The recruitment and retention of human resources is an ongoing concern of the standing committee. The government had produced a study to come up with recommendations to evaluate and improve its human resource management. The study is entitled, Report to the Government of the Northwest Territories Human Resource Management Study, December 2000, or otherwise referred to as the Grant Thornton Report.

The committee understands that an options paper on the report is being completed for consideration by Cabinet at the end of February 2002. The committee looks forward to reviewing the government's option paper and discussing other staff issues with the Premier.

FMBS is developing its own human resource plan. This plan is specific to FMBS and is not a government-wide human resource plan. The Minister informed the standing committee that the plan would be finalized and ready for implementation by July 2002.

In discussions with the committee, some of the issues that were identified included the training and placement of more aboriginal people in FMBS and competition with the private sector for the recruitment and retention of qualified personnel.

A number of Members were of the position that stricter amendments must be made to the FAA to ensure all Members have timely and effective input into new initiatives, budgeting adjustments and other expenditures. Committee members are concerned that new initiatives are announced with little or no input from Regular Members.

The Minister replied that he would do his best to notify Members of new initiatives and added that there needs to some flexibility in the FAA to respond effectively to emergencies. He further stated that there are guidelines for the use of supplementary appropriations, including special warrants, and Members are able to vote down appropriations.

The committee expressed its concern to the Minister regarding the recent power rate increases in the majority of communities. The Minister explained to the committee that the recent power rate increases by the Northwest Territories Power Corporation or NWTPC reflects the incremental costs of delivering power. Furthermore, he stated that an increase to the power subsidy is necessary to offset these increased costs.

The committee commented that if fuel prices have dropped, there should be a resultant decrease in our power rates and a corresponding decrease in the government's power subsidy program. The Minister replied that the NWTPC had to purchase fuel in advance at a fixed price.

Committee members confirmed with the Minister that if the NWTPC were able to purchase fuel at a lower price for next year, there would be a decline in our power rates as well as a reduction in funding for the power subsidy.

The standing committee reiterated its concern from the business plans that the government's FIS would require replacement. During the review of the 2002-2005 business plans, the committee heard from the government that it has proposed additional capital funding to extend the operating life of the FIS through the next three fiscal years. The department agreed that eventually, the current FIS system would no longer be economical or practical to maintain and stated that a replacement of the FIS is likely to cost between $10 million and $15 million.

In the review of its 2002-2003 draft main estimates, FMBS informed the committee that over the next two years, it is conducting a business case analysis to determine how best to replace the FIS. It will compare different systems, and consult with users and clients. The standing committee would like the FMBS to ensure a proper implementation plan for this replacement process is established.

Mr. Chairman, that concludes the Standing Committee on Governance and Economic Development report on FMBS. Thank you.

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

Yes, Mr. Chairman.

Does the committee agree?

Sergeant-at-Arms, please escort the witnesses in. Mr. Minister, please introduce your witnesses for the record.

Mr. Chairman, with me are Lew Voytilla, secretary to the Financial Management Board, and Rob Taggart, director of corporate services. Thank you.

Thank you, Mr. Minister. General comments. Mr. Krutko.

Thank you, Mr. Chairman. A concern I have is with the Financial Management Board Secretariat taking on programs and services functions rather than being a financial management board to oversee what goes on with the government, especially with hydro initiatives and the $1 million for hydroelectric potential.

I have a hard time understanding where does the Northwest Territories Power Corporation, which has the responsibility for distributing power in our communities, and being a Crown corporation of which this government is a shareholder...we have seen other initiatives, especially with the Executive, Maximizing Northern Employment. I would like to know, why has this responsibility not gone to, say, another department responsible for energy or looking at the responsibility of non-renewable energy by way of the Department of Resources, Wildlife and Economic Development, the Power Corporation, some other department? Why specifically this department?

My concern is that the responsibility of the Financial Management Board Secretariat is to ensure the accountability of government is there, that we look at the revenues and what is coming into government and that we oversee that we are reaching the potential we have by way of those responsibilities.

For us to start taking on programs and services roles, that should be left with the departments responsible for carrying out programs and services. I would like to ask the Minister, why is it that this department is now in the business of looking at programs and services?

Thank you, Mr. Krutko. Mr. Handley.

Thank you, Mr. Chairman. Mr. Chairman, all of the options the Member has referred to are there and are under consideration. As the Premier just mentioned in the review of the Executive's main estimates, Cabinet is looking at that as soon as possible. Then we will be deciding on which course we are going to take.

We agree with the Member that the current establishment policy for FMBS does not provide for provision of programs such as the hydro responsibility. We agree with that and if that were to continue, we would either have to change the establishment policy or pick another option.

The option the Member has referred to, whether it is a new ministry responsible for energy, whether it goes into an existing program department or whether it goes into the Power Corporation, those are all options that are on the table right now. Thank you.

Thank you, Mr. Handley. Mr. Krutko.

Thank you, Mr. Chairman. Mr. Chairman, it is awfully hard to follow some of these initiatives this government is taking on. One minute they are talking about reviewing the Power Corporation, next we establish a hydro strategy initiative, next we have an energy initiative. It seems like we are tripping over each other with all of these initiatives.

At the end of it all, where are we going by way of simplifying and regulating what goes on in government? It seems like the bureaucracy just continues to blossom with no real controls in place to streamline the government so that we are structured in such a way that we are affordable. We cannot be spending all the money running a bureaucracy without having dollars to run programs and services. If anything, that is where we should be focusing.

I think with the Power Corporation, it seems like the potential they have is out there but we are restricting them from reaching that potential by saying, "Well, sorry, you cannot move on that because we are doing a review."

On one hand, they are looking at taking over petroleum products. The next minute they are doing a review on the Power Corporation. Then we have the situation that happened in Hay River, the whole idea of privatization and even the idea of selling off the corporation.

I think for myself, it does not do justice to the corporation. It is a viable asset to this government and to the people of the Northwest Territories. I think with us taking on all of these different initiatives and leaving the Power Corporation sitting on the sidelines looking in, my view is that is not the way to build a corporation that benefits the shareholders, the people of the Northwest Territories.

I would like to suggest to the Minister that he seriously relinquish some of these initiatives that should not be in the mandate of these different departments and put it where it should be. In my view, it should be with the Power Corporation.

Thank you, Mr. Krutko. Mr. Handley.

Mr. Chairman, I agree with the Member. Under the current establishment policy, it really does not belong in the Financial Management Board Secretariat. We are not building a bureaucracy, Mr. Chairman. We have not staffed these positions. We do, within FMBS, have responsibility for the Power Support Program. At one time, when we did the electrical generation study, part of the reason for doing that was because of the concern with the growing amount of the program to support our power costs.

That is how it started in FMBS. Mr. Chairman, I take the Member's advice seriously and we need to straighten this out as soon as possible. Thank you.

Thank you, Mr. Handley. Mr. Krutko.

Thank you, Mr. Chairman. That is it, Mr. Chairman.

Thank you, Mr. Krutko. General comments? Detail? Mr. Roland.

Thank you, Mr. Chairman. I would not want the Minister to get let off too quickly. Just following up on some of the committee's comments in our report, it is an area of concern, and some of the questioning in the earlier department with the Premier, in the area of mandates and carrying out work. Just to raise a concern there, we are aware that work is ongoing. We were informed by the end of February. Well, we are starting into March now, and also hearing from the Premier that after session is done, then there will be some discussion on it. Hopefully at that point, whatever decision will be made or proposals will come out that will work their way through the committee system.

I would like to know if the mandate, if there is agreement to move ahead with restructuring the department's resources that are identified under hydro unit would then be transferred out and put into whatever body was directed to head up the energy initiatives.

Thank you, Mr. Roland. Mr. Handley.