Thank you, Mr. Speaker. Mr. Speaker, later today I will be tabling the GNWT' draft Transition Action Plan for the creation of two new territories. This plan reaffirms our commitment to creating two new territories in the most orderly and responsible manner possible. It also identifies many of the challenges that will face all parties if we are to ensure a successful transition from one territorial government to two. Mr. Speaker, it is important to state at the outset that we recognize that a significant portion of the detail in this plan deals with Nunavut. I want to assure Members of this House, as the Premier stated in his opening comments for this session, that we will be supplementing this plan with one that provides more detail on the transition costs for the new Western Territory within the next 40 days.
In addition, Mr. Speaker, the Minister responsible for western transition planning, the Honourable Charles Dent, will be tabling in this House next week a further report that focuses more strictly on the issues related to the transition to a new Western Territory. Mr. Speaker, there are many players in the implementation process: the Interim Commissioner, the Western Coalition, the federal government, Nunavut Tunngavik Incorporated, the Nunavut Implementation Commission and the Caucuses of this Legislative Assembly. All of the parties have made significant efforts in the planning phase, however, the time for planning is over and the time for action and implementation has begun.
Mr. Speaker, the fundamental purpose behind tabling this document today is to provide an outline of the steps that need to be taken to see us through the transition period and to create two functioning governments on April 1, 1999. It is important to stress, Mr. Speaker, that this document represents our best analysis of the current situation and is being offered to all of the parties in a spirit of cooperation and partnership. It is simply advice and nothing more.
Although the GNWT will continue to be the government in Nunavut until April 1, 1999, we have no legal mandate to implement transition measures in Nunavut. It is clear that transitional responsibility rests with the Interim Commissioner and the federal government. As I, and my other Cabinet colleagues have stressed over the past two years, the GNWT will do whatever it can to support this process, recognizing that we are dependent, to a large extent, on others to make some critical decisions and on the provision of reasonable funding from the federal government. Mr. Speaker, in developing this plan, critical information was gathered from all departments. Using key assumptions, we have mapped out the actions and costs necessary for the creation of two new territories by April 1, 1999. Most of the costs identified are not funds that would flow directly to this government, but rather through the office of the Interim Commissioner and the Nunavut government.
The plan assumes that critical headquarters functions will be up and running in Nunavut on April 1, 1999, but that other headquarters positions will not yet be in place. Mr. Speaker, this reality is accepted by all parties and forms the basis for existing federal funding assumptions. Mr. Speaker, another important consideration in the development of the plan is the revised schedule for completion of the infrastructure required in many Nunavut communities. This new schedule will result in further administrative challenges in managing the transition period, particularly for the office of the Interim Commissioner. There are many core functions that must be in place (either staffed or contracted) for Nunavut to operate as a government on April 1, 1999.
Mr. Speaker, there will very likely be a need for the Nunavut government to request the Western Territory to provide some services under contract on a cost recovery basis for a period of time. It is important that decisions on contracting be made soon to allow the west to retain the key human resources required to provide these services should agreement be reached on this key issue.
Another critical area is that of systems. Governments depend on all types of systems to run and provide services, such as health, motor vehicles and courts. These systems need to be in place early and it takes money and lead time to do this. Key decisions must be made and adequate funding must be put in place very soon to ensure that these systems are in place for the Nunavut government on April 1, 1999. The plan identifies significant transition costs leading up to and after April 1, 1999. These affect both west and east and include such costs as staffing, removal expenses, office space and data management systems. Mr. Speaker, as Members are aware the federal government has already provided $150 million in funding for the transition to a new Nunavut government. While this funding was and is extremely important in moving the process forward, it is important to point out that the federal government had to allocate this funding without the detailed information that we now have at hand for both the east and west. For example, Mr. Speaker, key staffing decisions such as the hiring of deputy ministers, Legislative Assembly staff and many of the other central legal, financial systems and personnel staff need to be made as soon as possible. These decisions may result in costs that were not anticipated in the federal government's original transition plan.
The total amount of resources required, as identified in the draft plan, exceed those funds identified by the federal government to date. It is fair to say that the Government of the Northwest Territories has been concerned about these transitional costs for some time, but this document now quantifies the additional financial resources that will be required for implementation. Mr. Speaker, I spoke with the Minister of Indian Affairs and Northern Development about this matter last month and our officials have been meeting to consider how best to deal with these concerns. I am pleased to inform the House that Minister Stewart has agreed to a table that will allow all parties to assess the transition costs identified by the Government of the Northwest Territories.
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It is important to point out, Mr. Speaker, that it is our view that significant progress must be made on the resolution of these outstanding costs so the creation of Nunavut and the Western Territory becomes a reality. Given the current fiscal position of the Government of the Northwest Territories, there is no provision within our current budget for transitional costs nor is there any flexibility to redirect funding to this end. Simply put, the Government of the Northwest Territories cannot shoulder the costs to the detriment of program funding for the existing GNWT and the future Nunavut and western territorial governments. At a minimum, we are looking to the federal government for assurance that a reasonable level of funding to cover the transition costs, as outlined in the plan, will be covered off.
A few examples of the issues and the estimated cost of implementation:
- recruiting for Nunavut headquarters positions - $20 million
- regional office decentralization - $18 million
- headquarters down-sizing, office space rationalization - $11 million
The need for additional funding to ensure an adequate transition cannot be understated. A clear and timely commitment from the federal government is vital to the implementation process. Nevertheless there is much that can and must occur, to get the ball rolling-decision points for many of these issues rest with the Interim Commissioner:
- hiring of critical senior staff must begin immediately,
- decisions on computer systems must be made immediately,
- requests to the GNWT for contracting back for services not yet fully functional by 1999 must be made very soon.
Mr. Speaker, any discussion of transition measures, particularly as they relate to Nunavut, would not be complete without considering the issue of decentralization. As Members of this House are aware, the Government of the Northwest Territories has continually supported the concept of a decentralized government for Nunavut so long as it was efficiently designed and that adequate federal financing was made available. The Government of the Northwest Territories remains committed to the implementation of the decentralized model of government for Nunavut on this basis.
Mr. Speaker, the draft transition plan deals specifically with the steps that are required to ensure that decentralization proceeds. It includes an estimate of approximately $18 million as the one-time costs associated with decentralization. In our view, this information will be critical to the office of the Interim Commissioner and the future Nunavut government to ensure that decentralization occurs as quickly and efficiently as possible. Mr. Speaker, this plan is not a request by the GNWT for $136 million. This plan is really an alert to all of the parties that there are significant transition costs associated with creating two territories. This plan is a guide for action. It is not a perfect document nor does it contain all of the answers, however, it does outline the order of magnitude to the task at hand. We hope that all of the parties, particularly the Interim Commissioner and the federal government, will take this information and use it as a guide for action.
Mr. Speaker, creating two territories is a massive challenge-one which few governments have ever had to deal with. This transitional action plan offers a path towards that goal and also provides a realistic assessment of the opportunities and constraints along the way. I hope that all of the parties will view it accordingly. Thank you, Mr. Speaker.
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