Just a recommendation Mr. Chairman.

Thank you Mr. O'Brien. We are reviewing tabled document report coming to report 8. Are there any general comments on the committee report 8 from the floor? If not, do we have...Mr. Todd.

Mr. Chairman if I may in keeping with my previous comments, we appreciate some of the concerns raised in the report by the Committee members. However I think it would be fair to say we are somewhat concerned with some of the language in the report which is in our opinion somewhat combative and in some cases can be inflammatory. However we will respond to the report as I indicated earlier in the previous report through the FMB and coordinate a response to the appropriate committee chairs. Thank you.

Thank you. Do we agree that this matter is concluded? Agreed. The table Committee report 8-1(13) pardon me 8-13(3) is concluded. Shall move on to the next item? The committee report 9-13(3) Infrastructure mid year review report. Mr. Barnabas.

Thank you Mr. Chairman. Under Executive. Dissolution of the Department of Personnel. When the functions of the old Department of Personnel, later the Personnel Secretariat were distributed to the departments, the Executive retained a budget of 2.2 million along with 9 PYs. The Committee had some interest in the use of the 2.2 million that was retained by the department. Sorry. The Minister assured the Committee that the money is being used as planned in the areas of policy development, auditing and training and community empowerment.

The Committee was interested in the mandate for the Working Group on Territorial Interests. The Minister stated that this Committee is comprised of Deputy Ministers who are developing a mandate for community empowerment. The Minister expects a framework to be developed and brought to Cabinet in October.

Committee members are concerned that the Government is barging ahead with community empowerment without having first completed this mandate. Developing a mandate for community empowerment should have been completed before any implementation is carried out.

On the physical and political autonomy, the Committee was informed the strategic plan for intergovernmental relations was being developed and should be ready in September. The Minister noted that the strategic plan was being developed by Cabinet has yet to review it. Committee members are concerned that this plan should be reviewed by all members before being implemented.

Devolution and community empowerment. The Committee has concerns that the Government does not have policy in place which lists those programs and services that are absent for devolution to regions and communities. Members are particularly concerned about transportation infrastructure. The Committee wants to ensure that highways and airports are not on the table of items that can be devolved. I will now ask the member from Nunakput to read the next section of the Standing Committee's report. Thank you, Mr. Chair.

Thank you, Mr. Barnabas, the honourable member for Nunakput, Mr. Steen.

Thank you, Mr. Erasmus.

Mr. Chairman, I move that we extend the sitting hours until we finish this particular report.

Mr. Chairman I am informed Mr. Erasmus, that was not a point of order and by suggesting that you were about to make a point of order, using that to gain the floor, thereby your motion is out of order.

Thank you, there is a motion on the floor to extend the hour until we conclude the matter at hand. Do we agree?

Agreed.

Okay. All those in favour please signify. Opposed? The motion is carried. The sitting hours are extended until we conclude the matter at hand. Mrs. Groenewegen.

Madam, are you making a motion here?

Thank you, continue please.

Thank you, Mrs. Groenewegen. Mr. Henry.

Thank you, Mr. Chairman. Public Works and Services, user say - user pay. This initiative has seen responsibility for management and payment of telephone services delegated to the departments with responsibility for vehicle fuel and external mail have just been converted on October 1st, 1996. All direct printing and publications is now done through the local contract authorities. Now, with over a $5,000 expenditure limit.

The Government expects that overall costs will go down and each Department is responsible for the payment of these services. The Standing Committee is watching for impacts to the departments with the de-regulating of these responsibilities. The Standing Committee will continue to monitor the effectiveness of this initiative and the positive or negative impacts to individual departments.

Privatization initiatives. Switchboard services were privatized in June 1996. The Government is now proceeding with the privatization of petroleum products and systems and communications. Requests for expressions of interest and requests for proposals have been advertised and the government is reviewing the submissions. The Standing Committee had many questions regarding the reduction in upgrading of tank farms. Members were concerned that if the tank farms are not kept up to standard it could have a negative impact on the privatization initiative.

Committee members feel that the tank farms should be brought up to standard before privatization of petroleum products distribution proceeds. During our review of this initiative, the Minister was unable to confirm that capital dollars were being reduced and therefore, less money would be available to ensure the tank farms were in good order. Therefore, I move that the Committee recommend that the Government ensure that all tank farms are brought up to standard before awarding a contract under this privatization initiative.

The Standing Committee was concerned about how the government has accounted for the issue of environmental liability if there should be any accidents by petroleum products contractors under this initiative. The Minister assured the Committee that the Department has begun a study in this area. The Committee also suggested that the Government must account for liabilities for fuel spillages and clean ups that may have occurred in the past and expects the Government to inform the Committee as to how they will account for such things.

Committee Members also have some concerns about the effect privatization will have in its creation of local monopolies for fuel delivery and storage. The Government must ensure that communities are protected from any possibility of unfair pricing or other practices.

The Standing Committee is very concerned that the Government has not identified a clear list of priorities, objectives, and goals for privatization. Committee Members feel that this is an important step that should not be overlooked.

The Standing Committee had some concerns about the future of regional computer operations in the Nunavut area. The Minister explained that, while operation of computer facilities and headquarters will be privatized, operation of regional computers will be retained until decisions are made regarding the future of these facilities after division.

Community Empowerment. The community empowerment initiative will see the transfer of buildings and lands to some communities. This transfer would include the maintenance and operation of these buildings and lands. With the deferral of capital projects happening at this time of fiscal restraint, the Standing Committee is concerned that communities that accept the responsibility for these buildings, under the community empowerment initiative, will be facing certain financial hardship, trying to operate and maintain structures whose maintenance may not be up-to-date upon transfer.

The Standing Committee is also concerned that this Government does not have adequate checks in place to ensure that each community will succeed if we devolve these responsibilities.

Mr. Chairman, I will now ask the honourable Member for the High Arctic, my good friend, Mr. Barnabas, to read the next section of the Standing Committee's report.

Thank you. Mr. Henry, on page fifteen, and seventeen, you make a motion. I believe that the intention was not to make a motion, but a recommendation.

You have it correct, a recommendation.

Thank you, Mr. Henry. Mr. Barnabas.