Mr. Speaker, it is common knowledge that governments in Canada today are facing increasing challenges in providing health care. Rising costs of technology and pharmaceuticals, shortages of health care providers, and an aging population with increasing needs for health care all contribute to the strain on the health care system. Almost one quarter of our operating budget, or $183 million, has been allocated to the Department of Health and Social Services. Of this, three quarters, or $136 million, goes directly to the health and social services boards for the delivery of services. The 2001-2002 budget includes increased expenditures on health care of $17 million to address these growing needs. Five million dollars has been allocated simply to keep pace with growing demands, including: the need to provide competitive compensation for physicians, the cost of medical travel, and the cost for providing care in southern institutions. We have also set aside a $6 million reserve in this budget to fund further increases to forced growth expected to occur within the health and social services system in 2001-2002.

This budget also invests over $6 million in a number of critical areas:

• • We will invest $2.8 million to improve the primary care model by stabilizing the physician workforce in Yellowknife;
• • We have allocated $1.5 million to negotiate the extension of the nurses market supplement for one more year while it is being evaluated -- as the Standing Committee on Social Programs has observed, we need to be competitive to attract and keep qualified staff;
• • We have allocated $1.2 million to improve child protection and family support services through the addition of extra staff and training -- another critical area flagged by the standing committee; and
• • Finally, we are investing over $200,000 to provide expanded telehealth access and have committed $280,000 to fund the Stanley Isaiah Adult Disabled Group Home in Fort Simpson.

The Northwest Territories will also benefit from new federal funding commitments through the Canada Health and Social Transfer which were announced at the First Ministers' meeting in September, including new targeted funding for primary care, early childhood development and medical equipment.

Mr. Speaker, we are facing ever-growing demands on our limited resources to provide basic health care services to the residents of the Northwest Territories. We find ourselves, however, in the unfortunate position of subsidizing the delivery of the federal government's responsibility to status Indian and Inuit residents for non-insured health care benefits. The Government of the Northwest Territories currently delivers this program, under contract, on behalf of Health Canada. Since taking on this function, however, we have been unable to recover our full costs from the federal government. We estimate that, for 2001-2002, we would be reimbursed only $5 million of the $6 million we would spend. We have given notice to the federal government that, unless an acceptable administrative agreement can be reached to address our concerns, effective April 1, 2001, this government will no longer deliver the Non-Insured Health Benefit (NIHB) program on their behalf. Some progress has been made in recent negotiations between Health Canada and the Department of Health and Social Services; however, an agreement has not yet been reached.

A return of administration of the NIHB program will not represent a cut in benefits to Northwest Territories status Indian and Inuit. The benefits will be maintained, but the program will be administered by a different party. We will work with Health Canada to ensure there is no interruption in services to clients.

We recognize that the demands on our health care system are pressing. We have received a number of recommendations for changes and improvements to the health and social services system over the past few years. We agree that change is needed. However, we still need to address gaps in our existing analysis, and map out an action plan.

The Minister of Health and Social Services, the Honourable Jane Groenewegen, has commissioned the development of such an action plan, to be completed by the end of June. We expect to receive practical recommendations to improve the efficiency and effectiveness of the health and social services system, and to address issues of sustainability and quality of care. With a birth rate twice the national average, and an aging population, we have a responsibility to ensure that our health and social services system delivers the best services possible within the funding available.