Mr. Chairman, I'm pleased to be here today to present the Financial Management Board Secretariat's 2003-2004 main estimates. The 2003-2004 main estimates propose total operational expenses of $26.939 million. This is a $2.824 million, or nine percent, reduction from 2002-2003. This reduction is due to several factors.
- Completion of the pension review project which involved deciding whether to stay in the federal superannuation pension plan. With conclusion of the project, a reduction of $2.039 million and six positions is proposed for the 2003-2004 fiscal year. This is not a full reduction of the resources provided for this project, as three positions are required to work with superannuation and insurance carriers in an effort to improve coverage and services to employees, as well as reduce overall costs to the GNWT.
- Removal of the $1 million associated with the hydro power initiative. This work has been transferred to the NWT Power Corporation. The requirement for further resources for this initiative will be dependent on whether agreements are in place with Aboriginal governments to pursue specific projects.
- The settlement of the equal pay complaint. The settlement outlines a three-year process to identify eligible employees, verify service, process payments, review irregular situations and make final payments. A series of changes will be made to the make-up of the equal pay team and their duties. The 2003-2004 changes result in a funding reduction of $1.250 million. The Government of Nunavut will continue to pay 44 percent of shareable costs as per the division of assets and liabilities agreement.
The secretariat's main estimates include funding increases for the following items:
- A $779,000 increase to salary and benefits associated with collective agreement changes.
- The addition of one position for a labour relations officer in the Fort Smith region as a pilot project to assess the impact on client service and labour management relations in adding regional labour relations services.
- A $150,000 increase related to the issuance and monitoring of loan guarantees to support the establishment of secondary industry in the Northwest Territories related to resources development.
- A $226,000 increase to provide pay and benefit services to the Fort Smith Health and Social Services Board and the Deh Cho Health and Social Services Board which is being funded from a transfer from Health and Social Services.
The secretariat's proposed capital acquisition plan for the 2003-2004 fiscal year includes $600,000 for information technology projects.
- $230,000 has been included to continue the work started in the current fiscal year to review and identify potential financial information systems solutions for the government. This review is intended to provide decision-makers with sufficient information to determine whether to invest significant effort in developing a new financial system. This project is expected to cost $400,000 and be completed by March 2004.
- $230,000 has been allocated to complete software upgrades to the existing financial information system to keep it functional while a business needs analysis for its replacement is performed.
- $200,000 has been allocated for hardware and software development and support tools in support of a knowledge management strategy.
That concludes my opening remarks, Mr. Chairman. Thank you.