Thank you, Mr. Speaker. I give notice that on Monday, April 5, 1993, I shall move the following motion.

I move, seconded by the Honourable Member for Hay River, that Tabled Document 137-12(3), Proposed Bill, An Act to Amend the Cities, Towns and Villages Act, and Tabled Document 138-12(3), Proposed Bill, An Act to Amend the Hamlets Act, and Tabled Document 139-12(3), Proposed Bill, An Act to Amend the Charter Communities Act, be referred to the Standing Committee on Legislation for review.

Mr. Speaker, at the appropriate time today, I will be seeking unanimous consent to move my motion.

Item 13, notices of motion. Item 14, notices of motions for first reading of bills. Item 15, motions. Motion 30-12(3): Proposed Amendment to Partnership Act Referred to the Standing Committee on Legislation. Mr. Kakfwi. Item 15, motions. Motion 30-12(3), Proposed amendments to Partnership Act referred to the Standing Committee on Legislation. Mr. Kakfwi, do you wish to deal with it today or tomorrow? Mr. Kakfwi.

The motion is in order. To the motion.

Question.

Question has been called. All those in favour? All those opposed? Motion is carried.

---Carried

The proposed amendment to Partnership Act will be referred to the Standing Committee on Legislation. Item 15, motions. Mr. Allooloo.

Thank you, Mr. Speaker. I seek unanimous consent to deal with my motion.

The chair does not have a typed and translated copy of the motion. I am sorry, Mr. Allooloo. Item 15, motions. Item 16, first reading of bills. Item 17, second reading of bills. Mr. Pollard.

Mr. Speaker, I move, seconded by the honourable Member for Nunakput, that Bill 26, An Act to Amend the Income Tax Act, No. 2, be read for the second time. Mr. Speaker, this bill would amend the Income Tax Act to provide a refundable income tax credit in respect to individual income taxes. Thank you, Mr. Speaker.

The motion is in order, Mr. Pollard. To the principle of the bill.

Question.

Question has been called. All those in favour? All those opposed? Motion is carried.

---Carried

Bill 26, An Act to Amend the Income Tax Act, No. 2 has had second reading and accordingly the bill stands referred to a committee. Item 17, second reading of bills. Mr. Pollard.

Thank you, Mr. Speaker. I move, seconded by the honourable Member for Baffin Central that Bill 27, Payroll Tax Act, 1993, be read for the second time. Mr. Speaker, this bill would impose a tax on employees who work in the Northwest Territories of one per cent of the employee's remuneration; require employers to collect the tax and remit it to the Minister; require employers to submit periodic returns to the Minister with respect to the tax; require employers to keep books and records with respect to the tax. It would allow audits of the books and records; allow for the assessment of taxes, penalties and interest; establish an appeal process; set out procedures to administer and enforce the act; establish offenses and penalties for non-compliance with the act; and would set out certain regulation-making powers. Thank you, Mr. Speaker.

Mr. Pollard, the motion is in order. To the principle of the bill.

Question.

Question has been called. All those in favour? All those opposed? Motion is carried.

---Carried

Bill 27, Payroll Tax Act, 1993 has had second reading and accordingly the bill stands referred to a committee. Item 18, consideration in committee of the whole of bills and other matters; Tabled Document 2-12(3), The Justice House - Report of the Special Advisor on Gender Equality; Tabled Document 19-12(3), 1992 Master Plan for Corrections Service Division; Bill 25, Supplementary Appropriation Act, No. 1, 1993-94; Committee Report 10-12(3), Report on Tabled Document 21-12(3): Payroll Tax Act; Committee Report 19-12(3), Report on Revision of the Rules, with Mr. Whitford in the chair. The committee will stay in session until they report themselves out of session. Thank you.

Mr. Chairman, we would like to address Bill 25, Supplementary Appropriation Act, No. 1, 1993-94, and if we get concluded, we would like to consider Committee Report 19-12(3), Report on the Revision of the Rules. If we are able to address those, we would like to address Tabled Document 19-12(3), 1992 Master Plan for Corrections Service Division. Thank you.

Agreed.

---Agreed

Thank you, Mr. Chairman. Supplementary Appropriation Act, No. 1, 1993-94, requests authority for additional appropriations of $9.829 million. This supplementary appropriation consists of additional appropriations in the amount of $8.660 million in operations and maintenance and $1.169 million in capital. In O and M the most significant amounts are for funding the costs of the decentralization of various government functions from headquarters to communities as announced by Madam Premier in June, 1992. There are one time O and M costs of $2.443 million and ongoing O and M costs of $1 million.

The one time costs include $1.077 million in the Department responsible for Education, Culture and Employment Programs to provide training courses in six communities through Arctic College, also to prepare about 70 students for decentralized positions where we do not expect the present incumbent to move, and for the public service career training program to provide senior level training opportunities for affirmative action candidates for positions which have been decentralized. The one time costs also include recruitment and removal costs, the installation of telecommunications, the redesign and modification of various computer systems, and the cost of running parallel systems for a period of time.

The ongoing costs include office and housing costs and increase in employee benefits costs. A $5 million supplementary appropriation reserve has been established in the 1993-94 fiscal framework for the cost of decentralization.

Mr. Chairman, in Health, additional funding of $1.379 million for medical care programs and $712,000 for the implementation of new phases of the strategy for the prevention of HIV infection. Also included is an amount of $542,000 for the increased requirements of regional health boards.

In Social Services, additional funding of $854,000 is required to address a deficiency in the social assistance and child welfare programs being delivered by the town of Iqaluit. This deficiency was recognized last year but it was too late to include in the 1993-94 Main Estimates.

In capital there is a total of $1.788 million in one time costs pertaining to the decentralization initiatives. These costs include a provision of $972,000 for office improvements, $476,000 to furnish 42 additional housing units, and $340,000 for computer hardware upgrades.

There is also funding, Mr. Chairman, of $1.735 million for the replacement of the school which burned down in Apex; funding of $690,000 for the Trout Lake community assembly and school building; funding of $200,000 to meet the additional costs of the Sachs Harbour school renovation project; and $435,000 for renovations to the hamlet office and fire hall in Whale Cove. These supplementary appropriations are within the estimated supplementary requirements for the year as shown in the summary of projected revenues and expenditures. Thank you, Mr. Chairman.

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