Thank you, Mr. Chairman. I am pleased to present the Department of Public Works and Services 1995-96 main estimates.

The proposed operations and maintenance budget is $120.794 million and 492 person years. This budget represents a net reduction from 1994-95 of $6.4 million, or five per cent, and a reduction of 19 PYs, or four per cent. In addition to the $120 million appropriation, the department also manages $72 million through petroleum products and the granular program and public stores revolving funds, and, the systems and communications charge-back the accounts.

The sale of staff housing and the long-term housing strategy has resulted in the reduction of 15 maintenance positions from the department's building and works activity. These positions were located in Yellowknife, Inuvik, Baffin, Keewatin and Fort Smith regions. As of March 6, 1995, 286 housing units and one apartment building were sold resulting in revenues of $20 million. GNWT staff purchased 179 units while 107 units were sold through public tender. Another 100 sales are pending, as are the sales of two apartment buildings in Yellowknife.

There will be savings in the vehicle and equipment activity by combining staff responsibilities in Inuvik, Iqaluit and Rankin Inlet. Savings will also be achieved in the purchasing activity, due to overall government cutbacks and an increase on the limit of local purchasing authorities, which will give departments more control over their purchasing.

Under the government's community transfer initiative, maintenance responsibilities for government infrastructure were transferred to the hamlet administration in Cape Dorset in April; in Holman in October; and, will be transferred to Tuktoyaktuk in April, 1995. Cape Dorset and Holman agreements saw five PYs transferred from the department to those hamlets. This experience has shown, however, that much staff time is required to negotiate with the communities, plans for the transfers, develop procedures and reports; and, to provide effective after-transfer coordination and support to the community.

The building and learning strategy is now in 12 communities; in all regions. There was $1.725 million committed to fund the strategy in 1994-95. About 100 local residents have been involved in the programs, such as pre-trades training and site superintendent training.

The workload for project officers has increased because of the construction training programs under the building and learning strategy, and the complexity of managing the many special procedures for project delivery. Thus, the department proposes to establish six new regional project officer positions. Agencies outside the GNWT are getting more involved in capital project management and need technical assistance. The department proposes to add a facility planning position in its construction management division to provide technical advice on project management to communities, aboriginal organizations, boards and agencies.

In the accommodation services activity, the department has been implementing the Yellowknife office plan. To deal with consolidation and decentralization initiatives, the government's office requirements in Yellowknife have decreased. Therefore, there is need to relocate and consolidate staff. The net result of completing a five year capital plan in Yellowknife will be an accumulated savings of $4.5 million, and a further savings of $1.4 million each year afterwards. To achieve this, however, will require the management of approximately $2.7 million worth of construction.

Public consultation on the business incentive policy began in November 1994. At the end of February 1995, we completed the first round of public meetings. Based on what we heard from those consulted proposals for discussion will be presented to Cabinet. Following that, we will go back to the business community and the public will give their comments before the policy is finalized.

As promised during the last sitting of the Assembly, new provisions have been introduced for monitoring and enforcing northern local content requirements in our contracts. New

requirements for the use of local, commercial accommodation by our contractors have also been established.

As you know, Cabinet has directed that many millions of dollars spent annually on contracting aircraft for the forest fire program be redirected to northern-based companies. As a result of the proposal call to northern air operators for the provision of air tanker service, a five-year contract has been awarded to Buffalo Airways. The contract will be awarding subcontracts to other northern operators for smaller Bird Dog aircraft. The total value of these contracts could exceed $18 million, but will all go to northern contractors. Previously, these contracts went to southern firms.

In response to concerns from Members, the department has been working with the Housing Corporation, the Department of Transportation, Economic Development and Tourism and the Financial Management Board Secretariat to draft a policy on negotiating contracts. The policy has been completed for Cabinet review. We will continue to work towards the improvement of telecommunications service in under-served NWT communities. A presentation was made to CRTC, in which we have objected to NorthwesTel's plan for additional access charges to upgrade services in the communities, stating that the residents should pay no more for access than other NWT residents.

The department has continued to work with the Department of Transportation to reduce resupply costs. Regarding the Keewatin resupply strategy, we are examining Rankin Inlet instead of Churchill as the resupply hub for petroleum products. We are working with the Greenland government to examine economies of scale in petroleum product resupply to the Baffin regions.

The vehicle pool in Yellowknife will be eliminated. The departments will meet their short-term vehicle needs through the private sector. The government's photography function will also be privatized. Mr. Chairman, this budget represents significant change over the last three years, brought about by government's restructure initiatives and direction to do more in the NWT with NWT residents and businesses.

During the past four years, the department's budget has been cut by a net amount of 70 person years and $11 million. This has meant major change for employees, at all locations and levels, in what they do to provide services to the community and government. It hasn't been easy for either employees or clients. In 1995-96, department staff will be challenged to examine how we do what we do to complete their adjustment to this restructure.

Mr. Chairman, that completes my opening remarks. I would be pleased to answer any Member's questions. Thank you.