Thank you, Mr. Chairman. I am pleased to present the 1993-94 Main Estimates for the Department of Government Services and Public Works. The proposed O and M budget is $124.9 million and 517 person years. The department also manages $73 million through one charge back account and three revolving funds. An estimated $22 million will be generated in revenue.

This budget represents a decrease of $13.6 million and 35 person years from the main estimates for the two departments in the previous fiscal year.

Through the budget reduction exercise, $3.2 million and 21 person years were cut. Consolidation of the departments yielded $835,000 and 11.8 person years.

The expenditure reduction exercise has projected a decrease of $10.1 million in utilities, much of which would be a result of the implementation of the long-term housing strategy. This will now be reduced. Consolidation will be completed in 1993-94 with some minor organizational changes. Planning for the decentralization of the petroleum products division to Rankin Inlet and Fort Simpson is well under way.

Mr. Chairman, the department has a broad mandate and, including management of capital projects, manages over 18 per cent of the GNWT's budget. These expenditures are in support of the delivery of all programs of this government, through a range of services to departments, boards, agencies and communities. With employees in 48 communities, we ensure, for example, that school, health and recreation facilities are constructed efficiently and maintained in good working order for all NWT residents. In short, the department takes care of many background support functions that allow governments, both territorial and municipal, to focus their energies on the delivery of good programs.

In providing these services, the department is contributing to the development of a vibrant northern economy. Not only are skills being acquired by residents, but new northern businesses are being established. For example, in our leasing program fully 90 per cent of the budget, or $32 million, goes to northern companies each year.

In maintaining our buildings, works, vehicles and equipment, $30 million goes to northern people through direct employment and contracts with private companies. The department also manages about $80 million in capital, with more than 80 per cent of those expenditures going to northern companies.

Mr. Chairman, a number of new objectives have been included in these estimates. I would like to mention a few at this time.

The first year for the new training in construction strategy will be in 1993-94, being prepared with Education and the Housing Corporation. This strategy is nearing completion and will be presented to Cabinet very shortly.

Working with the Department of Economic Development and Tourism, we are preparing procedures to promote the development of northern manufacturing. We will be taking a more active approach to identify and support import replacement opportunities.

In support of the community transfer initiative, a departmental steering committee has been established to direct the development of clear and comprehensive cost and service level information. Staff have participated in workshops in several communities and the transfer of the Norman Wells gas system is under way.

The department is working with Energy, Mines and Petroleum Resources, Transportation and Economic Development and Tourism to review annual re-supply procedures. We believe the amount of work that goes to northern businesses can be increased, while reducing costs.

Several months have passed since the business incentive policy was revised. I believe the revised policy has been effective in ensuring that government dollars go to northerners. Valuable experience has been gained in using the policy. As a result, in April, I will be recommending changes to the directive to fine tune some of its provisions. We will also be working with the Department of Finance to develop an information system to allow better tracking of costs and benefits from northern preference.

Mr. Chairman, 231, or 36 per cent of the department's staff are indigenous aboriginal. One hundred and fifty eight of these people are employed in the labour and trades groups, including trades foremen and area maintenance officers. We also are training 36 native apprentices. There are 22 women in non-traditional occupations. In addition, women occupy two of the 11 director positions in headquarters.

The department has taken a number of steps aimed at increasing these numbers. For example, in conjunction with MACA, Transportation and the Housing Corporation, we co-sponsor a program that introduces 15 to 20 northern high school students to technical careers each summer. They take part in instruction and workshops, then they return to their home communities for a summer of on-the-job training. The department hires a number of northern post-secondary students for summer jobs. Last year, more students were hired for shorter time periods, in order to spread the opportunities to a larger number of students.

A $75,000 affirmative action fund provides special assistance to employees to attend courses and other skill improvement opportunities. In addition, several students are supported in their efforts at post-secondary training. In 1993-94, we will review our progress and produce a revised affirmative action plan.

Internal information procedures are being improved in order to track performance and provide data as required for the new performance indicators established this year.

An extensive review of the government's office standards and inventory has been completed. As requested by SCOF during its review of capital budgets, a strategy for office space is being prepared and will be sent to the FMB very shortly.

Finally, the department is preparing a plan to transfer responsibilities for staff housing to the Housing Corporation. It is intended that the transfer will be complete by April 1, 1994, and will result in better coordination of territorial housing programs.

In closing, Mr. Chairman, I would like to state my priorities for the coming year:

1. implementing the training in construction strategy;

2. revising the business incentive policy;

3. enhancing manufacturing in the north;

4. establishing an affirmative action program to enhance training of northerners for employment within the department; and,

5. contributing to the community transfer initiative.

Thank you, Mr. Chairman.