Thank you, Mr. Chairman. It is my pleasure to present the comments of the Standing Committee on Infrastructure regarding this department.
The standing committee appreciates the efforts of the department in reducing the 1996-97 capital spending by deferring a number of capital projects. As well, over the course of the business plan review process, the department also introduced further O and M reductions, bringing their efforts in fine with those of other departments in the infrastructure envelope.
The standing committee felt that further capital cuts might be possible in this department. However, the Financial Management Board disagreed, saying that the department had already done its share. Committee Members appreciate that reducing capital programs in this department will have a noticeable impact on our communities. But committee Members would rather see arenas and new subdivisions cut before nursing stations or schools. Many of the programs offered by the department are of a lower priority than the social programs offered by the government, and reductions to the government's overall budget should reflect that.
The standing committee did appreciate the emphasis on community empowerment. Committee Members agree that greater responsibility and accountability should be transferred to municipalities. This can have significant advantages, both for providing services more efficiently to NWT residents at the community level, and for reducing the strain on the government's limited financial resources. However, the standing committee urges the government not to use community empowerment as a way of dumping programs on communities and then reducing contributions. Downloading programs at the community level should carry assurances of appropriate funding levels.
The standing committee noted a number of training initiatives being undertaken by the department. Committee Members agree that the effectiveness of community empowerment will be directly related to the quality of the training and education available to elected leaders and administrators in the communities. However, committee Members also want to see that training initiatives are efficient, cost-effective and appropriate for the needs of NWT communities, The standing committee recommends that the department provide details of all current training initiatives to the committee for review.
Committee Members noted the work done by the department last summer in helping communities build firebreaks to protect from forest fire damage. However, the committee was concerned that this effort seemed somewhat unplanned and ad hoc. The committee recommended that the department consult with the Department of Renewable Resources to develop a clear set of policies and procedures for building firebreaks around communities. Discussions are apparently under way between the departments, and the standing committee recommends that the final plans be presented to the standing committee before June 1, 1996.
The standing committee approved the elimination of the home owners' property tax rebate program. Committee Members do recognize that home owners generally contribute significantly to local economies. However, the original purpose of this program was to encourage home ownership. Committee members do not feel that a rebate of $300 or $75 is sufficient to potential home owners to justify the continuation of this program.
The water and sewer subsidy program has been a source of concern in the past. Not only has there been tremendous growth in the expenditures of this program over the last few years, but committee Members were concerned that the program was not encouraging efficient delivery of water and sewer services in municipalities. The standing committee agreed that growth in this program should be stopped, as proposed by the department, and also recommended that a further five per cent be taken out of the program. As well, the committee recommended that the department should identify the amount of subsidy by community and introduce further proposals towards a more user-pay system. The reductions in this program should be implemented in such a way as to encourage efficient delivery of water and sewage services and discourage inefficient delivery.
The department has now put forward a plan to introduce block funding for water and sewer services to communities and intends to implement that plan by June 1, 1996. The standing committee looks forward to seeing its effects on the efficiency of water and sewer service delivery. I think that should be the efficiency of water delivery and sewage pick-up.
Finally, committee Members recalled an item briefly discussed in the review of the first draft. Members had expressed some concerns regarding the fact that leases for Commissioner's land are $250 per year, no matter what size the lease is or its planned use. The department mentioned that they intend to develop a strategy for recovering the actual costs of leasing the land, especially administration costs. The department also discussed bringing in a user-pay policy for land developed by the department in non-tax-based municipalities. The standing committee agreed that fees paid for the lease and development of land should be paid for by the users of the land. The standing committee recommends that the department develop user-pay strategies for development and lease of land and provide those proposals to the standing committee by June 15, 1996. Mr. Chairman, that concludes the report.