Funding of $4.1 million is proposed for this agreement in 1993-94. The block funding agreement is a three year agreement, designed to devolve full authority and responsibility to the city council to manage and, if desired, re-shape its regular municipal capital and O and M programs. We view this agreement, which takes effect April 1, 1993, as a major milestone in the advancement of the priority of community self-government. We are optimistic that the agreement will prove itself and will serve as a model for the eventual negotiation of block funding agreements with other municipal governments.

Mr. Chairman, we are also proposing increases of $610,00 in transfer payments to hamlet to take account of O and M needs resulting from infrastructure growth and community population growth. To assist the continuing political and administrative development of small communities, increased funding is proposed for support to settlements. This winter I am also developing a policy on assistance to settlements and other small communities which do not have municipal status.

Mr. Chairman, this government has consistently emphasized the role of recreation facilities and programs in promoting good community life and well-being. In 1993-94, increased funding of $418,000 is proposed for the recreation facilities operating subsidy, as well as an increase of $122,000 for the facility maintainers program. An increase of $23,000 is proposed for the aquatic program operating contribution.

Regrettably, it has also been necessary, in a time when the government continues to face severe financial pressures, to propose certain expenditure reductions. A reduction of $315,000 in utilities funding, as part of hamlet transfer payments, is proposed for 1993-94. My department, in cooperation with the Departments of Energy, Mines and Petroleum Resources and Government Services and Public Works, will be offering regional workshops for municipal and housing association staff in energy and water conservation.

We are also proposing a reduction of $390,000 in 1993-94 for the subsidy to commercial users under the water and sewage services subsidy program. This adjustment will correct a situation in which commercial users in hamlets and settlements enjoy a significant advantage over commercial users in tax-based municipalities, where only half of the commercial users' water consumption has been subsidized. The changes to the water and sewage services subsidy program will, over a three year phase-in period, establish the same level of subsidy for commercial users in hamlet and settlements.

We are also attempting to work in partnership with municipal and community governments, and the bulk of my department's O and M funding continues to be directed in transfer payments to these governments so that they may take effective charge of their own affairs. Mr. Chairman, I will now be pleased to answer your questions in detail. Thank you.

Thank you. Does the chairman of the Standing Committee of Finance have any comments? Mr. Zoe.

Comments By Standing Committee On Finance

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

Does the Minister wish to bring in his witnesses?

Yes, Mr. Chairman.

Does the committee agree that the Minister bring in his witnesses. Agreed?

Agreed.

---Agreed

Thank you. Mr. Minister, would you please introduce the witnesses?

Thank you, Mr. Chairman. Mr. Al Menard, deputy minister and Mr. Jim France, director of finance.

Thank you. Are there any general comments? Mr. Arvaluk.

General Comments

Thank you, Mr. Chairman. In the eastern Arctic most of our work has been with MACA. We have enjoyed the working relationship between MACA and the hamlets. How much participation will MACA play in the role of the community transfers? The community transfer program is handled by a different department and we are having a hard time adjusting to dealing with a different department. I would like to get assurances from the Minister regarding the major role they will be playing in the community transfer in the eastern Arctic.

Thank you. Mr. Minister.

Thank you, Mr. Chairman. The role we play is that the deputy minister, the superintendent and other people are involved in the community transfers. We have a steering committee which our department is also involved with. We also have a person seconded to the working group from the department. This person is doing the community transfers full-time. Thank you.

Thank you. Mr. Arvaluk.

Thank you, Mr. Chairman. When Mr. Kakfwi's department visited Coral Harbour and met with the hamlet council and other community representatives regarding the community transfer discussion, the attendance from the government side was the regional director of the Keewatin for the GNWT and a community transfer working group member from the government side. The superintendent of MACA for the Keewatin region was not present. Why was this?

Thank you. Mr. Minister.

Thank you, Mr. Chairman. I do not know why the superintendent of MACA for the region was not involved in the Coral Harbour visit. In headquarters we have a steering committee and the deputy minister is a full member. In the regions we have committees consisting of the regional director and superintendents of the department. During visits to communities the superintendent should be involved in those discussions. I do not know why the superintendent was not involved at that time. Thank you.