Thank you, Mr. Barnabas. The motion is in order. To the motion. Question has been called. All those in favour? All those opposed? Motion is carried. Mr. Barnabas, please continue.

Thank you, Mr. Chairman. Motion No. 11.

I move that this committee recommends that the Department of Municipal and Community Affairs direct that the annual call for capital projects from the Premier's office be sent as soon as possible after March 31st each year and require responses from the community regarding any revisions or additions before June 20th. If responses are not received by the deadline, funding priorities should remain the same and the Five-Year Capital Plan be adhered to. If either the government or the community makes any revisions, they should be fully substantiated. This committee supports the Auditor General's recommendation that the current Capital Standards and Criteria be reviewed. Thank you, Mr. Chairman.

Thank you. The motion is in order. To the motion. Question has been called. All those in favour? All those opposed? Motion is carried. Mr. Barnabas, do you have any further motions?

No, Mr. Chairman. At this time I would like to give this report to Mr. Steen, my colleague.

Thank you, Mr. Barnabas. The Chair recognizes the honourable Member for Nunakput, Mr. Steen.

Thank you. The motion is in order. To the motion. Question has been called. All those in favour? All those opposed? Motion is carried. Continue, Mr. Steen.

Thank you, Mr. Steen. Mrs. Groenewegen.

Thank you, Mrs. Groenewegen. The motion is in order. To the motion. Question has been called. All those in favour? All those opposed? The motion is carried. Mrs. Groenewegen, do you have a further report to make?

Thank you, Mrs. Groenewegen. Committee report 08-13(5), does the committee agree this report is concluded?

Agreed.

Thank you. As previously agreed to, we will now consider Bill 5, An Act to Amend the Financial Administration Act, No. 2. I believe it is the Premier who will be making the remarks. Mr. Premier.

Thank you, Mr. Chairman. I would like to be able to make these opening remarks, but I think the bill was brought forward by the Minister of Finance so I should give him the opportunity to do it. Thank you.

Thank you. I now recognize Mr. John Todd, the honourable Minister for Finance. Mr. Todd.

Thank you, Mr. Chairman. I apologize. I was having a large discussion with our Deputy Commissioner in the back. Mr. Chairman, the purpose of this act is to amend the Financial Administration Act to allow the Financial Management Board to authorize indemnities with no set limits to known government personnel and special cases. It would also allow the Financial Management Board to authorize the indemnification of a board, agency, committee or council performing on behalf of government, and in the case of municipalities, for environmental liabilities which may be associated with the transfer of assets under the community empowerment or other initiatives.

Thank you, Mr. Todd. Mr. Todd, I accept your apology. Perhaps you got your priorities mixed up earlier. Thank you. I have Mr. Erasmus.

Thank you, Mr. Chairman. The Standing Committee on Government Operations reviewed Bill 5, An Act to Amend the Financial Administration Act, No. 2, at its meeting on June 2, 1998. The standing committee had also considered

the legislative proposal for this bill at previous meetings and had met with the Minister to discuss the proposed amendments. The committee would like to thank the Minister of Finance and his officials for presenting the bill and responding to the committee's questions on the bill and on the legislative proposal.

Bill 5 would amend the Financial Administration Act to change the primary authority for making indemnities from the Commissioner to the Minister of Finance with FMB approval. Also, it would provide that an indemnity with a maximum liability of more than $500,000 or an indemnity that cannot be quantified may be made to the benefit of an individual who is not a public servant and who serves at the request of the government as a member of a board, agency, committee or council; a board, agency, committee or council that performs functions on behalf of the government; and third, a municipal corporation, settlement corporation or other community government body in respect to environmental liabilities associated with the transfer of assets or infrastructure by the government.

The bill would also authorize a Minister other than the Minister of Finance to make an indemnity referred to above on the recommendation of the FMB and with the approval of the Minister of Finance. In all other circumstances, the $500,000 limit on indemnities would remain. The FMB must be satisfied that measures have been taken to minimize any potential risk to the government and that insurance is unavailable or is uneconomic. As well, the Minister of Finance must give at least 14 days notice to Members of the Legislative Assembly before the board makes a recommendation for an indemnity that could exceed $500,000.

This bill is in part a response to a specific requirement that the NWT participate in an indemnification agreement covering provincial and territorial non-government officials on the Canadian Blood Agency. Indemnities are also required for non-government appointees who represent government interests on a range of boards and committees. As well, communities would find it difficult to accept transfers of assets and infrastructure under the community empowerment initiative without some indemnification.

Mr. Chairman, this bill addresses the major concerns that the standing committee raised with the Minister. The committee was particularly concerned that the amendments should be specific and should not leave it open for the government to provide indemnities without limitation. The bill retains the limit on indemnities that is currently in the act for all situations other than those specifically mentioned.

Mr. Chairman, committee Members may have additional comments or questions on this bill as we proceed. This concludes the standing committee's comments on Bill 5, An Act to Amend the Financial Administration Act, No. 2. Thank you, Mr. Chairman.

Thank you, Mr. Erasmus. I would like to now offer the Minister the opportunity to bring in the witnesses, if he so wishes. Mr. Todd, do you want to bring in the witnesses? Do we agree?