Thank you, Mr. Chairman. It is my pleasure to present the comments of the Standing Committee on Resource Management and Development. In light of the proposed amalgamation of the departments of Energy, Mines and Petroleum Resources, Economic Development and Tourism and Renewable Resources, the standing committee has some comments that relate to all three departments. I will first read those general comments and then present the standing committee's specific comments regarding the individual departments as they appear before Committee of the Whole.

Energy, Mines And Petroleum Resources, Economic Development And Tourism And Renewable Resources Committee Members feel that these three departments are revenue generators. Not only can these departments stimulate the NWT economy and create numerous job opportunities, but they can also provide the GNWT with significant amounts of revenue.

Northern Accord

The committee recognizes the importance of this initiative and strongly recommends that the government give finalization of such an agreement a high priority. Further on this issue, Members were concerned about the reporting relationship of the deputy minister of Energy, Mines and Petroleum Resources. It was noted that the Premier, the Honourable Don Morin, was responsible for the northern accord. As such, the deputy minister of EM&PR is responsible to the Premier for the northern accord, but is responsible to Minister Kakfwi on all other EM&PR issues.

Amalgamation

In reviewing these three departments, the committee noted obvious areas of overlap, duplication and inefficiency; by combining separate finance policy and directorate divisions, consolidation should offer immediate savings. In addition, program areas such as parks will offer long-term savings through increased efficiency.

Based on this, the committee recommended that the government proceed with consolidating the departments of Renewable Resources, Energy, Mines and Petroleum Resources and Economic Development and Tourism. Consistent with this mandate of the committee, it was further recommended that the committee be involved throughout the entire process. To that end, the committee recommended that the government adhere to the following time lines: March 31, 1996, preliminary amalgamation plans; June 1, 1996, detailed action plan for consolidation; March 31, 1997, complete amalgamation of both headquarters and regional levels.

Committee Members are encouraged by the government's move to appoint a single Minister and deputy minister responsible for consolidation and by the consolidation framework document provided March 29, 1996. Members look forward to future meetings and are hopeful that the open-door atmosphere initially created by the Minister will continue.

Mr. Chairman, that concludes the general comments of the Standing Committee on Resource Management and Development regarding the three departments of Economic Development and Tourism, Energy, Mines and Petroleum Resources and Renewable Resources.

I would now like to present the specific comments of the standing committee on the Department of Economic Development and Tourism.

NWT Development Corporation

During its initial review of Economic Development and Tourism's business plan, the committee recommended that the O and M budget for the NWT Development Corporation be reduced by $200,000. The department responded that only $100,000 could be cut at that time. The committee

accepts this reduction but feels that additional cost savings exist in this area. To that end, Members are looking forward to the next round of business plan reviews where additional cuts to the overhead and administration costs of this corporation can be reviewed.

To assist the committee in evaluating the budget, business plan and operation of the NWT Development Corporation, officials from the corporation will be provided a detailed briefing to both the new Minister and the committee. This briefing, tentatively scheduled for late summer 1996, will allow both the committee and the Minister to review the corporation in detail.

Other Reductions

The committee also supported cuts to the mineral initiatives program, the forest fire management program and the economic development agreement, as well as reductions in capital spending and staffing costs from the departments of ED&T, EM&PR and Renewable Resources. Thank you, Mr. Chairman.

Thank you, Mr. Ootes. I would now invite Mr. Kakfwi to invite his witnesses in. Perhaps we could take a five-minute break. Is that agreed?

I will call the committee back to order. I will ask the Sergeant-at-Arms to bring in the witness. I will ask the Minister to introduce his witnesses.

Thank you, Mr. Chairman. I have with me, on my right, the acting deputy minister for Department of Economic Development and Tourism, Mr. Doug Doan.

Thank you, Mr. Kakfwi. I will now ask Members for general comments on the department's estimates. Mr. Roland.

General Comments

Thank you, Mr. Roland. Was there a question in there?

--- Interjection

Would anybody else like to make comments on the department's estimates? Mr. Miltenberger.

Thank you, Mr. Chairman. I just have some very brief comments about the economic development side relating, in particular, to loans and grants. I'm very concerned, as an MLA and based on my own personal knowledge of what goes on, at least in my riding, with making sure that whatever processes we have, whatever corporations we have set up are as politically tamper-proof as possible. In my opinion, there is a great tendency to politically influence what should be business decisions, sometimes to the detriment of wise business decisions. I think we have to remove the politics as much as possible from this economic development part of the government. We've spent, over the years, a lot of money. My own perception is that, in a lot of cases, in the old days it was almost like a big political slush fund where you could make things happen if you thought they were good or if the people were on the right side of the fence. I'm very interested in working with the new department as it develops, in this Assembly, to make sure it will become much more effective and efficient, from a business point of view, and that we're very tenacious and resolute in the recovery of bad loans and that we send a very clear message that we're here to do business. Thank you.

Thank you, Mr. Miltenberger. Mr. Kakfwi, would you like to respond to Mr. Miltenberger's or Mr. Roland's comments?

Mr. Chairman, as Members are aware, I've been a Minister for this department since the latter part of March, so I was very interested in learning about the department and whatever views the Members have would be of great interest to me. I know that tourism is an industry that holds a lot of potential for a great many of our communities. It's a good way to generate revenue. It is seen as very environmentally safe and revenue friendly. So whatever ideas and suggestions the Members of the Legislature have in that area, ways that we can improve our performance in that sector, would be very welcome.

In the area of concerns about grants and loans, it's a new area for me, as well. I'm just becoming familiar with the nature of the Business Credit Corporation and the NWT Development Corporation. Again, whatever views and opinions Members have would interest me in that area, as well. Thank you.

Thank you, Mr. Kakfwi. General comments. Mr. Krutko.

Thank you, Mr. Chairman. My question is in relation to the business development fund. There seems to be a real problem with the canvas shop in McPherson. The big concern is they're not selling the product so they can't produce any more and people have to be laid off. Is there anything being done with trying to resolve this problem by looking at other initiatives for marketing?

Thank you, Mr. Krutko. If I could ask Members to make general comments on the overall estimates, then when we reach the specific items where you

have questions, we would then allow those questions unless it's included in the overall figure. Is that agreed to by the Members?

Mr. Krutko, could you save your question until we reach that item, if you have it identified in the overall estimates?

Thank you, Mr. Krutko. Are there any more general comments on the main estimates? If not, if Members agree, we will go through page by page. Is that agreed?

We are on page 13-12, directorate. The activity summary is directorate. Operations and maintenance, total operations and maintenance, $3.533 million. Agreed?

The activity summary is policy planning and human resources. Operations and maintenance, total operations and maintenance, $1.186 million. Agreed?

Business Credit Corporation, operations and maintenance, total operations and maintenance, $817,000. Agreed?