Thank you, Mr. Speaker. The Standing Committee on Social Programs met from January 13 to January 24, 2003 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 Ministers, raised a number of issues. These discussions resulted in the committee making some specific recommendations. The issues and recommendations will be discussed in detail under the individual departments.

The Standing Committee on Social Programs is very concerned with the capital allocation process. Several large infrastructure projects, which have appeared during this business planning cycle, are causing Members to question the validity of the current methodology in determining how the GNWT's limited funding for capital projects are allocated.

The Social Programs committee relayed these concerns to the Standing Committee on Accountability and Oversight, who in turn, wrote a letter requesting that the funding for the renovation to the Fort Smith Health Centre, the construction and renovation of student housing for Aurora College and the construction of a new Territorial Women's Correctional Centre be deleted from the infrastructure acquisition plan until such time as their inclusion could be justified to the Standing Committee on Social Programs.

In the response to the letter from the Accountability and Oversight committee the Minister of Finance declined to remove the projects from the infrastructure acquisition plan. The Minister argued that as these projects were for future years, the decision would ultimately rest with the 15th Assembly and that the committee's concerns could be dealt with over the next business planning cycle.

Members of the Standing Committee on Social Programs are very disappointed the government's response ignores the committee's valid concerns. The committee believes that because the infrastructure acquisition plan is included as part of the main estimates, residents of the NWT think the projects and funding for future years have received due diligence from the committee process. This is not the case for future year infrastructure projects.

The danger in allowing these projects to stay in the infrastructure allocation plan is the tendency of the funding numbers to become institutionalized. For example, the government proposes to replace the Territorial Women's' Correctional Centre at a cost of just over $10 million. At this time, even the department agrees with the committee that the functionality and the cost estimates of the proposed facility must be reviewed.

The committee fears leaving the $10 million in the infrastructure allocation plan will mean any planning process will use that number as the end target.

Because of time constraints and other issues surrounding the transition to the next Assembly there may not be sufficient time for the next Standing Committee on Social Programs to fully examine these capital projects. The Standing Committee on Social Programs will therefore be recommending to its successor that the Territorial Women's Correctional Centre, the student housing for the Aurora College Campus and the renovation of the Fort Smith Health Centre be removed from the infrastructure acquisition plan until such time as the respective department's can justify the need for these projects.