Committee Members feel that the main issue with the Business Credit Corporation is that while originally set up to be an arm's length corporation, it is not operating in that way. The corporation's general manager now reports to the deputy minister of the Department of Economic Development and Tourism. The committee was informed that there are plans to have the corporation's general manager report to an assistant deputy minister.

Committee Members feel strongly that a decision needs to be made about the desirability and feasibility of having the BCC independent of government operations.

I move that this committee recommends that the government and the Department of Economic Development and Tourism assess the feasibility of maintaining the Business Credit Corporation as a separate corporate entity. The review should consider bringing the loan function of the Business Credit Corporation back into the department. The findings should be reported to the Legislative Assembly.

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Thank you. I move that this committee recommends that, in the interim, action be taken immediately to clarify the mandate and organization of the Business Credit Corporation and its relationship to the Department of Economic Development and Tourism.

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Along with one window shopping, committee Members and presenters identified the need to develop more aftercare or follow-up services. Once funding assistance has been granted there seems to be, in many cases, no follow-up service from the economic development officer, the department or the corporations. Aftercare service is required because many clients, although very proficient in their work -- for example, producing arts and crafts products -- are not experienced in the administration and management of the business. Often, there is no follow-up until the business is in trouble and by then it is too late to rectify the problem areas.

Committee Members feel that if the economic development of communities is to be successful, business services must be available to clients after funding has been granted.

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Mahsi. The Department of Economic Development and Tourism uses the affirmative action business and economic development education and employment program for training potential EDOs and other affirmative action candidates. Under this program, the department selects candidates for academic training, and helps to pay for their education. After graduation,

candidates work on the job, under supervision, to see if they fit in and perform well in the program.

I move that the committee recommends that the Department of Economic Development and Tourism, in consultation with the Department of Education, Culture and Employment, assess the AABED program to determine where it might be enhanced or improved. I further move that, based on this assessment, the departments enhance the existing program or develop a new program to provide training for affirmative action candidates in economic development. The new or enhanced program should include an on-the-job training component. Mahsi.

Thank you, Mr. Chairman. I just want to make a brief comment on this. When the department created this program some time ago, it was doomed to fail because the department had no real experience in education. Furthermore, there were no adequate support systems in the department to help those students. I argued, unsuccessfully at the time, that that kind of training should be delivered through the Department of Education and through the college system.

But, the department was determined that they knew best how to deliver the program and nobody was going to tell them that they weren't capable of doing the training. In other words, Mr. Chairman, there was some argument about this. I know that this recommendation encourages the department to work in consultation with the Department of Education. Well, that was tried the last time and the Department of Economic Development ignored any advice that the department or the Minister of Education of the day had to give him.

So, I'm a little leery about suggesting that they review the program because, fundamentally, it is wrong. It should be delivered through our education system. It is not a skills, in-service type training; it is, rather, career training. And, if we allow all of our departments to set up their own little funny programs to train staff and their own little empires, the students are going to be neglected and the programs will not have successes, as we have seen here.

I guess I would prefer a little stronger recommendation than just to assess whether the program might be enhanced or improved. It should be cancelled and the Department of Education and Arctic College should be used to deliver this program. That's my opinion. I will rest with placing my views on the record. Ten years ago, my views were not followed by the Minister of Economic Development of the day. I know this Minister will be more willing to look at a new approach. Thank you.

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