Thank you, Mr. Chairman. Mr. Chairman, Supplementary Appropriation Act, No. 1, 1995-96, requests authority for additional appropriations of $31.903 million. This supplementary appropriation consists of additional appropriations in the amount of $1.192 million in O and M and $30.711 million in capital.

Mr. Chairman, the significant amounts included in Supplementary Appropriation Act, No. 1, 1995-96 are $21.252 million for capital carryovers and $2.352 million for the building and learning strategy. This increase, Mr. Chairman, is fully offset by $1.767 million in reductions from various departments and a contribution of $585,000 from the NWT Housing Corporation. There's $9.8 million for the Canada/NWT infrastructure program. Mr. Chairman, this increase is offset by reductions to various departments in the amount of $1.9 million, a $3 million contribution from the NWT Housing Corporation and the federal government share of $4.9 million.

Mr. Chairman, transfers between various departments in the amount of $34.223 million to effect the transfer of the social assistance program from the Department of Health and Social Services to the Department of Education, Culture and Employment, and transfers between the Department of Personnel and the Department of the Executive to effect the establishment of the Personnel Secretariat.

These supplementary appropriations are not anticipated to worsen the forecast deficit for 1995-96. Mr. Chairman, the high level of capital carryovers, does exceed our provisions for carryovers, but the trend to a higher carryover level will undoubtedly continue until we can address the underlying causes. As a result, Mr. Chairman, we've revised our forecast of the level of lapse of appropriation authority in 1995-96 to more realistically reflect the level of carryovers that will occur.

Mr. Chairman, I would also note that the result for 1994-95 is expected to improve due to the high level of capital carryovers from that fiscal year, although we will not have the final results for 1994-95, Mr. Chairman, until later on this summer.

Mr. Chairman, at the time that the supplementary appropriation document as prepared, there were two items that were in progress that have not been finalized: the negotiation of the transfer of the Arctic A airports program from the federal government and the review of the approach to fighting fires, partially in response to the Standing Committee on Finance's direction to provide a more accurate estimate for fire suppression expenditures.

Mr. Chairman, both items have now been finalized. Presentations on the results of the Arctic A airports transfer negotiations and the program changes to the forest management program have been provided to the Standing Committee on Finance.

Mr. Chairman, these supplementary funding requirements will not result in a worsening of the forecast 1995-96 deficit. The additional supplementary appropriations required for the Arctic A airports transfer will be financed through funding transferred from the Government of Canada through the formula financing agreement while the additional supplementary appropriations for the changes to the forest management program will be financed from established supplementary funding reserves.

At the appropriate time, Mr. Chairman, I am prepared to make a motion to amend the supplementary appropriation bill to include $24,617,700 for the transfer of the Arctic A airports program from the federal government and $7.3 million for the forest management program changes.

Mr. Chairman, at the appropriate time I would like to request that staff join me at the witness table. Thank you, Mr. Chairman.

Thank you, Mr. Chairman. The Standing Committee on Finance reviewed Bill 34, Supplementary Appropriation Act, No. 1, 1995-96, at its meetings on June 7, 8, 13, 14 and 19, 1995. The chairman of the Financial Management Board and his staff were available to answer questions at the June 7, 8, 14 and 19, 1995 meetings.

Mr. Chairman, the original bill represents an additional appropriation request of almost $32 million for the 1995-96 fiscal year. As well, we understand that the amendments to be brought in by the Minister of Finance relating to the transfer of Arctic A airports and the program changes to forest fire management will bring the total to almost $64 million. This would bring the total voted appropriations for the fiscal year 1995-96 to just over $1.28 billion.

As has been the practice, I will speak to the major issues of this supplementary appropriation. Members of the committee may have additional comments when we proceed to discussion on the detail of the bill.

The Minister of Finance has already outlined the significant highlights of this appropriation. Committee Members noted the adjustments made to fund the building and learning strategy and the Northwest Territories' share of the Canada/NWT infrastructure program.

Committee Members also noted the transfers relating to the Community Transfer Initiative (CTI). The transfers implementing the block funding approach for Tuktoyaktuk's CTI funding, along with new arrangements recently announced for implementing CTI in the Baffin region, are a further response to recommendations of the Standing Committee on Finance, and the committee appreciates the efforts of the government in implementing its recommendations.

The transfer of the social assistance program from the Department of Health and Social Services to the Department of Education, Culture and Employment was already debated in this House when the 1995-96 budget was introduced and passed. Some funding transfers in this supplementary appropriation merely give effect to this transfer of responsibilities. Similarly, transfers giving effect to the merger of the NWT Science Institute with both Aurora College and Nunavut Arctic College have also been the subject of previous debate.

The establishment of a new Personnel Secretariat in the Department of the Executive, replacing the Department of Personnel, is a new initiative by the government. This change does not alter total government spending, but it does reflect a further consolidation of tasks in the Executive.

Regarding the amendments reflecting program changes to forest fire management and the transfer of Arctic A airports, the Minister of Finance briefed the Standing Committee on Finance about these issues on June 14th.

Committee Members appreciate the government's response to SCOF's recommendation that fire suppression expenditures be more accurately reflected in the budget. The standing committee is also looking forward to the results of the other initiatives planned by the government to improve the handling of the difficult task of forest fire suppression and prevention. While protecting lives is essential, as is teaching northerners to prevent unnatural fires, it is important that we balance the protection of property with the need for the forest to be renewed through fire.

The Minister of Finance, along with the Minister of Transportation, has kept the Standing Committee on Finance well informed over the last couple of years on the negotiations to transfer the responsibility for the largest airports in the Arctic to the Government of the Northwest Territories. Committee Members were shown the funding and personnel figures related to the transfer, and agree that this funding should be included in this bill. The standing committee agrees that transferring responsibility for these important airports will be a benefit to the Northwest Territories.

In our discussions in the Standing Committee on Finance, two of the most significant issues are the introduction of what is essentially the 1995-96 capital budget for the Department of Justice and the large amount of capital funding carried over from the 1994-95 fiscal year. Over $21 million in capital funding to replace funds lapsed in 1994-95 is included in this supplementary appropriation. The entire capital planning process has been the subject of debate in the standing committee. Committee Members are concerned at the growth in the number of capital projects being delayed and carried over to future fiscal years. The amount being carried over from 1994-95 in this supplementary appropriation represents almost 12 per cent of the total 1994-95 capital estimates.

While some delays are inevitable, given the difficult nature of planning and coordinating capital projects in the north, this amount of carried-over funding indicates serious problems in the capital planning process. The standing committee has been discussing this issue with the Minister of Finance and we trust that the Minister and his capable staff will be able to address this problem by introducing improvements to the capital process in time for the 1996-97 fiscal year. It would not be appropriate for this Assembly and this government to leave this problem unaddressed for the next Assembly to deal with.

For the Department of Justice, $2 million in capital funding is included in this appropriation. When the standing committee reviewed the 1995-96 capital budget in September and October of last year, one of the recommendations was "that the capital budget of the Department of Justice be presented to the House as part of consideration of the overall 1995-96 capital estimates." It is now eight months later and we are only now seeing the department's plans for capital spending for this fiscal year. The standing committee strongly recommends that the department ensure that this does not happen again.

Of the $2 million identified for the department, the committee noted, with approval, the $150,000 for providing wilderness camp contributions, the $50,000 provided to plan for a women's correctional facility in Nunavut, and the $1.3 million allocated for community correctional centres and camps. These directly address recommendations made by the standing committee, and committee Members appreciate these recommendations being included in the department's capital plans. However the fourth item, $500,000 for a proposed youth treatment centre in lnuvik, raised some concerns. In the review of the 1995-96 capital budget, the standing committee recommended "that the Department of Justice include a facility for violent young offenders in its five-year capital plan." Some time after that, before the review of the main estimates, an official with the department announced that such a new facility would be built in Inuvik. Committee Members were concerned, not only with the manner in which the facility was announced, but also with the apparent haste and lack of planning evident in the annoucement. well informed over the last couple of years on the negotiations To address the standing committee's concerns, the Minister of Justice appeared before the standing committee on June 14th. The Minister explained that the planned facility was not directed specifically at violent young offenders. The department left that they should focus on treatment and support programs for youth, including young offenders and that this treatment centre would reflect that focus.

Committee Members acknowledge the high rate of incarceration for both adults and young offenders in the lnuvik region, and appreciate that a facility may be needed in lnuvik. Members of the standing committee are still concerned that this new facility may be no different from the three existing secure custody facilities in Hay River, Fort Smith and lqaluit. Young offenders sentenced to these facilities seem to have a high rate of re-offending. Committee Members do not want to see further facilities built without careful consideration by the department as to how to address the problem. The design of the program should come well before the design of the physical facility. In fact, program design should also be emphasized for open custody young offender facilities run by contractors.

Committee Members are still concerned that the Department of Justice does not appear to have any concrete plans for dealing with the most violent of young offenders. This issue was the subject of an earlier recommendation of the standing committee, and should be addressed quickly.

That concludes my remarks on Supplementary Appropriation Act, No. 1, 1995-96. Thank you, Mr. Chairman.

If I might, Mr. Chairman.

Agreed.

---Agreed

Thank you, Mr. Chairman. Mr. Chairman, on my right is Mr. Lew Voytilla who has had a haircut. He's altogether better looking.

---Laughter

Mr. Chairman, I have with me Mr. Rob Taggart from the Financial Management Board Secretariat. Thank you.

Agreed.

---Agreed

Department Of Executive

Executive Council Secretariat

It's the white booklet and we're on page 6. Executive, Executive Council Secretariat, operations and maintenance, not previously authorized, $50,000.

Agreed.

---Agreed

Financial Management Board Secretariat

Directorate

Agreed.

---Agreed

Human Resource Management

Agreed.

---Agreed

Audit And Evaluation

Agreed.

---Agreed Department Of Executive

Personnel Secretariat

Agreed.

---Agreed

Agreed.

---Agreed

Agreed.

---Agreed

Department Of Personnel

Staffing

Agreed.

---Agreed

Agreed.

---Agreed

Department Of Public Works And Services

Project Management

Agreed.

---Agreed

Accommodation Services

Agreed.

---Agreed

Utilities

Agreed Department Of Personnel ---Agreed

Supply Services

Agreed.

---Agreed

Systems And Communications

Agreed.

---Agreed

Agreed.

---Agreed

Department Of Municipal And Community Affairs

Directorate

Agreed.

---Agreed

Buildings And Works

Agreed.

---Agreed

I had my hand up for the directorate, Mr. Chairman. With regard to the GNWT emergency measures program under the joint emergency preparedness program, $149,000. I would like to ask what this was for. This was not previously authorized. What emergency was this for?

Mr. Chairman, these dollars don't relate to an actual emergency, they relate to the emergency measures office salaries and benefits which is $215,000, and the emergency office O and M budget which is $173,000. Total program costs of $388,750. This amount that we're talking about represents the federal contribution, which is 38 per cent of the aforementioned number, which actually is shown at $149,000 in the supp. It's actually $148,468, Mr. Chairman. Thank you.

It's not in here, but I just wanted to ask a related question with regard to the evacuation of Fort Norman and Norman Wells. Mr. Chairman, this is the area where the expenditures that were used to evacuate communities would come from. Is that correct, Mr. Chairman?

Mr. Chairman, this money is the administration office salaries and benefits of the emergency measures office and the Department of Municipal and Community Affairs. The money that was spent to evacuate those people from those unfortunate communities that were surrounded by fire has yet to be totalled. We don't know what the total will be. Part of that will be the responsibility of the federal government. It would have to be dealt with by way of supplementary appropriation once the Minister has totalled the expenses, Mr. Chairman. Thank you.

Community Development

Agreed.

---Agreed

Agreed.

---Agreed

Department Of Health And Social Services

Directorate

Agreed.

---Agreed

Community Programs And Services

Agreed.

---Agreed

Agreed.

---Agreed

Agreed.

---Agreed

Agreed.

---Agreed

Department Of Economic Development And Tourism

Corporate And Technical Services

Agreed.

---Agreed

Agreed.

---Agreed Department Of Education, Culture And Employment

Culture And Careers

Agreed.

---Agreed

Agreed.

---Agreed

Agreed.

---Agreed

Department Of Public Works And Services

Directorate

Agreed.

Agreed.

---Agreed

Agreed.

---Agreed

Department Of Justice

Community Justice And Corrections

Agreed.

---Agreed

Agreed.

---Agreed

Department Of Safety And Public Services

Safety

Agreed.

---Agreed

Department of Public Works and Services

Directorate

Agreed.

---Agreed

Project Management

Agreed.

---Agreed

Accommodation Services

Agreed.

---Agreed

Agreed.

---Agreed

Buildings And Works

Agreed.

---Agreed

Systems And Communications

Agreed.

---Agreed

Petroleum Products

Agreed.

---Agreed

Agreed.

---Agreed

Agreed.

---Agreed

Agreed.

---Agreed

Department Of Transportation

Arctic Airports

Mr. Chairman, I am sorry. I didn't hear. Is that where it is coming from or where it is going to go? Thank you.

Mr. Chairman, it's going to be Gjoa Haven, Pelly Bay and Arctic Bay for construction of access roads by those communities. Thank you, Mr. Chairman.

Agreed.

---Agreed

Agreed. Department Of Transportation

---Agreed