Revenues, recoveries and transfer payments, information item.

Moving back to page 3-7, Department of Finance, department summary, operation expense, total operation expense, $9,797,000. Agreed?

Does the committee agree, the Department of Finance is concluded?

I would like to thank the Minister and his witnesses.

The next department that will be dealt within the committee of the whole is the Department of the Financial Management Board Secretariat. I would like to ask the Minister if he has any remarks? Mr. Minister.

Thank you, Mr. Chairman. Mr. Chairman, I am pleased today to be before the committee to present the Financial Management Board Secretariat's 2000-2001 main estimates.

The Financial Management Board Secretariat is a central agency of the GNWT whose primary responsibility is to provide support, analysis and advice to the Financial Management Board. In addition, the Secretariat is responsible for ensuring the government's financial, human and information resources are utilized in an effective, efficient and economical manner.

This means that any significant matters affecting the management of the financial, human and information resources of the GNWT impacts the FMBS. Changes in the labour environment, technological advances, trends in fiscal and economic conditions, public accountability expectations, new developments in public sector management or political and social reform all impact on the FMBS.

The 2000-2001 main estimates proposes expenditures of $25,591,000, which provides for total expenditure growth for the 2000-2001 fiscal year of $7,123,000. However, most of this increase is not new spending.

During the 1999-2000 fiscal year, the Financial Management Board Secretariat was provided with almost $6 million in supplementary funding for equal pay litigation, pension plan repatriation work, tangible capital assets implementation, public private partnership implementation, and collective bargaining. During the last supplementary appropriation review, Members recommended that these types of needs be forecasted and included in the main estimates. As most of this work will continue during the 2000-2001 fiscal year, the related funding has been included in the estimates. The amounts are:

1.Equal Pay Litigation$2,083,0002.Pension Plan Repatriation$1,024,0003.Tangible Capital Assets Implementation$774,0004.Public Private Partnership Evaluation$170,0005.Collective Bargaining$301,000

Additional funding of $1,678,000 has also been included in the main estimates related to the interim financing arrangements with the federal government which provides funds for the increased costs to the GNWT associated with the changes to the Public Service Superannuation Act. This arrangement runs until the 2003-2004 fiscal year. The FMBS amount includes the funding for the additional costs to the Workers' Compensation Board and the NWT Power Corporation, who will receive this funding as a contribution.

Funding has also been continued and increased to enable FMBS participation in the self-government processes, $481,000, and to provide for the projected increases associated with the power subsidy program, $498,000.

The FMBS has been, and will continue to be, aggressive in the recruitment and retention of affirmative action candidates. We have recently undertaken an initiative to solicit, through newspaper advertisements and postings on our web page, resumes from NWT students and recent NWT university graduates. We will be targeting respondents to this campaign for current and future job opportunities within the FMBS.

The most recent published data on affirmative action was as of December 1999. The data indicated that 53 percent of the FMBS staff were categorized as affirmative action candidates -- 28 are aboriginal, 27 are indigenous non-aboriginal, and 10 are women in either management or non-traditional occupations. In terms of regional breakdowns, 44 percent of the staff at headquarters are categorized as affirmative action candidates, 87 percent of the staff in the Fort Smith/Fort Simpson region are categorized as affirmative action candidates, and 100 percent of the staff in Inuvik are categorized as affirmative action candidates. The data also indicate that women occupy 38 percent of the senior management positions in the Financial Management Board Secretariat. Thank you.

Thank you, Mr. Minister. Does the committee responsible for reading the department's main estimates have any comments? Mr. Braden.

Thank you, Mr. Chairman. Under the committee's general comments, are as follows:

The FMBS and the Chair of the Financial Management Board (FMB) have the mandate for managing and controlling the financial, human and information resources of the government and for providing information to the Financial Management Board and ensuring that the government's financial, human and information resources are managed in an effective, efficient and economical manner.

The Standing Committee on Governance and Economic Development reviewed the 2000-2003 business plans and draft main estimates for the FMBS on Friday, May 26, 2000. The committee noted a $7,123,000 or a 39 percent increase in total operations or operations and maintenance expenditures between the 1999-2000 main estimates and the 2000/2001 proposed main estimates. The committee also noted a $66,000 or a 12 percent increase in total capital expenditures between the 1999-2000 main estimates and the 2000/2001 draft main estimates. Committee members also noted the significant increase of 30 positions; an overall 26 percent increase in staff in the Secretariat, Mr. Chairman.

The committee encourages the government to review and consider options to reduce our accumulated debt and operating deficit. Committee members are of the position that given our financial proximity to our debt wall or borrowing limit, the government is not taking enough effective action to lower our debt. The committee would like to be informed in advance of any debt management initiatives that may be considered for implementation by this government. Committee members were also concerned with regional capacity building and third party accountability. The committee, throughout the review exercise, emphasized that public safety should be considered first in any regional or community capacity building initiative.

Committee members concluded that adequate funding, training and facilities must accompany downloading of programs and services. Furthermore, regions and communities must adhere to an effective and auditable third party accountability framework. We need to know if communities are managing and administering their programs and services in an accountable, safe and effective manner. The committee is aware that the need for a third party accountability framework was mentioned as a concern of the Auditor General of Canada in his Report on Other Matters for 1998-1999. The Secretariat agreed.

In the previous government, the capital planning process was initiated with each community receiving a call letter from the Premier. The community would submit its list of capital projects and priorities to the Premier's Office. Currently, selected departments have haphazardly adopted the call letter approach, Mr. Chairman. A consistent capital planning process across government is not apparent. Committee members suggested that the current capital planning process needs to be reviewed. In addition, the committee reiterated its concern for public safety by pointing out that communities must have enough funding to properly operate their facilities.

The oil and gas sector promises to provide Northerners with increased employment and business opportunities as well as additional tax revenues for the government. However, the northern labour pool may not have the training or numbers to take full advantage. Training for work in the petroleum industry should be a priority for the government.

The FMBS explained that there is not enough money available to provide the necessary training or for other industry programs or services. The committee replied that if the government can find money within for the diamond industry, it can find money "from within" for the oil and gas industry.

The FMBS is responsible for the overall coordination and planning process for business planning in government. The standing committees had less than two weeks to review the government's business plan and in addition, on this occasion, the government's draft main estimates. As a result, committee members strongly encourage a consistent reporting format, as well as a government-wide adoption of a more specific set of quantifiable performance measurements.

The committee has pointed out that the DCN may no longer be able to meet increased demand. The government may be subsidizing a service that does not meet its needs. The Minister agreed. Committee members encouraged the FMBS to adopt new methods to increase bandwidth.

The government has adopted the accrual based accounting system that is in use by the private sector. Part of the conversion to the new system will entail a valuation of the government's capital assets. The committee noted that FMBS has purchased the capital tangible assets software system to assist the government in completing and maintaining its capital assets reporting process.

Committee members remain concerned that this new software system may result in another PeopleSoft debacle where the government is consistently paying for required upgrades and training for a program that is difficult to use.

The government advised the committee that it has spent $744,000 to date on the capital tangible assets software program and stated that it is a one-time expense. The committee noted that the government requested $500,000 in its 2000-2001 interim appropriation proposal for purchase of the same program. In addition, the government stated then, that the $500,000 "is a one-time initiative", page 3, FMBS, 2000-2001 Interim Appropriation.

The committee observed that the government is still involved in staff housing. The government had agreed to get out of staff housing three fiscal years ago. Committee members encouraged the government to increase its efforts to get out of staff housing. The committee recognizes that this issue remains a concern particularly in remote communities. Committee members encourage the FMBS to work with the Northwest Territories Housing Corporation to work with communities to rectify this housing issue.

The committee pointed out the minimal presence of aboriginal persons and women in management at the FMBS and encouraged the Secretariat to improve efforts in the area of affirmative action. Once the affirmative action plan is completed, the Secretariat will provide it to the committee for review.

That concludes the committee's remarks, Mr. Chairman.

I will call the committee back to order. Mr. Minister, would you like to call in any witnesses?

Yes, Mr. Chairman.

Does the committee concur?