Page 5-28, revenues, recoveries and transfer payments. Agreed?

We will go back to page 5-7, Public Works and Services, operations expense, total operations expense, $39,284,000. Agreed?

We will go to capital acquisitions, Public Works and Services asset management, total asset management, $560,000. Agreed?

Petroleum products, total petroleum products, $1,375,000. Agreed?

Total department, $1,935,000. Agreed?

Does the committee agree that Public Works and Services is concluded?

Thank you, Mr. Minister, and your witnesses for appearing before the committee. As previously agreed, we will go to the Department of Finance. Does the Minister have any opening comments?

Yes, Mr. Chairman. I am pleased to introduce the main estimates for the Department of Finance for the fiscal year 2001-2002.

The Department of Finance, through its responsibilities for revenue generation and management, and information gathering and distribution, plays an important role in ensuring the government is able to deliver its programs and make informed decisions.

In Towards a Better Tomorrow, the Legislative Assembly laid out a vision and goals for the Northwest Territories and indicated its priorities for achieving these goals. The Department of Finance has focused its outcomes and strategies for the 2001-2002 fiscal year on these priorities and strategies with particular emphasis, because of its mandate, on those relating to the Northwest Territories' fiscal and economic circumstances.

For 2001-2002, the Department of Finance main estimates budget includes a total expenditure budget of $9,519,000, or 2.8 percent less than in 2000-2001. The budget is also $1,073,000 less than the forecast in the 2001-2004 business plan.

The decrease in the overall departmental budget is due to a reduction in the forecast of interest expense by $576,000 from the 2000-2001 Main Estimates. This decrease is due to the improved cash flow forecast for 2001-2002 and the improved fiscal framework.

The decrease in interest requirements is partially offset by an increase of $198,000 for the implementation of the new collective agreement with the Union of Northern Workers.

The expenditure budget is accompanied by a revenue budget in the main estimates of $725,894,000, an increase of 9.9 percent over the 2000-2001 main estimates. This increase is largely the result of higher anticipated revenues from income taxes, particularly corporate income tax.

I would be pleased to respond to any questions the committee may have.

Thank you, Minister Handley. I would like to ask the committee responsible for overseeing the department under review if they have any comments on the department's main estimates. Mr. Braden.

Thank you, Mr. Chairman. The Department of Finance is responsible for obtaining the financial resources to carry on the functions of government, for intergovernmental fiscal negotiation and arrangements, for regulating the insurance industry, and for controlling the sale of liquor in the Northwest Territories. In order to meet its responsibilities, the department is organized into the following activities; the directorate, the treasury, fiscal policy, and the Bureau of Statistics.

The Standing Committee on Governance and Economic Development met with the Minister of Finance and his staff on Wednesday, January 17, 2001 to review the Department of Finance's 2001-2002 Main Estimates. The committee noted a $1,073,000 decrease in operations expense from the department's 2001-2004 business plan projections. This resulted from an increase of $198,000 arising from increases in compensation and benefits as the result of the recent UNW collective agreement, and a $1,271,000 reduction in expenditure requirements resulting from lower debt servicing costs that resulted from a corporate tax windfall. The Department of Finance did not propose any capital expenditures. The department proposed an additional position to its human resource plan to administer the hotel tax, should the proposed tax become law.

Committee members restated their request for a more consistent financial reporting format from their review of the government's 2001-2004 Business Plan. The standing committee suggests that financial data should be more user friendly and presented in lay person's terms. Further, a separate section should also be established on debt management in the program detail area. Understandable, readable and accurate financial data is requisite for effective debt management and the promotion of economic growth. The committee expects to see progress in this matter in the next business planning cycle.

Liquor Act Plebiscite

Committee members pointed out that in many communities there is dissatisfaction with the liquor plebiscite process. The committee expressed concern that plebiscite results are accepted only when a community achieves a 60 percent voter turnout. A 60 percent voter turnout may be too rigorous, as many people may have out-of-town responsibilities or duties. Some committee members further remarked that communities should be able to set their own plebiscite parameters. Many communities want to regulate alcohol sales, but there is nothing in place to address this. Each community has its own unique set of concerns and a plebiscite process must be able to respond to these interests. The standing committee recalled that a review was conducted on the Liquor Act in a previous Assembly and questioned why nothing came forward from it.

The Standing Committee on Governance and Economic Development recommends that the government review the plebiscite process to better reflect the wishes of the communities and report back to the committee with options by next business plan cycle.

Thank you, Mr. Braden. Would the Minister like to bring in any witnesses?

Yes, Mr. Chairman.

Does the committee agree?

Sergeant-at-Arms, would you please escort the witnesses in? For the record, Mr. Minister, could you introduce your witnesses please?