Thank you. We will take a break, come back and proceed with Bill 13. Thank you.

--Break

I would like to call the committee back to order. We are dealing with Bill 13, Supplementary Appropriation Act, No. 3, 1998/99. I recognize the Minister responsible, Mr. Todd, to make an opening remark. Mr. Todd.

Thank you, Mr. Chairman. Mr. Chairman, the Supplementary Appropriation Act, No. 3, requests authority for additional appropriation of $6.920 million made up of $2.939 million for operations and maintenance expenditures and $3.981 million for capital expenditures.

The total supplementary appropriations, year to date, do exceed the supplementary appropriation reserve included in the main estimates. The improvement in the 1998/99 revenue forecast has permitted the government to address a few critical needs through these supplementary appropriations. However, our fiscal situation still requires vigilance.

With these additional funding requirements, included in Supplementary Appropriation No. 3, the projection is still for a balanced budget in 1998/99.

The operations and maintenance appropriation requirements includes:

1.$2.8 million to support the recruitment and retention of health and social service providers. This includes $2.4 million for the Department of Health and Social Services and an additional $.4 million for Education, Culture and Employment. The current situation of high vacancies and turnover rates, amongst nursing positions, demands definitive action on the part of the government.

The capital appropriation requirements include:

1.$2 million for the Department of Education, Culture and Employment to complete urgent projects. These include: the conversion of the heating systems in school and college facilities in Inuvik resulting from the decommissioning of the high temperature water system; and technical and program upgrades for the Mangilaluk School in Tuktoyaktuk.

2.$1.6 million for the Department of Health and Social Services to address urgent capital requirements, including a CAT scanner for the Stanton Regional Health Board; furniture and equipment for the Gjoa Haven Health Centre and various other urgent needs for both western and eastern health boards.

Thank you, Mr. Chairman.

Thank you, Mr. Minister. Before we get into general comments I would like to ask the Minister if he would like to bring in witnesses. Mr. Todd, would you like to bring in your witnesses?

Thank you very much, Mr. Chairman. I would like to bring in my witnesses now. Thank you.

For the record, Mr. Todd, would you like to introduce your witnesses please.

Thank you, Mr. Chairman, on my immediate right is Mr. Lew Voytilla, the deputy minister of the Financial Management Board Secretariat. Thank you.

Thank you. Welcome to the committee, Mr. Voytilla. The floor is now open to general comments from the membership. Mr. Krutko.

Mr. Todd.

Thank you, Mr. Chairman, while I did speak to the committee earlier on this morning I did indicate to them, as I have said many times, you cannot spend what you do not have. However, recognizing that and recognizing the priority the House placed on education along with a number of other issues, my colleague, Mr. Dent, is working aggressively to try to address both, on the special needs side of education, where there is a desperate need. Also, of course, as my colleague indicates, on the pupil/teacher ratio. However, again there are some limitations. We are determined as I have said on a number of occasions, with the support of the House, to ensure we meet a balanced budget. Hopefully at the end of the day we will be able to. I cannot promise we will be able to bring forward the possibility of some appropriations at a later date on some additional dollars that may be required in that area.

The fiscal reality is we are not in a position today to expend money we do not have. Mr. Dent is, I believe, working towards that and it will be part of the business planning process which you will enter into in the next two or three weeks. At that time, it will give you a clear opportunity to provide the government, both myself and the Cabinet Ministers, with some direction as to where you feel the money should go. Thank you.

Thank you, Mr. Todd. General comments. Are there further general comments from the membership? Do you wish to go into detail? Thank you. On your Supplementary Appropriation No. 3, 1998, page 5, Municipal and Community Affairs, operations and maintenance. Emergency services, not previously authorized, $154,000. Do we agree?

Agreed.

Thank you. Total department, not previously authorized, $154,000. Agreed?

Agreed.

Thank you. We move onto the next page, in this case, page 6. Health and Social Services, operations and maintenance. Administration, not previously authorized, $2.386 million. Mr. Ootes.

Thank you. The Chair recognizes Mr. Todd.

No, that has no relationship to this budget, to what we are reviewing today.

Thank you. Administration, not previously authorized, $2.386 million. Do we agree?

Agreed.

Yes, I have Mr. O'Brien.

Thank you, Mr. Chairman. I wonder if the Minister could provide some more detail as to what exactly is in this amount that is going to help retain medical staff, nurses and doctors and so on in the north?

Thank you. Mr. Todd.