Thank you, Mr. Chairman. The Standing Committee on Finance reviewed Supplementary Appropriation Act, No. 1, at its meeting in Yellowknife on March 29 and 30. The standing committee was pleased that the Minister of Finance and his staff were available to answer questions at that time. During our meeting on March 30, the committee agreed to recommend this bill to the House for consideration. However, the committee had several concerns with this bill, and as has been the practice, I will speak to the major issues.
Members of the committee may have comments on the details of this bill when we go through it in committee of the whole. This request for supplementary funding raises questions about the government's overall operation budgeting process. The Standing Committee on Finance is alarmed at the volume of funding requirements that are unknown at the time when the main estimates are being prepared. The committee also wonders why the government does not have more accurate means of forecasting the total amount of anticipated expenditures. The committee is of the opinion that the government should develop methods which are capable of accurately forecasting total annual funding requirements. This should be a high priority.
The Standing Committee on Finance expressed their dissatisfaction with the planning and implementation of the community transfer initiative in its report on the 1993-94 Main Estimates. The committee now questions why funding for this important initiative is being requested through a supplementary appropriation. The government should be able to structure its major initiatives more effectively. The committee expects to see well thought out plans which take into account the uniqueness of the north with respect to major strategies such as the prevention of HIV infection. The standing committee suggests that the government explore the possibility of accessing federal government funds to support the implementation of this strategy.
The Standing Committee on Finance supports the government's decentralization initiative, however, the committee has some concerns about its implementation. Specifically, the committee is worried that the total costs associated with the decentralization initiative may be escalating beyond what is originally anticipated. Escalating costs are particularly worrisome during this time of economic recession. The standing committee also questioned how some of the expenditures proposed in the supplementary appropriation relate to stated government strategy or policy. Specifically, the committee was dismayed by the request for a large appropriation to provide furniture for staff housing. This expenditure is proposed, at the same time, when the government is announcing plans to discontinue the provision of housing to staff.
Government strategies and policies do not appear to be in line with proposed expenditures.
The Standing Committee on Finance recognizes the difficulties facing the government in terms of its attempt to balance the budget. The committee will continue to support the achievement of this goal. Mahsi.
Department Of Executive