Thank you, Mr. Chairman.
The Standing Committee on Social Programs met on January 17 and 18, 2001 to consider the 2001-2002 Main Estimates for the Department of Education, Culture and Employment.
There were a number of changes in the main estimates from the figures provided during the business plan review in October; a $635,000 increase for the revised capital cost of the Helen Kalvik School in Holman Island; a $1,840,000 increase to address changes resulting from the collective agreement with the Union of Northern Workers; a $763,000 decrease in amortization expenses; a $4,535,000 increase for reductions in pupil-teacher ratios resulting from the NWT Teachers' Association agreement; and a $325,000 transfer from Health and Social Services to create a one-window approach to service for seniors and disabled persons.
Subsequent to the Minister's presentation on the main estimates, correspondence from the chairman of the Financial Management Board indicated that there would be a further $335,000 provided to the Yellowknife school districts and the Rae-Edzo School Society to cover costs associated with the signing of the new collective agreement with the Union of Northern Workers. The correspondence also stated that the $2 million previously identified for the Early Childhood Development Action Plan in the main estimates would become part of the supplementary reserve.
As part of the business plan review, the Standing Committee on Accountability and Oversight had made a recommendation on behalf of the Standing Committee on Social Programs regarding reinvestment of the projected $1 million savings in the Income Support Program. As a result of the recommendation, the department has reinvested $500,000 to enhance the food basket and $200,000 to improve services for disabled persons.
When questioned about the $300,000 shortfall from the recommendation, the Minister advised the committee there would also be increased spending for the Literacy and Maximizing Northern Employment Strategies, which would bring the total reinvestment to at least the $1 million mark.
Committee members are not sure that this will achieve the intended result of the recommendation for re-investment and will be watching the implementation of the enhancements to the Income Support Program to gauge their effect.
The Standing Committee on Social Programs would like to thank the department and the government for meeting at least part of the recommendation to reinvest the savings that were a result of the increased efficiencies to the Income Support Program. The department is strongly urged to examine the Income Support Program on a regular basis to ensure that it is sufficient to maintain the dignity of income support clients and meet their basic needs.
Early Childhood Development Action Plan
After years of committee recommendations to focus on prevention to better ensure healthy children, the standing committee is pleased that the government is prepared to make a $2 million investment in early childhood development in each of the next three years. Now, members are anxious to see the details of the program. The committee looks forward to being able to comment on the proposed program when the department, along with the Department of Health and Social Services, brings that information back to the committee in April 2001.
Committee members will be looking for a co-ordinated approach with existing programs and service providers. For example, aboriginal organizations and governments have already been delivering Aboriginal Head Start Programs that have proven very effective in meeting early childhood development needs. Programming under the action plan should enhance, rather than compete with, such existing programs and services.
To date, there is little evidence that there is true coordination and cooperation between Education, Culture and Employment and Health and Social Services on the action plan. When the proposal is reviewed in April, the committee hopes to see strong evidence that these two departments are finally working together toward a common goal in measurable and tangible ways.
Members noted that the commitment to early childhood development is only for the next three years. It is hoped that the government will be able to find funding to make early childhood development part of the base, as it will be difficult to wind up extremely important programs when the funding is sunsetted in three years. It was also noted that subsequent to reviewing the main estimates, the $2 million was removed and placed in the supplementary reserve.
Student Financial Assistance Program (SFA)
The members of the standing committee continue to have many concerns about the current delivery approach for the Student Financial Assistance Program.
During the review of the main estimates, the Minister indicated that the department is moving $214,000 from the SFA Program to pay for new SFA loans officer's salaries. There was no mention of the need for this transfer of funds from the program to salaries during the review of business plans just three months ago. What is particularly disturbing about this funding transfer is that the Minister insisted the department could not afford the $300,000 in program funds to grandfather students at post-secondary institutions who were previously entitled to remissible SFA loans. The Minister then takes more than two-thirds of the amount necessary to grandfather these students and shifts it to pay for the increased administration costs of the revised SFA Program.
In light of the administrative funding transfer, the unwillingness of the Minister to grandfather students adversely affected by the change in the SFA Program continues to be an issue for the committee. When committee members gave approval last year to the SFA redesign, it was with the understanding that students presently receiving benefits would be grandfathered. It is a concern that the members cannot take the Minister at his word when he makes a commitment in order to get committee support for a program change.
Members of the committee remain concerned that the SFA Program continues to be entrenched at headquarters. There is a strong interest in seeing this program delivered regionally or locally, like other similar programs. This decentralization would be a good first step. The Student Financial Assistance Program will probably be part of self-government agreements and any eventual transfer would be the responsibility of the regional administration.
While the department has made efforts over the past few years to improve the delivery of SFA, there is still room for improvement. It was noted that Members from the larger communities spend far more time dealing with complaints about the SFA Program than with the Income Support Program. The committee will be monitoring the fall intake of students and hopes the system will run considerably smoother than it did last year.
The committee and Minister discussed the benefit of introducing an interest reduction-relief plan for those students who return to the Northwest Territories and have paid back the principal of their student loans. This would be an excellent way to encourage students to return to the North once they complete their studies. It would also be consistent with the approach announced under the Maximizing Northern Employment Strategy. The committee was pleased to hear that the department is considering a similar proposal and looks forward to further discussion in the near future.
Oil and Gas Training
The government has provided members with information demonstrating the significant employment opportunities, both short and long-term, in the oil and gas sector. Less than a year ago, there were announcements about the efforts to support oil and gas training and government officials were heavily involved in plans to support this effort.
The standing committee was pleased that $500,000 was identified in the business plan for oil and gas training, but is disappointed that more could not be made available. The money identified thus far has been allocated for entry-level courses.
The safety and truck driving courses may meet immediate needs of employers, but they do not ensure that Northerners are trained and ready to advance past the entry-level positions or to assume the technical jobs available after the initial exploration work is done.
Officials from oil and gas exploration companies have told committee members that there is a need for more extensive training than what is currently available. It is important that the department take a leadership role in determining those training needs and finding ways to help Northerners prepare for more than just entry-level jobs.
While we can look to partners such as businesses and the aboriginal governments to complement the training offered or coordinated by the government, the government has the responsibility to ensure that residents have the skills that employers need through programs and institutions such as Aurora College and the Apprenticeship Program. The creation of an Oil and Gas Sector Committee, similar to the very successful mine training committee, may be one way to bring all partners together to address training issues.
Oil and gas development may come and go in a relatively short period of time. The committee is apprehensive about having further efforts to support northern employment and training in oil and gas contingent on federal funding that may take a long time to materialize. The department must monitor this situation and the government must be prepared to invest in the future of the people of the Northwest Territories should the federal government fail to recognize our potential.
Impact Benefit Agreements (IBA)
Some members of the standing committee are concerned about the treatment of Impact Benefit Agreement payments in assessing income support amounts. Currently, income support clients have their income support reduced by the amount they receive under an IBA.
There are two areas where greater clarity is required. First, it is not clear whether an IBA payment is similar to a treaty payment and whether either type of payment should result in reductions to payments received under other government programs.
Second, IBA payments are almost like a windfall for those on income support. Under normal circumstances, these individuals have no opportunity to buy extra items like a nice pair of runners for their children, or to put a small amount of money away for their future. The IBA provides that opportunity, but it is then taken away because their income support payments are reduced and they need to use the IBA payment to meet the necessities of life.
Members are pleased that the department will revisit this issue and look forward to discussions with the Minister in late spring on possible options for dealing with this issue.
Consistency in College Programs
Members are aware of students who have quit jobs to attend Aurora College only to have courses cancelled at the last minute because of insufficient enrolment. While the committee understands the economics behind these types of cancellation decisions, there is still an obligation on the part of the College to deliver the programs it says it is going to. If the College wants to be treated as a full-grown college on par with its southern counterparts, it must find ways to ensure that students have full access to the range of course offerings that are initially advertised. Students should not have to take courses that are of no interest or value to them in order to get their diplomas on a timely basis.
Distance education is being used more and more in the high schools to provide choices and options for students. The college needs to take a hard look at how to access distance education options so students are treated fairly and receive the quality and variety of education that they register for. If the college cannot offer a course because of low enrolment, there should be a distance education opportunity for the student to acquire the course.
An important part of this equation is how the SFA Program will support students pursuing distance education opportunities. The committee is still waiting for information on how the department plans to deal with this growing issue. Members would like to stress that Aurora College students should not have their SFA funding threatened if they are required to take distance education programs to fulfill credit requirements that the college is unable to provide.
Mr. Chairman, I would like to turn the rest over to my colleague, Mr. Bell. Thank you.