Thank you. The honourable Member for Iqaluit, Mr. Picco.

Thank you, Mr. Chairman. Changes to the Capital Plan. The Committee noted that there was significant changes to the department's 96/97 Capital Plan. In fact, out of a $31,000,000 capital budget, over $15,000,000 in projects saw changes of some sort. While there were no increases, the Committee was still very concerned, that adequate explanations of these changes, some of which were great importance, did not reach Committee staff, until two days after the Minister's scheduled appearance. The Minister should have been aware that the Committee would be expecting appropriate explanations of these changes as part of its mid-year review.

On Community Empowerment. The Committee is unanimous in applauding the principle of community empowerment. Committee Members feel that when communities make decisions for themselves, the decisions are more likely to be effective ones.

However, as noted elsewhere in this report, Committee members have some serious, serious concerns with the progress to date of implementing community empowerment. The Committee noted that plans to transfer many responsibilities, including provisions to allow non tax-based municipalities to borrow for land development, and capital projects, are proceeding before such basic steps as reviewing the municipal financial system is in place, to ensure that they are capable of monitoring their increased responsibility.

The Standing Committee agrees with the principle of community empowerment. However, the Committee does not believe that community empowerment should be merely downloading responsibilities to communities without providing adequate resources. Community empowerment should be an attitude of encouraging community's growth.

The issue of providing loans to non tax-based municipalities is especially worrisome to Committee Members. There have already been problems with tax-based municipalities having difficulty in handling loans. The Committee is extremely concerned that non tax-based municipalities, lacking the revenue potential from property taxation, and also often lacking the resources available to larger tax-based municipalities, will undoubtedly run into problems with borrowing money. The Minister explained that a change from approving individual capital projects for communities to a scheme of formula-based, block funding will ensure consistent revenue streams for non tax-based municipalities. However, Committee Members still worry about the integrity of that stream of funds, noting the arbitrary five percent reduction in block funding to Yellowknife, that occurred this year, as part of the government's restraint program.

Therefore, I recommend that the Committee recommend that any legislation or policies allowing loans to non tax-based municipalities, be based on criteria similar to those that would be demanded by a private financial institution, before making such loans.

While the Minister assured the Committee, that the Department is not forcing the transfer the responsibilities to communities, Committee Members see it differently. Concern exists that communities may be seeing community empowerment as a choice between taking over provision of a service, or losing the service completely.

Education and Training Programs

Committee Members recognize that training to municipalities provided by the Department, training for elected officials, municipal administrators, by-law enforcement officer, fire fighters, and so on, is extremely valuable and critical to the success of community empowerment. However, Members wondered if such training and education might be more effectively provided by the Department of Education, Culture and Employment, or perhaps by Aurora and Nunavut Arctic Colleges. While MACA would certainly have the primary responsibility to determine training needs, and to develop the policies and principles behind the education and training provided to municipalities, Committee Members feel that ECE, and the colleges, are better equipped to actually deliver the training.

Therefore, the Committee recommends that the Department transfer the responsibility to provide training and education at the municipal level, to the Department of Education, Culture and Employment, and/or Aurora and Nunavut Arctic Colleges.

Sports and Recreation. Committee Members were pleased to hear of the progress of the review of the NWT's participation in multi-sports games, such as the Arctic Winter Games, and of the overall review of Sport North that is under way.

With regard to multi-sport games, the committee suggests that the Department focus on games which allow all northerners to participate and be involved, such as regional games, and the Arctic Winter Games. As well, the Committee suggests that the Department establish clear priorities for grants and other funding provided to sporting organizations.

Costs of Land Development and Leases

In the review of Business Plan, Committee Members had expressed some concern regarding the fact that leases for Commissioner's land, are $250 a year, no matter what the size the lease is, or its planned use. The department had mentioned that they intend to develop a strategy for recovering the actual costs of leasing the land, especially the administration costs. The Committee was pleased to hear that, as an interim measure, costs for lot rental are being increased to $600 a year, with a view to eventually raising the lease costs to a point that would cover the actual cost of development the land.

However, Committee Members are against any type of subsidy for land development, such as the subsidy program planned for low-income homeowner's lease costs. Committee Members, Mr. Chairman, still have significant concerns about the ability of non tax-based municipalities to take responsibility for land development. While the financial performance of hamlets is improving, far too many still have deficits and are qualified financial statements. Community empowerment should not proceed without an adequate framework being in place to ensure that communities are indeed ready to take on such important responsibilities.

The Committee has already told the Minister that larger hamlets should be encouraged to seek tax-based status, not discouraged. Forthcoming proposals which would allow non-tax based communities to borrow for land development should not proceed without removing barriers to the tax-based status.

So ended the lesson. Thank you, Mr. Chair.

---Applause.

Thank you, Mr. Picco. Are there general comments or concerns on the report? Mr. Morin.

Thank you, Mr. Chairman. I would like to thank the Committee for its comments. We will make a coordinated response through FMBS. Thank you.

Thank you. Do we have further general comments or concerns on the report 9-13(3), Infrastructure Mid-Year Review Report? If not, do we agree that Committee Report 9-13(3) is concluded?

Agreed.

I will now rise and report progress to the Speaker.

---Applause.

Thank you. The House will come back to order. We are on Item 20, Report of the Committee of the Whole. Mr. Ningark.

Thank you, Mr. Speaker. Mr. Speaker, your committee has been considering Tabled Documents 90 and 91 and Committee Reports 7, 8, and 9, and would like to report progress, and that Tabled Document 90 and 91 and Committee Reports 7, 8, and 9 are concluded. Mr. Speaker, I move that the Report of the Committee of the Whole be concurred with. Thank you.

Thank you. I will have a seconder. Mr. Morin. The motion is in order. To the motion. Question is being called. All those in favour. All those opposed. Motion is carried.

Third reading of bills. Mr. Morin.

Third Reading of Bill 20: Supplementary Appropriation Act #1

Thank you, Mr. Speaker. I move, seconded by the honourable Member for Baffin South, that Bill 20, Supplementary Appropriation Act #1 1996/97 be read for the third time.

Thank you, for the record, could you repeat your...

Thank you, Mr. Speaker, that Bill 20, Supplementary Appropriation Act #1 1996/97 be read for the third time.

Thank you, Mr. Morin, your motion is in order. To the motion? Questions being called, all those in favour? All those opposed? The motion is carried, Bill 20 has had third reading.

Third reading of bills, Mr. Ng.

Third Reading of Bill 18: Act to Amend the Public Trustee Act

Mr. Speaker, I move, seconded by the honourable Member for Tu Nedhe, that Bill 18, an Act to Amend the Public Trustee Act be read for the third time.

Thank you, Mr. Ng, your motion is in order. To the motion? Questions being called, all those in favour? All those opposed? Your motion is carried. Bill 18 has had third reading. Third reading of bills, Mr. Ng.

Third Reading of Bill 21, Act to Amend the Access to Information and Protection of Privacy Act.

Mr. Speaker, I move, seconded by the honourable Member for Aivilik, that Bill 21, An Act to Amend the Access to Information and Protection of Privacy Act be read for the third time.

Thank you. Mr. Ng your motion is in order. To the motion, questions being called, all those in favour? All those opposed. Motion is carried. Bill 21 has had third reading. Third reading of bills. Mr. Clerk, orders of the day.

Thank you, Mr. Clerk, this House stands adjourned to Friday, October 18th at 10.00 a.m.

--ADJOURNMENT