Thank you, Mr. Chairman. The committee is in favour of initiatives that will maximize opportunities for local employment on government contract work. However, the Department of Public Works and Services must work with other departments to improve the policy and procedures surrounding negotiated contracts, and consider possible alternatives to negotiated contracts. We also look forward to seeing the results of the review of the business incentive policy (BIP), and encourage the government to strengthen BIP -- and, in fact, the entire public tender process -- in order to maximize local

employment. This issue of government contracts is discussed in this report in the section on the Financial Management Board Secretariat.

Privatization Initiatives

Committee Members were glad to see the department's recent privatization initiatives, including the publications and printing division. The committee encourages the department to continue examining possible areas for privatization, such as warehousing and records management.

Specifically, some concern was raised about records management and its apparent disarray. Committee Members expressed frustration and discouragement at the difficulties and delays seen in the reform of this important area. We urge the Minister to address this problem immediately and not to be put off by the apparent magnitude of the task. Even if the government's records must be organized slowly, one year's worth at a time, any initiative in this area will be an improvement. And, if the private sector is more willing to tackle this job immediately, then they should be given that opportunity.

Office Accommodation

The committee expressed concern at the drastic reduction to plans for office accommodation for headquarters employees. Office accommodation standards directly affect the productivity of government employees and we are concerned that these reductions will have an adverse affect on that productivity. This concern was also noted in the Standing Committee on Finance's report on the 1994-95 Capital Estimates.

In addition, committee Members noted during the capital review that by going to public tender rather than over-holding leases, the government could most likely accommodate headquarters personnel much more cost-effectively. The committee recommended, following the capital review, that the department review the Yellowknife office plan and resubmit estimates for office renovations and tenant improvements for 1994-95.

The Department of Public Works and Services provided the committee with another briefing on office accommodation for headquarters personnel during the committee's review of the departmental operations and maintenance budget. The briefing included a description of two different versions of the accommodation plan and the associated costs, but did not include a reassessment of renovations costs based on the current commercial real estate market.

Recommendation 29

The committee recommends that the Department of Public Works and Services develop the office accommodation plan that most effectively and efficiently houses headquarters personnel. The cost-benefit analyses which accompany the plan should be based on a consideration of savings that could be achieved in the current commercial real estate market. This plan, along with the cost-benefit assessment, should be made available to the Standing Committee on Finance prior to review of the department's budget in committee of the whole.

The committee further recommends that the department go to public tender for all aspects of rationalizing office accommodation in Yellowknife, including moving and improvement in addition to the space itself, starting with the 1994-95 fiscal year.

Upcoming Studies

The committee notes the studies forthcoming which relate to this department's mandates, including warehouse privatization, Keewatin resupply and informatics. Committee Members would like the Minister to arrange briefings to the committee when these studies are complete. This will allow the committee to make informed recommendations to the government, based on the results of those studies.