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.