Agreed.

Agreed.

Agreed.

Agreed.

Agreed.

Agreed.

Thank you, Madam Chairperson. Madam Chairperson, I am pleased to have this opportunity to speak to the committee about Bill 24, Community Employees' Benefits Program Transfer Act. This proposed bill is needed to permit the transfer of the Community Employees' Benefits Program to a federally-incorporated, not-for-profit corporation.

Madam Chairperson, under the Nunavut Act the current Community Employees' Benefits Program Act would duplicate in Nunavut creating a board for each territory. This would add substantially to the costs of administering the programs and increase costs to the employers and employees enrolled in the CEBA Program. To ensure that the program would remain affordable and could continue to grow, the CEBA Board expressed the desire to remain as one. Madam Chairperson, the current program includes approximately 93 participating employers and 1,292 participating employees. These are, for the most part, from municipalities and housing associations. Overall, $19.5 million is held in trust by the board.

The program provides pension plans, retirement programs, group insurance and group RRSPs which are all competitive benefits on par with those available to GNWT employees. The NWT Association of Municipalities administers this program through a contract with the board. Over the years, the work of the association has been key to its success and growth. The board's long-range planning has been to specialize in providing services to northern locations. There are other northern locations, such as northern Quebec and the northern parts of various provinces, which could be interested in purchasing these types of services. This would meet the needs of northerners living in other jurisdictions and would also allow the program to expand and attract additional employees and employers.

Madam Chairperson, Bill 24 will ensure that the transfer to the new northern Employees' Benefits Program does not have an impact on the participating employers and employees. The objectives of the transfer are to ensure the program remains affordable and tailored to the needs of northerners; that there is fair and equitable representation of Nunavut and the west on the board; that there is continued stability in the administration and management of the program; and that there is opportunity for the program to expand if it is the wish of the members.

Madam Chairperson, I am pleased to say that in cooperation with officials from the board and the Office of the Interim Commissioner, these objectives can be met. As proposed, the program will remain affordable to employers and employees and will remain tailored to the needs of northerners. In addition, I have agreed to take the appropriate action necessary to have Nunavut and the Western Territory represented equally on the board. This will mean that at the time of incorporation there will be four members each for Nunavut and the west.

To ensure success of the new corporation it is expected that, for the time being, the NWTAM will continue to administer the program. Once the new corporation is established, participating members will be able to elect their own board members and will decide where the head office should remain or if services should be expanded to other northern regions. These decisions will come from the members, not the government.

Madam Chairperson, Bill 24 provides for all the assets and liabilities currently held by the board to be transferred to the new corporation. The bill also ensures that existing benefit plans and the benefit entitlements will continue after the transfer. In closing, Madam Chairperson, I am pleased that the proposed Bill 24, Community Employees' Benefits Program Transfer Act, will serve the interests of people in both Nunavut and the NWT. Thank you, Madam Chairperson.

Thank you, Madam Chairperson. Madam Chairperson, the Standing Committee on Infrastructure reviewed Bill 24, Community Employees Benefits Program Transfer Act, on December 5, 1998. The committee would like to thank the Minister of Municipal and Community Affairs and her officials for presenting the bill.

The bill allows the transfer of the Community Employees' Benefits Program to a federally-incorporated not-for-profit corporation. Under the Nunavut Act, the Community Employees' Benefits Program Transfer Act, would be duplicated in Nunavut resulting in a board for each territory. This division would add substantially to the costs of administering the program and resulting in increased cost to participating employers and employees. Bill 24 will ensure current economics of scale are maintained. The bill provides for all the assets and liabilities currently held by the board to be transferred in their entirety to the new corporation. The bill further ensures that existing benefit plans and entitlements will continue after the transfer of the program.

The committee expressed concern that the proposed transfer may incur additional costs for the Government of the Northwest Territories and the Nunavut government. The Minister assured the committee that there are no costs incurred for either government. The committee was also concerned that additional costs or a potential reduction in benefits may be incurred upon employees in the benefit program as a result of the proposed transfer. The Minister and her staff assured the committee that there would be no negative impact on the employees' benefit plan or entitlements.

Finally, committee members were concerned there may not be east/west membership parity on the board after the transfer. The Minister advised the board that her department are awaiting the Office of the Interim Commissioner's selection of a board candidate. The selection of this candidate will ensure there is east/west parity for the federally-incorporated, not-for-profit corporation that will manage the Community Employees' Benefits Program.

Madam Chairperson, following the committee's review, a motion was carried to report Bill 24, Community Employees' Benefits Program Transfer Act, to the Assembly as ready for committee of the whole. Additional comments or questions of the Members may be posed as we proceed. Thank you, Madam Chairperson.

Agreed.

Thank you, Madam Chairperson. To my right is Mr. Bob McLeod, Deputy Minister of Municipal and Community Affairs, and Chris Keely, Finance Director. Sean Flynn to my left is Legal Counsel for the Legislative Assembly.

Agreed.

Agreed.