Thank you, Mr. Krutko. Item 13, tabling of documents. Item 14, notices of motion. Item 15, notices of motion for first reading of bills. Item 16, motions. Item 17, first reading of bills. Item 18, second reading of bills. Item 19, consideration in committee of the whole of bills and other matters.

Bill 1, Bill 4, Bill 5, Bill 6, Committee Report 1-14(3), Committee Report 2-14(3), Committee Report 3-14(3). By the authority given the Speaker by Motion 4-14(3), the House is resolved into committee of the whole to sit beyond the time of adjournment until the committee is prepared to report, with Mr. Delorey in the Chair.

I would like to call the committee to order. We have a number of items to deal with. What is the wish of the committee? Mr. Dent.

Thank you, Mr. Chairman. I would like to recommend the committee resume consideration of Bill 1 and concurrently Committee Report 1-14(3), Committee Report 2-14(3), Committee Report 3-14(3), and specifically to start by considering the budget for the Department of Public Works and Services, followed by the Department of Finance, and then the Financial Management Board Secretariat.

Thank you. Does the committee agree?

Mr. Minister, do you have any opening comments?

Thank you, Mr. Chairman. Mr. Chairman, I am pleased to present the Department of Public Works and Services main estimates for the fiscal year 2000-2001.

The estimates propose an operations and maintenance budget for 2000/2001 of $39.1 million and a capital acquisition plan of $5.5 million. The department will have 193 positions funded within the appropriation.

These resources will be used to provide critical support services to departments and communities including:

• • the operation and maintenance of infrastructure;
• • management of capital construction projects;
• • safety and inspection services leasing of government offices;
• • provisions of records management services; and
• • monitoring and intervention in northern and national telecommunication proceedings.

As other departments work to achieve government objectives by delivering direct services to our residents, Public Works and Services provides necessary technical and professional support to those departments.

Mr. Chairman, there are many examples of the kind of support Public Works and Services has given and continues to give as departments attempt to achieve an appropriate balance between the expectations of our residents for high quality services, the practical constraints of operating in our difficult northern environment and the limitations of our current budgets.

The many successful building and infrastructure projects are often taken for granted, but I would like to mention today the extensive renovations to Sir John Franklin High School in Yellowknife which are being completed this year, the renovation of the Fort Liard and Fort Resolution schools which will begin this summer, the retrofit of Trail Cross Centre in Fort Smith, and the water supply projects underway in Tulita and Fort McPherson. These are all critical community projects that will contribute in a positive way to achieving the government's long-term objectives.

PWS does not work alone. Its ability to contribute to achieving government objectives is dependent upon its ability to work in partnership with its clients, communities, suppliers and the NWT construction industry.

Recently the department published a guidebook called Good Building Practice for Northern Facilities, which collects experience and knowledge about the design and construction of quality, cost-effective buildings in the North. Everyone in the NWT will benefit from the co-operation and mutual support that contributed to this publication.

There is another important role of this department, which is the basic provision of essential fuel services. Through the Petroleum Products Revolving Fund, Public Works and Services funds the provision of essential heating fuel and gasoline in 17 communities where a commercial operation does not exist. This includes providing safe tank farms in these remote locations as well as hiring and training local contractors to deliver fuel services. These small businesses have an important function in these small communities, and PWS works with its contractors to carry out this essential service.

Finally, Public Works and Services provides information systems and communication services for use by the government. More and more the ability of the government to provide services to northern residents is dependent upon the availability of these systems. These services are funded through charge back to client departments.

Mr. Chairman, the proposed budget is comparable to last year's budget. Public Works and Services expects to continue to provide a high level of support services to departments within the same budget. No major changes have been proposed for the new fiscal year.

Mr. Chairman, that concludes my opening remarks. I would be happy to answer any questions Members may have. Thank you, Mr. Chairman.

Thank you, Mr. Steen. I call on the Standing Committee on Governance and Economic Development for its report. Ms. Lee.

Thank you, Mr. Chairman.

The establishment policy for the department states, "The mandate of the Minister and the Department of Public Works and Services is to design, construct, acquire, operate and maintain buildings, works and equipment and implement energy efficient projects in Government of the Northwest Territories buildings and works required for the Government of the Northwest Territories to deliver its programs and services, provide a system of specialist services that enhance the efficiency of government departments and make essential petroleum products available for sale to the public where these are not provided by the private sector".

The Standing Committee on Governance and Economic Development met with the Minister and department officials on May 30 and 31, 2000 to review the 2000-2003 business plans and the 2000/2001 main estimates. The committee noted a $415,000 or four percent increase in total operations or operations and maintenance expenditures between their 1999/2000 main estimates and the 2000/2001 draft main estimates. The projected increase is due to the inclusion of capital assets under $50,000 within operation expenses as required under the new tangible capital assets reporting process. Previously, all capital assets were reported under capital expenditures. The committee also noted that there was $34,176,000 for work in progress, an increase of $2,057,000 or 80 percent increase from the 1999-2000 revised main estimates. Committee members also noted the decrease of nine positions (-4 percent) in the department.

During the review, the department expressed that it had difficulty in quantifying performance indicators. The committee is chagrined by this comment. The department is a service provider and should design its outcome measures accordingly.

It is noted that many of the tasks performed by Public Works and Services are on behalf of others and clients may change what they want. The changes affect the time for completion and the costs. The department stated that in many cases, it assumed the blame for cost overruns caused by other departments and things outside their control. It is felt that the department could develop outcome measures that addressed client satisfaction for services provided and not necessarily for a physical product.

Presently, with government contracts, there is no process for the public to see cost overruns and broken timeframes. The department added that it is sometimes mistakenly saddled with the blame for cost overruns on projects managed on behalf of other departments. The department explained that these overruns arise from last minute change orders from the other departments. The committee sees this as an issue to be pursued in the future.

The department indicated that it would be taking part in the Canadian Radio-Television and Telecommunications Commission (CRTC) hearing in June. The department is supportive of CRTC establishing high cost areas and implementing a subsidy plan but felt that the company could do more in some areas. Some members of the committee expressed support for NorthwesTel's proposal to provide basic telecommunication services to all communities. A concern was also expressed for the future of the basic service to small communities should the telecommunication competition be wide open in the North to southern firms who may be interested in serving only the large profitable centres and ignore the services to the small communities. The committee is supportive of other service providers taking a more active role in the provision of telecommunication services in the NWT, but committee members added that whoever does it must agree to provide basic services to all communities.

In addition, the number of NorthwesTel staff located in the NWT do not reflect the amount of business generated in the Northwest Territories. The greatest amount of the company's revenue is generated in the Northwest Territories, however, the majority of the staff, specifically senior positions, has been moved out of the Territory. NorthwesTel is aware of this concern but has not made any recommendations to reconcile this issue.

The privatization of petroleum products delivery was discussed during the review. The department was unaware that the Government of the Northwest Territories had received payment for petroleum products that were included in Nunavut assets when the two new territories were formed. The committee also learned that Cabinet has set criteria to guide the privatization of petroleum products and the department is exploring all options. Committee members have noted that several groups have expressed interest and encourage the department that this will be a public process. The government, at the request of the committee during the recent review of the 2000/2001 interim appropriation agreed that "if the petroleum products division was to be considered for sale, a call for proposals is publicly advertised, and the division be sold as a single entity", page 10, Review of the 2000/2001 Interim Appropriations, Standing Committee on Governance and Economic Development.

The committee requested further information on who presently has fuel contracts, the terms of the fuel contracts and the amount of the contracts. The committee looks forward to further consultation as this process evolves.

The department indicated that over the past five years Public Works and Services had diminished in size by approximately 60 percent. The committee is aware there is a functional review being performed government-wide and may affect the final number of departments.

Municipal governments and the Housing Corporation duplicate many of the maintenance functions performed by the Department of Public Works and Services. The committee had expected that the long-awaited program and functional review would supply direction in regard to this duplication of functions. However, indications are that the government's Senior Management Task Team, which was responsible for this review, has made little progress. Should this task team not make progress in the near future, the committee will recommend that a functional audit be performed on the department.

The government is presently undergoing an informatics strategy exercise. Each department is carrying out their own review of informatics in addition to a government-wide review. The committee expressed trepidation in respect to the methodology employed. Individual and government-wide reviews require a great deal of resources. Perhaps it is time for a more efficient approach for the management of informatics within government to be explored.

Much to the committee's chagrin, the department informally performs exit interviews but does not keep records. The department indicated that it would look at more formal reporting of exit interviews but only if there were sufficient value to warrant the resources to do so. Members are of the opinion that exit interviews are an integral tool of human resource management and should be used consistently throughout government.

Discussion occurred about human resource staff located throughout the different regions. It was indicated that human resource management duties were often combined with other functions performed by an individual staff member. The committee requested the department to supply them with the number of individuals involved in the human resource field and the portion of time spent on human resources.

Members are concerned that the implementation of the Records Information Management System (RIMS) is taking more time than it should. It is hoped that the department addresses this issue before it becomes another costly and unwieldy government management system.

The Standing Committee on Governance and Economic Development recommends that the Department of Public Works and Services implement a revised overall government-wide records management plan that all government departments can adhere to and incorporate by March 2001. That concludes the committee's report, Mr. Chairman.

Thank you, Ms. Lee. Would the Minister like to bring in any witnesses?

Yes I would, Mr. Chairman.

Does the committee agree?

Sergeant-at-Arms, would you please escort the witnesses in?

Mr. Steen, could you introduce your witnesses for the record?