Thank you, Mr. Speaker. Mr. Speaker, as I have said and I will repeat again, we will ensure that we consult with the stakeholders who are effected by the non-insured health benefits. I want to also remind Members that this is not devolved from the federal government. This is a contract that we administer for them. They are the ones who have the ultimate responsibility for this insurance program. We act as a contractor for them. Yes, we will ensure that people are kept apprised and consulted with regard to this benefit. Thank you.

Merci, Madam Groenewegen. Mes amis, encores, les temps pour les questions orale c'est finis. The time for question period has expired. Item 7, written questions. Item 8, returns to written questions. Item 9, replies to opening address. Item 10, replies to the budget address. Item 11, petitions. Before I move on to the next item, the House will take a short break.

-- Break

The House will come back to order. Item 12, reports of standing and special committees. The Chair recognizes the honourable Member for Frame Lake, Mr. Dent.

Thank you, Mr. Speaker. Mr. Speaker, I would like to present the Standing Committee on Accountability and Oversight Report on the 2001-2002 Main Estimates dealing with government-wide issues.

Mr. Speaker, The Standing Committees of the Legislative Assembly of the Northwest Territories met from January 15 through January 25, 2001 to review the 2001-2002 Draft Main Estimates for the different Government of the Northwest Territories departments. The 2000-2001 fiscal year was the first time that the Government of the Northwest Territories used tangible capital asset accounting. As we enter into the second year of implementation, adjustments within amortization figures continue to occur. The recent collective agreement between the Union of Northern Workers (UNW) and the Government of the Northwest Territories has resulted in changes in all departments' operations expenses since the 2001/2004 Business Plans. Overall, the collective agreement is estimated to cost the GNWT approximately $7.4 million for the 2000-2001 fiscal year and $13.1 million in the 2001-2002 fiscal year.

Other partners in the review of the GNWT departmental business plans and main estimates are the Standing Committee on Governance and Economic Development and the Standing Committee on Social Programs. Each standing committee prepares a report covering the review of departments within their envelope and presents their report to the House. Issues that are government-wide in nature were identified and brought forward for this committee to address.

The standing committee met at the end of November to study the Program and Functional Review. The committee is concerned that fee increases presented in the Program and Functional Review will have a "trickle down" effect and end up on the backs of the residents who are already facing increased costs of living. Arising from the November meeting was a request for government to complete two assessments.

The committee has received the first assessment on the impact on northern businesses. The second assessment on the impact on individuals and families that reside within the NWT has yet to be received. The committee looks forward to receiving this information and notes that, for some departments, there have already been fee increases arising from the Program and Functional Review, incorporated into the 2001-2002 Draft Main Estimates.

Mr. Speaker, in the financial reporting for the departments, operations expenses are separated into control objects that include compensation and benefits, grants and contributions, other expenses and amortization. As was the case in the Report on the Review of the 2000-2003 Business Plans and the 2000-2001 Main Estimates, the committee notes the lack of justification supplied for the control object "other expenses".

The committee is of the opinion that the "other expenses" should be subdivided and more detail supplied. For the 2001-2002 Main Estimates, the Department of Education, Culture and Employment has identified $31.3 million and the Department of Health and Social Services has allocated $29.2 million for the control object "other expenses". These amounts are more than the total budgets requested by some departments.

The committee repeats the recommendation made in its Report on the Review of the 2000-2003 Business Plans and the 2000-2001 Main Estimates.

The Standing Committee on Accountability and Oversight recommends that the government develop more detailed subcategories for the control object "other expenses" to justify the request for funds; and further that, where possible, these categories be consistent across government; and further that, one of the categories should cover items on the controllable asset inventory list that are now, under the new Tangible Capital Asset Accounting system, considered as an Operations Expense.

Mr. Speaker, as identified in the review of the 2001-2003 Business Plans, the committee again noticed the lack of identification of forced growth items by the departments. It is common knowledge that rising fuel prices will affect departmental budgets. When forced growth items like increased fuel costs are not addressed, it is difficult for programs and services to operate within their budgets. The committee is concerned that supplementary appropriations will have to be put forward to meet budget shortfalls. The committee is of the opinion that this is poor fiscal planning and would like forced growth areas to be identified and addressed in future budget exercises.

As was the case in the Report on the Review of the 2000-2003 Business Plans and the 2000-2001 Main Estimates, the committee again notes that salary dollars from vacant positions are being used to cover funding shortfalls. When positions are held vacant, programs and services suffer. Smaller communities are impacted more when positions are not filled, as there are fewer people to cover off the duties of the vacant positions. This often means that programs and services are offered at a reduced level or not at all. Members feel that monies approved by the Legislative Assembly for salary purposes should be used for such.

During the fiscal overview of the 2001-2002 Draft Main Estimates, presented by the Premier, the Minister of Finance, the secretary to the FMB and the secretary to Cabinet, it came to the attention of Members that three ministerial committees have been formed. One ministerial committee addresses political development, devolution, resource revenue sharing and economic development. The second committee deals with social issues and the third focuses on maximizing employment. It was indicated that the purpose of the ministerial committees was to "develop the ideas, the process, the procedures, then take it forward to Cabinet for approval".

Members and the standing committees wish to be informed of the processes and procedures for the new ministerial committees. There is also a need to decide the reporting relationships between the different standing committees and their ministerial committee counterpart.

The Standing Committee on Accountability and Oversight requests a briefing on the roles, responsibilities, processes and procedures for the three ministerial committees. The standing committee looks forward to working with Cabinet to define reporting relationships with the new ministerial committees.

The committee Members noted that there are many competing processes underway that will determine how health care and social services will be delivered in the future.

Some, such as how self-government or land claim agreements will affect service delivery, have yet to be determined. Another example of a process that may ultimately affect how health care will be delivered is the regional capacity study presently underway. Finally, Members are also aware of considerable interest at the community and regional level in the community service board model of service delivery.

With the announcement of a system-wide review of health care sustainability in the Northwest Territories, which has become known as the Cuff Report, Members are questioning the linkages between all of the competing governance efforts underway. The standing committee can see no indication that there is any coordinated effort within the social program envelope or on a government-wide basis.

The Standing Committee on Accountability and Oversight would like to be informed on which government department is coordinating all of the governance efforts that are presently underway and how the government sees them to be related.

The committee is encouraged by advances to date on negotiations between the GNWT and aboriginal groups but also expresses concern that the pace of discussions is lagging. These talks are vital to the GNWT's long-term fiscal stability and program delivery to all residents. The committee looks forward to continuing progress at the next Intergovernmental Forum, expected in March, 2001.

The committee observes that the Taltson River hydro project is under the jurisdiction of the Financial Management Board Secretariat. When questioned why the authority lay with FMBS rather than RWED or NWTPC, FMBS replied that this is an overall government issue and it would have a large financial impact. Members are convinced that hydro development is a complex issue and wonder why the government is in such a hurry to proceed. A great deal of research and consultation with aboriginal partners are required before any project can go ahead.

Further, as most of the power will be sold to Alberta, the committee encourages Cabinet to proceed with extreme caution; we do not wish to end up in a predicament similar to the one that exists between Quebec and Newfoundland/Labrador.

During the Main Estimates review, the Department of Transportation introduced its proposed Transportation Strategy to the Standing Committee on Governance and Economic Development. The strategy would introduce a user fee of five cents per tonne per kilometre for commercial traffic on territorial highways and is projected to generate 15 million dollars in revenue that would be directed specifically for the territorial highway system. A user fee would not affect federal funding transfers to the territorial government. The strategy is expected to cost 100 million dollars over the next four years. User fees would be managed from a dedicated highway investment fund trust and leveraged to meet initial capital requirements.

Due to the significant impact of this initiative upon our northern economy and cost of living, the committee referred this issue to the Standing Committee on Accountability and Oversight in order to extend discussion to other Members of the Legislative Assembly. The Department of Transportation and the Department of Finance has recently given a presentation on the proposed Transportation Strategy and cost of living tax credit for NWT residents to the Standing Committee on Accountability and Oversight.

Mr. Speaker, the Government of the Northwest Territories has presented a budget of $783,773,000 for the 2001-2002 fiscal year. An increase of $26,288,000 from the Main Estimates of last year. Due to the recent UNW collective agreement reached with the GNWT in December 2000, all departments adjusted their draft budgets that were presented during the review of the 2001-2004 Business Plans in October 2000.

In this section of the report, the standing committee has highlighted issues and concerns that have been identified by other standing committees or Members as having government-wide implications. Further recommendations, issues and concerns are contained in the reports of the other standing committees.

Mr. Speaker, that concludes the introductory portion of this report.

I MOVE, seconded by the honourable Member for Tu Nedhe, that the report of the Standing Committee on Accountability and Oversight on the Review of the 2001-2002 Main Estimates be received by the Legislative Assembly and moved into committee of the whole for consideration. Thank you, Mr. Speaker.

Thank you, Mr. Dent. The motion is in order. To the motion. The House is ready for question. Question has been called. All those in favour? All those opposed? The motion is carried. The Chair recognizes the honourable Member for Frame Lake, Mr. Dent.

Thank you, Mr. Speaker. Mr. Speaker, I request unanimous consent to waive Rule 93(4) and have Committee Report 5-14(3) moved into committee of the whole for today. Thank you, Mr. Speaker.

Thank you, Mr. Dent. The honourable Member is seeking unanimous consent to waive Rule 93(4) to have Committee Report 5-14(3) moved into committee of the whole. Are there any nays? There are no nays. Committee Report 5-14(3) is now moved into committee of the whole for today.

Item 12, reports of standing and special committees. The Chair recognizes the honourable Member for Inuvik Boot Lake, Mr. Roland.

Thank you, Mr. Speaker. The Standing Committee on Governance and Economic Development (GED) met from Tuesday, January 16, 2001 to Wednesday, January 24, 2001 to review the government's 2001-2002 Main Estimates. The GED envelope includes the following Departments: Executive, Ministry of Aboriginal Affairs, Financial Management Board Secretariat (FMBS), Finance, Public Works and Services (PWS), Municipal and Community Affairs (MACA), Transportation, and Resources, Wildlife and Economic Development (RWED). The committee would like to take this opportunity to acknowledge and thank the departments and the Legislative Assembly committee staff for their hard work.

The Department of Transportation introduced its proposed Transportation Strategy to the Standing Committee on Governance and Economic Development during discussions on its 2001-2002 Main Estimates. The strategy is expected to cost $100 million over the next four years. Further, the strategy would introduce a user fee of five cents per tonne per kilometre for commercial traffic on territorial highways and is projected to generate $15 million in revenue that would be directed specifically to improving the territorial highway system. User fees would be managed from a dedicated highway investment fund trust and leveraged to meet initial capital requirements. A user fee would not affect federal funding transfers to the territorial government.

The committee, while recognizing the need for a safe and well-maintained territorial highway system, advised the Minister that any user fee would be passed on by the transportation companies to the consumer, northern businesses and government. With transportation costs already high because of our remoteness and the rising cost of fuel, this user fee would significantly impact upon our standard of living.

The department replied that some of the increased costs would be mitigated by a cost of living tax credit for NWT residents. The committee supports this strategy in principle. However, final support is conditional upon the committee receiving and reviewing additional financing and strategy details and assessing their impact upon northern residents.

Due to the significant impact of this initiative upon the northern economy and the cost of living, the Department of Transportation and the Department of Finance agreed to give a presentation on the proposed Transportation Strategy and cost of living tax credit for NWT residents to the Standing Committee on Accountability and Oversight, which includes all Ordinary Members. The committee referred this issue to the Standing Committee on Accountability and Oversight in order to extend discussion to include other Members of the Legislative Assembly.

The Financial Management Board Secretariat presented the government's hydro resource initiative to the standing committee during review of the secretariat's 2001-2002 Main Estimates with the committee. The committee pointed out that substantial funding would be required to develop the proposed Taltson River hydro project and connect it to the Alberta power grid.

Committee Members noted that this resource would outlast other resources, including minerals, oil and gas, as there will always be customers for electricity and our hydro-electric potential is almost unlimited. The project and future projects will provide a steady revenue stream to NWT businesses and government, in addition to providing employment to NWT residents. There is also a potential for energy cost savings for the NWT.

Committee Members acknowledged that timely development is important, but urged a prudent approach to ensure all impacts are considered, including environmental and land claims in addition to economic issues. Furthermore, the committee asked where the money for development will come from, especially in light of the government's proximity to the debt wall. In light of the overall significant impact of this proposed initiative upon our Territory, the committee referred further discussion on this matter to the Standing Committee on Accountability and Oversight.

The committee is concerned that the territorial government's program and functional fee increases will significantly affect our cost of living. In particular, fee increases in the transportation sector including airport land fees, general terminal fees and increased airport leases would be initially borne by the airline companies, but inevitably passed on to the northern consumer, business and government. Committee members note that residents will also be directly impacted by increases to motor vehicle licenses and related administrative fee increases.

The committee further remarked that northern residents would not only be affected by some fee increases, but by rising fuel costs as well. This translates into higher living and operating costs for both the consumer and businesses. In particular, people on a fixed income and businesses that are marginally profitable will be severely impacted. As a result, the committee, in recognition of the wide-ranging and significant effects of this issue upon our entire region, referred this matter to the Standing Committee on Accountability and Oversight for additional exposure and discussion.