Thank you, Madam Chair. The Department of Public Works designs, constructs acquires operates and maintains buildings, works and equipment and implements energy efficient projects in Government of the Northwest Territories' buildings and works required for the Government of the Northwest Territories to deliver its programs and services, provides a system of specialist services that enhance efficiency of government departments and makes essential petroleum products available for the sale to the public where these are not provided by the private sector.
The Standing Committee on Governance and Economic Development met with the Minister for the Department of Public Works and Services and his staff on February 24, 2004m to review the department's draft main estimates for 2004-2005.
Records Management
The committee observed that 10 to 15 years ago the government had a more coordinated approach to records management and that Government Services as a part of Public Works performed the records management function. Today all departments have their own filing systems and their own records management staff. The department responded that they have been working with the departments to coordinate the services but that the departments have not been given Cabinet direction to use Public Works and Services for records management.
The committee recommends that the government look at what can be done to better coordinate Records Management across departments. The committee would like to also recommend that departments looks at storing records electronically in order to reduce warehouse operation costs.
Systems And Communications
The committee inquired as to the relationship between the technology services centre and the Public Works and Services systems and communications division. The committee also asked about the long-term plan for these two related divisions.
The Minister replied that PWS deals with management and administration of the GNWT wide area network; management and administration of the Yellowknife municipal area network; computer processing of corporate and departmental business systems; management and administration of the GNWT e-mail systems; operation and support of the GNWT Web site; provision of GNWT Internet access and administration.
The TSC deals with desktop computers, laptops and printers and local area network support, server operation for various departmental business systems.
The committee understands that planning for the integration of systems and communications and TSC with the Department of Public Works and Services has already started. Implementation will take place over the coming year and the change will be reflected in the 2005-2008 business plan.
The committee would like to encourage the government to proceed with its plans to merge the TSC and systems and communications as soon as possible.
Compensation And Benefits
The committee questioned the department at length on the way it sets out compensation and benefits budgets in the main estimates. For instance, under the systems and communications activity, only the director's compensation and benefits are shown.
The compensation and benefits budget for the other staff is accounted for on the systems and communication
chargeback page. The rationale provided by the department was that salaries of staff other than the director are charged back to the clients.
Similarly, the petroleum products activity does not include any compensation and benefits budget at all. Staff costs are shown instead under the revolving fund. The department explained that this is because there are no appropriated funds for the petroleum products activity.
Finally, some benefits for staff across the department are listed under the directorate rather than under the activities with which the staff are associated.
The committee is concerned that separating compensation and benefit costs from the activities they are associated with makes it very difficult to know the full budget for those activities.
The committee recommends that, beginning with the 2005-2008 draft business plans, the department adopt a consistent practice for showing compensation and benefits costs that makes it clear which activities those costs are associated with.
Petroleum Products
The petroleum products division purchases, transports and stores the annual requirements for petroleum products in communities not served by the private sector. There has been discussion in past years about whether PWS would continue to provide these services or whether this function would be privatized. The committee noted significant new tank farm projects in the infrastructure acquisition plan, and asked the Minister to confirm whether there is a new direction to abandon privatization. The Minister confirmed that there is direction from Cabinet not to proceed with any further privatization initiatives. The Minister also assured the committee that the communities where tank farms are being replaced are not likely to be privatized because it is unlikely they could support viable commercial operations.
Removal Of Fort Simpson Operations Manager Position
The committee requested an explanation from the department for the removal of the Fort Simpson operations manager position. The department advised that the position has been moved to Yellowknife to train a person from Fort Simpson to eventually assume the role of operations manager in that community. The department reassured the committee that the position would remain in Fort Simpson. The committee recommends that the department prepare a timeline for the training and transfer of this position back to Fort Simpson and recommends that all positions associated with the petroleum products division be relocated from Yellowknife to its headquarters in Fort Simpson.
Increased Cost Of Tank Farms Replacements
The committee questioned the Minister on the decision to go from retrofits, upgrades and addressing code deficiencies to replacing or spending upwards of $4 million to $5 million on tank farms. The Minister replied that often conditions deteriorate between the time of estimates and evaluation. Once a proper evaluation is performed and repairs have to be made then code requirements and regulations play a role and replacements may be necessary. Where possible, the department advised it prefers to limit projects to upgrades.
Liability And Site Cleanup
The committee asked the department to confirm if all the tank farms meet safety and environmental conditions and also if all of the decommissioned sites have been cleaned up. The department replied that environmental site assessments and audits have been performed on every site including the old ones. The liabilities are known and PWS has a plan with RWED to address all of these areas in the long term.
That concludes the Governance and Economic Development report on the Department of Public Works and Services. Thank you, Madam Chair.