Thank you, Mr. Erasmus. The motion is in order. To the motion. Question has been called. All those in favour? All those opposed? The motion is carried. Continue on, Mr. Erasmus.
Debates of March 3rd, 1998
This is page numbers 1265 - 1297 of the Hansard for the 13th Assembly, 5th Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was communities.
Topics
Committee Motion 31-13(5): Recommendation That Public Accounts Reflect Pay Equity Liabilities
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1288
Committee Motion 31-13(5): Recommendation That Public Accounts Reflect Pay Equity Liabilities
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1288
Roy Erasmus Yellowknife North
Thank you, Mr. Chairman. In the area of environmental cleanup and related restoration costs, the committee is very concerned with the government's lack of action in addressing the environmental liability issue. As this issue will definitely be on the table during the asset liability
negotiations between the various northern parties, the committee is of the opinion that as a minimum, the government should perform a sort of triage on the environmental liabilities list. The primary goal of this triage should be to identify the sites and where there is a potential for harm to NWT residents, employees or wildlife, to identify the associated cleanup costs and to create a plan and identify the necessary funding, to deal immediately with these sites. The next goal of the triage should be to identify the sites, for the Government of the NWT may have inherited a liability, the responsible agency or government for each site and to inform the appropriate bodies of the NWT government's potential statement of claim. As a first step, the committee feels that the government must identify the money to conduct the initial site review.
Committee Motion 32-13(5): Recommendation To Address Contaminated Sites And Environmental Liabilities
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
March 2nd, 1998
Page 1288
Roy Erasmus Yellowknife North
Mr. Chairman, I move that this committee recommends that the government prioritize the list of contaminated sites in the NWT, identifying those sites that pose a risk to the health and safety of people or wildlife, conduct a detailed assessment of clean up options and related costs for those prioritized sites, identify funding and conduct final clean up of these sites at the earliest possible time and develop and apply a consistent accounting policy for disclosing all environmental liabilities in the public accounts.
Committee Motion 32-13(5): Recommendation To Address Contaminated Sites And Environmental Liabilities
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1289
The Chair Vince Steen
Thank you, Mr. Erasmus. The motion is in order. To the motion. Question has been called. All those in favour? All those opposed? The motion is carried. Mr. Erasmus, proceed on with your report.
Committee Motion 32-13(5): Recommendation To Address Contaminated Sites And Environmental Liabilities
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1289
Roy Erasmus Yellowknife North
Under supplementary appropriations, Mr. Chairman, in last year's report, the committee stated its concern that some departments were circumventing the budgetary planning process by relying on supplementary appropriations as an integral part of the budgetary and planning cycle. It was felt by the committee that the majority of these departments were aware or should have been aware that additional funding was likely to be required and by using the supplementary appropriations, the departments denied the committee and the government the opportunity to gain a full understanding of the funding problems facing the departments.
The committee is pleased that in this fiscal year the government has not relied on supplementary appropriations. The appropriations now appear to be largely used for the purpose for which they were created, that is to deal with fiscal issues which are unforeseen or cannot be accurately planned for.
Division
Realizing that the issues mentioned in the Auditor General's Report regarding preparations for division will have to be settled at the political level, the committee appreciated the comptroller general's comments and update on how division planning was proceeding. The committee will be closely monitoring these ongoing issues.
The next area is revenues, receivables, and receipts management. Mr. Chairman, the Auditor General's report listed several concerns with the way the various government departments handled revenues. The committee was generally satisfied with the government's response to the concerns outlined in the Auditor General's Report. Committee Members agreed that the contracting out of the lesser value receivables to private collection agencies was a positive step and would free up the Financial Management Board Secretariat collection agents to pursue the higher-value receivables.
The committee would like to express some scepticism about a $300,000 cost estimate attached to the upgrade of the financial information system to enable the system to calculate and add interest to overdue accounts. The committee feels that by not calculating and adding interest to the overdue accounts, the government is missing out on a revenue generator, as well as a tool to encourage timely account payment. It was noted that the NWT Power Corporation charged interest on overdue accounts and that there may be a possibility for the government to make use of the Power Corporation's program. The committee also had the same concerns as the Auditor General's office with respect to the handling of cash at the local and regional levels. With the privatization of some government services, it was felt by the committee that the government needed to tightly monitor the deposit requirements to ensure any cash reporting deficiencies were discovered and dealt with in a timely, efficient manner.
Committee Motion 33-13(5): Recommendation That Future Fis Include Interest Calculation Capabilities
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1289
Roy Erasmus Yellowknife North
Mr. Chairman, I move that this committee recommend that the next financial information system, purchased or used by the government, have the ability to calculate at compound interest on overdue accounts.
Committee Motion 33-13(5): Recommendation That Future Fis Include Interest Calculation Capabilities
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1289
The Chair Vince Steen
Thank you, Mr. Erasmus. Your motion is in order. To the motion. I am afraid I do not recognize a quorum, so I am going to have ring the bell. I recognize a quorum. I call again. All those in favour? All those opposed? The motion is carried. Mr. Erasmus, your time is up. Does the committee agree that the Member may carry on further? Agreed?
Committee Motion 33-13(5): Recommendation That Future Fis Include Interest Calculation Capabilities
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1289
Some Hon. Members
Agreed.
Committee Motion 33-13(5): Recommendation That Future Fis Include Interest Calculation Capabilities
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1289
The Chair Vince Steen
Thank you. Mr. Erasmus, you have consent of the committee to carry on past your ten minutes.
Committee Motion 34-13(5): Recommendation To Improve Cash Handling Processes
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1289
Roy Erasmus Yellowknife North
Thank you. Mr. Chairman, I move that this committee recommends the government take immediate steps to improve the process by handling cash receivables and the process be made more stringent and the opportunities for direct deposits and other such mechanisms be explored to minimize theft potential and losses to the government.
Committee Motion 34-13(5): Recommendation To Improve Cash Handling Processes
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1289
The Chair Vince Steen
Thank you, Mr. Erasmus. The motion is in order. To the motion. Question has been called. All those in favour? All those opposed? The motion is carried. You may proceed, Mr. Erasmus.
Committee Motion 34-13(5): Recommendation To Improve Cash Handling Processes
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1290
Roy Erasmus Yellowknife North
Thank you, Mr. Chairman. I will now pass the remainder of the report to be read by Mr. Miltenberger.
Committee Motion 34-13(5): Recommendation To Improve Cash Handling Processes
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1290
Committee Motion 34-13(5): Recommendation To Improve Cash Handling Processes
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1290
Michael Miltenberger Thebacha
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.
Committee Motion 35-13(5): Recommendation To Link The Corporate Business Plan To Year-end Results
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1290
Michael Miltenberger Thebacha
Mr. Chairman, I would like to make the following motion in that regard. I move that this committee recommend that the NWT Development Corporation identify the positive linkages between the corporations business plan and the end result in its 1997-98 year-end statement, paying particular attention to the results achieved that can be attributed to the administrative changes implemented by the current administration. Further, that these results should be presented to the Standing Committee on Resource Management and Development, at the earliest opportunity, for their review. Thank you, Mr. Chairman.
Committee Motion 35-13(5): Recommendation To Link The Corporate Business Plan To Year-end Results
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1290
The Chair Vince Steen
Thank you, Mr. Miltenberger. Your motion is in order. To the motion. Question has been called. All those in favour? All those opposed? The motion is carried. You may proceed further, Mr. Miltenberger.
Committee Motion 35-13(5): Recommendation To Link The Corporate Business Plan To Year-end Results
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1290
Michael Miltenberger Thebacha
Thank you, Mr. Chairman. The committee was generally pleased with the presentation and response to the Auditor General's Report made by the NWT Housing Corporation. The committee appreciated the president's candour in discussing the issues facing the Housing Corporation. The committee looks forward to receiving a legal opinion on the tax implications on the mortgage subsidy programs that the corporation has undertaken to provide to the committee.
There is still a concern on the part of the committee that when higher income tenants move out of social housing, they take with them the significant rent paid to the local housing authorities and are replaced with low-income tenants who can only afford the minimum rental cost. This scenario could impact negatively on the block funding supplied by the Housing Corporation to the local housing authorities.
The committee strongly urges the corporation to monitor this situation and, if required, make adjustments to the base block funding provided to affected local housing authorities to ensure the local housing authorities can still fulfil their mandate.
The committee was pleased to see the period of debt forgiveness increase from five to 15 years. The committee feels this was a positive move by the corporation to ensure the abuses of the system are kept to a minimum.
The committee also has concerns about the inequities between the different programs that the Housing Corporation administers. It was felt that this was a diverse issue in some communities and results in a lower rate of financial return to the corporation. The committee was pleased to hear about the phasing out of the rural remote housing program in the corporation's fairness in dealing with the homeowners who had honoured their commitment. The committee is of the opinion that the corporation and local housing authorities must deal aggressively with people who abuse any of the Home Ownership Programs. If one person in the communities sees there are no consequences for others who do not fulfil their obligations, problems with abuses to the system will only multiply.
Committee Motion 36-13(5): Recommendation To Request A Comprehensive Review Of The NWT Housing Corporation By The Auditor General
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1290
Michael Miltenberger Thebacha
Mr. Chairman, I would like to move the following motion. I move that this committee recommends the Legislative Assembly request that the Auditor General conduct a comprehensive review of the NWT Housing Corporation, concentrating on the inequities between the programs the Housing Corporation administers.
Committee Motion 36-13(5): Recommendation To Request A Comprehensive Review Of The NWT Housing Corporation By The Auditor General
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
The Chair Vince Steen
Thank you, Mr. Miltenberger. Your motion is in order. To the motion. Question has been called. All those in favour? All those opposed? The motion is carried. Mr. Miltenberger.
Committee Motion 36-13(5): Recommendation To Request A Comprehensive Review Of The NWT Housing Corporation By The Auditor General
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
Michael Miltenberger Thebacha
Thank you, Mr. Chairman. That concludes the report of the Standing Committee on Government Operations.
Committee Motion 36-13(5): Recommendation To Request A Comprehensive Review Of The NWT Housing Corporation By The Auditor General
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
The Chair Vince Steen
Thank you, Mr. Miltenberger and thank you, Mr. Erasmus. Are there any general comments on the report? If not, does the committee agree that consideration of Committee Report 6-13(5) is concluded?
Committee Motion 36-13(5): Recommendation To Request A Comprehensive Review Of The NWT Housing Corporation By The Auditor General
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
Some Hon. Members
Agreed.
Committee Motion 36-13(5): Recommendation To Request A Comprehensive Review Of The NWT Housing Corporation By The Auditor General
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
The Chair Vince Steen
Thank you. Committee Report 6-13(5) is concluded. As previously agreed, we will move on to the next item on the agenda which is Tabled Document 15-13(5), 1998-1999 Budget Address. Are there any further questions or general comments on this particular document? Does the committee agree that Tabled Document 15-13(5) is concluded?
Committee Motion 36-13(5): Recommendation To Request A Comprehensive Review Of The NWT Housing Corporation By The Auditor General
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
Some Hon. Members
Agreed.
Committee Motion 36-13(5): Recommendation To Request A Comprehensive Review Of The NWT Housing Corporation By The Auditor General
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
The Chair Vince Steen
Thank you. Tabled Document 15-13(5) is concluded. We will move on to the next item. I believe it is our last item on our agenda. Tabled Document 19-13(5), Guidelines for Implementing Public/Private Partnerships. Whom do I direct this to? Mr. Todd, as the Minister of Finance and Financial Management Board. Mr. Todd.