Thank you, Mr. Chairman. The Standing Committee on Accountability and Oversight reviewed Bill 6, An Act to Amend the Financial Administration Act, at its meeting on May 6, 2002. This bill amends the Financial Administration Act to clarify the authority of the Government of the Northwest Territories to indemnify members of the public service.
Mr. Chairman, currently indemnification for employees and former employees is contained in policy and collective agreements. Indemnification is the agreement by the Government of the Northwest Territories to provide legal counsel and associated costs to employees who may be sued while they are properly carrying out the duties associated with their jobs. The Financial Administration Act has been found to be deficient in providing the authority for the government to indemnify public service employees and indemnities. To be effective, it must be contained in an enactment.
This amendment will also provide that all indemnities that have been made in the past for employees will be deemed to have been legally made and it will provide for the indemnification of future public service employees.
Members questioned the Minister regarding the impact of this amendment and its retroactive nature to the Government of the Northwest Territories. The Minister assured the committee that it was expected that the amendment would have minimal impact, since the legislative changes would be consistent with the current practice and will ensure that the Financial Administration Act clearly provides authority to the government to indemnify its current and future employees.
Members also received assurances that indemnities will not apply for unlawful acts of an employee, but only for acts or omissions in the course of and within the scope of his or her employment. Members may have further questions for the Minister during the review of the bill.
The committee would like to thank the Honourable Joe Handley, Minister responsible for the Financial Management Board Secretariat, his officials and those of the Department of Justice who appeared before the committee to present the bill and respond to questions raised by the committee.
Mr. Chairman, these amendments were passed by the committee and this concludes the committee's comments on Bill 6, An Act to Amend the Financial Administration Act. Thank you, Mr. Chairman.