Thank you. Just on that same item, I'm wondering if there isn't some way that we could have a level of assurance when the federal government gives us money that they haven't done so in error, and we won't be penalized the very next year. I mean, $181 million is obviously a lot of money and it's a large proportion of the amount of income tax that we receive in one year. So what sorts of safeties do we have in place? Obviously there are no guarantees, but it would be nice to know that the money you were getting from the federal government, and in fact budgeting on and planning your expenditures on, was something that was a little more solid than being able to be flipped to the tune of $181 million in one fiscal year.

Thank you, Mr. Bell. Mr. Handley.

Mr. Chairman, I'll answer it and then if it's still unclear, I'll get Ms. Melhorn to clarify. When we get money, let's say from a large corporate tax payment, we know that the federal government is going to do a calculation on it and take back their share of it. We know that that won't happen until the following year. So in our budgeting we take that into consideration. For example, last year we didn't spend the whole $400 million thinking that we were going to get to keep it all. So there is a year delay. I don't know that there's an easy way of fixing that, except for the fact that we know they're going to make that readjustment. Thank you.

Thank you, Mr. Handley. Mr. Bell.

Okay, I didn't understand how this works. I thought that the federal government collected taxes from corporations on our behalf, as well as on their own behalf, and then remitted the portion to us that was entitled to us after making that calculation. So what really happens is that the corporation will file its income tax, pay that money all to us, and then the federal government takes its portion back. Is that right?

Thank you, Mr. Bell. Mr. Handley.

Mr. Chairman, as I understand it, the corporations pay the taxes collected by the federal government on our behalf. The federal government just pays us that whole amount, and then the following year they make adjustments to it. So I'll ask Ms. Melhorn to provide further clarification on it.

Thank you, Mr. Handley. Ms. Melhorn.

Thank you, Ms. Melhorn. Mr. Bell.

Okay, thank you. That clarifies the situation for me. I have a better understanding of it now. I guess our Finance department is well aware of this, and clearly when they come forward to us and talk to us about the money that we have to spend in a year, they're taking that into account. I've never been privy to any discussion that suggested we got a lump sum from the federal government, to be careful, we recognize this was an overpayment so let's not spend it. But clearly they do take that into consideration so that's fine. Thank you.

Thank you, Mr. Bell. Just comments. Any more questions on revenues, recoveries and transfer payments? Hearing none, we'll go back to page 3-7, department summary, operations expense, total operations expense, $10.521 million.

Does the committee agree that that concludes the review of the Department of Finance?

Thank you. I'd like to thank the Minister and his witnesses for appearing. What is the wish of the committee? Mr. Dent. Does the committee agree to go on to Public Works and Services?

Okay, we'll go on to Public Works and Services. Does the Minister of Public Works and Services have any opening comments? Mr. Steen.

Minister's Opening Comments

Thank you, Mr. Chairman. Mr. Chairman, I am pleased to present the Department of Public Works and Services main estimates for the fiscal year 2003-2004. The estimates propose the department's operations and maintenance budget for 2003-2004 of $44.2 million, and a capital acquisition plan of $1.4 million. This is a 6.4 percent increase over the 2002-2003 main estimates.

These resources will be used to provide critical support services to departments in communities, including the operation and maintenance of infrastructure; participation of the safe water initiative; management of capital construction projects; safety and inspection services; leasing of government offices; provision of records management services; and, monitoring and intervention in northern national clinic communication proceedings.

The department also manages an additional $72 million on behalf of its clients through a number of revolving funds, chargebacks and capital transfers.

Through the use of these funds, the department provides computer and data communication services for government offices throughout the territory, fuel services for 15 communities, and renovation and construction of critical territorial and community infrastructure. As other departments work to achieve government objectives by delivering direct services to our residents, Public Works and Services provides necessary technical and professional support to the department.

Mr. Chairman, there are many examples of the kinds of public support Public Works and Services provides to departments as they work to achieve an appropriate balance between the expectations of our residents for high quality services, the practical constraints of operating in our northern environment and the limitations of our current budgets.

I would like to take a moment to mention a few of these services. The many successful building and infrastructure projects are often taken for granted, but I would like to mention a few today. The project to clean up an underground fuel spill at Thebacha Campus has been honoured with an award of excellence by the Consulting Engineers of Alberta. Recently completed buildings include the Inuvik Regional Health and Social Services Centre, the Young Offenders' Facility in Yellowknife and the expanded school in Holman, as well as a community office complex in Rae Lakes. There are also several important water projects going on throughout the NWT, including Rae-Edzo, Tulita and Fort McPherson. These are all important community and regional territorial facilities that will contribute in a positive way to achieving the government's long-term objectives. Public Works and Services is a vital part of the team responsible for delivering these projects.

Public Works and Services also provides information systems and communication services for use by the government. More and more the ability of the government to provide services to northern residents is dependent upon the availability of secure and reliable information and communication systems.

Another important role for this department is to be a key member of the GNWT team responsible for ensuring the quality of community drinking water. Working closely with the departments of Health and Social Services and Municipal and Community Affairs, Public Works and Services provides technical support for the design, construction, operation and maintenance of community water systems.

Finally, I would like to mention the provision of essential fuel services. Through the petroleum products revolving fund, Public Works and Services funds the provision of heating fuel and gasoline in communities where a commercial operation does not exist. This includes providing safe tank farms in these remote locations, as well as contracting with and training local fuel delivery agents to provide the services. These agents have an important function in their communities, and Public Works works with them to carry out this important service.

Mr. Chairman, Public Works and Services tries to be responsive to its many clients and to provide a high level of support to departments and to the people of the NWT. The budget that we are reviewing today will contribute to achieving this objective. Mr. Chairman, that concludes my opening remarks. I would be happy to answer any questions members may have.

Thank you, Mr. Steen. I'll call on the Standing Committee on Governance and Economic Development. Ms. Lee.

Mr. Chairman, I'd like to move that we report progress.

There is a motion on the floor. The motion is non-debatable. The Chair does not recognize a quorum. There is a motion on the floor to report progress. The motion is non-debatable. All those in favour? All those opposed? The motion is carried.

---Carried

The Chair will rise and report progress.

Can I have the report of Committee of the Whole? Mr. Delorey.