Thank you. I would like to thank the Premier and the witness for appearing before our committee. As requested earlier we will move onto the Department of the Executive. Agreed?

Agreed.

---Agreed

Madam Premier.

Department Of Executive, Introductory Remarks

Thank you, Mr. Chairman. I appreciate the opportunity to speak to the Department of Executive's budget proposal for 1993-94.

Before doing that, I want to talk about the progress that has been made by the government and Legislative Assembly since being elected over 16 months ago.

Mr. Chairman, it is important to note that we do have a plan. We know where we are going and we know what has to be done to get there.

From my perspective our vision includes as follows:

-A Nunavut government and a new western territory that has been stabilized through the settlement of outstanding land claims;

-A government that is restructured and decentralized and responds in a more open and less bureaucratic fashion to the people it serves;

-Local residents with a strong sense of self-reliance who have jobs and are setting their own priorities and dealing with basic matters such as education, economic development and social services; and,

-A strong public and private investor interest in renewable and non-renewable resource sectors and transportation infrastructure - an interest that stimulates local business and employment opportunities while ensuring proper respect for our northern environment and the pursuit of traditional life-styles.

These are matters, I spoke about in a speech to the Legislative Assembly just before you elected me as Government Leader. In the past 16 months, we have spent hundreds of hours examining expenditures and developing a two year plan to eliminate an inherited and unprecedented deficit while making sure that job creation, health and social programs and education and training remain top priorities.

Mr. Chairman, a balanced budget is still within reach by the end of the 1993-94 fiscal year. We are getting our finances in order without massive lay-offs and the "amputation" of programs and services that are becoming common place in provincial jurisdictions. Instead, we are living within our means while allowing for a minimal tax increase and holding firm on avoiding implementation of a territorial sales tax.

At the same time, we have developed a $6 million NWT workers' training fund, started the process of consolidation, decentralization and privatization and are presently implementing a strategy that will get us out of staff housing while stimulating the growth of local housing markets.

We have also introduced a revised capital budget process that gives communities a role in assigning priorities and developers more time to plan for construction projects.

In addition, new and affordable home ownership programs for all residents of the territories have been introduced and changes to the business incentive policy will make it more responsive to the development of a strong and competitive business sector.

Finally, the government has initiated and signed a block-funding agreement with the city of Yellowknife that will provide more financial certainty and make it possible for the city to undertake longer range planning of capital expenditures.

Last week, the Northwest Territories Power Corporation and the Dogrib Treaty 11 Tribal Council signed an unprecedented agreement for the development of a hydro potential in the North Slave region.

All of these developments have required strong leadership by Cabinet and Members of this Legislative Assembly and its standing and special committees, particularly in light of federal deficit reduction schemes and the effects they are having on the Northwest Territories.

Mr. Chairman, my comments today are intended to put things into perspective. It is important that our constituents understand what has been accomplished during the year and four months we have been in office.

It is also important for everyone to understand that the financial problems we have been facing will continue, despite our plan to return to a balanced budget in the new fiscal year.

Mr. Chairman, we continue to be financially ignored by various federal departments in a number of key areas that are extremely important to the future of the Northwest Territories.

The health dispute is an example. So are the severe cutbacks in funding for housing programs, the arbitrary reduction in language money and the federal cutbacks in communications and friendship centre programs.

Add to this our continuing concern over adequate federal funding for land claims implementation and Ottawa's reluctance to finalize the northern energy accord.

The federal government must not be allowed to take the position that they can settle land claims and then walk away from the Arctic. The settlement of claims correct historic wrongs. It does not remove other federal obligations to the people who live in this part of Canada.

Under our current relations with Ottawa, it is the Department of Indian Affairs and Northern Development that is supposed to be helping us advance our concerns to other federal Ministers and it must take a much more active role in that respect.

Mr. Chairman, at this point I want to provide a brief overview of the Department of Executive's 1993-94 expenditure plan.

The budget of $17.787 million and 152.6 person years represents a small decrease from the 1992-93 revised estimates. The reduction has been accomplished while absorbing the costs for the establishment of the new travel management office described in the budget address.

Other changes include: salary increases of $247,000 based on the settlement with the Union of Northern Workers; an increase of $43,000 because of the additional number of employees becoming eligible for the government's standard accommodation allowance; reinstatement of the Commissioner's awards program at a cost of $23,000; and, a reduction of $238,000 resulting from the elimination of various projects funded on a one-time only basis in 1992-93.

Other matters of note include the appointment in December of a special advisor to the Minister responsible for the Status of Women. The activities of the special advisor include research and consultation with the Status of Women Council and other public interest groups.

In cooperation with other government departments, the special advisor is also working on policy development and research on violence against women, gender equality, family law, women in trades, sexual harassment and affirmative action.

Mr. Chairman, the August 1992 official languages transfer of $264,000 and 1.6 person years to the Department of the Executive is included in the main estimates for 1993-94. An additional $687,000 in federal funding under the official languages agreement is included in the main estimates. The mandate of the official languages unit is to coordinate official language activities throughout government including: drafting guidelines for the provision of services; identifying priorities on maintaining and revitalizing aboriginal languages; and, negotiating funding agreements for official languages with the federal government.

Mr. Chairman, in line with the government's initiative to streamline the delivery of government programs and services, continued emphasis is being directed towards reviewing government operations, decentralizing a number of departmental divisions and agencies and assessing the most appropriate method of transferring responsibilities to the communities.

In order to make this happen, it has been necessary to dedicate resources to this undertaking.

As a result, continuation of $1.472 million in funding and 11 person years approved in the 1992-93 main estimates is included in the 1993-94 main estimates for the operational review and the community transfer committees. Much of the work of these committees should be completed within the planning year. Further savings are expected to result from a functional analysis that is presently being conducted.

Thank you, Mr. Chairman. Those are the opening remarks.

Thank you kindly, Madam Premier. Do we have comments from the Standing Committee on Finance on the main estimates? Mrs. Marie-Jewell.

Comments By The Standing Committee On Finance

Thank you, Mr. Chairman. In the Standing Committee on Finance's introductory comments in the report, we have talked extensively about leadership and vision. It is the Government Leader's job to provide the vision. It is the central agency's role to provide direction and support to program and service departments, as required. The evidence shows that departments and agencies are not getting the necessary direction and support from the Department of the Executive. In response to a 1992-93 Standing Committee on Finance recommendation the government suggested that, "An indicator of the bureaucracy's satisfaction with Cabinet's direction would be inappropriate." This response demonstrates a lack of appreciation for feedback from departments. The best leader is one who listens.

Community Transfer Initiative

A perfect example is the community transfer initiative. Departments have indicated to us that they do not understand the overall vision or plan for this initiative. The Minister responsible candidly suggested that he did not know if other people can explain the community transfer initiative in the same way that he has. He does not know if others share his idea of how best to implement this initiative. This clearly demonstrates a failure to communicate. If these programs are not addressed soon, we fear the momentum surrounding this important initiative will be lost.

We understand that communities and aboriginal organizations have indicated very strongly that they do not want to have an implementation model imposed on them by the territorial government. The committee has some suggestions:

1. If a "non-model" approach is required, the government should say so. The communities are expecting to be able to pick and choose. They are expecting to be able to say, "We do not want the entire personnel function, we just want you to tell this economic development officer that he has to work with our community council. That is all we expect." In another community, they may want to say, "We want the money and we want to go out and hire the individual and have him work for us." The flexibility has to be there to allow both approaches. The committee believes this strategy can and must be communicated effectively.

2. Most communities do not know the mechanism for initiating the transfer of responsibilities. This is a basic question that must receive immediate attention.

3. Community transfers should occur, in the coming year, in select communities with the best chances of success. By working with communities that are well developed, and creating success stories, some "implementation models" will emerge. These models could then provide guidance to other communities.

4. Less developed communities may require patience, and work toward improving their level of development prior to taking on more responsibilities. There needs to be a focus on community development. Our smaller communities need to become aware of the opportunities available to them and the work that needs to be done in order to take advantage of these opportunities. Community development should be targeted as a priority for the Department of Municipal and Community Affairs, in accordance with Motion 163-12(2) passed by the Assembly in September. The committee is disappointed that this motion has not been acted upon.

5. The government needs to find some way of ensuring the equitable distribution of resources among communities. In other words, if Cape Dorset wants to proceed along a certain path toward community transfers, they are treated equitably with Pelly Bay or Rae-Edzo. There has to be some mechanism established which allows the communities to explore the opportunities available to them for community transfers. Communities must know what the government expects the community to do in initiating the transfer of certain responsibilities. Government must create a set of criteria that everyone will understand which explains how communities can qualify to pursue their objectives, whatever those objectives might be.

6. Community transfer should involve devolution not delegation. The true transfer will mean a real assignment of authority.

7. In connection with land claims negotiations there will be regional self-government initiatives. The government should not hesitate to deal with regions if it is the unanimous choice of the communities involved. However, initiatives must be allowed to proceed in advance of a land claim and regional self-government.

8. The deputy minister of Education should sit on the community transfer committee. Education is too important not to be represented. Finally there has to be someone in charge. The Executive must decide who will be responsible to ensure the effective and timely implementation of the community transfer initiative.

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

That concludes the report from the Standing Committee on Finance. Madam Premier, do you wish to bring in your witnesses.

Yes, Mr. Chairman.

Is it agreed?

Agreed.

---Agreed

Thank you. Sergeant-at-Arms, can you please escort the witnesses. Before I ask the Premier to introduce the witnesses, I have received a note from the interpreters asking us to pace our speeches. They are having difficulty following. We need to slow down a bit. Madam Premier, for the record can you please introduce your witnesses.

Mr. Chairman, Mr. Pierre Alvarez, deputy minister of the Executive and Louis Primeau, director of finance and administration. I would like to note, at this time, that Louis Primeau will be moving to Coral Harbour as a settlement secretary.

---Applause

Thank you. Welcome to Nunavut, Louis. Are there any general comments? Mr. Patterson.

General Comments

Mr. Chairman, does this mean that the finance administration of the Executive Council is being decentralized to Coral Harbour?

Are there any general comments? Madam Premier.

Mr. Chairman, no it is not but I believe Coral Harbour is very privileged to have a person of this calibre assist them in the development of their community at this time. Thank you.

Are there any general comments? Mr. Koe.

Mahsi, Mr. Chairman. Over the past year since we were all elected and the Cabinet was chosen, there were some decentralization initiatives which were announced by the government. A certain timetable was approved and recommended by the Executive and I presume things are proceeding along as announced and planned. Can the Premier confirm that there is still a commitment to proceed with the decentralization initiatives which were announced and that decentralization is proceeding as committed?

Madam Premier.

Mr. Chairman, yes we are still committed to the decentralization plan. I do not believe we are far away from the time lines which were initially established. We may be a bit behind on some. At this point in time we appear to be on the time lines which were set.

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