Yes, Mr. Chairman. I am pleased to introduce the main estimates of the Department of Finance for 2003-2004 fiscal year. For 2003-2004, the Department of Finance is requesting a total expenditure budget of $10.521 million, or 35 percent more than the 2002-2003 main estimates amount.
The increases are:
- a one-time increase of $175,000 to conduct the 2004 community labour force survey;
- an increase of $242,000 resulting from changes to the collective agreement of the Union of Northern Workers;
- an increase of $110,000 to improve the government's capacity for evaluating and monitoring social conditions as part of the response to the social agenda recommendations;
- an increase to our short-term interest cost estimate of $1.734 million, driven by forecasted higher 2003-2004 borrowing costs; and,
- increased insurance costs of $494,000 resulting from industry-wide premium increases.
Mr. Chairman, the GNWT has been facing rising property insurance costs over the last 10 years, despite a declining trend in our losses over this period. The government is facing an additional 20 percent increase in premiums in 2003-2004 to maintain existing levels of coverage. The Department of Finance, therefore, undertook a review of alternate ways to address property risk. We have concluded that raising the government's deductible amounts at self-insuring losses below these higher deductible amounts is a cost-effective approach. This will reduce our insurance premiums considerably, but it will also require us to introduce mechanisms to prevent and mitigate property loss risks. We will also have to recognize the potential for uninsured property losses in our financial accounts.
When we have finalized the details of this new approach, we will brief standing committees. Once the department has finalized property premiums for 2003-2004, we expect to return with a negative supplementary appropriation for approximately $1.5 million in the June session. This would bring the department's overall requirements to approximately $9 million for 2003-2004, an increase of 17 percent over the 2002-2003 main estimates.
The expenditure budget in the main estimates is accompanied by a departmental revenue budget of $781.385 million, virtually unchanged from the 2002-2003 main estimates amount, but 11 percent higher than the revised main estimates for 2002-2003.
Total 2003-2004 Department of Finance revenues represents about 91 percent of the total forecast government revenues of $854.135 million. The Department of Finance, through its responsibilities for revenue generation management and information gathering distribution plays an important role in ensuring the government is able to deliver its programs and make informed decisions.
The department is focusing its outcomes and strategies for 2003-2004 on the priorities and strategies set by the Legislative Assembly and Cabinet, with particular emphasis because of its mandate on those related to the NWT's fiscal and economic circumstances.
The first goal of the department is to achieve a fiscal regime for the NWT that supports a stable political environment and a strong economy.
Key strategies of the department towards achieving this goal include:
- • continuing discussions with Finance Canada on changes to the post 2004 formula financing agreement;
- • providing taxation and formula financing input to resource revenue-sharing discussions with Canada and aboriginal governments;
- • continuing fiscal and taxation input on self-government negotiations; and,
- • initiating facility appraisal and risk assessment processes to improve the government's insurance protection.
The second goal of the department is to ensure the government has the fiscal and statistical information analysis needed to support policy development and decision making, particularly for key social and economic initiatives. Key strategies the department has identified towards achieving this goal include continuing work to ensure that the population numbers produced by Statistics Canada are as accurate as possible, undertaking the 2004 labour force survey and continuing to improve the range and quality of statistical information available, particularly in the area of social agenda indicators.
Finally, the department seeks to be more responsive to client needs. Key supportive strategies include, among others, improving awareness of the responsible use of liquor and improving liquor licensees' knowledge of their responsibilities.
Mr. Chairman, I'd be pleased to respond to any questions the committee may have. Thank you.