Thank you, Mr. Chairman. The committee was satisfied with the Legislative Assembly's explanation of the reason for an over-expenditure in the pension liability of the Legislative Assembly, Supplementary Retiring Allowances Fund. The committee is pleased that the administration of the Legislative Assembly and the Financial Management Board Secretariat have reached an agreement on the reporting requirements for the fund and Members are satisfied the committee will not be revisiting this issue again. Throughout the Northwest Territories Development Corporation, the committee was very disappointed with the lack of a detailed response to the Auditor General's Report by the Development Corporation. Unlike any of the other departments or agencies appearing before the standing committee, the corporation did not prepare a comprehensive presentation.
When the corporation's presentation to the committee is compared to the other departments' presentations, it is apparent to the Members that the corporation failed to address any of the issues or concerns arising out of the Auditor General's Report.
Although the presentation forecasted a positive future for the Development Corporation, committee Members felt the corporation failed to indicate any quantifiable actions or results.
The committee has some sympathy for the current administration, given the problems with the Development Corporation that were inherited. However, the committee does not believe the current administration can abdicate its responsibility to respond to the Auditor General's Report by virtue of the fact they were not responsible for the actions of previous administrations.
The glaring problem with the Development Corporation in the minds of the committee Members is that the corporation does a poor job in communicating the results of any investment it makes. The committee realizes some investments are, in fact, subsidies to businesses that have no reasonable chance of success. However, in the absence of any report or statement that contains measurable, quantifiable results, the committee is not comforted by the corporations positive outlook that there is nothing to worry about.
Nearly two years have passed under the new administration's leadership. There should be some way to measure the results of the changes to the corporation that have been implemented.
The committee is concerned that the corporation has an inventory control problem. The committee understands that the corporation is dealing with the problem and trying not to sell off inventory at reduced prices to avoid market disruptions.
The committee would like to see a listing of all surplus inventory held by the Development Corporation's subsidiaries and venture companies, and the value assigned to that inventory.