The Minister is asking that the report be considered read, presented and printed in Hansard. Are there any nays? There are no nays.
Summary Of Recommendations
1. That the timing of the federal Cabinet submission on the establishment of Nunavut be deferred until September 1995 in accordance with the recommendation of the Nunavut Implementation Commission.
2. That the Government of the Northwest Territories develop a consultation mechanism to allow individual departments, agencies, boards and corporations to provide advice to the Nunavut Implementation Commission on the manner in which programs can most effectively be delivered in Nunavut after 1999.
3. That the Government of the Northwest Territories direct each of its departments, agencies, boards and corporations develop a comprehensive implementation plan for division.
4. That the Government of the NWT work with the other parties to the division process to develop a training strategy for Nunavut public government.
5. That requirements for adequate incremental training moneys be identified in the process leading up to the 1995 federal Cabinet submission.
6. That delivery arrangements for incremental training moneys be developed in a collaborative process with the parties to the establishment of Nunavut.
7. That the Government of the NWT begin the development of a training strategy appropriate to the western NWT in collaboration with the parties to the western constitutional process.
8. That suitable arrangements be made to transfer the responsibility for the construction of Nunavut infrastructure to the Government of the NWT, up to 1999, and the Government of Nunavut, after 1999;
9. That the business incentive policy of the Government of the NWT, as amended from time to time, be applied to the construction and maintenance of all Nunavut infrastructure.
10. That available funding options for two distinct territories be assessed, including transition arrangements for an interim period following 1999, consistent with the constitutional evolution of the NWT and the provisions of the Nunavut political accord.
11. That discussions be initiated with the federal government on the recovery of "reasonable incremental costs" incurred by the Government of the NWT from the establishment of Nunavut.
12. That the Government of the NWT ensure that the issue of incremental costs be resolved in a satisfactory manner through the 1995 federal Cabinet submission.
13. That the Executive Council request the Department of Justice to prepare a statute revision bill for consideration during the First Session of the 13th Assembly;
14. That the said bill provide for the appointment of a Statute Revision Commissioner with the responsibility of preparing the statutes of Nunavut and the western territory.
15. That the Executive Council secure the agreement of the Government of Canada that the costs of preparing the legislative revisions be regarded as "reasonable incremental costs" within the meaning of part 8.3 of the Nunavut political accord.
16. That Nunavut and the western territory receive separate representation in the Senate of Canada;
17. That the Executive Council address the issue of Senate representation with the federal government prior to the 1995 federal Cabinet submission on Nunavut.
Introduction
The Special Joint Committee on Division was established by Motion 14-12(5) of the Legislative Assembly on February 25, 1994. Since its establishment, the special joint committee has held a total of 12 meetings as well as a number of administration meetings.
The special joint committee delivered its first report to Members at the April 11 to 14, 1994 strategic planning workshop in Fort Smith. A further report was provided to Caucus on August 19, 1994.
This report is provided to the Assembly to inform Members of some of the issues that the special joint committee has been considering and to advise the Assembly and Executive Council as to certain conclusions and recommendations upon which the Members of the special joint committee are agreed.
The Challenge
The people of the Northwest Territories have accomplished enormous political and constitutional tasks in the past decade. We have seen steady progress through the attainment of responsible government, the gradual acquisition of province-like powers and responsibilities, the settlement of aboriginal land claims, the decision to establish Nunavut and to frame a constitution for the western territory.
On April 1, 1999 we will have two territories. We will thus have accomplished one of our greatest aspirations. But this great aspiration is also a great challenge. It will require our concentrated attention to ensure that division occurs in a way that is not disruptive to our citizens in Nunavut and in the west, that our financial stability is not eroded in the process and that the federal government meets all its obligations under the Nunavut political accord, and other agreements and understandings, in a timely manner.
The year 1999 is now less than five years from us, and we do not have the luxury of extra time. It is important that the division planning process proceed quickly and that it be guided by a clear political vision.
This report is of an interim nature and is not intended to articulate that vision. But it does state some of the key tasks to which the special joint committee has given attention, outlines some of the work that is currently under way and indicates steps that need to be taken in the period ahead.
Establishment Of Special Project Panels/Working Groups
The special joint committee's terms of reference provide it with the authority to establish special project panels on matters where specialized advice and expertise or a common information base may be required.
Consultation has taken place at the officials level with the Nunavut Implementation Commission (NIC), Nunavut Tunngavik Incorporated (NTI), the Constitutional Development Steering Committee (CDSC) and the federal government on the setting up of a number of panels or working groups on a range of division topics. The Executive Council, through the Division Review Secretariat, has also been consulted on these initiatives.
A Coordinating Committee of Officials, with representation from all of the groups noted, has been established to oversee the working groups. On the advice of the coordinating committee, the special committee has approved the formation of four special project working groups, with an agreed membership, to address the following issues:
-Nunavut infrastructure;
-human resource planning and training for Nunavut public government;
-administrative structures for Nunavut public government; and,
-financing two territories.
It is intended that the working groups complete their agreed research projects by the end of this calendar year. At that time, an assessment of the data gathered will be made and further research needs determined. The special joint committee will therefore provide further details on the status of the working groups, and the outcome of the research, in a future report.
Nunavut Sivummut - Rankin Inlet Economic Conference
The mandate of the special committee contemplated a working group on economic opportunities arising from division. However, following consultation through the Coordinating Committee of Officials, it was decided to limit the number of working groups to the four areas noted, as these were considered to require the most immediate attention. Nevertheless, to ensure some focus upon the economic area, the special committee provided the NTI with financial assistance to organize a conference in Rankin Inlet on October 25th to 27th entitled "Nunavut: Building Our Economy Together."
This conference was attended by approximately 140 people including representation from NTI, NIC, the MP for Nunatsiaq, the Senator for the NWT, four MLAs, private sector interests and federal and territorial officials.
Over the three-day period, this large and diverse gathering succeeded in articulating the elements of a "common vision" for the future development of Nunavut. These were that the social ills affecting Nunavut society are a priority which must be addressed; that formal education, the completion of higher grades and continuation into post-secondary education must be encouraged; that practical training applicable to the job market must be developed; and, that students must be given support and preparation for participation in the workforce.
The NTI intends to analyze the information brought forward by the conference delegates and to create an economic development action plan based on the common vision. The special joint committee regards this as an important initiative toward the end of ensuring that social, economic and political development reinforce and strengthen each other in a common process. The special joint committee intends to give further attention to economic development, as a vital part of the division process, in the new year.
Rescheduling Of March 1995 Federal Cabinet Submission On Nunavut
When it approved the establishment of Nunavut, the previous federal government also decided that the Department of Indian Affairs and Northern Development should return to Cabinet in March of 1995 for further direction on the creation of Nunavut. In particular, major funding allocations for division were not made by the federal Cabinet in 1993.
The delay in establishing the Nunavut Implementation Commission (NIC) and other factors have since made the March 1995 target date unworkable. In particular, this deadline does not allow sufficient time for the process of community consultation and consensus-building that the NIC must carry out in order to develop its recommendations.
The special joint committee's co-chairs met with their NIC and NTI counterparts on May 31, 1994 to review this issue. On September 19, 1994 the chairperson of the NIC wrote to the Minister of Indian Affairs and Northern Development, the president of NTI and the Premier to recommend that the federal Cabinet submission be rescheduled to September of 1995. By letter dated October 26, 1994, the Premier advised the other parties to the Nunavut process of her support for this proposal.
Recommendation 1
That the timing of the federal Cabinet submission on the establishment of Nunavut be deferred until September 1995 in accordance with the recommendation of the Nunavut Implementation Commission.
The GNWT's Role In The Preparation Of The Federal Cabinet Submission
As noted in the previous section, all major parties in the establishment of a new Nunavut government have recommended that the federal Cabinet submission on Nunavut be rescheduled to September 1995. It is our understanding to meet this deadline, the comprehensive report that the Nunavut Implementation Commission will submit to the Minister of Indian Affairs and Northern Development, that will assist in the submission of the set of recommendations to the federal Cabinet, must be completed by March of 1995. This is only four short months away.
The GNWT, through the Division Review Secretariat, is working with the Nunavut Implementation Commission to provide detailed information of a financial, structural and program nature to assist the NIC with this report.
At the same time, the special joint committee understands that officials of the Nunavut Implementation Commission will be meeting with deputy ministers and other senior managers next week. We are of the view that such meetings are critical as NIC begins to develop its comprehensive report, a document that will outline in great detail the administrative structure and financial costs of the new Nunavut government. We encourage a more coordinated process to ensure that deputy ministers and other senior managers, who are now responsible for the provision of government programs, provide advice directly to the NIC during the development of this document.
Recommendation 2
That the Government of the Northwest Territories develop a consultation mechanism to allow individual departments, agencies, boards and corporations to provide advice to the Nunavut Implementation Commission on the manner in which programs can most effectively be delivered in Nunavut after 1999.
At the same time, the special joint committee recognizes the importance for each department of the GNWT to have a comprehensive operational plan and trained management staff in place to continue to deliver programs in Nunavut and the west in an effective and efficient manner after April 1, 1999. It is our view that each department should have a comprehensive implementation plan in place to ensure that this will occur.
Recommendation 3
That the Government of the Northwest Territories direct each of its departments, agencies, boards and corporations develop a comprehensive implementation plan for division.
DIAND Nunavut Training Budget
Another issue which emerged shortly after the Fort Smith workshop concerned federal financial support for training initiatives to prepare Nunavut residents for public sector employment opportunities. Although significant progress has been made in improving the recruitment of Nunavut residents within the territorial public service, Nunavut poses new challenges and new opportunities. Among the most important tasks we face in the period to 1999 is that of ensuring that Nunavut residents have the opportunity to acquire the skills needed to staff the Nunavut public service.
Recognition of the importance of training and human resources planning is contained in the Nunavut political accord, which states that "investing in people is of greater value than investing in infrastructure." Effective investment, however, whether in people or in infrastructure, requires sound analysis and planning as well as a source of funds.
In the latter regard, DIAND has made funding of $420,000 available for fiscal year 1994-95, to be directed through contribution agreements to support Arctic College and GNWT programs. A further $2.5 million is available for allocation in 1995-96. This funding is incremental to existing federal and territorial training moneys and was secured by DIAND through the 1993 Cabinet submission. Incremental funding beyond fiscal year 1995-96 is expected to be determined by the federal Cabinet through the 1995 submission. The special joint committee was pleased to note the utilization of Arctic College to provide this additional training.
It is critical, for further training funding to be secured and effectively utilized, that a training strategy be developed to cover the establishment of Nunavut. This strategy can most effectively be developed on a cooperative basis between the NIC, NTI and the federal and territorial governments.
With regard to the western NWT, although the situation is more complex, a beginning needs to be made towards the development of an effective training strategy that can be meshed with the process of western political development.
Recommendation 4
That the Government of the NWT work with the other parties to the division process to develop a training strategy for Nunavut public government.
Recommendation 5
That requirements for adequate incremental training moneys be identified in the process leading up to the 1995 federal Cabinet submission.
Recommendation 6
That delivery arrangements for incremental training moneys be developed in a collaborative process with the parties to the establishment of Nunavut.
Recommendation 7
That the Government of the NWT begin the development of a training strategy appropriate to the western NWT in collaboration with the parties to the western constitutional process.
Construction Of Nunavut Infrastructure - Northern Benefits
While the extent of additional infrastructure construction required for Nunavut is still in the process of determination, it is critical that the benefits of this construction not be reaped primarily by companies located in southern Canada using an imported workforce. The Government of the Northwest Territories has a management regime in place and has the technical expertise to handle such construction. In addition, through its Business Incentives Policy (BIP), the Government of the NWT has developed procedures and policies to ensure northern and local benefits. The BIP is currently being reviewed through a process of public consultation to ensure its effectiveness in this regard.
Currently, DIAND's Nunavut Implementation Secretariat has the planning budget and the project leader responsibility for the construction of additional territorial infrastructure required for Nunavut. The project management responsibility for this infrastructure has been assigned to Public Works Canada (PWC). In addition, PWC has both the project leader and the project management responsibility for any additional federal infrastructure required as a result of division.
Following consultation with NIC, NTI and the Executive Council, the special joint committee therefore recommended to the Premier that the federal government should transfer responsibility for the construction of Nunavut infrastructure to the GNWT, through to 1999, and the Nunavut Government, after 1999. On this basis the Premier wrote to the Minister of DIAND on August 19th to convey a firm statement of the Government of the NWT's position on this matter.
Recommendation 8
That suitable arrangements be made to transfer the responsibility for the construction of Nunavut infrastructure to the Government of the NWT, up to 1999, and the Government of Nunavut, after 1999.
Recommendation 9
That the business incentives policy of the Government of the NWT, as amended from time to time, be applied to the construction and maintenance of all Nunavut infrastructure.
Formula Negotiations And Incremental Costs Of Division
Another matter which the special joint committee has addressed involves advice to the Minister of Finance on division issues and the relationship of these to the negotiation of a new federal/territorial formula financing agreement.
The current formula financing agreement is scheduled to expire on March 31, 1995, and discussions are in progress on a successor agreement. As all are aware, a climate of "fiscal constraint" is now pervasive. A serious concern on the part of the special joint committee is that the federal government's commitment, given in the Nunavut political accord, to fund "reasonable incremental costs arising from the creation and operation of the Government of Nunavut" will be devalued by adjustments to the formula or by funding erosion in other areas. Such funding erosion has already been experienced in the critical area of housing.
In this context, the special joint committee has conveyed to the Minister of Finance the view that it is imperative that extraordinary costs accruing to the Government of the NWT relating to education, training, human resource development and infrastructure, and other incremental costs incurred in the process leading up to the establishment of two territories, be recovered from the federal government. A further issue is posed by incremental costs that may arise from the negotiation of self-government in the western territory. Such incremental costs, arising from federal commitments and the special constitutional status of the aboriginal peoples, must likewise be met by the federal government. In addition, careful analysis needs to be made of the future funding arrangements that may apply to the two territorial governments after 1999. At the present time, it is not at all clear how the present formula arrangements could apply in the context of division, and this issue requires scrutiny.
The special joint committee is advised that, in response to these representations, the Financial Management Board Secretariat has directed that managers track all division-related expenditures, including time spent on division-related activities. The Financial Management Board has also issued directives that all expenditures for service benefits and all revenues be coded for geographic assignation.
Data to permit further analysis of the type of formula arrangements that might be applicable to two new territories after 1999 is currently being gathered under the auspices of the working group on financing two territories.
Recommendation 10
That available funding options for two distinct territories be assessed, including transition arrangements for an interim period following 1999, consistent with the constitutional evolution of the NWT and the provisions of the Nunavut political accord.
Recommendation 11
That discussions be initiated with the federal government on the recovery of "reasonable incremental costs" incurred by the Government of the NWT from the establishment of Nunavut.
Recommendation 12
That the Government of the NWT ensure that the issue of incremental costs be resolved in a satisfactory manner through the 1995 federal Cabinet submission.
Legislative Requirements Arising From Division
The special joint committee requested a review by the Department of Justice of the legislative requirements arising from division.
These revisions could be accomplished by the appointment of a single Statute Revision Commissioner with the statutory authority to prepare legislative revisions for both territories.
Recommendation 13
That the Executive Council request the Department of Justice to prepare a statute revision bill for consideration during the First Session of the 13th Assembly;
Recommendation 14
That the said bill provide for the appointment of a Statute Revision Commissioner with the responsibility of preparing the statutes of Nunavut and the western territory.
Recommendation 15
That the Executive Council secure the agreement of the Government of Canada that the costs of preparing the legislative revisions be regarded as "reasonable incremental costs" within the meaning of part 8.3 of the Nunavut political accord.
Constitutional Issues
There are references to the "Northwest Territories" in a number of constitutional documents which should be modified to refer to Nunavut and the western territory. Of particular importance is the Constitution Act (No. 2), 1975, which provides for a single Senator to represent the Northwest Territories. Unless this act is amended by 1999, a constitutional anomaly will be created whereby two jurisdictions are represented by a single Senator. In accordance with Canadian constitutional practice, Nunavut and the western territory should each receive representation in the Senate.
In order to ensure that this issue is addressed by the federal government, it should be raised in senior bilateral discussions. While this issue is not of compelling urgency, it is an issue on which discussions should commence.
Recommendation 16
That Nunavut and the western territory receive separate representation in the Senate of Canada.
Recommendation 17
That the Executive Council address the issue of Senate representation with the federal government prior to the 1995 federal Cabinet submission on Nunavut.
Public Information Initiatives
The special joint committee's terms of reference specifically state that it will not undertake any public information programs on division issues. Rather, the committee may contribute material to public information programs initiated by other participants in the division process.
At the request of the Division Review Secretariat, consideration was given to a modest proposal to produce a brochure or flyer which primarily intended to identify participants in the division process, their mandates and contacts for further information. The proposal also included preparation of text on division which could be inserted in MLAs' constituency newsletters.
The special joint committee recommended that preparation and distribution of the brochure or flyer and newsletter text should be the responsibility of the Assembly's public information office.
The former has been distributed to the public through NWT newspapers in late June and early July. The latter is available to MLAs upon request.
Consideration will also be given to ongoing contributions by the special joint committee to public information initiatives such as the Nunatsiaq News special report on Nunavut which contained reports on implementation of the Inuit land claim and activities of NIC and other Nunavut organizations. Consideration will also be given to contribute to the public information that will be produced by the Constitutional Development Steering Committee.
Liaison With Other Participants In The Division Process
Formal and informal contact between the co-chairs and their NIC/NTI counterparts has been productive and while there are no plans to institute regular sessions, agreement has been reached to meet as required to deal with outstanding concerns or issues before they become major problems.
The special joint committee will be seeking a briefing on the CDSC process once plans are confirmed for the upcoming constitutional conference.
The special joint committee's support staff are in regular contact with their counterparts in the Division Review Secretariat which is the "window" into the administration on division issues. Officials have also maintained contact with and participated in meetings of representatives from all participants in the division process, including NIC, NTI, CDSC and the federal government.
Members are advised that the special committee helped to facilitate a briefing by CDSC chairman, Mr. Koe, at the June Nunavut leaders' meeting in Iqaluit. In addition, the special committee has assisted the Nunavut Caucus in preparing for Nunavut leaders' meetings.
Future Activities
The period from now until the federal Cabinet submission on Nunavut, expected in the fall of next year, will be critical. The special joint committee must continue to work in cooperation with the NIC, NTI and other northern interests to ensure that our vision of the way division should occur is a common one, and one that is conveyed to the federal government forcefully and effectively. Especially critical areas for attention are human resources development and training, responsibility for infrastructure construction, the securing of reasonable incremental costs, the protection of the existing fiscal base and a satisfactory resolution of constitutional issues.
In the western NWT the process is at a different evolutionary stage. However, the special joint committee sees as critical the consultative process that the CDSC is now undertaking in western communities, and the first of the two proposed constitutional conferences.
It also important that the Minister of Indian Affairs and Northern Development clarify his policies to northerners with regard to the western constitutional process and its relationship to such other processes as self-government and the inherent right. It is difficult for the CDSC and the special joint committee to clarify the options for western constitutional development given the uncertainty that is now current with regard to federal intentions.