Thank you, Mr. Chairman. Mr. Chairman, the Financial Management Board Secretariat occupies a central position in the government organizational structure. As a result, many important and sometimes controversial initiatives fall under its jurisdictions.

The most notable of these is the sale of staff housing. Ever since the plan to sell staff housing on level two and level three communities was announced, concerns have been raised about the availability of suitable housing for government staff. Especially in recent months, teachers and others have expressed concerns that the sale of staff housing will lead to difficulties. Committee Members noted concerns that have been brought to their attention in discussions with the Minister. The committee appreciates that the Minister has undertaken efforts to address the concerns of these employees and to complete the sale of staff housing. The standing committee will continue to monitor this issue and the concerns of constituents and will continue to discuss staff housing sales with the Minister necessary to ensure that those concerns are addressed.

A further concern relates to the sale of staff housing to those not occupying the house. In some cases, the tenant employees are choosing not to buy the homes. The government's plan is then to sell the staff housing to private concerns, who will then lease the house back to the government for the employee's use. Committee Members did not agree that selling an asset, just to lease it back, was a good idea. Therefore, the committee will reiterate a recommendation made following the review of the draft business plans in October. The standing committee recommends that the chairman of the Financial Management Board Secretariat not proceed with sales of staff houses to anyone. Anyone other than the occupants.

Staff housing that is leased from private landlords was also discussed. Some concerns were raised about instances where the government and its employees may be subject to unreasonable lease costs. As well, some committee Members noted the Minister's frequent assertions that the government was getting out of staff housing, yet, still entering into new leases for staff housing units. The standing committee will continue to address these and other concerns with the Minister in the area of labour relations and human resource issues.

The changes to the Public Service Act, the many lay offs and resulting lack of job security and the uncertainties of the future regarding division and possible further cut backs, have led to a situation where the government's most important asset, its employees, are not able to contribute they way they would if morale were higher. Much of the problem relates to poor communication. Some committee Members noted that when the federal government started major cut backs in their civil service, they gave as much as three years notice to employees, giving them time to examine other options for their careers. The standing committee understanding that the territorial government did not have the luxury of such notice.

However, we seem to have gone to another extreme, with employees often being the last to know about major changes, which will effect their positions. The result is a perception that there is a lack of direction and overall strategy to the cuts. It is critical that the government communicate effectively with employees in order that they might be best prepared for the difficulties that they face as a result of fiscal restraint, division and other massive changes to the way the government operates in the Northwest Territories.

Committee Members were pleased to see that one area where communication was a problem, the issue of pay to Union of Northern Workers over Christmas and the mandatory days of leave without pay, also known as "Donny Days," has been resolved and unionized government workers will now not have to cope with severely reduced pay cheques right after Christmas.

Finally, a new affirmative action policy review is expected to be tabled in the House during the 4th Session and committee Members look forward to seeing this policy debated by all Members. So ends the overview of the Standing Committee on Infrastructure, report on the Financial Management Board Secretariat and Minister Todd.