Mr. Chairman, I hesitate to try to interpret the Financial Administration Act because the Minister of Finance
has the responsibility for doing that, but the signing authority spreadsheet that we are referring to here, is a document that really flows from a number of different rules and regulations. It starts with the Financial Administration Act and is outlined in some detail in the Financial Administration Manual. Those directives, in the Financial Administration Manual, provide the details under which delegation may occur. Those directives are 802-1(11), 813, 815, 820-1 and 850. Ministers are empowered to delegate authority to their deputy ministers under the authority of those directives. When we read that section of the Financial Administration Manual, the interpretation is the Minister has provided direction by delegating to the deputy minister the authority to enter into contracts and leases under the regulations. The written directions or the directions that are provided to him are the rules and regulations.
There is no choice but to enter into multi-year contracts whether they are leases or contracts for things like petroleum products. It is not possible to get a reasonable financial arrangement on a lease unless you enter into a lease of five to ten years. Landlords are not prone to enter into shorter-term leases because of a lack of security. They are more likely to get out into the marketplace to locate a tenant who is prepared to sign on for a longer period of time. With the petroleum products contracts that we sign, we cannot get the right price for petroleum products unless we are prepared to commit to a supplier that we will enter into an arrangement with him for three to five years. Those contracts are typically worth $150 to $200 million. The deputy minister signs off on those contracts. The one stipulation that is in every one of those contracts is expenditure which is subject to appropriation by the Legislative Assembly each year. If those appropriations are not approved by the Legislative Assembly, then the contract is null and void. We would be subject to legal action if we were not able to fulfil our commitments, but there is a stipulation in the contract to that effect. I would suggest, if there is a need for a more detailed interpretation of the Financial Administration Act, it would probably be better for Finance to provide it. Thank you.