I apologize, Mr. Chairman. Amendments to the eating or drinking places regulations, under the Public Health Act to allow for permit fees. Other legislative changes may be required depending on final decisions regarding board structures.
This year's capital plan requires $13.5 million, but $4.9 million of this is carryover for projects previously identified in last year's capital plan. The replacement of hospitals in Inuvik and Iqaluit remain at the forefront of the department's capital plan. We are working with the respective boards to develop cohesive plans that will lay the foundation for design and construction work over the next four to five years. The year 1996-97 will be an intensive planning year.
Replacement of the health centre in Fort Good Hope is under way and will be completed in 1996-97, while the Clyde River health centre will be operational at the end of this month. Renovations are under way in Jean Marie River and Trout Lake and planned for Fort Providence, Fort Resolution, Arviat and Gjoa Haven. Planning will begin for a group home for handicapped adults in Fort Simpson. We expect construction to start next year.
We are working with the Department of Municipal and Community Affairs to construct a facility in Snare Lake which combines a health centre and a community office. Design will be completed this year. We are also working with the Department of Education, Culture and Employment to provide an appropriate facility in Yellowknife for MacAteer House, a shelter for victims of spousal assault.
There have been and will be lay-offs and elimination of positions. Our main estimates present a net change in reported PYs of 14.5 positions for the 1996-97 fiscal year. We are proposing that 18.5 social worker positions that are currently underfunded will be funded. These are not new positions. We will create three new positions. Two are required to implement the Guardianship and Trustee Act, and one will coordinate a mentoring program for northern nursing graduates. Through a combination of lay-offs and eliminating vacant positions, we have already reduced 15 positions at headquarters, including one assistant deputy minister position.
We will privatize the Trailcross Treatment Centre in Fort Smith which, unfortunately, means laying off 15 employees. Because this action takes place mid-year, the net effect will be a reduction of 10 person years. However, on the positive side of this initiative, business and employment opportunities in the private sector will be created.
We expect changes as a result of health board initiatives. Health boards were given budget targets and challenged to find ways of providing services with less money. The department reviewed reduction plans prepared by the boards, but did so only to monitor compliance with existing legislative, policy and financial requirements. Boards therefore had significant latitude in making their own reduction decisions and will be held accountable. Board proposals have dealt with staffing changes through a combination of lay-offs, eliminating vacant positions and privatizing functions. The boards have not finalized their plans, but I can give you an idea of the magnitude of change they are proposing. We have reviewed submissions from all eight boards. Over the next two years, boards proposed a net elimination of 137 positions. Of these positions, 35 are vacant and 102 are staffed. Fifty-eight positions are connected with services boards propose to privatize.
These proposals are not new to many of you. They have been shared with the Standing Committee on Social Programs during their review. The department has benefited from the frank and open discussion with the standing committee on the financial and program challenges facing the department. The comments and recommendations received from the standing committee have been incorporated in the main estimates before you today.
Non-government organizations which receive funding from the department will also be affected. The department can no longer fund the many service, advocacy, and professional organizations at current levels. They too will have to look at doing things differently or find alternative sources of funding. Today's main estimates are not all about reductions. They also say where the department will be spending in the coming year. Wellness and empowerment are key pillars of this government's agenda. We share the belief of the Standing Committee on Social Programs that community wellness is crucial to the health and well-being of the people of the Northwest Territories.
The department is working with envelope partners and the communities on many wellness projects, including developing a community wellness framework to guide the creation of community wellness action plans; redesigning the community action fund to bring more focus on specific community problems; consolidating health and social services at the regional level to help integrate programs and make resources flexible and give communities greater influence in determining how their programs are delivered; working with communities in taking a now approach to drug and alcohol programs and facilities; fast-tracking programs for children, youth and elders; reducing the number of clients in long-term institutional care by developing programs and services to encourage and promote independent living; and, repatriating clients and services from southern Canada to the NWT where appropriate.
Empowering communities is another important priority of the government. To further this goal, the department will work with Municipal and Community Affairs and Public Works and Services to transfer infrastructure to the communities; restructure health boards to increase local accountability; and introduce a funding formula to ensure equitable and flexible funding for health and social services programs.
I would like to repeat that the 1996-97 main estimates mark only the beginning of the task we face. Together with communities, boards, regions and other stakeholders, we must do more work over the coming months to meet our department's budget target for 1997-98. We must all play our part in protecting the northern health and social services system to ensure all northerners continue to have access to quality care close to home.
Thank you for this opportunity to speak to the main estimates. I welcome questions on our submission later. Thank you.