Thank you, Mr. Chairman. Mr. Chairman, the mandate of the Department of Municipal and Community Affairs, or MACA, is to provide community governments with the support to deliver public programs and services essential to good community life, to assist with the development and maintenance of community governments, and to provide the resources necessary to achieve community goals.

The Standing Committee on Governance and Economic Development met with the Minister of Municipal and Community Affairs and his staff on Friday, January 18, 2002, to review the department's draft main estimates for 2002-2003.

The committee noted a $7,605,000 net increase in operations expenses from the department's 2002-2005 business plans. This net increase may be attributed to a $1,700,000 increase in other subsequent FMB approvals due in its entirety to extraordinary funding for the community of Fort Simpson; and a $5,905,000 increase in other adjustments due to the reporting of infrastructure contributions as operations expenses instead of capital expenditures.

The committee also noted a net decrease of $4,305,000 in the department's capital expenditures from its 2002-2005 business plans. This net decrease is due to $100,000 for the new Aklavik curling rink; $500,000 for the new Wha Ti community hall; $1,000,000 in new funding to address water treatment plants and system deficiencies; and a reduction of $5,905,000 as the result of a transfer of infrastructure contributions to operations expenses under a revised reporting process.

Some committee members feel that the department needs to be more responsive to community needs. Committee members added that it is difficult to effectively deliver programs and services when there is a lack of infrastructure. Furthermore, the acquisition of needed infrastructure is made more difficult by the new corporate capital planning process. The new process does not take into consideration community priorities.

The committee is concerned about the maintenance of safe drinking water. Committee members commented that there should be a coordinating authority to increase accountability and ensure standards are met.

The department replied that it is responsible for funding the water facilities that are owned by the government or the community. The Department of Public Works and Services is responsible for maintaining the facilities to the standards that are set by the Department of Health and Social Services. The NWT Water and Waste Association provides training for water plant operators. Some committee members commented that this confirms accountability in this matter is convoluted. If a timely resolution to a problem is necessary, a community would have to deal with three departments instead of one consolidated authority.

Furthermore, although training is provided by the NWT Water and Waste Association, recruitment and retention challenges will remain ongoing as long as communities are not given adequate funding to pay their staff competitive wages.

Mr. Chairman, the committee learned that the community of Fort Simpson will receive extraordinary funding in the amount of $1,700,000. This amount would leave only $200,000 in the department's extraordinary funding for other communities.

The committee is aware that Fort Simpson has received extraordinary funding in the past. Documentation received from the department confirmed that the community of Fort Simpson has received extraordinary funding in the amount of $1,546,000 for its water and sewer system and for the replacement of its main street from 1997-1998 to 2000-2001 and $257,000 for deficit reduction in 2001-2002.

The committee noted that as of the next fiscal year, Fort Simpson would have received $3,503,000 in total extraordinary funding since 1989-1990. Committee members are concerned that extraordinary funding has evolved into a pool of money that is used as an additional source of funding for some communities, such as Fort Simpson and Yellowknife. Most of our communities are being penalized for good financial management, while other communities use extraordinary funding for public works projects and paving. In short, some communities are being rewarded for bad financial management with extraordinary funding bailouts.

The Standing Committee on Governance and Economic Development suggests that the department work more closely with Fort Simpson and other similarly managed communities to avoid extraordinary funding incidents in the future. Furthermore, the committee encourages the adoption and implementation of debt recovery programs as an alternative to extraordinary funding as a proactive initiative to encourage good fiscal management.

The committee learned that the department has budgeted $750,000 for youth corps initiatives and $125,000 for other initiatives for youth. However, the Minister Responsible for Youth, which is independent from this department, does not have adequate funding for his youth initiatives.

Committee members concluded that it may be more effective and efficient to combine the Minister Responsible for Youth with the Ministry of Municipal and Community Affairs.

The Standing Committee on Governance and Economic Development recommends that the Minister of Youth portfolio be amalgamated with the Department of Municipal and Community Affairs to facilitate and improve funding and program delivery for youth programs.

With that, Mr. Chairman, I thank you. That is the committee's report. Thank you.

Agreed.

Thank you, Mr. Chairman. We can provide that information. It is a fairly lengthy table. Do you want me to hand it out?