Thank you, Mr. Chairman. I would like to present the committee's report on the Financial Management Board Secretariat and the review of the 1999-2002 business plans. General comments first.
The Financial Management Board Secretariat and the Chairman of the Financial Management Board have the mandate for managing and controlling the financial, human and information resources of the government, and for providing information to the FMB and ensuring that the government's financial, human and information resources are managed in an effective, efficient and economical manner.
The Standing Committee on Resource Management and Infrastructure reviewed the FMBS business plan on November 20, 1998, and the draft 1999-2000 Main Estimates presented by FMBS on March 24, 1999. The Committee noted a $71,000 or 0.38 percent decrease in total operations and maintenance expenditures. Projected decreases in operations and maintenance for the Directorate, Labour Relations & Compensation and Budgeting and Evaluation, were partly offset by minor increases in Government Accounting and the Audit Bureau. Operations and maintenance revenues are projected to increase $63,000 or 1.46 percent.
Throughout the committee's reviews, Members were primarily concerned with the incorporation of full cost recovery and a cost-plus factor in all service contracts with Nunavut, existing staff housing and potential spinoffs from Aurora Fund loan disbursements. Accountability and the efficient use of resources are an ongoing concern. As a result, the Aurora Fund issue remains at the forefront of committee concerns.
Aurora Funds. During the reviews of the business plans and draft Main Estimates, the committee expressed its concern regarding the effectiveness of the Aurora immigrant investor funds in delivering direct economic benefits to the northern economy. Committee Members were also concerned that funding based on a balanced and an equitable approach must be directed towards all corporations alike.
The committee reiterates its request made during the business plan review for employment statistics that specifically identify jobs created as the direct result of capital transfers made to territorial companies from the Aurora Funds, and for the final list of Aurora Fund clients and respective loan amounts.
A similar information item was provided by FMBS to the committee for the preliminary set of monies disbursed by the Aurora Fund, and these requests were agreed to by the Minister during review of both business plans and Main Estimates.
Service Fees to Nunavut Government. The Nunavut government has contracted and is anticipated to contract additional services from the future NWT government in the short to medium term. The current rate or >cost-plus' factor charged by the government to the federal government for a service performed is 6.5 percent.
During the business plan review, the committee recommended the incorporation of a >cost-plus' factor (or a service fee) in all service agreements with the Nunavut Government. This would be in addition to full recovery costs of services and programs delivered. The committee requested a copy of the government-wide template for service and program delivery agreement for work done on behalf of the Nunavut government. Committee Members were pleased to find that the template incorporated full recovery costs and a cost-plus factor as per the committee's recommendation.
Pay Equity. Committee Members continue to be concerned about the progress of the pay equity issue. Pay equity represents an unknown risk that may significantly affect the overall fiscal outlook for the Government of the Northwest Territories.
Informatics. Committee Members are concerned about year 2000 compliance for government-wide systems, and especially those systems that manage and operate essential services such as power and fire suppression. Further, committee Members pointed out that it may be incumbent upon the GNWT to ensure municipalities are Year 2000 compliant. Many municipalities may not have the qualified staff or resources to ensure timely compliance.
The department assured the committee that a government-wide review has been undertaken to ensure the government's computer systems are Year 2000 compliant.
Mr. Chairman, I would like to turn the report over to my colleague, Mr. Rabesca, to complete the report on the Financial Management Board Secretariat.