Agreed.

---Agreed

Yes, Mr. Chairman, thank you. Mr. Chairman, the department's mandate is to assist municipal governments and community authorities to provide responsive

government and municipal programs and services. In fulfilling this mandate, the department believes in forging strong partnerships with communities.

In the preparation of the 1995-96 main estimates, various envelope committees were established. The department was part of the Infrastructure Envelope Committee with the departments of Public Works and Services, Executive, Finance, Personnel, Intergovernmental and Aboriginal Affairs, Financial Management Board Secretary and the Legislative Assembly.

Staff of these departments worked cooperatively and collaboratively to establish priorities and seek ways of sharing limited financial resources. Numerous alternatives were examined, relative priorities compared and joint approaches explored to make better use of the financial and human resources available.

The department's 1995-96 O and M estimates is the result of this process, Mr. Chairman. For the 1995-96 fiscal year, O and M estimates of $67.933 million are proposed for the department, an increase of 5.3 per cent over the 1994-95 main estimates.

This past year the department's headquarters offices have been reorganized to streamline the organization and improve its responsiveness to community transfer initiatives, division preparation and other Cabinet priorities. The department's 1995-96 operation and maintenance main estimates reflects the revised accounting structure of this reorganization.

Reorganization has allowed the department to reduce its person year requirement, Mr. Chairman, and the department is advancing a six person year reduction in permanent person years to 141.8 person years and a .8 person year reduction in casual person years to 5.7 person years for 1995-96.

All person year reductions in the headquarters organization were made with every attempt to redeploy the staff affected to other positions in the department. To date, no one has been laid off.

The envelope committee process included three major phases, where reductions were proposed, new initiatives examined and funding for forced growth identified.

Mr. Chairman, the reductions proposed totalled $2.128 million for 1995-96. Departmental reductions are planned in the following areas:

-As a result of departmental reorganization there is a planned reduction of $820,000 in salaries.

-A reduction of $545,000 will result from an expenditure management program aimed at reducing overhead. Special management action will be taken to ensure present levels of service continue to community governments.

-A reduction of $600,000 in extraordinary funding to communities is proposed. This reduction will not limit or impact normal transfer payments to community governments, but will reduce the department's flexibility to address extraordinary funding needs.

Overall forced growth increases of $2,395,000 are proposed for 1995-96 for the following areas:

-$959,000 is proposed for the water and sewage services subsidy program resulting from the building of 171 privately-owned housing units in the Northwest Territories in 1993-94. The transfer of 23 units to government staff also increases the department's budget for this program by $85,000. This $85,000 increase is offset by an equivalent decrease in the Department of Public Works and Services budget.

Mr. Chairman, the department continues to work with communities to ensure safe water and sanitary sewage services. While most communities in the north now have a good water supply, some difficulties remain.

Coppermine, Fort McPherson and Nahanni Butte, for example, still have less than satisfactory service, and efforts are under way to improve the difficulties with their water supply.

-Forced growth funding of $395,000 is proposed to meet increased O and M costs of new municipal infrastructure in hamlets, charter communities and settlements. Hamlet transfer payments are a major part of the department's O and M funding. This funding is transferred directly by contribution to hamlets and charter communities, and accounts for nearly 45 per cent of all departmental O and M grants and contributions.

Support provided by this government to these non-tax-based communities is essential for their continued effective operation.

-$648,000 is proposed for the recreation salary subsidy program to meet costs of subsidizing the salary of recreation leaders in 19 additional communities. The subsidy applies to graduates of the Arctic College recreation leadership program and to facility maintainers.

Funding is included for those facility maintainers in 30 communities who have improved their qualifications through the department's recreation facility maintainer course. The recreation salary subsidy program supports an estimated 100 full-time positions in the Northwest Territories and the training received by facility maintainers helps protect over $110 million invested in community recreation infrastructure.

-$308,000 is proposed for the recreation facility operating subsidy program to operate newly constructed community gyms, halls, assembly buildings, above-ground pools and arenas.

In addition to these forced growth increases, Mr. Chairman, the department's 1995-96 budget has been increased as a result of two interdepartmental transfers.

-A budget transfer from the Department of Public Works and Services of $1,704,000 is proposed to offset the department's costs of the government implementing user-pay for water and sewage services to occupants of GNWT staff housing.

The Department of Public Works and Services formerly paid the full economic cost for water and sewage services for GNWT staff housing.

With the introduction of user-pay, the department now pays the difference in the subsidized rate and the economic rate. In effect, Mr. Chairman, the introduction of user-pay will reduce government expenditures for water and sewage services to GNWT staff housing.

-The department also proposes to receive a budget transfer of $978,000 from the Department of Public Works and Services for the community dust control program. This program transfer has been made in response to the Standing Committee on Finance's recommendation to this House.

The community dust control program will provide contribution funding to 39 communities at levels equivalent to that spent in each community by the Department of Public Works and Services last year for application of dust suppressant chemicals on community roads.

Mr. Chairman, I am also pleased to present new initiatives of $1,469,000. These new initiatives are largely directed at providing advice, training and support to community governments in support of the ever-increasing responsibilities communities are assuming.

The focus of the department's training initiative is the elected leaders as well as senior administrators, firefighters and land administrators who work for community governments. Also, $126,000 has been allocated to the development of an education program leading to certification of senior administrative officers.

These senior people in the community administration are key to the sound management of community governments. There is $91,000 proposed for the completion and delivery of an elected officials orientation program.

Mr. Chairman, the loss of human life and property as a result of fires in the Northwest Territories is well above national averages. Recognizing this fact, the department is pleased to propose funding for a three-year firefighter training program with $350,000 in the first year, 1995-96.

This program, to be developed in conjunction with the fire marshal's office, will provide training and support to firefighters to protect human life and property. The program will provide firefighter training, heightened general public awareness and education, and support for live firefighting exercises in regional centres.

There is $200,000 proposed for land administration training for community staff. The demand for trained land administration staff will be highest initially in Nunavut, in preparation for the transfer of municipal lands under the Nunavut final agreement, but training needs for other communities in the western NWT are expected to grow.

As Members are well aware, a referendum was held April 10, 1995, in each community in Nunavut allowing residents to decide whether their municipal council will be able to sell or lease the municipal lands to be transferred under the Nunavut final agreement. As a result of the community referenda, all Nunavut municipalities will lease municipal land, and exercise a greater authority over management of community lands after July 1996.

In support of the orderly transfer of municipal land administration to Nunavut municipalities, a community land administration certificate program has been established at Nunavut Arctic College.

Mr. Chairman, the municipal lands situation in the western Northwest Territories is in evolution. The land lease only policy, brought into effect in 1985, was intended as a temporary measure to restrict the sale of community lands in the Dene/Metis comprehensive claims area until the completion of land claims negotiations.

Cabinet recently extended the policy until July 1995, however, an evaluation of the policy, conducted in consultation with a broad range of stakeholders during 1994, has led to the decision to replace the land lease only policy with a new municipal lands policy by July 1995.

This new policy, to be developed in consultation with community governments and aboriginal stakeholders, will provide for the Minister of Intergovernmental and Aboriginal Affairs to provide a stable land administration in regions or communities where treaty or land claims negotiations are ongoing, while providing means by which communities will determine if and under what conditions, municipal lands might be sold or leased.

Mr. Chairman, a final major new initiative for which funding is proposed is the settlement operating assistance policy, which I announced several weeks ago in this House.

Mr. Chairman, in concluding these opening comments to the department's 1995-96 O and M estimates, I wish to confirm the importance of the department's partnerships with community governments.

The NWT Association of Municipalities, as the united voice of many of the community governments in the NWT, is an important partner and I look forward to a strong working relationship with the association.

At the association's annual general meeting resolutions are passed, often directed to the department. Of the 25 resolutions passed at the 1994 annual general meeting, eight were directed to the department. Four of the eight resolutions have been responded to by the department.

The remaining four resolutions, together with several outstanding resolutions from previous years, deal with changes to municipal legislation. The number of concerns raised about current legislation has convinced me, Mr. Chairman, of the wisdom of a comprehensive review of amendments to municipal legislation. I will soon be announcing a process to undertake such a review.

Mr. Chairman, in closing, the department's proposed budget strives to respond to the changing needs of community governments on a comprehensive and equitable basis. I now look forward to answering the committee's questions. Thank you.

Agreed.

---Agreed

Thank you, Mr. Chairman. To my left is Mr. Dave Ramsden, deputy minister. To my right is Mr. Jim France, director of finance and administration. Thank you.

Thank you, Mr. Chairman. I don't have a great number of general comments. I just wanted to talk in a general way about a number of issues that have faced Yellowknife that I and other Yellowknife MLAs have dealt with, with the Minister and the deputy minister. I expressed a number of concerns earlier in this session, back in February, and I want to go on the record that I'm satisfied with the progress we're making on these issues. I have a firm commitment from the Minister that these issues have been resolved so, at this point, Mr. Chairman, I don't have any concerns with the department. I think the department is generally doing a good job in dealing with the concerns that I have, as an MLA. Thank you.

(Translation) Thank you, Mr. Chairman. I, too, don't have a lot to say but I was satisfied with and liked the Minister's opening remarks. Earlier this winter, I had some concerns about the hamlets that were going over their budgets and whether those were growing or if they were paying them off. I put forward this question earlier but he told me he would be able to answer my question at this time. Is he ready to give the answer to my question, Mr. Chairman?

Thank you, Mr. Chairman. Mr. Chairman, at this time, if the Member wishes, we have copies available of the financial status of hamlets up until December 31, 1994, if he wants to wait until we get to the community development section of the budget. It is up to the Member, Mr. Chairman.

(Translation) Mr. Chairman, he keeps putting off my question. He is now saying we can deal with it when we get to that activity, but I would like to get the answer right now if it is possible. Thank you.

Thank you, Mr. Chairman. I will deal with the question now. There are 21 hamlets, Mr. Chairman, with an accumulated surplus in the general municipal fund. There were 18 hamlets that had an accumulated deficit as of March 31, 1994. That is in comparison to the previous year, where there were 20 hamlets with a surplus and 19 hamlets with a deficit. So one hamlet has gone into a deficit position.

I am sorry, Mr. Chairman, I got that backwards. There is one more that has gone from a deficit to a surplus, Mr. Chairman.

Agreed.

---Agreed

Line By Line

Directorate

Agreed.

---Agreed

Community Development