Thank you. I have the report from the Standing Committee on Finance on the Department of Personnel.
The Impact Of Reorganization
Personnel has essentially been stripped. Three functions remain. These functions are recruitment, work-force adjustment and staff housing. There are plans to downsize the department even further by transferring the staff housing function to the Housing Corporation by April 1, 1994.
Committee Members are very disappointed that the Minister of Personnel does not seem to have a specific direction or set of goals in mind for the department. During her appearance before the standing committee, the Minister deferred discussion of the department's future to the Government Leader. If the Minister finds it necessary to defer such discussion, then perhaps we no longer require a separate Minister of Personnel. In any case, committee Members feel that the issue of the department's future should be resolved quickly.
Staff Housing Strategy
During its review of the 1993-94 Main Estimates, the committee recommended that the Department of Personnel monitor the impact of the staff housing strategy, especially on the affirmative action program. The department responded by saying that it has not undertaken this impact analysis. The committee is concerned that the department was unable to respond positively to this recommendation, particularly in light of the controversy surrounding the implementation of this strategy.
Committee Members are concerned about the selling off of staff housing in communities where housing options are limited. There are four primary reasons for this concern. First, the result in some communities could be that the government would not be able to recruit new staff due to the lack of housing. Second, it could create the situation in some communities where the government sells staff houses at a lower than replacement cost and then is forced to turn around and build additional housing at premium prices to meet the demand for staff and social housing. Third, government-owned houses could be purchased at a minimum price and then leased back to the government at maximum rates for staff and social housing. Finally, in some communities, particularly level III communities where public housing does not exist, staff houses may represent the only housing that is available in the community. Committee Members feel that the government should not be selling staff housing in communities where this is the case.
These consequences may not have been anticipated in the development of the staff housing strategy, but must be considered at this time in order to ensure equal access to housing across the territories. Committee Members feel that this policy was not well thought out initially and therefore, the government is encountering a great deal of difficulty in undertaking its implementation.
Given the need for social housing throughout the NWT, and the concern that the federal cutbacks to social housing may force the GNWT into providing social housing, there is some concern we may be selling off government-owned houses only to have to build new social housing at a much higher cost.
Recommendation 28
The committee recommends that no further public sale of government-owned housing take place in level II and III communities until the government has provided a report on the need for social housing in the communities, and a strategy for dealing with that shortfall.
Committee Members feel that the staff housing strategy is not at all clear. Guidelines and rules are difficult to determine. The committee recommends that the Minister of Personnel present a clear written explanation of the strategy and the implementation of the associated rules and guidelines when the department's budget is being considered in committee of the whole.
Recruitment
The committee is pleased to note that the department is doing more recruitment in the north. As well, the committee was impressed with the recent direction the department has taken in order to reduce southern advertising costs. Committee
Members encourage the department to continue with these efforts.