Thank you, Madam Speaker. The committee noted, once again, that there have been significant improvements to the capital planning process over the last few years. The comprehensive consultation process has been initiated. Government consults with the communities through local governments and Members of the Legislative Assembly. These enhancements are designed to ensure that this government's capital budget reflects the real capital needs of the citizens and their communities. There is, however, still room for improvement in the consultation process.
The committee noted, during its review, several examples where there are problems with community input into the capital planning process. In some instances, capital projects were not scheduled in accordance with community priorities. In other cases, consultations with the communities did not result in changes to the capital plans to reflect identified community needs.
The committee was concerned to see that plans to provide an elders' residence in Gjoa Haven have been deleted in the five-year capital plan document under review. Although the Minister explained, during her appearance before the committee, that the department was considering replacing elders' residences with home care programs in some communities, it appears that the community of Gjoa Haven was not adequately consulted and did not agree to the substitution. The committee urges the government to review this particular case and to remain vigilant in ensuring that the consultation process works effectively.
Capital Expenditure Issues
Business Incentive Policy
The Minister responsible for Public Works and Services informed the committee that the department was planning to conduct extensive consultation during the summer months and have a new process in place for this tendering season. The committee was disappointed to discover that the department had fallen behind in its timetable. The result, of course, is a missed opportunity -- a large missed opportunity; $105 million in capital projects not falling within the scope of a new, improved business incentive policy.
Many Members noted a number of problems with the present policy. The present policy does not appear to be adequately or strictly enforced. Enforcement is one of the key elements which would contribute to the successful application of this policy. Members wonder if the committee of deputies currently responsible for enforcement might be replaced by a more effective enforcement mechanism. Members would like to see consideration given to an arbitration or ombudsman type of enforcement mechanism.
During the September budget review, the committee was provided with a document outlining a new proposal for the policy. Members understand that this document is intended for use during the public consultation. However, the document did not provide enough detailed information for the committee to review. The committee's preliminary impression of the policy proposal is that it will still be far too complicated in its application. Members believe that a simplified process could and should be developed fairly quickly. This initiative is a high priority.
Arctic Resupply
The resupply initiative is a very important one to the territorial government and its constituents. In the September 1994 review, the committee was presented with another briefing on the resupply initiative. This briefing was focused, as requested, on the eastern Arctic. Committee Members noted there appears to be a large potential for cost-savings if resupply initiatives are coordinated with the whole of the Arctic. The committee learned that two different departments are responsible for resupply initiatives. The Department of Public Works and Services is responsible for resupplying the Baffin, while the Department of Transportation is responsible for resupplying the Keewatin. Members feel that the whole resupply initiative could function much more efficiently if one department took the lead role. It is inappropriate on such a major initiative -- particularly one that is directed at achieving savings through economies of scale -- that two different departments are assuming the lead role in neighbouring regions. Madam Speaker, at the appropriate time we will be making the following motion:
Recommendation 1
The Standing Committee on Finance recommends that the government examine the issue of resupply across the entire Arctic and that the Department of Transportation assume the lead role for planning, design and implementation.
Madam Speaker, that concludes the report of the Standing Committee on Finance on its review of the 1995-96 capital estimates.
Motion To Receive And Move Committee Report 10-12(6) To Committee Of The Whole, Carried
Therefore, I move, seconded by the honourable Member for Nahendeh, Mr. Antoine, that the report of the Standing Committee on Finance on its review of the 1995-96 capital estimates, be received by the Assembly and moved into committee of the whole. Thank you.