Thank you, Mr. Chairman. On my left is Ken Lovely, deputy minister of the Department of Public Works and Services; on my right is Dave Waddell, director of finance, Department of Public Works and Services.
Debates of May 15th, 1996
Topics
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 377
Goo Arlooktoo Baffin South
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 377
The Chair John Ningark
Thank you, Mr. Minister. Department of Public Works and Services estimates, general comments from the Members of the committee. Do we have any general comments? Mr. Miltenberger.
General Comments
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 377
Michael Miltenberger Thebacha
Thank you, Mr. Chairman. I have reviewed the budget and the work done by the Infrastructure committee with regard to this department. My understanding, from listening to people talk and to people in my constituency, especially private-sector people, is that the
I would just like to raise another general comment that I think is going to have a bearing on the work we're doing here, and that's the additional restructuring that is now taking place in the Department of Public Works and Services that, as we speak, is going to have a bearing on what we're approving right now in terms of budgets and the way we do business. Being a regional centre, of course -- as my colleague from Inuvik pointed out -- we're starting to watch with considerable interest about the restructuring that's taking place, especially in the regions, so that there is fairness and equity in what's being done, as long as there is an improvement of service and it is fair and equitable.
Tied into this, I'm very interested in the restructuring that will be taking place and will be finalized in the coming weeks and months. Thank you, Mr. Chairman.
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 377
The Chair John Ningark
Thank you, Mr. Miltenberger. General comments. Mr. Roland.
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
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Floyd Roland Inuvik
Thank you, Mr. Chairman. As stated earlier by my counterpart from Thebacha, the breakdown of reductions when it comes to regional centres is a concern, as well as in the area of privatization. I am concerned when it comes to the privatization idea. We've heard from many people, especially the private sector in the communities, how they can do the job better. But I've heard of cases where that isn't a fact. So I grow concerned when we discuss privatization. If it is a true savings, then I will be asking questions later on to the actual savings we are perceived to gain. Thank you.
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 377
The Chair John Ningark
Thank you, Mr. Roland. General comments to the Public Works and Services department. Do we wish to go into detail now?
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 377
Some Hon. Members
Agreed.
--- Agreed
Line By Line
Directorate
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
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The Chair John Ningark
Thank you. We are on page 7-8. Directorate, operations and maintenance, total operations and maintenance, $6.795 million. Agreed? Mr. Miltenberger.
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 377
Michael Miltenberger Thebacha
Thank you, Mr. Chairman. Would it be appropriate at this point to question since it's the directorate, which initiatives are planned for privatization; to ask questions about privatization? Or, am I getting ahead of myself?
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 378
The Chair John Ningark
Thank you. Mr. Minister.
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 378
Goo Arlooktoo Baffin South
Mr. Chairman, we're prepared to discuss that now. There's another section in the activity area where it would be possible, but it would be up to the committee.
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 378
The Chair John Ningark
Thank you. Do we have the concurrence of the committee that Mr. Miltenberger can ask a specific question at this time? Agreed?
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 378
Some Hon. Members
Agreed.
-- Agreed
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 378
The Chair John Ningark
Mr. Miltenberger.
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 378
Michael Miltenberger Thebacha
Thank you, Mr. Chairman. Could the Minister indicate to the committee that, in light of what's in the report read by Mr. Picco with regard to privatization and the concern that they are efficient and they are going to save money, what is happening in the overall approach to privatization within the department?
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 378
The Chair John Ningark
Thank you. Mr. Minister.
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 378
Goo Arlooktoo Baffin South
Mr. Chairman, the privatization plans are being developed at the officials level. They will soon be forwarded to Cabinet for review and it is my intention to make sure that the committees of the House are fully informed and have some input. With regard to specific areas, if the Member has specific questions on whether it is POL or computer services, I would be pleased to answer them.
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 378
The Chair John Ningark
Thank you. Mr. Miltenberger.
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 378
Michael Miltenberger Thebacha
Thank you, Mr. Chairman. To be more specific, with regard to petroleum products and the anticipated privatization, could the Minister indicate what is happening in that regard, especially with the deficit that apparently exists there?
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 378
The Chair John Ningark
Thank you. Mr. Minister.
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 378
Goo Arlooktoo Baffin South
Mr. Chairman, the petroleum products revolving fund is approximately a $50 million business. The accumulated deficit, as it stands now, is approximately $1.884 million, as of the end of March past. I expect it to rise to $2.6 million a year from now. I would like to ask the deputy minister to go into further detail, with your permission, Mr. Chairman.
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
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The Chair John Ningark
Thank you. Mr. Lovely.
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
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Lovely
Thank you, Mr. Chairman. The accumulated deficit in the fund has really resulted from increases that the revolving fund has faced over the last few years, which haven't been reflected in cost increases to the public. So the losses in the fund have increased as we have maintained the prices at the former levels. We haven't had a price increase since 1992 in the 45 communities where the government provides the product. We recognize that we need to get the deficit under control and stabilize the fund. Two things have
happened recently that will allow us to balance the budget over the next few years: The first is an award in April 1996 for the Western Arctic fuel resupply, which should save us $2.8 million over the next three years. The second was the award of the Eastern Arctic fuel resupply which is expected to save $1.5 million over the same period. We are currently negotiating the Iqaluit fuel resupply and we are expecting to see some savings in that area as well, which should allow us to balance this budget in fairly short order. That is one of our priorities before we move on the privatization.
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 378
The Chair John Ningark
Thank you. Directorate, operations and maintenance, Mr. Miltenberger.
Bill 11: Appropriation Act, 1996-97
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 378
Michael Miltenberger Thebacha
Thank you, Mr. Chairman. So the plan would be that you aren't going to proceed with privatization of petroleum products until you balance the budget; so that when you privatize it, there is no debt and the books are balanced. You indicated that is going to take up to a few years.