Thank you, Mr. Chairman. The Standing Committee on Social Programs met from January 14th to January 25th, 2002 to review the draft main estimates. The social programs envelope includes the Department of Education, Culture and Employment, the Department of Justice, the Department of Health and Social Services and the Northwest Territories Housing Corporation.
The committee, in our discussions with the departments, raised a number of issues. These discussions resulted in the committee making some specific recommendations. The issues and recommendations will be discussed under the appropriate department.
We will talk now about the Department of Education, Culture and Employment. The Standing Committee on Social Programs met on January 15th, 2002 to consider the 2002-2003 main estimates for the Department of Education, Culture and Employment.
Committee members noted a $694,000 increase in the amortization estimates, $2,834,000 for the collective agreement with the Northwest Territories Teachers Association, $1 million in additional funding for day care and $1.5 million to improve income support program changes since the business plan review.
Members were pleased to note that the department accepted the recommendation, made by the AOC during the review of the business plan, that the department reinvest the projected $1.5 million savings that were expected in the income support program. Members were also pleased to see that the department recognized the Social Programs Committee's concerns expressed during the business plan review and increased funding for day care programs by $1 million over last year's main estimates.
Income Support Programs
As previously mentioned, Mr. Chairman, members were pleased to note that the department accepted the recommendation of the Accountability and Oversight Committee that the $1.5 million in projected savings, due to increased economic activity, be reinvested in the program.The $1.5 million will be invested in improving the seniors' fuel subsidy by decreasing the income threshold for eligibility, increasing the singles accommodation benefit, increasing the disability allowance, increasing the food benefit and by allowing income support recipients to keep their GST rebate cheques with no penalty.
Members are concerned that, even though the department is increasing the dollar amounts provided to income support clients for food and personal items, the increase does not contemplate the provision of a healthy food basket. Without adequate resources to purchase fresh fruit and vegetables, income support clients and especially their dependants, may not be getting the nutrition they need to be successful in achieving their goals.
The department maintains that because there is no recognized standard for what constitutes a healthy food basket it is impossible for the department to place a dollar value on the basket. Committee members would point out that the Canada Food Guide provides direction for what constitutes healthy eating. It should be a straightforward matter to extrapolate this information into a dollar value for the provision of a healthy food basket in each community. The Standing Committee on Social Programs will continue to press the department to provide enough funding to income support clients to purchase a healthy food basket.
Improvements to the seniors' fuel subsidy have broadened the income thresholds for eligibility and will result in more seniors being helped in maintaining their independence. Members have requested further information from the department on the possibility of the changes to the seniors' fuel subsidy being made retroactive to the start of the 2001-2002 heating season.
In addition, members have asked the department to clarify policy as it relates to the provision of fire wood under the seniors fuel subsidy. Committee members have been told some seniors have received their five cords of wood in eight foot lengths and have then had to pay someone out of their own pockets to cut the wood into stove-length. Members believe in consistency and consequently, the wood should be provided to the seniors in stove-lengths.
Expansion of Kindergarten Program
The Standing Committee on Social Programs has asked the Department of Education, Culture and Employment to examine the possibility of expanding kindergarten to full time for 5-year-old students and half time for 4-year-old students. Committee members see an advantage to expanding the kindergarten program in terms of early childhood development and in terms of reducing strains on the day care system.
The Aboriginal Head Start Program is an example of the advantages of early childhood education. The majority of students who have gone through the program are entering grade 1 functioning at least at a grade 1 level, if not better.
The department has provided the committee with a rough estimate of $8 million to implement a half-time kindergarten program for 4-year-olds and a full-time kindergarten program for 5-year-olds. This estimate does not include any provision for capital costs for expanding schools.
It is obvious that a decision to expand the kindergarten program could not be made and incorporated in time to be included in this year's budget. However, the Standing Committee on Social Programs strongly believes that the issue of expanding the kindergarten program deserves further in-depth study. The Department of Education, Culture and Employment has provided the committee with a rough estimate on the costs to expand the kindergarten program. They did not provide any analysis on any projected cost savings that could be realized.
For example, committee members can point to studies that show that a $1.00 investment in quality early childhood education means a $2.00 return to Canadian society as a whole in the future. Mr. Chairman, I believe that number should be a $7.00 return to Canadian society as a whole in the future. Students who receive a good foundation for learning through a quality early childhood education are significantly more likely to graduate from high school and university. Human Resources and Development Canada have proved a direct correlation between education levels and reliance on income support programs. The higher the level of education, the less likely a person is to collect unemployment or social assistance. Members would also point out that there would be reduced costs to the department's day care program.
The Standing Committee on Social Programs will be pressing the Department of Education, Culture and Employment to examine the positive effects of expanding the NWT's kindergarten program.
Student Financial Assistance Program
The Standing Committee on Social Programs has requested further information on the department's new interest relief plan. While members can see the benefit of an interest relief plan for students who do not have the financial wherewithal to pay back their loans as determined by a means test, there is a concern that the interest relief plan is too narrow in its scope resulting in very little uptake.
Members of the committee believe that if the real intent of the Maximizing Northern Employment Strategy is to encourage students to return to the North and use their skills in developing our economy, other government programs, such as the Student Financial Assistance Program, should complement that intent.
Under the present system, there is no incentive for a student with a significant student loan beyond what is remissible, to return to the North. The student can find employment elsewhere and make the same payments on the loan as if they were domiciled in the Northwest Territories. If the government was to consider making the interest on student loans remissible, it might encourage students to return to the North. The student would still be expected to repay the principal of the loan, but would have the interest remised if they lived in the Northwest Territories. Another possibility would be making student loan interest an exemption under the territorial income tax regime.
The committee was disappointed that the department had not yet dealt with the issue of how distance education programs would be dealt with under the student loan program. Members do look forward to reviewing the details of how the department will deal with distance education under the Student Financial Assistance Program in June of 2002.
Day Care Programs
Members were pleased that the Minister managed to secure an extra $1 million in funding for day care programs. Members understand that the extra funding will be used to increase the daily subsidy to licensed day care operators and to increase the subsidy to low-income parents.
While both of these funding increases will in no doubt reduce some of the strains on the day care system, there is still a concern at the committee level that there is more the department could be doing to help day care operators.
Members note that non-profit associations run many of the licensed day care providers and are reliant on volunteer board members. Many of these associations have experienced difficulties in attracting board members with the right skill sets to efficiently run a successful non-profit venture.
The Standing Committee on Social Programs believes one area the department should concentrate on is providing administrative support to day care operators/volunteer organizations. As an example, day care in the Dogrib region is administered through the Dogrib Community Services Board. This has meant significant savings through a centralized administration process and has resulted in quality day care in the region.
It was noted that the Minister spoke of working with the City of Yellowknife to streamline day care operations within Yellowknife. Committee members look forward to further information on any success.
The City of Yellowknife and the larger regional centres may have the capacity within the local government to become involved in the administration/support of local day care operations. However, it is clear to Members that the smaller communities would still need support from the department.
Recommendation
The Standing Committee on Social Programs recommends that the Department of Education, Culture and Employment assist local day care operators in dealing with their administrative burden and by offering quality support and advice to volunteer boards.
Mr. Chairman, with your consent, I would now like to ask if the Member for Great Slave can continue with the committee report.