Thank you, Premier Antoine. At this time I would ask Mr. Ootes to present the committee's overview of this department.

Thank you, Madam Chairperson. I would like to present the Report of the Standing Committee on Resource Management and Infrastructure Report on the 1999-2002 western business plans and Main Estimates. This is the report for the Department of the Executive.

The mandate of the Premier and the department is to provide overall management and direction to the Executive Branch for the Government of the Northwest Territories.

The Standing Committee on Resource Management and Infrastructure reviewed the 1999-2002 business plan for the Department of the Executive on November 19, 2000. The committee noted that there was understandably increased emphasis on the creation of two new Territories. There were also three significant changes in the department. The former Personnel Secretariat is now Corporate Human Resource Services, which develops and monitors government recruitment policy, the Affirmative Action Policy and other government-wide human resource policies. Secondly, the Official Languages Unit has been transferred to the Department of Education, Culture and Employment. Finally, a new task force comprised of outside consultants and a working group of officials under the direction of the secretary to Cabinet is developing an Economic Development Strategy. Since the business plan review, the development, coordination and administration of the Economic Development Strategy has been transferred to the Department of Resources, Wildlife and Economic Development (RWED).

Throughout the committee's review of the department's draft 1999-2000 Main Estimates on March 25, 1999, Members identified key issues that continue to exact a significant demand on the department and the government. These issues include political uncertainty; the lack of employment opportunities, especially for our youth; the education of the current workforce to align with current employment requirements; and a high staff turnover. Committee Members expect these challenges to be ongoing for at least the short to mid-term.

The committee noted that projected operations and maintenance expenditures reported in the department's draft 1999-2000 Main Estimates declined by $33,000 or 0.40 per cent from their 1999-2002 business plan projections. Projected declines in the Commissioner's Office, Minister's Office and the Public Utilities Board were mostly offset by a $74,000 increase for the Cabinet Secretariat. Overall expenditures for the department remain essentially flat.

Northern Accord.

During the review of the department's 1999-2002 business plan, the Committee discussed the limited ability of the Government of the Northwest Territories to raise revenues. Committee Members agree that increased efforts must be made to retain a more equitable share of the fiscal return from anticipated economic growth, by obtaining a greater share of resource revenues. This would reduce our dependency on federal transfer payments.

Federal Positions.

During the business plan review, committee Members also discussed the proposed transfer or devolution of DIAND employees that deal directly with northern issues from Ottawa to the Northwest Territories. Members noted that the relocation would most likely result in staff complements that are more responsive, accountable and sensitive to their northern clientele.

The department replied that the Department of Indian and Northern Affairs (DIAND) is currently assessing the potential for decentralization. DIAND has retained a consulting firm to look at this issue. Until the consultant's report is completed, there will be few opportunities to move this agenda forward.

Economic Development Strategy.

The Economic Development Strategy currently under development is expected to be a key strategy for the government in 1999 and beyond. However, committee Members continue to be concerned with the Strategy's costs to completion and other related costs. The Minister has agreed to provide the committee with details concerning the final cost of the Economic Development Strategy.

Youth Employment.

The Committee expressed its concern that current and projected economic growth will not keep pace with the need for new jobs. This is especially evident among our youth. Committee Members agreed that there is a need for a coordinated effort by departments in the development and implementation of the Northern Employment Strategy and other related youth employment initiatives, such as the "Better Future for Our Youth" strategy.

Affirmative Action.

The committee in review of the department's draft main estimates expressed concern that affirmative action may be successful at entry and mid-level positions, but may be less than satisfactory at the upper echelons. As a result, the committee requested that the department provide a quantifiable affirmative action status report for all departments for the last three fiscal years.

Human Resource Management.

In the review of the main estimates, committee members were concerned that the current practice of decentralized government human resource management may not be as cost-effective as the previous centralized human resource management approach. The department advised that there are cost savings from this decentralized delivery approach; however, committee members requested further reassurance. The department agreed to provide results that clearly indicate cost savings from the current adoption of the decentralized approach to committee members.

Madam Chairperson, that is the report on the Department of Executive Offices in the business plan review.

Thank you, Mr. Ootes. Would the Minister like to bring in witnesses at this time? Does the committee agree?

Sergeant-at-Arms, would you please bring in the witnesses. Mr. Antoine, for the record, would you please introduce the witnesses.

Thank you. If Members would like to make any general comments at this time on the Department of the Executive. General comments, Mr. Krutko.

Thank you, Madam Chairperson. My question is in regard to the whole area of the human resource sector and also the affirmative action where we seem to still have a problem especially in seeing the benefits of decentralizing the Department of Personnel, allowing the managers to basically manage and also to do their own internal hiring. I feel that there has to be more in-depth review of the possible implications of that move and also concerned with regard to the affirmative action, especially at the upper levels of government in the senior management area, deputy ministers and also in the manager

area of government. I feel that it is essential that we do have a reflective government and bureaucracy with regard to the people it serves. I feel it is very disheartening when you hear of individuals who were employees of this government and were laid off and now because of the hiring freeze within the government, are unable to get employment with this government. I am talking about individuals who were former employees of the Department of Personnel and also employees who may have taken layoff packages because of the downsizing of government and also the implications of division.

I would like to have some assurances that this government is doing something in that area and also working to improve the employment opportunities in this government, especially for individuals who have gone off to university, received their bachelor degrees, political science or even degrees in other areas. In regard to the shortages we are seeing in the Department of Health, Education, teachers, and also that there has to be a more open government when it comes to allowing the government to grow and bring in new people with new ideas and new energy and new initiatives. Madam Chairperson, I would like to leave it at that to make the Minister or Premier aware that I do have concerns in that area and I would like at the appropriate time to ask questions on those matters.

Thank you. Any comments in response to that, Mr. Antoine?

Thank you, Mr. Krutko.

Thank you, Madam Chairperson. In regard to the other area and the Northern Accord, and we know that it is probably one of the most critical issues that is at hand to find a way to find new revenues, but also to find a workable solution to try to have these talks hopefully come to a positive end and we have an agreement with the aboriginal groups, the Government of the Northwest Territories and Ottawa. I think it is critical that through the term of this legislature it was always a priority of this government. With regard to the amount of progress that was made on this file, it seems there has been no progress to date. For this government to basically see this issue in our annual reports time and time again, listing it as a priority, and that there has to be some movement in that area. It is very hard to comprehend that there will be an eventual end to these negotiations and talks, but I think before we see the light at the end of the tunnel we have to start the process. It is critical that the process starts as soon as possible.

Myself, as an individual and some one who was involved in the negotiations with the Northern Accord in the past, feel that because of the political uncertainty in the west and the democratic changes that we see coming with the question about the Boundaries Commission, restructuring of government, and also ridings in the new Western Territory, that it will possibly have a setback to the outcome of the Northern Accord in the future. I think it is essential that we basically conclude these negotiations before any major changes to the political makeup of the Western Territory takes place. I honestly feel, as a person who has been involved in that, and also the problems that we see with the delivery of programs and services and also the challenges we have on self-government, where is the money going to come from? At the end of the day, we are all going to be going to the same, basically, funding source, which is the federal government. The only resources that we have presently to us is federal transfer payments and possibly resource revenue sharing.

I think the aboriginal groups and the self-government negotiations are seriously looking at how do they get those extra funds to carry out programs and services they are presently negotiating. I would like to ask the Premier exactly, at the timing of the Northern Accord has to be concluded or fast-tracked, and some effort has to be made by this government to start that process, regardless - having a meeting with all the aboriginal leaders and groups up and down the valley and trying to find a way to compromise and find a workable solution to have this concluded before the next election. Thank you, Madam Chairperson.

Thank you, Mr. Krutko. Mr. Antoine.

Thank you, Mr. Antoine. Are there any further general comments on the Department of the Executive? Mr. Ootes.

Madam Chairperson, I just had a request. When the Ministers make their statements I wonder if they could provide copies to the Members on this side, it would be easier to follow and allow us to possibly generate some questions from that.

Thank you. Mr. Premier.

Thank you. I guess they are not made available unless they are requested, so they are being requested now. Mr. Ootes.

Thank you, Madam Chairperson. Madam Chairperson, I do not mean that I want Mr. Antoine's right now. What I meant was, if the Ministers, when they make their statements, if they could provide copies at the same time to the Members on this side, so that when the Ministers present their statements, their opening comments, that we can be supplied those copies.

Thank you. Yes, I understand we can have copies of the Ministers' opening remarks provided to the Member shortly. Thank you. Mr. Antoine, would you agree that we could make this a matter of routine for all of the departments, that opening remarks be made available to the Ordinary Members?

Are there any further general comments? Mr. Ootes.

Madam Chairperson, I just had a question, is the Minister in a position to update us on the federal positions that were identified within the Department of Indian and Northern Affairs as potential transfer to the north, does he have an update on that?

Thank you. Mr. Antoine.

Thank you. I understand it has many phases. Mr. Ootes, anything further? Any further general comments? Mr. Erasmus.

Thank you, Mr. Erasmus. Mr. Premier.

Thank you, Mr. Premier. General comments? What is the wish of the committee? Line by line. Page 213, Executive, Commissioner's Office, operations and maintenance, $171,000. Agreed?

Total expenditures, $171,000, page 213. Agreed?

Page 217, Minister's offices, operations and maintenance, $3.347 million. Agreed?

Total expenditures, page 219, Minister's offices, grants and contributions. Grants, $50,000. Agreed?

Contributions, $445,000. Agreed?

Total grants and contributions, $495,000. Agreed?

Cabinet Secretariat, page 221, operations and maintenance, $4.256 million. Agreed?

Public Utilities Board, operations and maintenance, $394,000. Agreed?

Active positions, information item. Agreed?

Back to page 211, Executive Offices, program summary, operations and maintenance, $8.168 million. Agreed?

Total expenditures, $8.168 million. Agreed?

That is the end of the Executive Offices so I would like to thank the Premier and his department colleagues. Thank you. Does the committee agree that we proceed with FMBS, the Financial Management Board? Agreed?

Mr. Dent, you have a statement, opening remarks.

Thank you, Mr. Chairman. Yes, I have some opening comments. Mr. Chairman, I am pleased to have the opportunity to review with you the Financial Management Board Secretariat's 1999-2000 Main Estimates.

The Financial Management Board Secretariat is a central agency of the government. It is responsible for providing advice to the Financial Management Board on the efficient, effective, and economic use of the government's financial, human and information technology resources. The Financial Management Board Secretariat provides this advice and service through five core business units:

- the directorate;

- labour relations and compensation services

- government accounting;

- audit bureau; and

- budgeting and evaluation

In reviewing the Estimates, Members will note the resource reductions from 1998-1999 to 1999-2000. These reflect the funding requirements of the Financial Management Board Secretariat to provide its programs and services to a reduced jurisdiction and a smaller government workforce. However, division of the Northwest Territories has not changed the Financial Management Board Secretariat's responsibility to provide the same core business functions it did prior to the creation of Nunavut. These core business functions include:

1. Providing advice and assistance related to compensation, job evaluation, benefits and maintaining the payroll and human resource information systems.

2. Providing external financial reporting for the GNWT, developing corporate accounting proceduresand policies, paying power subsidies and maintaining the government's accounting system.

3. Providing an internal audit service.

4. Coordinating the government business planning and budgeting process and providing advisory services and assistance in the areas of budget management, program and evaluation and performance measurement.

5. Coordinating the government-wide informatics planning initiative.

6. Providing support for the community empowerment, self-government and claims implementation initiatives.

7. Managing the disposal of the remaining staff housing units.

In addition to its core business responsibilities, the Financial Management Board Secretariat continues to aggressively implement a number of key government-wide initiatives, including:

1. Public/private partnerships.

2. The development and implementation of a new People Soft payroll and human resource management system.

3. The implementation of a framework for the division of the GNWT's assets and liabilities as at March 31, 1999.

4. The geographic reporting of expenditures at the western community level.

The Financial Management Board Secretariat has also developed an Internet web page that provides the public with regular updates on the status of these and other initiatives.

That concludes my opening remarks, Mr. Chairman. I am open to questions.

Thank you, Mr. Minister. Are there any comments from the committee? Mr. Ootes.

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.

Thank you, Mr. Rabesca. Does the Minister want to call witnesses? Mr. Dent.

Thank you, Mr. Chairman. Yes please.

Does the committee agree?

Can the Sergeant-at-Arms escort the witnesses in? Would the Minister introduce the witnesses?

Thank you, Mr. Chairman. On my right I have the Secretary of the Financial Management Board, Mr. Lew Voytilla.

Thank you, Mr. Minister. Welcome, Mr. Voytilla. General comments, Mr. Erasmus.

Thank you, Mr. Erasmus. Mr. Minister.

Thank you, Mr. Chairman. Let me break the response to the question into two parts. First of all, in terms of nurses' housing, typically nurses' accommodations are dedicated units in a community and there has not really been a problem to date with accommodating nurses. On the teachers' side, the Secretariat works with the Divisional Education Council if a problem is identified in a community. On an overall basis we have taken a number of different approaches in some of the smallest communities where there is, typically, one housing unit that is occupied by the teacher. In five such communities, we have turned the housing unit over to the Divisional Education Council along with operations and maintenance funding so that the Education Council themselves can administer the housing that is available. We have embarked on discussions with communities, to further devolve directly to them. With this devolution, we will include operations and maintenance funding so that communities will be able to set the rents outside of operations and maintenance funding and, perhaps, make some money on the housing while keeping rents at an attractive level. The bottom line, Mr. Chairman, is that as a Divisional Education Council identifies a particular problem, the Secretariat works with that council to try to deal with the situation on a one-on-one basis.

Thank you, Mr. Minister. Mr. Erasmus.

Thank you, Mr. Erasmus. Mr. Minister.

Thank you, Mr. Chairman. There are very few specific problems that have been brought to the Secretariat's attention. Where there has been a problem brought to the Secretariat's attention they have moved to deal quickly with the Divisional Education Council in attempting to resolve the situation.

Thank you, Mr. Minister. Mr. Erasmus.

Thank you, Mr. Erasmus. Mr. Minister.

Thank you, Mr. Chairman. I am not that far away from the department that administered income support and I can say there were no teachers in the north who qualified for income support. The problem is probably more closely related to the price and what teachers believe they should pay for accommodations. We use Yellowknife market rents as the basis for rents for accommodation in the communities and many people feel that is unreasonably high.

Thank you, Mr. Minister. General comments. Mr. Erasmus.

Thank you, Mr. Erasmus. Mr. Minister.

Thank you, Mr. Chairman. Yes, we use Yellowknife market rents. It is important to remember that all government employees, teachers, and public works employees receive a northern allowance in order to compensate for the increased cost of living in remote and expensive communities. That can be anywhere from $1,700 a year, in Yellowknife, to $8,000 or $9,000 a year in other communities. That increased cost is what we provide to all our employees whether they be teachers, nurses or public works employees, to recognize the different costs of living in different communities. We would be happy to provide Members with a listing of the northern allowance, by community, in the Northwest Territories, if that would be helpful to the Members of this committee.

Thank you, Mr. Minister. That would be helpful. Mr. Erasmus.

Thank you, Mr. Erasmus. Mr.

Minister.

Thank you, Mr. Chairman. The purpose of the allowance is, in fact, to achieve the goal the Member has asked about. It would be inappropriate for me to express an opinion about the adequacy of it given that it is something that is negotiated with our unions through the collective agreement process. It is something that we have come to an agreement with our unionized employees at the bargaining table.

Thank you, Mr. Minister. General comments. Mr. Ootes.

Thank you, Mr. Chairman. I would like to address some questions regarding the Aurora Funds, Mr. Chairman. Just to background it, to my understanding there were two Aurora Funds and each was identified as raising approximately $30 million to $35 million. I believe 75 or 80 percent of that would be invested into northern businesses. I have tried to get some questions answered on this previously but the committee itself had some questions. Related to job creation and so forth, how effective has the Aurora Fund really been? Perhaps I can start by asking the Minister several series of questions so that I get a picture of where we are at with the Aurora Fund. I guess my first question is, how much has each particular fund raised to date in total?

Thank you, Mr. Ootes. Mr. Minister, did you get that?

Sorry, Mr. Chairman. I missed the end part of Mr. Ootes question.

Could I have Mr. Ootes repeat his question?

I would like to know how much each Aurora Fund has raised in total?

Thank you, Mr. Ootes. Mr. Minister.

Thank you, Mr. Chairman. The Aurora Fund 1996 has raised $19.5 million and Aurora II has raised $22 million.

Mr. Ootes.

Thank you, Mr. Chairman. Could the Minister tell us how much has been invested in northern companies?

Thank you, Mr. Ootes. Mr. Minister.

Total loans approved, Mr. Chairman, under Aurora 1996 are $18,263,350 and under Aurora II, $17.2 million.

Thank you, Mr. Minister. Mr. Ootes.

Thank you, Mr. Chairman. Could the Minister tell us how many companies in total have received funding?

Thank you, Mr. Ootes. Mr. Minister.

Thank you, Mr. Chairman. There are approximately 12 as of March 31, 1999, that have received funds.

Thank you, Mr. Minister. Mr. Ootes.

Thank you, Mr. Chairman. Is that 12 separate companies or did one company receive more than one loan?

Thank you, Mr. Ootes. Mr. Minister.

Thank you, Mr. Chairman. There is one company which has received more than one loan.

Mr. Ootes.

If I am to understand, therefore, there were really 11 companies that received 12 loans, if I interpret that correctly. Could the Minister tell us if there has been some tracking of employment created as a result of these loans?

Thank you, Mr. Ootes. Mr. Minister.

Thank you, Mr. Chairman. That information is being sought now from the companies.

Thank you, Mr. Minister. Mr. Ootes.

Can we have an indication of when we may expect some answers on that?

Thank you, Mr. Ootes. Mr. Minister.

Thank you, Mr. Chairman. Depending on how long this sitting lasts, I will endeavour to get that information to Members before the end of the budget session.