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.