Page 4-11, directorate, grants and contributions, grants, total grants, $2,220,000.
Debates of March 5th, 2002
This is page numbers 341 - 388 of the Hansard for the 14th Assembly, 5th Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was chairman.
Topics
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381
Some Hon. Members
Agreed.
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381

Floyd Roland Inuvik Boot Lake
Thank you, Mr. Chairman. Just for the record, the grants and contributions, extraordinary funding, I believe that a large majority of that amount is targeted for one community. What would be left over and what criteria has to be met to access that extraordinary funding? Thank you.
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381
Murray
Thank you, Mr. Chairman. Of that $1,925,000, $1.7 million is for one area. The other $225,000 that remains will be dealt with on a case-by-case emergency request basis. It is a very small fund that will not go far. In most cases, we will have to come for extraordinary to the Financial Management Board.
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381

Floyd Roland Inuvik Boot Lake
Thank you, Mr. Chairman. What is done in the area when a community finds itself in the situation of being in a deficit? Is there not a request for an action plan to deal with the shortfalls, or a deficit plan to get out of deficit? Is there not something like that put into action? Thank you.
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381

Vince Steen Nunakput
Thank you, Mr. Chairman. That is correct, Mr. Chairman. There is a process. We approach the community with a deficit reduction plan, whereby we may end up helping them with some of the funding that they need. However, they must take steps to reduce their expenditure or increase their revenue, and in some cases, both. Thank you.
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381

Floyd Roland Inuvik Boot Lake
Thank you, Mr. Chairman. What was done before, for example, the one community we highlighted in our report, what was done in that situation to try and deal with the situation they found themselves in before this bail out occurred?
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381

Vince Steen Nunakput
Mr. Chairman, I believe there was a reduction plan in the past, but I will ask Mr. Murray to respond to that.
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 381
Murray
Thank you, Mr. Chairman. The department has been working with that particular community for over a year now, since the reduction done to the formula was known, to develop a sound capital planning system and to make budget reductions. In fact, the community had to demonstrate they could balance their budget before this particular item could even be considered and brought forward. They had to be able to balance their budget as part of that process and show us what their approved budget for the year was. As well, we monitor their expenditures on an ongoing quarterly basis.
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 382
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 382

Floyd Roland Inuvik Boot Lake
Thank you, Mr. Chairman. Is it not the case when MACA is aware that a community is in such difficulty that a plan is put into place and the community, through an agreement, has to try to meet that? This has been going on for quite a number of years, this extraordinary funding. Has not a plan been put in place before this year? It is my understanding from the deputy minister that a plan was put in place a year ago. So when this funding formula was changed, was there not something in place prior to that? Thank you.
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 382
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 382
Murray
Thank you, Mr. Chairman. Yes, there was a plan with the community in place, where they may have brought the financial positions fully under control. What they are now dealing with is addressing the long-term reductions in ongoing funding that they would have to deal with. The community got into this particular situation because they entered into a loan at a time when the funding was considerably higher than it is under the new formula. So they entered into this loan thinking that in the long run, they would have a higher level of funding from the Government of the Northwest Territories and therefore would be able to absorb the ongoing payments.
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 382
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 382
Recommendation 1
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 382