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.