This is page numbers 333 - 364 of the Hansard for the 12th Assembly, 6th Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was services.

Topics

Jim Antoine Nahendeh

Mahsi, Madam Speaker. In accordance with its terms of reference, the Standing Committee on Finance is pleased to submit its status report on the response to Standing Committee on Finance recommendations. This report describes the government's response to committee recommendations made during the review of the 1994-95 main estimates.

SCOF Recommendations

The Standing Committee on Finance made a number of recommendations with deadlines occurring at the time of, or prior to, the September 1994 committee meetings. The committee decided to determine the status of these recommendations during the September review and to discuss the resulting issues when the Ministers appeared before the committee.

How The Government Responded

The committee was very frustrated during its review by the government's lack of response to issues raised and recommendations made by the Standing Committee on Finance. The committee doesn't expect the government or its departments to agree with all the recommendations that the committee makes, but the Members do expect to have the courtesy of a reply.

Many of the recommendations flowing from the committee's review of the 1994-95 main estimates had a deadline prior to or at the time of the committee's scheduled review of the 1995-96 capital plan. These deadlines were set with a purpose. The purpose is to allow the committee an opportunity to review responses and status reports prior to meeting with government witnesses.

In the absence of a timely response, committee Members feel it is not fair to either the committee Members or the government witnesses for the committee to discuss material that has not been seen before. It is, simply stated, not an effective use of witness or committee time.

For example, the committee was presented with an interim report from the Department of Justice on zero tolerance for violence. This report was received by the committee just before the department's witnesses appeared. The interim report, which is extremely important and no doubt took considerable time to prepare, could not be discussed because the committee had not had the opportunity to preview it. Now, it will be necessary to ask all the detailed questions on this very important initiative on the floor of the House.

Another situation that caused great frustration for the committee was in relation to the government's water and sewer service subsidy policy. The committee supported the department's argument for increasing the water and sewer rates in the communities, however committee Members added that both the commercial and residential rate increase be held off until the fall of 1994. Members believed this request to be reasonable, with the potential for everyone to benefit. A decision was made, however, to ignore the committee's recommendation and to increase rates in June for residential customers. The committee fails to understand how the small financial gain could offset the risk of damaging working relationships with the committee and with the communities.

Madam Speaker, I would like to turn this report over to the honourable Kelvin Ng. Thank you.

The Speaker Jeannie Marie-Jewell

Thank you. The honourable Member for Kitikmeot, Mr. Ng.

Government-Wide Recommendations

Definitive Objectives

Kelvin Ng Kitikmeot

Thank you, Madam Speaker. During its review of the 1994-95 main estimates, the committee recommended that the Financial Management Board direct all government departments to review and report progress on all the definitive objectives contained in the 1994-95 main estimates documents. The committee asked that the progress reports be provided to the Finance committee one week prior to the commencement of the review of the 1995-96 main estimates.

Further, the committee recommended that all future main estimate documents contain a status report on departmental accomplishments in relationship to its definitive objectives for the fiscal year preceding the one under review.

The Financial Management Board informed the committee that they have directed all departments to provide progress reports on their 1994-95 definitive objectives. In fact, a consolidated status report on the 1994-95 capital definitive objectives is currently being finalized. The Minister informed the committee that a similar consolidated report on operations and maintenance will be submitted to the Standing Committee on Finance one week prior to the review of the 1995-96 main estimates.

Zero Tolerance For Violence

During its review of the 1994-95 main estimates, the committee made the following comments about the government's efforts in relation to zero tolerance for violence:

"The Government of the Northwest Territories has taken an important first step in making zero tolerance for violence a reality. Committee Members feel that the Premier, as Government Leader and Minister responsible for the women's advisory task, should demonstrate the government's commitment to this strategy by coordinating its development and implementation. Committee Members feel that the Premier should be responsible for ensuring that departmental responsibilities across government are identified and that interdepartmental work is facilitated."

Therefore, the committee recommended that the Premier coordinate the development and implementation of the government's strategy for eliminating violence against all people. The committee further recommended that a preliminary progress report be provided to the Standing Committee on Finance prior to its review of the 1995-96 capital estimates and a final report prior to its review of the 1995-96 main estimates.

The committee did not receive a response to this request prior to its review of the 1995-96 capital estimates as requested. However, the following status report was provided during the review:

"Violence is a widespread problem in the NWT, as recognized by SCOF through this recommendation as well as recommendations 23 and 33. There is a need to respond with a variety of strategies and a range of expertise from more than one department. Because of the complexity of the problems, the resources and expertise of a program department can best coordinate the multi-disciplinary approach. The Department of Justice has been assigned to this task.

The Premier will continue to take a close interest in our progress and work in this area. The Minister of Health and Social Services will have responsibility for, and a direct involvement in, certain aspects of our action.

The Minister of Justice will provide a more detailed response on how we are proceeding, but SCOF Members will be pleased to note that we have already begun to deal with violence through our violence strategy, for which the Minister of Justice is responsible, and the community wellness initiative, which is being directed by Health and Social Services."

Committee Members were disappointed to learn that the Premier chose not to demonstrate the government's commitment to this initiative by coordinating the development and implementation of this initiative. By this comment, the committee does not wish to indicate a lack of faith in the abilities of the Department of Justice to coordinate this important initiative. Members simply felt that the initiative was important enough to the government to warrant the active involvement of the office of the Premier.

Madam Speaker, with your concurrence, I would like to ask that my honourable colleague for Yellowknife North continue on with this report. Thank you.

The Speaker Jeannie Marie-Jewell

Thank you. The honourable Member for Yellowknife North, Mr. Ballantyne.

Michael Ballantyne Yellowknife North

Thank you, Madam Speaker, and I want to thank my honourable colleague for this honour.

---Laughter

This is a training course they offer to the committee.

---Laughter Negotiated Contracts

During its review of the 1994-95 main estimates, the committee noted a number of concerns relating to the government's way of negotiating contracts. These concerns are summarized in the following excerpt from the committee report:

"In many communities, negotiated contracts have helped establish successful aboriginal enterprises. However, there is a perception that negotiated contracts may, somehow, be less 'fair' than tendered contracts. As well, there have been serious problems with some negotiated contracts, whether negotiated or tendered. All contracts must be better monitored. The committee also believes that full public disclosure of negotiated contracts would help to ensure that value for money could be assessed."

The committee therefore recommended that the government develop policies and procedures for providing full public disclosure of the details of negotiated contracts, and for monitoring all contracts in order to avoid cost overruns and poor management. The committee asked that this policy and these procedures be in place before August 1, 1994, and that copies of the policy and procedures be provided to the Standing Committee on Finance.

The committee did not receive a response to its recommendation by the deadline date. However, on September 13, 1994, the committee was informed that the Department of Public Works and Services had undertaken to draft policies and procedures, in conjunction with the Financial Management Board Secretariat, Department of Transportation, the NWT Housing Corporation and Economic Development and Tourism. The response suggested that the departments were working toward a completion date of December 1994. No indication was given as to why an extension of the deadline is necessary. The Standing Committee on Finance will follow up on this issue when it meets in January 1995 to review the main estimates.

Maximizing Northern Employment

During its review of the 1994-95 main estimates, the committee recommended that the government develop an options paper outlining all possible means of maximizing northern employment and northern spending on work contracted by the government and, further, that the government respond to the Standing Committee on Finance with this paper by August 1, 1994.

The committee did not receive the options paper by August 1, 1994. However, on September 13, 1994, the committee was provided with the following information, and I quote:

"Maximizing northern employment and northern spending on work contracted by the government will be included in the scope of the undertaking referred to in recommendation 4, (negotiated contracts) and will include the participation of Education, Culture and Employment.

The target completion date for work on negotiated contracts is December 1994, therefore, the Standing Committee on Finance will follow up on this issue when it meets in January 1995 to review the main estimates.

Special Needs Of Northern Students

During its review of the 1994-95 main estimates, the committee recommended that the government commit to allocating sufficient resources to the Department of Education, Culture and Employment for the 1994-95 school year to meet the special needs of northern students.

The committee did not receive a response to this recommendation prior to the commencement of the 1994-95 school year. However, on September 13, 1994, the committee was provided with the following information:

"The Department of Education, Culture and Employment receives funding based on an enrolment-related formula to provide contributions to school boards for their operations. One component of the formula addresses the special needs of northern students. There is provision for special needs consultants based on board enrolments, special needs teachers and assistants based on school enrolments and an O and M component for special needs.

In addition, the 1994-95 funding provided for a new formula factor to address unique transportation requirements of special needs students.

The Department of Education, Culture and Employment continues to address the concept of inclusive schooling in its 1995-96 budget submission."

Committee Members were somewhat disappointed with this response. They were very, very disappointed, I must say, Madam Speaker. Some of the committee Members cried, actually. The intention of the recommendation was to encourage the department to scrutinize the special needs of northern students, to assess the resources currently being allocated and to consider allocating additional resources, if necessary. In the committee's Investing in Our Future, October 1994 report, Members recommended that special needs for northern students be the focus of a major government initiative over the next year. Recommendation 4 is on page 27.

The next item deals with the very famous Mortgage Investment Corporation.

Mortgage Investment Corporation

During its review of the 1994-95 main estimates, the committee recommended the government continue to investigate mechanisms such as a Mortgage Investment Corporation and provide a status report to the committee by August 1, 1994. I emphasize August 1, August 1994.

The committee did not receive a response -- we've said that quite a bit, haven't we? I think there's a message here, right? -- to this recommendation by this deadline. In a letter dated August 8, 1994, the Minister informed the committee chairman that work on this initiative is behind schedule and a report will not be ready until September. September. Where is September? September has come and gone. The letter goes on to request that the deadline be changed to when the Standing Committee on Finance reviews the 1995-96 main estimates.

The department informed the committee that an interdepartmental committee comprise of representatives from the Department of Economic Development and Tourism, Department of Executive, Northwest Territories Housing Corporation and Financial Management Board Secretariat has been formed and mortgage investment corporations are being investigated.

So, Madam Speaker, it is with much reluctance that I will turn over this task to my colleague, Mr. Dent, with your concurrence. Thank you.

---Applause

The Speaker Jeannie Marie-Jewell

Thank you. Prior to going to your next speaker, I would like to recognize in the gallery Chief Don Balsillie...

---Applause

...seated with Subchief Danny Beaulieu...

---Applause

...accompanied, I believe, by Mr. Krutko from the Gwich'in. Welcome to our Assembly.

---Applause

The honourable Member for Yellowknife Frame Lake, Mr. Dent.

Charles Dent

Charles Dent Yellowknife Frame Lake

Thank you, Madam Speaker. The next section of our report deals with interdepartmental recommendations.

Interdepartmental Recommendations

Charles Dent

Charles Dent Yellowknife Frame Lake

The first part has to do with partners for youth.

"Partners For Youth"

During its review of the 1994-95 main estimates, the committee recommended that the Department of Education, Culture and Employment, in cooperation with the departments of Social Services, Justice and Health, examine the partners for youth model and implement pilot projects based on that model in one school in each region for the 1994-95 school year.

The department did not respond to this recommendation in time for the 1994-95 school year. Instead, the standing committee received the following updated status report on October 11, 1994, and I quote:

"A memorandum of agreement has been signed by the Ministers of Education, Culture and Employment and Health and Social Services. The agreement fosters a cooperative and coordinated approach to delivery of services to children and youth. This approach has been piloted through the school in Arviat over the past couple of years, where the school works closely with Health and Social Services, Economic Development and Tourism, other community agencies and the business sector to provide a wide range of programs and services to meet student needs. A video has been produced of this model of cooperative action entitled, "A Community School: Partnership for the Future." This film is being used to facilitate similar approaches across the education system."

Madam Speaker, when the Minister of Education, Culture and Employment appeared before the committee during the September 1994 budget review, this issue was discussed. Committee Members, once again, outlined the many benefits of this model and strongly urged the department to get on with it. Committee Members noted reluctance on the part of the Minister to make a commitment to adopt the recommendation and implement pilot projects in the schools.

In response to this reluctance, and because of the potential benefits for our youth and their families, committee Members decided to follow up on the recommendation themselves. The committee has invited the coordinator of the Edmonton project to make a presentation on the model to committee Members and other interested Ordinary Members and Ministers. The presentation is scheduled to take place this week on Thursday morning at 10:30.

The next section, Madam Speaker, has to do with departmental recommendations.

Departmental Recommendations

Economic Development And Tourism

Piruqsaijit Secondment

One specific issue that brought concern to the committee during its review of the 1994-95 main estimates was that of a long-term secondment of a GNWT employee in Rankin Inlet to Piruqsaijit. This secondment has continued over a number of years at the government's expense. However, the current policy regarding secondment clearly states that, and I quote, "the receiving organization usually pays the full costs associated with the secondment," from the human resource manual, section 1407, page 2.

With reference to Piruqsaijit, the committee recommended that the Department of Economic Development and Tourism provide a complete justification for the continuation of the secondment and an assessment of compliance with government policy. This report should be provided to the Standing Committee on Finance prior to the review of the Department of Economic Development and Tourism's budget in committee of the whole.

The committee was later advised that this matter was reviewed and secondment will terminate at the end of the current fiscal year.

Secondment Policy

During its review of the 1994-95 main estimates, the committee recommended that the Department of Economic Development and Tourism consider and develop a policy for secondment of government employees in new business ventures and provide the Standing Committee on Finance with a draft policy by May 31, 1994.

In a letter dated July 12, 1994, the Minister of Economic Development and Tourism informed that committee that the situation has been reviewed internally, and the conclusion was that because secondments are covered by section 1407 of the Financial Management Board Secretariat human resource manual, it is not appropriate for the department to develop a policy.

The Minister added, "although a departmental policy is not required, draft guidelines providing criteria to be used to determine whether a secondment request should be put forward are being developed and should be completed by July 31, 1994." The Minister offered to provide a copy of the guidelines to the committee when the work is completed.

Development Corporation

Small Business Ventures

During its review of the 1994-95 main estimates, the committee recommended that the Development Corporation focus on smaller ventures and, on a wider distribution of its limited resources, thereby ensuring a more equitable distribution of economic support and job creation across the Northwest Territories. The committee recommended further that the corporation present a plan which incorporates this recommendation with its 1995-96 capital estimates.

The Development Corporation responded to this recommendation in a letter dated September 16, 1994. In the letter, the Minister provided the committee with the following information:

"A corporate plan has been received from the Development Corporation chairman and I am advised that it was used to guide their investment decisions for the 1995-96 capital investment plan. That plan does identify the need to better match the distribution of investments and their associated benefits between and within regions, to the level of unemployment.

The corporate plan will be updated annually. The Development Corporation board looks forward to receiving comments from SCOF on the plan. This will help in the required updating/revisions for next year's plan.

The six larger capital investments for 1995-96 will result in investments in the Deh Cho, Kitikmeot, North Slave, Baffin and Inuvik regions. This distribution will assist in correcting historical imbalances.

At present, the Development Corporation has investments in some 23 communities across the NWT, and Development Corporation ventures regularly make purchases in a further 10 communities."

The committee only very recently received the Development Corporation's corporate plan. Members will review it in preparation for discussion in committee of the whole.

When the Minister responsible for the Development Corporation appeared before the committee, Members asked that more detailed information about expenditure plans, similar to that provided for last year's capital review, be provided. The Minister committed to provide the requested information within the month. The committee received detailed financial information from the Development Corporation on October 11, 1994.

Madam Speaker, I'd now like to request that the report be continued by the honourable Member for Iqaluit.

The Speaker Jeannie Marie-Jewell

Thank you. The honourable Member for Iqaluit, Mr. Patterson.

Dennis Patterson Iqaluit

Thank you, Madam Speaker.

Education, Culture And Employment

Focus On Excellence

During its review of the 1994-95 main estimates, the committee recommended that the Department of Education, Culture and Employment adopt a focus on excellence as the fundamental principle of the educational system. The department was also requested to implement a plan, by the 1994-95 school year, to monitor the achievement of northern students and to continually strive to help northern students achieve excellence in their studies.

The committee did not receive a response to this recommendation prior to the commencement of the 1994-95 school year. However, on September 13, 1994, the following information was provided to the committee:

"The Department of Education, Culture and Employment is committed to excellence in education. The department will continue to build on work already being undertaken in the NWT and other jurisdictions and will assume new initiatives, such as numeracy and literacy. Taking into account available human and fiscal resources, the department will plan for incremental development and implementation of the recommended indicators."

When the Minister appeared before the committee, he outlined a number of areas that he felt demonstrated the department's commitment to excellence. For example, the Minister pointed to some specific developments in the curriculum such as Dene Kede.

In other areas, such as developing a comprehensive system of evaluation, he pointed out the difficulties and indicated that an appropriate response would require more time to develop. The committee strongly supports standardized testing and urges the department to implement a testing system as soon as possible. Committee Members look forward to reviewing plans regarding any future involvement of the Northwest Territories in nation-wide standardized testing.

Finally, the Minister noted that the department would be releasing a strategy by about mid-October. He said that the strategy would articulate the vision for education for the next 15 years. From there, he indicated, they could get on with the work of either moulding, changing, or getting rid of some of the department's existing programs.

I'd now like to turn the reading of this report over to Mr. Zoe, Madam Speaker.

The Speaker Jeannie Marie-Jewell

Thank you. The honourable Member for North Slave, Mr. Zoe.

Henry Zoe

Henry Zoe North Slave

Thank you, Madam Speaker.

Health

During the review of the 1994-95 main estimates, the committee recommended that the Department of Health develop a concrete plan for implementing the recommendations of the following groups:

-the Auditor General of Canada;

-the Standing Committee on Public Accounts;

-the Special Committee on Health and Social Services;

-the Standing Committee on Agencies, Boards and Commissions;

-the Standing Committee on Finance.

The committee further recommended that the department report on how they plan to improve policy development capability within the department. The committee expected the department to present its implementation plan as a prerequisite to approval of the department's 1994-95 budget. This did not occur and the committee later extended the deadline to May 9, 1994.

The department's response to this comprehensive recommendation is summarized, as follows, in a status report received on September 13, 1994:

"On June 30, 1994, the department tabled with the Standing Committee on Finance, a document called, "Preparing For Change." This document outlined an implementation plan to address the recommendations of the various committees that reported on Health and Social Services.

In June, the Department of Health and Social Services were brought together and amalgamated under one Minister and one deputy minister.

The headquarters organization is being restructured and a new organization will be confirmed by late November. Several changes have already occurred that will strengthen the department's policy development capability and the ability to plan and respond to client needs.

These include a restructuring of the finance and administration divisions to incorporate capital planning and the financial consulting staff from the hospital and health facilities division.

As well, a new strategic and evaluation division combining the former divisions within Health and Social Services has been established. This division is responsible for strategic and regional planning, policy and legislation development, as well as information systems and evaluation.

The MOU project is proceeding on schedule and all partners are pleased with progress."

The NWT Health Care Association requested that the committee grant an extension to the May 9, 1994 deadline, to allow the Department of Health to consult with the health boards regarding its two-year action plan. The committee granted this extension and arranged a meeting in early July.

On July 5, 1994, the committee met first with the NWT Health Care Association and then with the new Minister and deputy minister of the newly merged Department of Health and Social Services to discuss Preparing For Change -- the department's action plan. Committee Members saw the review process with the Department of Health and Social Services as a very useful exercise, with positive results. Although the plan did not, perhaps, go far enough in addressing all of the concerns raised in the various committee reports, Members were generally satisfied.

The NWT Health Care Association, on behalf of health boards across the territories, informed the committee that the relationship between the board and the department has improved significantly. However, they did indicate that there was some room for even more involvement of the boards in the emerging consultative process. In addition, the association mentioned that health boards and the association wanted to be involved in planning health services in anticipation of division in 1999. Further, they indicated that they believed that the need to commence the planning was urgent and they were prepared to start immediately.

Madam Speaker, I'd like to refer the report to our chairman, Mr. Antoine.

The Speaker Jeannie Marie-Jewell

Thank you. The honourable Member for Nahendeh, Mr. Antoine.

Jim Antoine Nahendeh

Thank you, Madam Speaker.

Conclusions

In general, committee Members were very disappointed with the government's response to its recommendations. In most cases, the response was late. In many cases, the response was incomplete or did not respond satisfactorily to the committee's concerns.

In a consensus style of government, it is very important that the Cabinet, the Financial Management Board, the departments and agencies recognize the concerns and recommendations of the standing committees. If this does not happen, it becomes very difficult for standing committees to support government budgets and initiatives. Committee Members expect that the quality and timeliness of the responses will improve.

Motion To Receive And Adopt Committee Report 12-12(6), Carried

Madam Speaker, that concludes the report of the Standing Committee on Finance. Therefore, I move, and it is seconded by the honourable Member for Kitikmeot, that the Standing Committee on Finance's Status Report on the Responses to the Standing Committee on Finance Recommendations from the Committee Review of the 1994-95 Main Estimates be received by the Assembly and adopted. Mahsi.

The Speaker Jeannie Marie-Jewell

Thank you. Your motion is in order.

An Hon. Member

Question.

The Speaker Jeannie Marie-Jewell

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

---Carried

Item 13, reports of committees on the review of bills. Item 14, tabling of documents. The honourable Member for Keewatin Central, Mr. Todd.

Item 14: Tabling Of Documents
Item 14: Tabling Of Documents

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John Todd Keewatin Central

Thank you, Madam Speaker. I wish to table the following document: Tabled Document 33-12(6), 17th Annual Report of the Workers' Compensation Board of the Northwest Territories for the year ending December 31, 1993. Thank you.

Item 14: Tabling Of Documents
Item 14: Tabling Of Documents

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The Speaker Jeannie Marie-Jewell

Thank you. Item 14, tabling of documents. The honourable Member for Mackenzie Delta, Mr. Nerysoo.

Item 14: Tabling Of Documents
Item 14: Tabling Of Documents

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Richard Nerysoo Mackenzie Delta

Thank you. In response to my colleagues in the House, I'm tabling the Tabled Document 34-12(6), Madam Speaker, entitled "Creating Choices: Solving the Income Support Puzzle," a discussion paper on income support reform in the Northwest Territories.

Item 14: Tabling Of Documents
Item 14: Tabling Of Documents

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The Speaker Jeannie Marie-Jewell

Thank you. Item 14, tabling of documents. Item 15, notices of motion. Item 16, notices of motions for first reading of bills. Item 17, motions. Item 18, first reading of bills. Item 19, second reading of bills. The honourable Member for Keewatin Central, Mr. Todd.

Bill 13: An Act To Amend The Motor Vehicles Act
Item 19: Second Reading Of Bills

October 17th, 1994

Page 355

John Todd Keewatin Central

Thank you, Madam Speaker. I move, seconded by the honourable Member for Mackenzie Delta, that Bill 13, An Act to Amend the Motor Vehicles Act, be read for the second time.

Madam Speaker, this bill amends the Motor Vehicles Act to add the right to appeal the decision of the registrar requiring a driver to have a medical examination and cancelling of a certificate of registration of an NSC vehicle. The bill gives the Minister the power to appoint adjudicators and sets up the appeal procedure. The bill also adds regulation-making powers relating to public service vehicles, Madam Speaker.

Bill 13: An Act To Amend The Motor Vehicles Act
Item 19: Second Reading Of Bills

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The Speaker Jeannie Marie-Jewell

Thank you. Your motion is in order. To the principle of the bill.

Bill 13: An Act To Amend The Motor Vehicles Act
Item 19: Second Reading Of Bills

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An Hon. Member

Question.

Bill 13: An Act To Amend The Motor Vehicles Act
Item 19: Second Reading Of Bills

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The Speaker Jeannie Marie-Jewell

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

---Carried

Bill 13 has had second reading. Item 19, second reading of bills. The honourable Member for Keewatin Central.