Item 6, oral questions. Mr. Patterson.

Thank you, Mr. Speaker. To the Minister of Education, Culture and Employment. Mr. Speaker, earlier in the session, I asked the Minister about his response to the Gjoa Haven education leaders' summit recommendations, particularly the recommendation that his department take the lead in organizing a Nunavut training and human resource planning session which the education leaders hoped could be held this spring in April or May. I know he said that he was awaiting the completion of his department's transition to Nunavut plan which, I believe, is due at the end of this month. I would like to ask the Minister, since the days of this session are coming to a close, if, after the House recesses, the Minister will be following up on the Gjoa Haven leaders' summit, contacting people involved in that summit and making a response to the recommendations, particularly about the planning conference. Thank you.

Minister of Education, Culture and Employment, Mr. Nerysoo.

Thank you, Mr. Speaker. We're certainly trying to work on addressing many issues, of which the leadership summit in Gjoa Haven is one. As soon as we can, we'll be able to resolve some of the issues.

Supplementary, Mr. Patterson.

Mr. Speaker, does the Minister agree that, in light of the imminence of April 1, 1999 and the need to have trained people in place well before that date, it would be timely if the next Nunavut education planning conference could be held within the next few months? Thank you.

Mr. Nerysoo.

Mr. Speaker, I think it is not always whether or not meetings are held, but whether actions are taken. I think the efforts of my department to bring about an appropriate strategic plan, a new Education Act, and changes in the college reflect the direction the honourable Member is pointing to. We are still working with the leadership of those involved in education and training and it's my feeling that we've developed a very good working relationship with the educational leaders. We want to continue that relationship and whenever it is possible for us to agree on an appropriate time for a meeting, we'll work with them to address that particular issue. But, we will participate.

Thank you. Supplementary, Mr. Patterson.

Mr. Speaker, I did not mean to suggest that the Department of Education, Culture and Employment is not reorganizing itself and strategizing for the challenges ahead. I think the challenge thrown out by the education leaders was to ask the department to become the lead in developing a plan to bring together all the other various agencies and organizations which have training and human resource planning responsibilities in Nunavut -- the NTI, the NITC, the Nunavut Implementation Commission, the Nunavut Secretariat, federal agencies et cetera.

The Minister indicated that it would be desirable to have a meeting. I would like to ask the Minister, is he also open to the idea of taking the lead in organizing and chairing such a meeting through one of his senior officials? Thank you.

Mr. Nerysoo.

Thank you, Mr. Speaker. I just want to say to the honourable Member that it's in my interests to work with the organizations the honourable Member has pointed out and we're prepared to do that. We're also prepared to determine whether or not it's appropriate for us to chair, or whether we will identify an individual who might chair a conference of this type who would be more acceptable to all participants.

We will be involved and, at the appropriate time, hopefully we will have resolved these particular issues and logistics. We'll certainly work with the organizations to address these issues.

Thank you. Item 6, oral questions. Item 7, written questions. Item 8, returns to written questions. Item 9, replies to opening address. Item 10, petitions. Mr. Whitford.

Item 10, petitions. Item 11, reports of standing and special committees. Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, in accordance with its terms of reference, the Standing Committee on Finance is pleased to submit its report on the review of Bill 30, Deficit Elimination Act.

Between 1983 and 1993, the Northwest Territories was fortunate to be one of the few jurisdictions in Canada without accumulated debt, if not the only such jurisdiction. We recognize that over 80 per cent of the government's budget consists of grants from the federal government; still, the government is to be credited with having lived within its means throughout that decade.

However, in the last two years, the territorial government has slid into debt. The drastic cuts in federal funding for construction of new social housing, funding disputes with the federal government (especially regarding health billings), and two years of serious forest fires have forced the government to increase spending without having an increased pool of revenues to draw from.

Since the October 1993 federal election, it has become very clear that funding from the federal government will not continue at the levels we have come to expect. But we will still face dry summers, a continuing shortage of adequate housing, and other unforeseen circumstances which will cause demands for increased government spending.

Members of the Standing Committee on Finance are concerned that the Government of the Northwest Territories may soon find itself with a crushing burden of debt, as many provinces and the federal government are now facing. But committee Members do not want to see the upcoming division of the NWT affected by contention over the division of an accumulated government debt.

Moreover, the standing committee has made strong recommendations that a transition plan be prepared for the next Assembly. Standing committee Members are concerned that the 13th Assembly will face many difficult challenges, especially preparing for division and coping with financial cutbacks. We feel that this Deficit Elimination Act will be a key component of that transition plan.

The Standing Committee on Finance has made a number of recommendations which would address these concerns. The report, Investing in Our Future, was tabled by the standing committee on October 11, 1994. In that report, the committee recommended as follows:

"The Standing Committee on Finance recommends that the Financial Management Board, as part of its transition planning, seriously consider protecting the interests of the people of the Northwest Territories by introducing, during the life of the Legislative Assembly, legislation that requires the Government of the Northwest Territories, in preparation for division, to ensure that on March 31, 1998, no deficit has accumulated." And in its Report on the Review of the 1995-96 Main Estimates, the committee repeated its concern:

"The committee recommends that the Minister of Finance introduce legislation in the current session which would require that the government ensure that on March 31, 11998, no deficit has accumulated; furthermore, that the legislation include sanctions which would encourage compliance with the legislation."

The government responded to these recommendations by introducing Bill 30, Deficit Elimination Act, on March 29th. This bill would provide for limits on government deficits in the 1996-97, 1997-98 and 1998-99 fiscal years.

However, the bill as original introduced would not meet the requirements of the recommendations of the Standing Committee on Finance. Given the deficit incurred in 1994-95, the planned deficit in 1995-96, and the deficit limits allowed by the original bill, the Northwest Territories could have accumulated a total debt of up to $100 million by April 1, 1999.

The intent behind the standing committee's previous recommendations was to ensure that there is no debt to divide between the new territories in 1999. The process of division is difficult enough; there is no point complicating it further by leaving a debt to be fought over and argued about by the new territories.

As a result, the Standing Committee on Finance has proposed a series of amendments. The effect of these amendments would be to ensure that the debt is not added to by the budgets of 1996-97 and following fiscal year. As well, the amendments provide a method of penalizing Cabinets which contravene the provisions of the bill. Violation of the provisions of the bill will provoke an automatic debate on whether the appointments of the Members of the Executive Council should be revoked by the Commissioner. Members of the standing committee feel that this measure will provide the right balance between prompting the government to be fiscally prudent, yet allowing for unforeseen circumstances beyond the government's control. If a deficit occurs which violates the provisions of the bill, but the Members of the Assembly at the time feel that circumstances were such that the government could not have controlled or foreseen them, the Assembly then has the option to recommend that Cabinet appointments not be revoked, which would allow the government to continue.

The sponsor of the bill, the Minister of Finance, has met with the standing committee to discuss these amendments, and has concurred with them in committee hearings. We would like to thank the Minister of Finance for his cooperation throughout this process. Standing Committee Members look forward to the consideration of this bill with our colleagues in committee of the whole.

Motion To Receive And Adopt Committee Report 8-12(7), Carried

Mr. Speaker, that concludes the report on Bill 30, Deficit Elimination Act. I move, seconded by the honourable Member for Iqaluit, Mr. Patterson, that the report of the Standing Committee on Finance on Bill 30, Deficit Elimination Act, be received by the Assembly and adopted. Mahsi, Mr. Speaker.

Thank you, Mr. Antoine. Your motion is in order. To the motion.

Question.

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

---Carried

The report of the Standing Committee on Finance is received and adopted.

Item 12, reports of committee on the review of bills. Item 13, tabling of documents. Mr. Todd.

Thank you, Mr. Speaker. I wish to table the following document: Tabled Document 97-12(7), Public Utilities Board of the Northwest Territories 1994 Annual Report. Thank you.

Thank you. Mr. Kakfwi, tabling of documents.

Thank you. Item 13, tabling of documents. Mr. Antoine.

Thank you, Mr. Speaker. I would like to table Tabled Document 99-12(7), Submission to the House of Commons Standing Committee on Justice and Legal Affairs Regarding Bill C-68, by the MLA for Nahendeh, Legislative Assembly of the Northwest Territories. Mahsi.