Thank you, Mr. Chairman. The budget for Health and Social Services has increased from $257.964 million in 1994-95 to $262.237 million in 1995-96, for a total increase of $4.273 million or two per cent. This is a significant increase in these economic times. The budget that is being presented for your review is a true consolidation of two previously separate budgets. It has been a major achievement to consolidate both the capital and main estimates in a few short months.
The consolidation at headquarters is now complete. There is an appropriate integration of both Health and Social Services functions throughout the department and it has been possible to eliminate 14 person years as a result of the reorganization, and to save money in operations and maintenance for a total savings of $1.2 million. These savings will help to offset some of the increases that are being recommended in this budget. I am convinced that the decision to consolidate was a good one and this is reflected in immediate cost savings.
The consolidation at the regional and community level will not proceed as quickly as it did at headquarters. That is because we will have to proceed carefully in the restructuring to avoid disruptions to the existing level of community service. A major priority over the coming year will be the development of a funding formula designed to provide equitable resources to all regions in both Health and Social Services. As well, it will be important to examine the existing governing structure for departments in the social envelope.
It is true that boards of management are expensive, but this price has to be paid to ensure a level of public involvement in the system and to make the system responsive to the needs of communities. However, having separate boards of management for health and education, along with separate community justice and housing committees, is not only costly, but may be fragmenting the system in communities to the point where there is not enough interagency cooperation for effective government.
I have been approached by the Dogrib region to try an experiment aimed at establishing one community services board that would combine health and social services and schools. This would recognize the fact that it is difficult to locate qualified residents to sit on a board of management with a large budget and it should also cut costs to a manageable level through a single board with an all-inclusive mandate.
Another reality we face is that we cannot maintain the existing levels of service without changing the way we manage. Our social funding is divided amongst three departments and the Housing Corporation. We know that if we are to achieve real gains, we have to work together and integrate our efforts. That is why the government presented the social envelope budget in one comprehensive package that outlined the major initiatives that the partners in the social envelope would undertake in 1995-96. A joint presentation was made to SCOF by the social envelope departments and the Housing Corporation and, by now, you will have a copy of the budget supplement document that summarizes the cooperative efforts that are under way.
Departments in the social envelope have also been involved in extensive consultations with communities to develop a community wellness strategy that will be tabled later in this session. Communities have told us that they want to play the lead role in determining what initiatives will work best for them and to decide how to spend the money that is available within their community. The challenge to the departments in the social envelope is to find ways of making funding mechanisms more flexible to allow this. The departments will spend the next year evaluating what is currently being done and modifying the terms and conditions attached to the programs to make them flexible and accessible.
In the meantime, there is a need to try new approaches to deal with priorities in areas such as family violence, early intervention and services to youth. That is why the social envelope Ministers recommended a community action fund to help community groups test their ideas. The viability of such a fund and the means of raising the money need to be discussed.
I hope these comments have put the Health and Social Services' budget into context with the overall directions of the social envelope. Mr. Chairman, the budget supplement document circulated to the Members gives a good description of the department's strategic directions for 1995-96. I won't go into any more detail now, but I am open to questions as the department's budget comes up for detailed questioning. Thank you, Mr. Chairman.
