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.