Thank you, Madam Speaker. I would like to seek consent to give second reading to Bill 16 so it can be referred to the appropriate standing committee for review.

Thank you. The honourable Member is seeking consent to proceed with Bill 16. Are there any nays? There are no nays. Proceed, Mr. Nerysoo.

Thank you, colleagues, for your support. Madam Speaker, I move, seconded by the honourable Member for Keewatin Central, that Bill 16, An Act to Amend the Arctic College Act, be read for the second time. Madam Speaker, this bill amends the Arctic College Act to remove reference to Arctic College and to allow the creation of more than one college. The amendment also repeals the Science Institute of the Northwest Territories Act and gives the college the power to delegate the functions previously held by the Science Institute of the Northwest Territories. The bill also removes references to the vice-president and to specific student associations. Thank you, Madam Speaker.

Thank you. To the principle of the bill. The honourable Member for Yellowknife North, Mr. Ballantyne.

Thank you, Madam Speaker. I thought I should put on the record one concern I have about this particular motion. If we make a commitment to divide the

college now, we could be letting the federal government off the hook, as far as making that part of the implementation costs of division. I just want to put that on the public record, and I will discuss it at more length at a more appropriate time. Thank you.

Thank you. To the principle of the bill.

Question.

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

---Carried

Bill 16 has had second reading and, accordingly, it stands referred to committee. Item 17, second reading of bills. Item 18, consideration in committee of the whole of bills and other matters: Bill 1, Appropriation Act, No. 2, 1994-95; Bill 9, An Act to Amend the Motor Vehicles Act; Bill 11, An Act to Amend the Safety Act; Bill 12, An Act to Amend the Wildlife Act; Bill 15, An Act to Amend the Income Tax Act; Bill 17, Loan Authorization Act, 1994-95; Committee Report 2-12(5), Review of the 1994-95 Main Estimates; Minister's Statement 5-12(5), Session Business; Tabled Document 1-12(5), Towards an NWT Mineral Strategy; Tabled Document 2-12(5), Building and Learning Strategy; and, Tabled Document, 34-12(5), Tradition and Change, A Strategy for Renewable Resource Development in the NWT, February 1994, with Mr. Ningark in the chair.

Thank you. The committee will now come to order. What is the wish of the committee? Mr. Antoine.

We would like to deal with Bill 1, Appropriation Act, No. 2, 1994-95 and Committee Report 2-12(5), Review of the 1994-95 Main Estimates, and subsequently get into the Department of Personnel. Following that, we would like to go into the Department of Social Services.

Okay, Mr. Antoine, you said Bill 1, Appropriation Act, No. 2, 1994-95 and Committee Report 2-12(5), Report of the Review of the 1994-95 Main Estimates and from there, that we consider Personnel and Social Services. Do we have the agreement of the committee that we deal with those in committee of the whole?

Agreed.

---Agreed

Thank you. We will take a 15 minute break before we get into this. Thank you.

---SHORT RECESS

Department Of Personnel

I will call the committee to order. We are dealing with Bill 1 and Committee Report 2-12(5) with the Department of Personnel. Ms. Mike, do you have opening remarks on behalf of your department? We are on page 06-8, Personnel. Ms. Mike.

Introductory Remarks

Qujannamiik, Mr. Chairman. I am pleased to present the 1994-95 budget for the Department of Personnel.

In May 1993, Cabinet approved a reorganization of the department. Many of the department's programs were transferred to the Financial Management Board Secretariat. Personnel retained staffing, work-force adjustment and staff housing.

Personnel's responsibilities for staff housing will be transferred to the NWT Housing Corporation as part of the government's plan to have all housing programs administered by a single organization.

The department recruits for all public service positions except those in the NWT Housing Corporation, Workers' Compensation Board, health boards and teaching positions in school boards. For these organizations, our role is to develop procedures, provide guidance and advice and conduct operational reviews of staffing operations.

Within the staffing program, Personnel ensures the consistent application of the affirmative action policy.

Personnel's role in staffing is complex and crucial. They have to make sure all members of selection committees understand and follow the rules. Personnel officers encourage departments to involve community and regional groups in the selection process. This is especially important when the candidate will be required to work closely with these organizations.

Personnel officers do not make staffing decisions on their own. While they chair the selection committee, decisions are made by consensus. These decisions can be appealed.

During 1993, 1,449 job offers were made; there were 78 appeals. Only 16 resulted in job offers being withdrawn.

The department is also responsible for administering the work-force adjustment program. This program provides benefits for those employees affected by government initiatives such as decentralization, privatization, consolidation and community transfers. Those employees who lose their jobs because of these initiatives can choose from several benefit options which include staffing priority, extra severance pay, retraining programs and educational leave opportunities.

During 1993, 58 employees were affected by work-force adjustment: 27 of them found other GNWT positions; one employee is on educational leave; 24 took severance payments; and, six have not chosen a benefit at this time.

With the exception of educational assistance which is paid by Personnel, funding for these benefits is the responsibility of individual departments.

Under the staff housing program, the department allocates units to staff who require accommodation. In addition, Personnel continues to assist in the implementation of the long-term staff housing strategy. Last year, a new rental scale was implemented and employees were given an opportunity to purchase staff housing.

At the end of January 1994, we had sold 106 houses. These sales produced over $9 million of additional revenue.

User-pay electricity was also introduced last August with the result that employees now have an incentive to reduce their power costs.

Rents will continue to be based on the Yellowknife or local market rates, which have not changed since last year.

Some employees will pay more. Effective August 1, 1994, employees who are paying less than market rent will see their rents increase by either 15 per cent or to the market rate, whichever is less. This approach is being taken in accordance with the Assembly's request for significant increases to be phased in over three years.

Explanations of these changes will be communicated to employees next month, well ahead of the implementation plan.

In January, employees living in government-owned staff housing in level II and III communities were given another opportunity to purchase their units. Where the unit is a row house or other multi-family building, all of the tenants in the building will be allowed to purchase it as a group. Previously, only single detached and duplex units were offered for sale. I expect that this latest offer to sell more units will be well received by our staff.

The situation is slightly different in Inuvik. When Inuvik was declared a level I community for housing purposes, all government-owned detached housing units were offered to employee tenants. Those that did not sell are being sold to the public through the local real estate agency. Blocks of row housing are being sold by public tender.

After we have heard from the employees, the department will review the staff housing inventory in each community to determine if any units can be declared surplus to our staff needs. Wherever there are surplus units, and before any decision is made to dispose of them, the MLA for the community will be consulted.

Mr. Chairman, I believe in leading by example.

Affirmative action statistics for the Department of Personnel show that:

- 50 per cent of our employees are aboriginal;

- An additional 14 per cent are indigenous northerners;

- 50 per cent of our managers are aboriginal; and,

- 50 per cent of our managers are female.

With statistics like these, I believe we are demonstrating that affirmative action and giving preference to northern candidates is working. However, there is always room for improvement.

Personnel is not a large department. It is small and very busy. The budget is $4.5 million with 40 PYs. However, it plays a very crucial role in helping the government achieve its goal to recruit a home-grown public service.

I look forward to hearing general comments from Members and will try to answer any questions about my department. Thank you, Mr. Chairman.

Thank you, Madam Minister. Do we have any comments from the Standing Committee on Finance? Mr. Ballantyne.

Standing Committee On Finance Comments

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.

Thank you, Mr. Ballantyne. The motion is in order. To the motion.

Question.

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

---Carried

Mr. Ballantyne, does that conclude the report of the Standing Committee on Finance? Mr. Ballantyne, do you have a further report?

No.

Before I call for general comments, perhaps the Minister will want to bring in her witnesses because we are dealing with some very important issues here. The department is responsible for the affirmative action policy, the staffing function and hiring authority. Madam Minister, would you like to bring in the witnesses?

Yes, Mr. Chairman.