Thank you, Mr. Speaker. Mr. Speaker, there seems to be some misinformation here. I did not say that we ever quit pursuing the money. I said that the federal government did not quit saying no. Maybe I should say that a little more loudly. We kept trying to get the money, the federal government kept saying no. Now you can keep on asking, and keep hearing no if you want. I suggested yesterday that we

probably heard no enough times to suspect that there was not going to be a change in the answer. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, I wish to table the following document entitled, Report to the Minister of Public Works and Services, April 15, 1999. It is regarding issues raised in the Report of the Conflict of Interest Commissioner. Thank you, Mr. Speaker.

I would like to call committee of the whole to order. Before us today, we have Bill 17, Appropriation Act, 1999-2000, and committee report 1-13(7). What is the wish of the committee? Mr. Erasmus.

Does the committee agree?

Thank you. we will commence after a ten minute break. Thank you.

--Break

I will now call the committee back to order. We are on the Department of Finance and I would like to ask the Minister responsible, Honourable Charles Dent, if he would please provide the committee with opening comments on his departmental estimates. Mr. Dent.

Thank you, Madam Chairperson. Madam Chairperson, I am pleased to introduce the Main Estimates of the Department of Finance for the fiscal year 1999-2000.

One moment, Mr. Dent. Mr. Krutko.

Point of order, Madam Chairperson. I do not recognize a quorum.

Thank you, Mr. Krutko. In fact, a lack of quorum is not a point of order, but you have drawn my attention to the fact that we do lack a quorum so I will ring the bells again until we have achieved a quorum in the House.

Thank you, Mr. Dent. I apologize for that interruption. Would you please continue?

Thank you, Madam Chairperson. I am pleased once again to introduce the Main Estimates of the Department of Finance for the fiscal year 1999-2000. For 1999-2000, the Department of Finance is requesting a total expenditure budget of $7.113 million or 20 percent less than in 1998-99. This expenditure budget is accompanied by a revenue budget of $630.133 million. The Department of Finance provides advice to Cabinet and the Financial Management Board and serves the government in five principal areas.

In 1998-1999, the department focused on strategies to make sure the government has the resources necessary to deliver quality programs and services. The Formula Financing Agreement for the NWT was signed last October. This agreement provides a secure funding source for the Northwest Territories. In addition, the NWT Child Benefit Program and the Risk Capital Investment Tax Credit Program were developed to help achieve northern priorities. The department has managed to negotiate insurance coverage for government assets, which, barring another major loss, will run through to March, 2000. The department will be taking action in all divisions, aimed at maximizing revenues and increasing the efficiency and effectiveness of department operations while becoming more responsive to client needs.

The goals of the Department of Finance for 1999-2000 are clearly focused on the government's priorities of increasing employment for northerners, providing a better future for our youth and creating a fair, representative and responsive government in the NWT. In this regard, the department's efforts over the next year will be emphasized in three key areas. First, it is critical that the fiscal regime of the NWT be able to support a stable political environment and a strong economy. Within the context of western governance and aboriginal self-government, we will work to make sure the NWT has the resources necessary to deliver quality programs and services to the public. It is vital to make sure that northerners receive a greater share of the fiscal benefits arising from the development of northern resources.

An integrated tax regime which encourages economic growth and development will continue to be important. As well, Madam Chairperson, the department will be working with other government departments on proactive measures to prevent fire losses. This ensures that the government is able to maintain affordable insurance coverage.

The Department of Finance will also continue its efforts to become more responsive to client needs. The department is working with local governments and taxpayers to improve communication and to streamline regulatory procedures. Madam Chairperson, I would now be pleased to respond to any questions the committee may have.

Thank you, Mr. Dent. With the overview by the standing committee I have Mr. Ootes.

Thank you, Madam Chairperson. I would like to give the report on the review of the 1999-2002 business plans and the 1999-2002 Main Estimates for the Standing Committee on Resource Management and Infrastructure and it is the report on the Department of Finance.

The Department of Finance and its Minister have the mandate for obtaining the necessary financial resources required to implement the Government of the Northwest Territories policies and programs, negotiating major financial arrangements with the federal government, regulating the insurance industry and controlling the sale of alcohol products in the Northwest Territories.

The Standing Committee on Resource Management and Infrastructure reviewed the Department of Finances business plan on November 20, 1998. Committee Members noted that the Department's business plan reflected federal funding changes that arose from the creation of two new territories. Importantly, variances in projected revenues and expenditures continue to be affected by national and global economic malaise, as metal commodity prices remain depressed. The Northwest Territories economy is resource driven. As such, until commodity prices recover, tax revenues affected by this downward cycle will most likely decline.

The committee reviewed the department's draft 1999-2000 Main Estimates on March 24, 1999. Total proposed 1999-2000 operations and maintenance expenditures declined by $88,000 or 1.22 percent from the business plan projections. Total operations and maintenance revenues also declined slightly by $97,000 or 0.02 percent for projected net revenues of $630.056 million. The Department of Finance administers the grant from Canada, territorial taxes and other revenues and accounts for over 85 percent of the total estimated 1999-2000 revenues of the territorial government.

Committee Members during their review of the draft 1999-2002 Main Estimates were concerned about the future of the gold mines, the economic potential of the diamond industry and the impact of the eventual loss of Nunavut business on the west. Committee Members agree that unless significant sources of revenue are produced or innovative or more efficient management of existing resources is developed, the government's ability to maintain and deliver programs and services may be severely compromised.

Insurance premiums. During the review of the business plan, committee Members expressed concern about rising insurance premiums and the very significant increases in the government's deductible, now $2 million. As a result, the committee recommended that the government examine options for increased fire prevention education programs in schools and initiatives to increase public awareness. The committee further recommended the adoption of on-site security personnel and the study of other alternatives to prevent and reduce losses due to fire and criminal activity.

In accordance with the committee's recommendations, the government has established an interdepartmental Facilities Risk Committee, chaired by the Department of Finance. The objective of the committee is to identify and implement practical loss prevention strategies (such as on-site security personnel) and procedures to protect government assets from loss at a reasonable cost.

Alternative Sources of Revenue. During the review of the department's draft Main Estimates, the committee noted that the government would no longer be bound by the Deficit Elimination Act after the 1998-1999 fiscal year. The government by its own projections is expected to be in a significant deficit situation in the next (2000-2001) fiscal year. Without the infusion of the accumulated surplus, the government would have been in a deficit situation for the 1999-2000 fiscal year.

Further, as commodity prices such as oil and gold continue to decline, taxation revenues from mining concerns may be severely compromised or eliminated altogether. Committee Members concluded that unless innovative means of income are found quickly, the government's ability to deliver and provide programs at satisfactory levels may no longer be possible. The committee recommends that timely efforts be made to identify and evaluate alternative sources of revenue.

Nunavut Service Contracts. Committee Members noted during both reviews that revenue from services performed for the Nunavut government represents a significant portion of the government's overall income. This income may be an important contribution to the government's current level of program and service delivery. The committee would like to receive a summary of Nunavut contracts to date and their respective contract values.

Madam Chairperson, that completes the report of the Standing Committee on Resource Management and Infrastructure on the Department of Finance.

Thank you, Mr. Ootes. At this time, I will ask the Minister if he would like to bring in witnesses.

Thank you, Madam Chairperson, yes, please.

Is the committee agreed?