Agreed.

--- Agreed

Agreed.

--- Agreed

Agreed.

--- Agreed

Agreed.

--- Agreed

Agreed.

--- Agreed

Thank you, Mr. Chairman. The committee requests that we go back to the departmental review of Bill 11, Appropriation Act, 1996-97, and proceed with Intergovernmental and Aboriginal Affairs.

Agreed.

--- Agreed

Ministry Of Intergovernmental And Aboriginal Affairs

Thank you, Mr. Chairman. Thank you for the opportunity to present the Ministry of Intergovernmental and Aboriginal Affairs' budget for 1996-97. I am presenting the budget on behalf of myself, the honourable Minister responsible for National Constitutional Affairs, and the honourable Minister responsible for Intergovernmental Affairs.

The budget is derived from the ministry's business plan which has been developed based on the standing committee's recommendations. I would like to present a brief summary of the highlights of the ministry's proposed budget and the identify how the budget reflects previous recommendations by the standing committee.

The ministry's 1996-97 proposed budget is $2.983 million, which represents a reduction of 29 per cent from the 1995-96 budget. The 1996-97 total person years budget is 22.4, which represents a 17 per cent reduction from the 1995-96 budget. Included in the reductions is the transfer of the community transfer initiative to the Department of Municipal and Community Affairs. Without consideration of this transfer, the reduction of the ministry's budget is 10 per cent.

The 1996-97 operations and maintenance budget is broken down as follows: $1.791 million for salaries and wages; $460,000 for grants and contributions; and, $732,000 for other operations and maintenance. The ministry has no capital budget nor any revenues. The ministry receives $544,000 in vote 4/5 funding from the federal government to meet obligations of land claims. The budget reductions implemented will not require any legislative amendments to be included in the proposed Budget Measures Implementation Act.

The recommendations of the standing committee, related to reductions, are incorporated into the proposed budget in the following manner:

- one person year was deleted and related salary and benefits costs were reduced by $80,000. The position was vacant, so a lay-off was avoided;

- the grants and contributions to aboriginal organizations budget was reduced by $50,000;

- vote 4/5 funding is to be maximized by sharing the salary of the financial and administration advisor;

- the community transfer initiative was transferred to MACA, to be incorporated within its responsibility for community empowerment effective March 1, 1996; and,

- reductions to other O and M resulting from general fiscal restraints.

Further initiatives will be implemented later in the fiscal year, once reviews are completed. The most significant of these are:

In response to the ministry's refocusing initiative, responsibilities for Intergovernmental Affairs has been assumed by the Premier and it should be fully integrated within the Department of Executive in June of 1996.

Associated with this integration, an in-depth review of the Ottawa office is under way and is also to be completed in June 1996. The Premier is the lead on these initiatives. Thank you, Mr. Chairman.

Thank you, Mr. Chairman. It is my pleasure to present the comments of the Standing Committee on Infrastructure regarding this department.

In reviewing the draft business plans of this ministry, the standing committee rejected some additional funding and staffing proposals and accepted the ministry's proposed reduction options. However, committee Members felt that more could be done in this area. Therefore, the standing committee recommended that the role and structure of this ministry be reviewed and consideration options developed which would result in a more efficient operation. As a result, the responsibility for the community transfer initiative, formerly held by the ministry, will now be undertaken by the Department of Municipal and Community Affairs. MACA is obviously best suited for managing the community empowerment process, and the standing committee approves of this transfer.

As well, committee Members approved of the plans to incorporate the ministry more closely with the Executive. However, some of the side-effects of this move seem to be contributing to increased duplication and confusion. It now appears that the responsibilities of the ministry are being supervised by three Cabinet Ministers: Mr. Antoine, for aboriginal affairs; Mr. Kakfwi, for national and constitutional affairs; and the Premier, Mr. Morin, for intergovernmental affairs. Committee Members felt that this would only lead to more confusion and inefficiency and that the principle of accountability could be strained by this arrangement. Therefore, the standing committee recommends that the structure of this ministry be more clearly outlined, that the responsibilities of the ministry fall under one Minister and that the government present a proposed solution to this situation to the Standing Committee on Infrastructure by June 15, 1996.

A further concern of the committee Members was the GNWT office in Ottawa. While the ministry did discuss some of their justification for maintaining this office, the standing committee is still not convinced. Three provinces have chosen not to have an office in Ottawa, and we may not be able to afford such a luxury in this fiscal climate. As one Member put it: "Do we really need an office in Ottawa when we're laying off northerners?" We understand that a comprehensive review of the role of the Ottawa office is being developed and should be ready by the summer. The standing committee recommends that the comprehensive review of the Ottawa office be presented to the Standing Committee on Infrastructure by June 15, 1996. The committee can then review the report and make appropriate recommendations at that time.

Committee Members raised some concerns about grants and contributions made by this ministry. The standing committee suggested that the grants and contributions to organizations for special events be revised into a dollar-matching program, where the ministry would match funds generated elsewhere for special events, rather than just granting free money. This would encourage all organizations to broaden their funding base. We understand the ministry is examining this suggestion and look forward to seeing the results of the ministry's review.

Committee Members also noted, with appreciation, the efforts under way in the self-government division to work with communities and aboriginal organizations on furthering community government and self-government. The committee agrees that the community is often the most effective, if not necessarily the most cost-effective level at which to deliver programs and services to the people of the North. Thank you, Mr. Chairman.

Yes.