This is page numbers 345 - 390 of the Hansard for the 14th Assembly, 2nd Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was chairman.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

The Chair

The Chair Paul Delorey

Thank you, Mr. Ootes. Mr. Braden.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

Bill Braden

Bill Braden Great Slave

Thank you for that information on extraordinary enrolment. I would like to see if the department is pursuing, though, something which can accommodate the normal to and fro, the normal turn-over that our school systems seem to be experiencing. We are not just talking about, say five or ten percent of the school population changing in the course of the year, but as much as a third. I think the administrative burden this places on some of our boards is extraordinary in itself. Is the department able to look at that? Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

The Chair

The Chair Paul Delorey

Thank you, Mr. Braden. Mr. Ootes.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

Jake Ootes

Jake Ootes Yellowknife Centre

Thank you, Mr. Chairman. I believe that Mr. Braden may be referring to a situation that is occurring specifically in some of the Yellowknife schools where there is an in-and-out situation. Students attend, they come to Yellowknife, they may attend for a month or two months or three months, and it is creating difficulties for the school boards. I have asked the school boards to do an analysis of this. I should be specific there. I have asked the school board that has raised the issue with me for further information on this and to advise me of the types and volumes of changes that take place.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

The Chair

The Chair Paul Delorey

Thank you, Mr. Ootes. Mr. Braden.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

Bill Braden

Bill Braden Great Slave

Great. I am pleased to hear the department is following through on that. That is the extent of my questions. Thank you, Mr. Chairman.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

The Chair

The Chair Paul Delorey

Thank you, Mr. Braden. Mr. Roland.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Chairman. I want to speak to the issue of the campus once again. The Minister earlier said that one of the reasons for it changing was the escalating costs and the low enrolments. I want to make a couple of points here. After recovering from such a blow, I have had a chance to go over some of the thoughts here and, in fact, that program, when it was first discussed, was well over $13 million. Then the Deh Cho went to an option that was $8.5 million. In that $8.5 million, there was not even any closet space in the campus.

I have looked at the plans that were presented for that figure. I had instructors from the campus coming to me, telling me they were very concerned that in fact we were building a centre that was already too small. It is interesting to hear the Minister saying it might be too large, when in fact I am aware that...for example, in September, there will be 13 courses being put on, and the campus only has room for ten. So we are going to be leasing space or the campus will be leasing space to put on some of the programs.

I cannot really blame other people who want to go other places, because that is an old building to be going to school in. It sure does not give you a positive outlook and give you energy for the day to go through your programming. I just wanted to put that out there. When this project was initially discussed, the value of the project, and this was estimated by the Department of Public Works and Services, and it ranged from a number of options which included renovating the old Grollier Hall facility or a new building. The cheapest scenario that came out was to build a new facility, not renovate an old one. You are looking at the years of life of the building and one of the options put forward was $13 million plus. Saying that it was an $8.5 million project with escalating costs as one of the reasons it had to be looked at, does not reflect the history of the project. I wanted to state that for the record. Thank you, Mr. Chairman.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

The Chair

The Chair Paul Delorey

Thank you, Mr. Roland. Does the Minister want to respond to those comments?

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

Jake Ootes

Jake Ootes Yellowknife Centre

Thank you. I would just like to thank the Member for his comments. Thank you, Mr. Chairman.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

The Chair

The Chair Paul Delorey

Thank you, Mr. Ootes. I have no names on my list. What is the wish of the committee? Detail? Okay, we are dealing with the Department of Education, Culture and Employment, interim appropriation. We are on page 6, tab 6, page 6, total operations and maintenance, $62,533,000.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

Some Hon. Members

Agreed.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

The Chair

The Chair Paul Delorey

Page 8, total capital, and $5,478,000.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

Some Hon. Members

Agreed.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

The Chair

The Chair Paul Delorey

With that, I would like to thank the Minister and his witnesses. We will take a short break, and come back with the Department of Finance.

-- Break

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

The Chair Leon Lafferty

I will call the committee back to order. We have the Minister of Finance. Opening remarks, please.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 377

Joe Handley

Joe Handley Weledeh

Thank you, Mr. Chairman. Mr. Chairman, I am pleased to present the Department of Finance's interim appropriation to the committee. The Department of Finance is requesting funding to operate through the first four months of fiscal year 2000-2001 until the main estimates are prepared and presented for approval.

The department is requesting approval for $1,190,000 for normal salary and normal operating expenses, or approximately one-third of the annual amount of these expenses. In addition, the department requires $271,000 to fund the salaries and wages of the liquor commission that are paid from commission profits, but use the Government of the Northwest Territories pay system. This funding is only required until the annual Liquor Commission main estimates are loaded into the payroll system. At that time, this appropriation will be removed.

Also requested is $571,000 for the estimated interest costs of borrowing to meet the government's short-term requirements during the period covered by the interim appropriation. The government's insurance policies require that premiums be paid in full on April 1st each year. Therefore, the interim appropriation includes $2,231,000 for the premiums.

The final item included in the interim appropriation request by the Department of Finance is $56,000 for the four-month additional costs of the federal government's changes to the Public Service Superannuation Act. These requirements add up to $4,319,000.

The Department of Finance has no capital budget, so it is requesting no capital funding as part of the interim appropriation.

Mr. Chairman, I would be pleased to respond to any questions the committee may have. Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 378

The Chair Leon Lafferty

Thank you, Mr. Minister. Do I have any committee reports? Mr. Braden.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

March 28th, 2000

Page 378

Bill Braden

Bill Braden Great Slave

The committee met with the Minister and his staff on March 16, 2000, to review the proposed 2000-2001 interim appropriation for the department. The committee made note of the following issues.

Short Term Interest Expense

Committee members were concerned with the cost of short term interest expense. The department replied that some funding requirements are more economically met with short term financing. This methodology would result in more savings than, for example, a long term borrowing obligation to meet a short-term need.

Insurance Costs

The committee was also concerned with the high cost of insurance and the very high deductible of $1 million. The department replied that our insurance costs are ours alone and do not reflect any obligations from Nunavut and, further to the committee's concerns, the department explained that the Department of Finance, under the Financial Administration Act, had to increase economies of scale, is responsible for purchasing insurance for all government departments. The department responded that the current deductible is the most cost-effective, especially given our severe loss record.

Committee members asked the Minister if there are initiatives under way to improve security in schools and other large capital assets to help bring down our insurance costs. The Minister replied, that the government's insurance policy covers all our assets and schools only represent a portion of the total portfolio. He agreed to look at other alternatives for reducing insurance costs, but insurance costs will most likely decline in the short term.

He further added that departments, including Municipal and Community Affairs, Public Works and Services and Education, Culture and Employment are working together to come up with more alternatives to reduce insurance costs.

Tangible Capital Assets And Insurance Costs

The committee asked the Minister if the proposed tangible capital assets reporting program would entail problems for the government's insurance coverage in corresponding premiums payable. The department replied that if valuations made by the reporting system based on amortized or depreciated value are more substantial in more than the insurance company's, which is based on replacement value, the department may drop the asset from the list of insured assets. Part of the tangible capital assets program entails the amortization of an asset over a prescribed time period or depreciation. If insurance only covers the depreciated value of an asset, then the government may most likely not receive enough insurance reimbursement to replace the asset. Currently, this hypothetical situation is avoided, as the government's insurance policy is based on replacement value.

Mr. Chairman, that ends the committee's report.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 378

The Chair Leon Lafferty

Thank you, Mr. Braden. Does the Minister wish to bring witnesses?

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 378

Joe Handley

Joe Handley Weledeh

Yes, I do, Mr. Chairman.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 378

The Chair Leon Lafferty

Does the committee agree?

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 378

Some Hon. Members

Agreed.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 378

The Chair Leon Lafferty

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

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 378

Joe Handley

Joe Handley Weledeh

Mr. Chairman, on my right is Margaret Melhorn, the deputy minister of Finance. On my left, Bill Setchill, director of finance and administration for the Department of Finance.