Thank you, Mr. Speaker. A positive legacy of the previous government was the Strength at Two Levels report -- he blushed modestly.
---Laughter
This report was used by the current government as the basis for many of the organizational changes that have taken place over the four years.
Anticipated federal cuts to territorial funding will provide a very difficult set of challenges to the next government. When those cuts arrive, the new government will have to be ready to deal with them. That is why the standing committee felt that it is critical that the current government also prepare a transition plan that will allow the next government to be prepared for a difficult future. The committee pointed this out to the Minister of Finance in our January hearings, and we are pleased to see from his budget address that he is considering this proposal.
Recommendation 2
Mr. Speaker, the committee recommends that the Cabinet prepare a transition plan which would assist the Cabinet of the 13th Assembly in the management of the affairs of the government; and further, that this plan should be completed in time for the standing committee to review it and report its findings to the Cabinet before the dissolution of the 12th Legislative Assembly.
Much of the difficulty in dealing with federal funding has come from the numerous financial disputes that have gone on between the territorial and federal governments. Disagreements over health billings, social housing funding, official languages funding, RCMP costs during the Giant Mine strike and other issues have all had a significant impact on territorial finances.
Well over a year ago, the standing committee strongly recommended that the government consider a "package" approach to negotiating with the federal government. Rather than attacking each funding dispute individually, the government was advised to address all such issues, including negotiations for a new formula financing agreement, together.
After initial reluctance, the government accepted the proposal, and now the "package" approach seems to be paying off -- many of the disputes are close to being settled, and it seems Ottawa is taking our government, and our concerns, more seriously in financial discussions. Through the efforts of the Premier, the Minister of Finance, other Cabinet Members, and the Legislative Assembly, the federal government is more aware of the critical importance of this funding to the people of the north.
Mr. Speaker, if I could turn over the reading of this report to my colleague, Mr. Zoe.