Before we start, I wish to inform the House that I have received the following message from Her Honour the Commissioner of the Northwest Territories.

Dear Mr. Speaker:

I wish to advise that I recommend to the Legislative Assembly of the Northwest Territories, the passage of Supplementary Appropriation Act, No. 4, 1998/1999, during the sixth session of the 13th Legislative Assembly.

This is signed by Helen Maksagak, Commissioner. Orders of the day. Item 2, Ministers' statements. Mr. Arlooktoo.

Thank you, Mr. Speaker. I stand before the House today as the Acting Premier of the Government of the Northwest Territories -- a position just days ago that I did not expect to find myself in. However, it is a position I assume with a great sense of humility and responsibility. We are, until March 31, 1999, MLAs and Ministers for all of the Northwest Territories. We must not lose sight of this collective duty as we confront the difficult tasks that await us in the days ahead. Whatever our position, whatever our title, we are all here to serve the people of our communities.

Mr. Speaker, we have a heavy agenda to deliver over the course of the next few weeks. We have an obligation to ensure we do so in a fair, mature and responsible fashion. Before we can address the complex political issues that must be resolved, we have an extremely busy legislative schedule. There are about 20 different bills that need to be debated and passed. There is a lot of work that must be done and done quickly. We have to roll up our sleeves and get at it.

Mr. Speaker, at the top of our priority list for the eastern Arctic is legislation such as the Division Measures Act and other bills which will:

*permit contracting back under new service arrangements;

*provide for transitional arrangements for both the Workers' Compensation Board and the NWT Power Corporation that will allow them to operate in both territories;

*enable professional organizations to operate in both jurisdictions; and,

*allow for the orderly transition to two new governments.

We must ensure all these critical pieces of legislation are put in place to get two new governments on a good footing. At the same time, we must set the stage for the creation of a new Western Territorial Government. We will continue to actively pursue the agenda for the new Northwest Territories. There are a number of urgent items on the agenda including:

*the ongoing negotiation of land claims and self-government agreements, as well as outstanding governance issues related to the ongoing relationship between public and Aboriginal governments;

*a new economic strategy;

*establishing a more equitable fiscal arrangement with Ottawa that will allow us to gain a greater share of resource revenues as well as an increase in the tax window so we can generate more own-source revenues: and

*ongoing efforts to ensure the federal government finally delivers on its long- standing unfulfilled promise to allow northerners to take control of northern resources.

These are the keys to building a strong foundation from which the new Northwest Territories can grow and prosper.

Mr. Speaker, we also have a responsibility to select a new Premier - a leader who will be able to carry out the vision for the north that we have developed together during this mandate. Now is the time for leadership. Because our business is the business of governing. It is about ensuring consistency and providing certainty that the people of the NWT will continue to be served by a strong and stable government. It is about delivering the social and economic programs and services that the people of our communities rely on. It is about instilling confidence in the local territorial and national business community that the NWT is a good place to invest. A good place to create jobs and generate economic growth. It is about

demonstrating to Ottawa that we are a mature and responsible government that can take setbacks in stride. This is a Legislature that can deal quickly and effectively with problems when they arise. A Legislature that will continue to move forward in preparing the new north for the new millennium. Mr. Speaker, these are the things that matter to our communities.

The people of the Northwest Territories fully expect us to honour our commitment to serve their needs and interests. It is a pledge I fully intend to fulfil during my temporary tenure as Acting Premier, and when I return to my ongoing duties as Deputy Premier and as MLA until the end of our term. Serving the people of the NWT is both an honour and a privilege - a privilege that can be taken away as quickly as it is granted.

Mr. Speaker, we face perhaps the most challenging and emotionally charged issue this House has ever had to address. That is to achieve an equitable and ethical resolution of the conflict issue. I want to make it clear to my honourable colleagues that we are obliged to set aside any personal prejudices. Despite all that has been said and reported on, we have a duty to develop a course of action that is both fair and balanced. I am calling on all of my colleagues to approach this work with an open heart and an open mind. It is critical that we not prejudge the outcome of the proceedings until all voices and all perspectives have been heard. The people of the Northwest Territories are counting on us to do the right thing. We must not let them down. Thank you, Mr. Speaker.

--Applause

Thank you. Ministers' statements, Mr. Todd.

Thank you, Mr. Speaker. Mr. Speaker, there is a need to set the public record straight and get the facts before this House on the matter of contracting with former GNWT employees. This is not a new issue nor is it just a northern issue. However, it has become a recurring topic in this Legislature and in the media since government went through its major downsizing initiatives of the past few years. There are now many more former GNWT staff out in the private sector trying to make a living in an economy dominated by government contracting and spending.

Mr. Speaker, the current government guideline governing contracting with former employees has been in place since December, 1986. It is contained in the Human Resource Manual Section 003 titled Ethics - Conflict of Interest - Outside Employment, Clause 14, under guidelines which read:

For one year from the date their employment ceases, senior officers may not own, operate, control or be employed by any business enterprise within the community in which they were employed and in which they may be in a position to unduly exploit knowledge they gained while employed by the Government of the Northwest Territories.

This is the guideline that governs contracting with former senior officers. It also governs other situations such as subsequent employment within a specific community. An employee may apply to the Chairman of the Financial Management Board to be exempted from any or all provisions of this section.

The guideline attempts to find a balance between the collective and individual rights and the need to encourage movement of talented people between public and private sector employment. As a collective, the public must be protected from situations where former employees may have an unfair market advantage in bidding on government work or where government policy restrains competition or trade. As an individual, the former employee has a right to not be unfairly restricted in his or her ability to make a living.

The approach taken in the guideline is to set criteria that guard against former employees gaining an unfair market advantage in securing government contracts. Unfair market advantage in this case can only arise from undue exploitation of knowledge gained while employed. It is assumed this refers to confidential information or knowledge, as public information or knowledge can be exploited by anyone and thus by definition could not be unduly exploited by a former employee. The guideline is premised on several assumptions about what gives rise to unfair advantage.

The first assumption is that only senior officers have access to enough confidential information or knowledge during their employment to have the potential to have an unfair market advantage. This exempts hundreds of former employees who have been laid off or have resigned in the past few years who have not been senior officers. However, approximately 250 current staff meet the definition of a senior officer. Three years ago there were over 330, so there is the potential for many former employees to be subject to this first criterion.

The second assumption is that confidential information or knowledge has a relatively short shelf life. Given the openness with which government operates and the rapid pace with which the environment and government operations change, it is unlikely that confidential information or knowledge carries a market advantage value for more than one year. As a result, the guideline sets a second criterion by specifying a one year time limit on its application.

The third assumption the guideline makes is that confidential information or knowledge is only of value and only gives rise to an unfair advantage if that information directly pertains to the government work in question. For example, knowing the government's internal plans for meeting public housing needs is not going to give rise to an unfair advantage if the government work being contracted is to study potential environmental liabilities. This is the basis for the third criterion, which prohibits undue exploitation of confidential knowledge gained.

Mr. Speaker, it is also important to distinguish between the use of confidential information or knowledge to gain market advantage versus the release or disclosure of confidential information generally. All employees must take an oath of secrecy concerning the release or disclosure of confidential information. The secrecy oath continues to apply to all former employees whether or not they are covered by the guideline governing contracting former employees. For example, no one wants former employees releasing or using confidential medical information under any circumstances.

Mr. Speaker, our guideline that governs contracting with former employees is similar to that in other jurisdictions. The practices of other jurisdictions range from no restrictions in Alberta because they prioritize encouraging movement of people between the public and private sectors, to one year cooling-off periods that apply to a very narrow group of employees in Manitoba.

The GNWT guideline balances collective and individual rights and interests and takes a pragmatic approach to this issue. It is structured to prevent former employees from successfully suing the government for unfairly restricting their ability to earn a living. It is intended to give guidance to government staff who are tendering and entering into contracts. It informs both current and former employees what the government believes their rights and obligations are after they have ceased to be employees.

The number of former employees active in the private sector probably reaches into the thousands. Even the hundreds of those defined as senior officers and thus covered by this guideline are too many to allow one organization or individual to police every contract entered into by the government. However, the job of my department and myself is to ensure that a reasonable guideline is in place, that it is widely published and that situations that are called to our attention are reviewed. Each contracting authority is responsible to know the rules set out by the guideline and to abide by them.

Mr. Speaker, although I would always caution on reacting to poorly researched media editorials, I do note that the editorial in the November 30th News/ North raised government contracts with a specific former employee, Mr. Roland Bailey. I believe the government should correct the misleading information and the editorial presented. I will request staff to complete a survey of the practices of other jurisdictions, to research the case law that is relevant and to assess whether any changes to our approach is appropriate. When this review is complete, I will communicate it to the Members of this House. Thank you.

--Applause

Thank you. I would like to welcome back the Member from Nunakput. I understand Mr. Steen just came back from the hospital. I also would like to welcome back Mr. Evaloarjuk, who was also in the hospital.

--Applause

The Member for Kivallivik has requested that I recognize his Pages that are with us today. I want to apologize if I do not say your name right. All these names are aboriginal names. I might have a problem pronouncing them, but here goes. John Niakrok, Adrian Pameolik, Brian Suwaksioak and Gloria Arnayuinak. Welcome to the Assembly.

--Applause

I hope I said your names correctly. Ministers' statements. Item 3, Members' statements. Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, I am going to leave my prepared statement and respond to the Minister of Finance's statement on contracting of former senior managers. First of all, Mr. Speaker, I was one of the people who raised this issue many times in this Assembly and I make no apology for it.

Let us review some of Mr. Todd's statements. He infers that, for example, as deputy minister of Health, an individual would not be privy to information, direction or policy for education or public works. That is bizarre. All senior deputy ministers or assistant deputy ministers meet at senior deputy ministers' meetings and are privy to the direction, policy and focus of this government. The fact is, Mr. Speaker, there is a policy in place and the government did not follow it. Later today, I will ask the Minister about his statement. Thank you, Mr. Speaker.

--Applause

Members' statements. Mr. Krutko.

Members' statements. Mr. Barnabas.

Thank you, Mr. Speaker. I rise today to address what has been on everyone's mind for the past few days, the Conflict of Interest Inquiry. As the result of this inquiry, the residents of the Northwest Territories have understandably become more cynical about their public institutions. If people cannot trust their Members to do the right thing, soon Members will find that their decisions will have less and less legitimacy.

These recent conflicts of interest have taken attention, time and energy away from other important issues. This may potentially incur more than over $1 million in final costs to the taxpayer. On a sidebar, Mr. Speaker, I wonder if the final costs will be split east and west?

I hope the remaining and new Members of Cabinet will continue to conduct themselves with integrity. I do not dispute that this inquiry was necessary, but this money could have been better spent on more important priorities. Thank you, Mr. Speaker.

--Applause

Thank you. Members' statements. Mr. Evaloarjuk.

(Translation) Thank you, Mr. Speaker. I do not have a prepared statement today, however, I just want to make a statement to give my appreciation and thanks to Mr. Speaker and my colleagues for welcoming me back into this House. I would like to extend my appreciation to my family as well, who supported me morally. Although they were not able to be with me physically, they have always given me their support. Also, my constituents of Pond Inlet and Hall Beach. I appreciate their sincere appreciation of me being back here in the House. Thank you, Mr. Speaker. (Translation ends)

--Applause

Thank you. Member's statements. Mr. Miltenberger.

Members' statements. Mr. Ootes.

Member's statements. Mrs. Groenewegen.

Members' statements. Mr. Rabesca.

Thank you, Mr. Speaker. Mr. Speaker, I have the unfortunate responsibility to inform this House of the passing of one of our great traditional elders. Today, Pierre Wedzin of Rae-Edzo passed away after a long illness. He has been a very respected member of the Dogrib region and a traditional medicine man for the area for many years. He lived a very traditional life style and knew the importance of teaching the traditional ways to our younger people. His family is very large with a total of 86 grandchildren and great-grandchildren. His family enjoyed his kind and gentle ways and I am sure he will be missed greatly. To his family and friends, I would like to, on behalf of this Assembly, send our condolences. He is a great man and will be missed. Thank you, Mr. Speaker.

--Applause

Members' statements. Mr. Erasmus.

Thank you, Mr. Speaker. Mr. Speaker, similar to Mr. Miltenberger, I too had the opportunity to attend the Meet the North conference in Edmonton this past weekend. It was hosted by Edmonton's mayor, Bill Smith, and organized by his office. Mr. Speaker, the conference had many booths and speakers from all over the north. From the north I mean the NWT, the Yukon, northern Alberta, Manitoba and Saskatchewan. Of course, the NWT was well represented, there were many speakers and booths from the NWT, such as private individuals like designers, Berna Beaulieu and Karen Wright-Fraser. There were also many companies like the Power Corporation, Deton'Cho Corporation and the Housing Corporation.

Mr. Speaker, I would like to thank the City of Edmonton. Obviously there was a lot of time and energy which went into organizing this conference. I also would like to applaud all the people who made presentations and put up booths for a job well done. Thank you.

--Applause

Members' statements. Mr. Henry.