Thank you, Mr. Chairman. The committee met with the chair of the Financial Management Board Secretariat 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.

Continuing Legal Costs

Committee members were concerned about continuing legal costs for equal pay litigation, pension reform and collective bargaining. The committee asked the Minister how long we would continue to incur legal costs to settle the aforementioned issues. The Minister explained that the pay equity settlement is still being negotiated with PSAC. The government is under the understanding that 83 percent of the potential litigants have reached settlement and a further $33 million may be necessary to reach settlements with the remainder. However, the union is of the position that the settlements are partial payments and the final, overall settlement should be $300 million.

The proposed funding for research and consultation surrounding the pension reform issue is a one-time activity and collective bargaining will always be an ongoing process.

Pension Reform

The committee was also concerned with the funding necessary for pension reform and succeeding fiscal years to ensure the superannuation plan for Government of the Northwest Territories employees is fully funded. The Minister replied that the government is working with the union on cost-effective alternatives to the current pension scheme.

PeopleSoft

Committee members were also concerned with the additional funding requested for the PeopleSoft program. The department informed the committee that the proposed funding is for system upgrades and to fulfill the remainder of the government's contract obligations for PeopleSoft.

Tangible Capital Assets

The committee was concerned with further requests for funding for the tangible capital assets reporting system. Committee members commented that most government departments might not have the qualified staff to ensure their contribution to the valuation and reporting process is met. The Minister replied that the system would be up and running and auditable by March 31, 2001. He further added that departments have qualified staff to complete the necessary tasks for the program. Furthermore, he explained that this initiative might be an ongoing item as the government continually procures or divests infrastructure.