Thank you, Sergeant-at-Arms, would you please bring in the witnesses. Mr. Dent, for the record would you please introduce your witness.

Madam Chairperson, with me today I have Mr. Lew Voytilla, the secretary to the Financial Management Board.

Thank you. General comments on the bill by Members. Mr. Krutko.

Thank you, Madam Chairperson. In regard to the Minister's statements where he states that additional appropriations have been provided in regard to the supplementary appropriation, in regard to 1999-2000, that the $16 million was required to complete capital projects carried over from 1998-99 and this is greater than $11 million identified in the Main Estimates for this purpose. Can the Minister elaborate or expand on that to identify exactly why we have to have a difference from $16 million to $11 million which was identified in the Main Estimates.

Thank you, Mr. Krutko. Mr. Dent.

Madam Chairperson, the $11 million identified in the Main Estimates was an estimate which was prepared after consultation with departments following the third quarter in which the departments were asked to estimate what they thought would be lapsed on capital projects underway. There were a number of unforeseen events, it would seem, that meant that the estimate was off by $5 million. Madam Chairperson, as I said in my opening comments, all of those monies were approved in the previous year and they were lapsed so it was monies that were approved for projects that were not expended in the capital projects by March 31, 1999. The projects were ongoing, but had not reached a stage where progress payments were made in the amount that had been expected would be made by departments. Thank you.

Thank you, Mr. Dent. Mr. Krutko.

Yes, thank you, Madam Chairperson. The reason I ask the question is that we just got ourselves out where we ended up with a major deficit in which we had to make some fundamental changes to the way we deliver programs and services and also, cuts to personnel in the government to get out of the deficit, and I do not want to see ourselves getting into the situation where we found ourselves three and a half years ago. I would like to ask the Minister exactly what steps or measures are being taken to ensure that we do not find ourselves in a situation of a deficit in regard to the Deficit Elimination Act which was in place and also what is the status of the act at the present time?

Thank you, Mr. Krutko. Mr. Dent.

Thank you, Madam Chairperson. To answer the last question the Member asked first, it is my understanding that the Deficit Elimination Act does not apply to the 1999-2000 budget, however, as I said in the Budget Address, we have brought forward a budget that, while it has a deficit in it, we have sufficient monies in the accumulated surplus to cover the annual deficit that we are projecting this year. What are we going to do to try and ensure that we do not exceed the $34 million projected deficit? Madam Chairperson, I have advised all Ministers and departments that it will be very difficult to have funding added to supplementary appropriations, and we will expect departments to ensure that we live within the supplementary reserve that we have put into this year's budget. Now going back to the first part of the Member's question which had to do with the difference between the $16 million and the $11 million that was shown in the Main Estimates; it should be pointed out that that difference in $5 million was actually lapsed so that $5 million was, if you want, sitting in the bank on March 31st. It had not been paid for capital projects that were underway simply because they had not reached a stage that required the payment. So, it was not as if we had to find extra money for those projects. That was money we had thought would be paid out in capital projects by March 31, 1999, but, in fact will not be paid out until some future date, or some of them may be ready to be paid now, because the project was not as far along as we had expected. Thank you, Madam Chairperson.

Thank you, Mr. Dent. Mr. Krutko.

Thank you, Madam Chairperson. In regard to the Minister's comments. He made reference to there is as of 1999-2000, there is no Deficit Elimination Act, is that what I heard? If so, what is in place to protect us against going into a deficit situation?

Thank you, Mr. Krutko. Mr. Dent?

Thank you, Madam Chairperson. As I understand it, our legal advice is that the Deficit Elimination Act will not apply for the fiscal year 1999-2000. I believe it is because there were years that were actually mentioned in the act so it applied to specific years that were mentioned in the act when it was passed and we are now past those years. Members will remember, the driving factor for the introduction of the Deficit Elimination Act was to ensure that we could achieve the creation of two new territories as close to debt free as possible. I think it is worth noting that we did in fact do that. We ended up with both territories having money in the bank. What do we have to protect us? Well, you have my resolve that I will be vigilant at ensuring that the departments live within their budgets, and I will be very difficult to convince that money should be put in supplementary appropriations, and then it is up to the Members of this House to continue that vigilance. Thank you, Madam Chairperson.

Thank you, Mr. Dent. Any further general comments? If not, is the committee agreed that we will go clause by clause, review the bill? I am sorry,

review of the detail first. If I could direct your attention please, to page 5 of your green tab 21, tab 21, page 5, in your green binders. Executive operations and maintenance, executive offices, Cabinet secretariat, not previously authorized, $200,000. Agreed?

Mr. Krutko.

Thank you, Madam Chairperson. Is the $200,000. that has not been authorized, is there going to be an audit of that money or is there some way of accounting for it?

Thank you, Mr. Krutko. Mr. Dent.

I would expect that the groups would be expected to provide us with copies of their invoices and statements from their legal counsel to demonstrate that these amounts have been expended.

Thank you. Mr. Krutko.

Thank you, Madam Chairperson. Was there a specific category of how this money was going to be spent? Was it clearly identified how that money was going to be spent?

Thank you, Mr. Krutko. Mr. Dent.