Thank you, Mr. Chairman. I would like to recommend that we continue consideration of Bill 1 and Committee Reports 1, 2 and 3 concurrently. Specifically, to look at the budget for the Department of the Executive, followed by the Department of Justice, should we conclude the Executive.

Does the committee agree?

I would like to ask the Minister responsible for the Department of the Executive if he has any opening comments. Mr. Kakfwi.

Thank you, Mr. Chairman. The Department of the Executive's goals, contained in the 2000-2001 Main Estimates, reflect the broad direction set by the 14th Legislative Assembly in Towards A Better Tomorrow.

Mr. Chairman, the Department of the Executive has identified four key strategies that will guide the actions that we will take in order to do our part in achieving the overall vision for the NWT held in that document.

The four strategies identified by the Department of the Executive are as follows:

1. To articulate, disseminate and coordinate the implementation of the government's agenda;
2. To support a collaborative intergovernmental approach to political and economic development in, and for, the Northwest Territories;
3. To support a collaborative approach to effective and efficient program delivery and capacity building; and
4. To strengthen the public service.

These strategies reflect the department's mandate to provide coordination and leadership to the departments of this government to assist them in achieving their mandate and goals.

I will take a moment, Mr. Chairman, to elaborate further on each of these key strategies.

Communications

Our first strategy is to articulate, disseminate and coordinate the implementation of the government's agenda. Coordinated corporate communications provide benefit by ensuring that all residents of the Northwest Territories understand the role of government in today's environment. This ensures people are adequately informed of the direction of government, are empowered to participate in the governance process and are armed with the knowledge required to effectively access the programs and services of government.

By doing our part to provide effective communications on the activities and initiatives of government, the Department of the Executive will contribute to achieving the goal, identified in Towards a Better Tomorrow, of improved accountability and increased opportunities for public participation in government.

Intergovernmental Collaboration

Mr. Chairman, the Department of the Executive's second goal is to support a collaborative intergovernmental approach to political and economic development in, and for, the NWT.

The shape of governance in the Northwest Territories is undergoing fundamental change at the community, regional and territorial levels,

Significant progress has been made in the advancement of Aboriginal rights and self-government negotiations. This is demonstrated by the number of self-government and land claim agreements underway or already concluded in the NWT. The Intergovernmental Forum has been established to support a cooperative approach by the federal, territorial and aboriginal governments to shared jurisdiction and decision making on issues such as devolution and resource revenue-sharing. In addition, community governments across the NWT are working to redefine their areas of jurisdiction.

As well, effort is being made to build national intergovernmental partnerships. Across the NWT, our residents are working to achieve their political goals and aspirations.

At the same time, we are experiencing unprecedented economic potential through the development of our non-renewable resource sector. Carefully managed, this development could be the key to economic prosperity for our residents in the years to come.

We recognize that progress will only be made through the identification of common interests and by a commitment to move forward in partnership with other governments, key stakeholders, business and industry, and, indeed, all residents of the NWT. For this reason, support for a collaborative intergovernmental approach to political and economic development in, and for, the NWT is the second key strategy the Department of the Executive has identified.

Program Delivery and Capacity Building

Mr. Chairman, our third key strategy also honours the commitment to partnerships that is expressed in Towards a Better Tomorrow. This strategy is to support a collaborative approach to effective and efficient program delivery and capacity building. By building the capacity of regions and communities to deliver the programs and services that they are, or will be responsible for as self-government unfolds, we guarantee that the programs our residents access remain effective for their needs.

We are committed to working closely with the Accountability and Oversight Committee in developing our regional capacity-building plan.

Strengthening the Public Service

Finally, Mr. Chairman, we have identified strengthening the public service as another key strategy of the Executive. The programs and services of government, no matter how efficiently designed, cannot be effectively delivered to the public without the civil service. The skills and knowledge of our employees contribute in large part to our success. Therefore, our fourth strategy acknowledges the value of our employees and expresses our commitment to ensuring that the civil service is stable, knowledgeable and experienced.

Main Estimate Investments

In order to achieve these goals, the Department of the Executive is requesting approval for a budget of $10,130,000 for the fiscal year 2000-2001. This budget includes areas of forced growth, support for the addition of a new Cabinet Minister, funding to implement decisions of the previous Cabinet and strategic new investments towards achieving the goals and priorities of this government.

In the area of forced growth, $268,000 has been allocated for pension reform resulting from decisions of the federal government and $295,000 has been allocated to support the Caucus decision for an additional Minister.

Funding has also been allocated to support the unfunded decisions of the previous government to establish a regional relations and communications division within the Department of the Executive. As part of the allocation of resources to these initiatives, a review was undertaken of their respective responsibilities and changes were made to enhance those responsibilities and bring them more in line with the priorities of this government. The budget therefore includes $254,000 to provide for regional liaison between headquarters and the GNWT regional offices, but more importantly to develop options to implement the government priority of regional capacity building.

The budget includes $239,000 for executive communications. In addition, the responsibilities for communicating within the GNWT, with the public and with the media have been consolidated to provide for a more strategic approach. This reorganization will result in cost savings while providing more coordinated and more effective program delivery.

The budget also includes increases for strategic investments in government-wide initiatives identified as important to this government.

A major initiative requiring funding through the main estimates will be the Staff Retention Policy. This policy, announced on May 5, 2000, supports our strategy of strengthening the public service. The Staff Retention Policy is a critical initiative put in place to allow the GNWT to meet its commitment to retaining valued employees who provide skills, experience and corporate knowledge to the organization. The Staff Retention Policy will allow for retraining and redeployment of staff, thereby improving job satisfaction and security. The initiative has received support from the Union of Northern Workers and was viewed as a positive step towards maintaining a good relationship between government and labour.

A key component of this strategy is the Staff Training and Development Fund. An initial investment of $250,000 has been earmarked for this fund. The department's corporate human resource services division will administer the fund on behalf of the government. Corporate human resource services, in conjunction with FMBS labour relations division, is in the process of developing detailed procedures for the application of the Staff Retention Policy and the use of the Staff Training and Development Fund. Because this is a critical initiative of this government, designed to increase our effectiveness and ensure our capacity for the continued delivery of programs and services, our main estimates include a requirement for this additional $250,000.

Another major initiative of this government will be participation in the Intergovernmental Forum. As I have indicated, this tripartite forum will address matters regarding the devolution of lands and resources, the sharing of resource revenues, the Mackenzie Valley gas pipeline and other issues as they may arise. An investment of $545,000 is included in the main estimates to fund the GNWT's participation in the Intergovernmental Forum. This initiative will be coordinated by the department's Intergovernmental Forum Secretariat.

As well, the federal government and the GNWT have agreed to share the costs required to adequately fund aboriginal government participation in these discussions. The GNWT has committed to funding $333,000, which is one third of the year 2000-2001 costs of $1 million. This funding requirement has not been included in this budget, but will be requested as supplemental funding later this year.

Finally, the budget includes a $179,000 increase to provide additional support to the Premier's office for the increased responsibilities assigned to the chief of staff and the addition of an executive secretary to the principal secretary.

Main Estimate Reductions

Mr. Chairman, the department has identified some areas where economizing measures can be taken to help offset a portion of the additional financial requirements we have identified.

During the review of the department's interim appropriation, it was clear that the department would have to look within to find some additional resources. At that time I offered to reduce the department's interim appropriation request by $100,000 as an interim measure. In recognition that this was only a start towards identifying savings, I directed my deputy minister to review the organizational structure of the department and to identify areas where further economizing measures could be taken.

Based on a thorough review of the functions of the Executive, the department has identified a total of $226,000 in reductions to the original target that was presented to this committee in March of this year. This represents an additional $126,000 over the amount offered up during the review of the interim appropriations.

$115,000 has been reduced from the department's submission through the streamlining of administrative support functions in the cabinet secretariat and the Minister's offices.

As well, in order to implement our strategy of communicating and coordinating the implementation of the government's agenda, we have taken a more strategic approach to the communications function within the Executive. By shifting our focus toward proactive communications, designed to positively shape public opinion rather than to react to the negative, we realigned the responsibilities of the department's communicators. By integrating the public affairs program of the Premier's office into the Executive's communications division, the department has eliminated one position while achieving the delivery of an enhanced communications function with no loss of service. Total savings in this area amount to $81,000.

Finally, the decision to house the Intergovernmental Forum in existing government office space rather than new office space has resulted in a $30,000 savings in minor capital expenditures and the avoidance of additional lease costs.

The main estimates we are about to review together contain the resources required to ensure that the government's goals, set forth in Towards a Better Tomorrow and incorporated into the department's strategies, are successfully carried out.

Thank you, Mr. Chairman.

-- Applause

Thank you, Mr. Premier. Does the committee reviewing the department's estimates have any comments? Mr. Braden.

Thank you, Mr. Chairman. The Standing Committee on Governance and Economic Development met with the Premier and departmental staff to review the 2000-2003 business plans and 2000-2001 main estimates on Thursday, June 1, 2000. The committee noted a $1,962,000, or 24 percent increase in total operations, or Operations and maintenance expenditures between their 1999-2000 main estimates and the 2000-2001 draft main estimates. Committee members also noted an increase of two positions, for an overall increase of three percent in staff since the presentation of the 1999-2000 main estimates.

The committee noted that since the previous business plan, the Department of the Executive has made changes in direction within its business plans. The vision statement has changed to:

"Our vision is to contribute to governance within the Northwest Territories by providing superior service to Cabinet, sound advice to departments and innovative, results-oriented leadership within the territorial public service."

Previously, the vision was:

"A healthy population served by a stable, effective, and efficient government that is consistent with Canadian democratic traditions and is respectful of the needs, potential, and aspirations of all residents."

Members indicated that they perceived the change in vision as a shift in focus from people towards a departmental job description.

The goals, strategies, measures and outcome measures of the department have also changed significantly from prior years. The committee is of the mind that while it is good for the department to refocus, the focus may have become too centered on limited activities within the department and does not speak to the government as a whole. After all, the mandate of the Premier and department is to provide overall management and direction to the Executive branch of the Government of the Northwest Territories.

As is the case of many other departments, the committee reiterates the need for outcome measures to be measurable, and suggests that the department may want to revisit these to make them measurable. The committee discussed the need for timelines with the Premier and the department, and recognizes that some goals may take longer than the length of this government to achieve. The Premier indicated that the department was in the process of creating a timeline for government. The committee looks forward to reviewing it.

As stated earlier in the review of the Ministry of Aboriginal Affairs, the committee has grave concerns in regard to the numerous sectors of government that are involved in self-government, land claims, devolution and resource revenue sharing negotiations. In the past year, the Department of the Executive has added the intergovernmental forum secretariat to coordinate the GNWT participation in aboriginal, territorial and federal government discussions, such as devolution, resource revenue sharing, oil and gas developments, the fiscal relationship with Ottawa, and northern control over northern resources. Another section added to the Executive, intergovernmental affairs, assists in the preparation of strategies to address territorial, national and international issues. There are also sections in the Ministry of Aboriginal Affairs and other government departments involved in intergovernmental negotiations.

It is the opinion of the committee that with so many pockets of government involved in intergovernmental negotiations, there is a definite inefficient use of people and government funds; funds that could be better spent on infrastructure or other essential programs or services for the people of the Northwest Territories.

Further to the significant cost of the pockets of government involved in negotiations, the committee is uneasy with the lack of clear lines of authority. Committee unease was confirmed when the Premier admitted that there was no clear authority for the intergovernmental forum secretariat, intergovernmental affairs and the Ministry of Aboriginal Affairs.

The committee supports the Standing Committee on Accountability and Oversight's recommendation that the department establish clear lines of authority and mandates for all sectors of government involved in the negotiation procedures, and do so without prolonging any of the processes of government. Efficiency and effectiveness of government should be considered above the need to increase and sustain bureaucracy.

There is a review of regional organization underway. The committee encourages the government to consider current political initiatives, but exercise caution. Regions should not be so small that they have insufficient resources for services and programs.

Committee members request that the government keep the committee up to date on this initiative.

As the corporate human resources services section resides within the Department of Executive, the department was asked for, and agreed to supply, government-wide statistics at the departmental level for the Affirmative Action Policy. The committee also raised concerns regarding possible adverse effects of the Staff Retention Policy on the Affirmative Action Policy. Other areas of discussion included the need for consistency as to what qualifies as a managerial position, the loss of employees to private industry, and the inability of PeopleSoft to track casual employees.

The committee has noted the increase in expenditures in the operations and maintenance side of the executive offices, particularly in the Cabinet secretariat.

The committee requested and since received a description of the changes to the operations and maintenance funding from the 1999-2000 Main Estimates to the 2000-2001 Main Estimates.

The Standing Committee on Governance and Economic Development repeats its warning that during present times where there are limited financial resources, when more money is spent on bureaucracy in government, it is necessary to make cuts in other areas. These areas include capital items, programs and services for our communities. That concludes the committee's report. Thank you, Mr. Chairman.

Thank you, Mr. Braden. At this time, I would like to recognize the people in the gallery and thank them for coming. Welcome.

With that, we will take a short break.

-- Break

I would like to call the committee to order. At this time, I would like to ask the Minister if he would like to bring in any witnesses.

Thank you, Mr. Chairman. Yes.

Does the committee agree?

Sergeant-at-Arms, could you escort the witnesses in? Mr. Minister, could you please introduce your witnesses for the record?

Thank you, Mr. Chairman. On my left is Liz Snider, the deputy minister of the Executive. On my right is Carl Bird, director of corporate services.

Thank you, Mr. Kakfwi. General comments? Mr. Roland.

Thank you, Mr. Chairman. Mr. Chairman, in the committee review, we raised a number of issues with the department, the Premier and his staff, regarding some of the growth, as we pointed out in the committee report. During the review, we requested more information as to the Department of the Executive's changes that had occurred. I must thank the Premier and his staff for providing that information.

Based on that new information, I have some comments. We had seen a significant change in the mission statement of the department, and where it went from there. The previous mission statement was focused on the people and how the Executive would impact people's lives in the Northwest Territories and so on.

What we found this time was the mission is turned internal, more to the structure of government and how it can support government. One of the concerns we raised was to question the intent of it. If it is in fact just a shift, instead of a department focusing on people, it was focusing on Cabinet and Ministers and so on. That would seem to make sense in that area. However, then it clouded the area a little bit. Many people in the Northwest Territories look at the Executive as being Cabinet and the lead in government and changes and new initiatives. That was an area of classification.

What we received here is a copy of what is in the book. That does not really explain some of the changes or the intent of the changes. I think overall, we have been through the budget during the interim appropriation, and there has not been significant changes one way or another since that time.

We did press the issue again of the growth and the need to review and substantiate it, in light of our fiscal situation. Decreases in other departments, mainly Municipal and Community Affairs and, as we will see with Transportation as it comes up. Mr. Chairman, I will save the rest of my questions for when we get into detail. Thank you.

Thank you, Mr. Roland. Mr. Premier.

Thank you, Mr. Chairman. The intent of the shift the Member refers to is in fact to comply with the wish of the committee to be more specific, and to state the goals and objectives more specifically, so achieving those can be measurable. Giving broad, general, generic statements, people-oriented statements are difficult to measure. While we still adhere to those by endorsing Towards a Better Tomorrow, the Department of the Executive is taking to articulate very specifically what the role of the department is. That is what is reflected here. Thank you.