Thank you, Mr. Hawkins. The honourable Member for Nahendeh, Mr. Menicoche.

Thank you, Mr. Speaker.

Public Service Growth

During the review of the 2005-2006 Draft Main Estimates, the Standing Committee on Accountability and Oversight

noted that the public service has grown by 20.3 percent since 1999.

Members are of the opinion that growth of this kind is something to be monitored very carefully. Not only is the number of positions increasing, upcoming Collective Agreement negotiations may also lead to increased costs. The concern is that the GNWT has finite resources; the more resources allocated to salaries and benefits and other administrative costs, the less available for programs and services.

Members have noted that the plan to divide the Department of Resources, Wildlife and Economic Development includes a total of 17 new full-time positions. The committee is in support of the plan, but cautions that public service growth cannot go unchecked. If there is growth in one area, there will need to be reductions in another. As the committee has suggested previously, there are a number of areas where the committee feels duplication could be eliminated; for instance, the proposed consolidation of GNWT human resources.

Changes To Accounting And Capital Planning Process

The Standing Committee on Accountability and Oversight agrees with the position brought forward by the Standing Committee on Governance and Economic Development that it is time for the GNWT to review some of its business practices. One example is the inability to carry money forward from one fiscal year to the next, which can lead to imprudent spending at year end. If each department had greater control over its own expenditures and revenues, it would perhaps lead to greater responsibility in spending and reduce or eliminate the supplementary funding process.

The Standing Committee on Accountability and Oversight also shares the concern with the lack of consistent budget process amongst departments. For example, FMBS has a zero-based budgeting practice, while other departments do not and MACA's capital plan is presented differently in the main estimates. The concern is that an overly complicated process makes it difficult for Members of the general public to determine how the government is spending their money. Members of the Standing Committee on Accountability and Oversight would appreciate the opportunity to have more discussions with the Minister with regard to this matter.

Finally, the Standing Committee on Accountability and Oversight would like to see changes to the corporate capital planning process to address the inadequate representation of the interests of less developed and less populated communities, a process that has the potential to lead to cost overruns on large projects, and the lack of regional representation on the Capital Review Committee.

Youth Employment, Apprenticeship And Training On The Job Programs

Members of the Standing Committee on Accountability and Oversight, in concert with the Standing Committee on Social Programs, are disappointed that the Youth Employment Program, which provided subsidies to employers to hire young people to give them work experience, has been reduced by $480,000 over what was available in 2004-05. This means there is only $300,000 left to subsidize employers willing to give youth work experience.

The Standing Committee on Accountability and Oversight was pleased to see that the Training on the Job and Apprenticeship Training on the Job were both spared cuts through this latest round of government belt tightening. It should be noted that these two programs are different in that they actually ensure that a person has marketable skills in a trade or occupation upon completion of a training program. This program provides a subsidy to employers, to hire trainees or apprentices, and recognizes there is a cost to training skilled employees.

With the increased need for trades people and other skilled employees as a result of increased activity in the non-renewable resource sector, the committee cannot condone or support the erosion of training programs for northerners that can lead to long-term meaningful employment.

Western Arctic Leadership Program

The Standing Committee on Accountability and Oversight supports core funding from the Department of Education, Culture, and Employment for the Western Arctic Leadership Program. The majority of committee members believe the program has the potential to provide a valuable outlet for promising students to reach beyond the opportunities available to them by grade extensions in our smaller communities.

Recommendation

The Standing Committee on Accountability and Oversight recommends that the Department of Education, Culture and Employment undertake a comprehensive review of the Western Arctic Leadership Program to assess the value of the program.

And further, that the results of the review be presented to the Standing Committee on Accountability and Oversight prior to the committee review of the 2006-09 Business Plans.

Market Housing Initiative

Problems with the market housing initiative were brought forward to the Standing Committee on Accountability and Oversight by the Standing Committee on Social Programs. Members of the Standing Committee on Accountability and Oversight are of the opinion that the market housing initiative has not met its intent. Until such time that the committee sees information to convince them otherwise, Members are unwilling to support the program. The Standing Committee on Accountability and Oversight will be monitoring the program closely and may have further comments or recommendations, should the government decide to proceed with the second phase.

NWT Courts Building In Yellowknife

Issues surrounding the proposed NWT courts building in Yellowknife were brought forward to the Standing Committee on Accountability and Oversight by the Standing Committee on Social Programs. The Standing Committee on Accountability and Oversight supports the position of their counterparts. They too recommend the Department of Justice come up with a solid communication plan, and business case on the need for a

new courthouse, so that interested persons can get the information to make the same informed decisions that MLAs are being asked to.

Court Registries In Hay River And Inuvik

During the review of the 2005-2006 Draft Main Estimates, the Standing Committee on Accountability and Oversight was made aware by the Standing Committee on Social Programs, of the planned closures of the court registries in Hay River and Inuvik.

Members supported the recommendation that was made by the Standing Committee on Social Programs that both registries remain open. The major reason to recommend the Inuvik and Hay River registries remain open had to do with administration of justice in the regions. While it cannot be argued that it would be cheaper to consolidate all justice activities in Yellowknife, Members are prepared to accept that in some cases, there is a cost to getting justice closer to the people.

The Standing Committee on Accountability and Oversight also shares the concern that the construction of a new courts facility in Yellowknife could lead to consideration of consolidating court registries in Yellowknife sometime in the future. The Standing Committee on Accountability and Oversight would oppose any such move.

Remand Unit At The South Mackenzie Correctional Centre

The closure of the remand unit at the South Mackenzie Correctional Centre was brought to the attention of the Standing Committee on Accountability and Oversight. committee members, like their counterparts in the Standing Committee on Social Programs, have difficulty in accepting the department's rationale and anticipated cost-savings associated with the closure of the remand unit.

During the review of the 2005-2006 Draft Main Estimates, the Standing Committee on Accountability and Oversight supported the recommendation made by the Social Programs committee to the department that the funding for the operation of the remand unit at the South Mackenzie Correctional Centre in the amount of $400,000 be reinstated. Unfortunately the Financial Management Board has refused to reconsider its position and the remand unit remains targeted for closure.

Fetal Alcohol Spectrum Disorder

Members of the Standing Committee on Social Programs approached the Standing Committee on Accountability and Oversight with their concern that the issue of FASD may not have the profile within the government's business plans and main estimates that its devastating effects on the North demand.

Committee members point out that there is good work going on in departments of Health and Social Services, Education Culture and Employment, Justice, and elsewhere across government and in the non-governmental sector. A significant portion of our budget is spent dealing with the long-term effects of alcohol abuse as it relates to FASD.

The Standing Committee on Accountability and Oversight would like to see a coordinated approach to an increased profile of FASD in the next business planning cycle.

Mr. Speaker, that concludes the introductory remarks of the report of the Standing Committee on Accountability and Oversight. Therefore, I move, seconded by the honourable Member for Yellowknife Centre, that Committee Report 9-15(3) be received by the Assembly and moved into Committee of the Whole for consideration.

Thank you, Mr. Menicoche. There is a motion on the floor. The motion in order, it is non-debatable. All those in favour? All those opposed? The motion is carried.

---Carried

Committee Report 9-15(3) is moved into Committee of the Whole for consideration. Mr. Menicoche.

Mr. Speaker, I seek unanimous consent to waive Rule 93(4) and have Committee Report 9-15(3) moved into Committee of the Whole for Monday, February 14, 2005. Thank you, Mr. Speaker.

Thank you, Mr. Menicoche. The Member is seeking unanimous to waive Rule 93(4) and have Committee Report 9-15(3) moved into Committee of the Whole for Monday, February 14, 2005. Are there any nays? There are no nays. Committee Report 9-15(3) will be moved into Committee of the Whole for consideration on Monday, February 14, 2005.

Item 12, reports of standing and special committees. The honourable Member for Hay River South, Mrs. Groenewegen.

Thank you, Mr. Speaker. Mr. Speaker, I would like to provide the House with the Standing Committee on Governance and Economic Development report on the review of the 2005-2006 Draft Main Estimates.

Introduction

Mr. Speaker, the Standing Committee on Governance and Economic Development -- GED -- met from January 13 to January 18, 2005, to review the 2005 - 2006 Draft Main Estimates. The GED envelope includes the departments of Industry, Tourism and Investment, Environment and Natural Resources, Public Works and Services, Municipal and Community Affairs and Transportation.

General Comments

Streamlining Programs And Cost Savings

As a result of the restructuring of the Department of Resources, Wildlife and Economic Development, 17 additional positions will be created in the departments of Investment, Tourism and Industry and Environment and Natural Resources. This will mean an ongoing cost to the public of over $2 million. The committee strongly urges the government to find further cost savings to balance this increase.

The committee believes the government has made a reasonable attempt so far to reduce its expenditures; however, Members have identified several more areas throughout this report where services could be combined to achieve further savings. These further changes would have the added benefit of improving service to the public by streamlining programs and locating them within one department.

Changes To Accounting And Capital Planning Process

The committee strongly believes it is time for the GNWT to review some of its business practices for practicality, transparency and accountability.

Currently, the Financial Administration Act requires funds to be spent in the year in which they are appropriated. If the departments do not spend them, the funds lapse. This inability to accrue funding leads some departments to questionable spending at year end. These funds could better be diverted into a reserve for initiatives like the Arctic Winter Games or serve as an emergency fund for extraordinary circumstances such as high forest fire seasons. Moreover, departments need to have more control over their own revenue sources. For instance, the Department of Transportation could turn revenues from driver licence fees into initiatives like paved roads, instead of profits disappearing into the consolidated revenue fund. If each department had greater control over their own expenditures and revenues, perhaps this would allow greater responsibility in spending and reduce or eliminate the supplementary funding process.

However, the committee still expects departments to account for expenditures and revenue in a transparent and accountable manner. Further to this point, the committee has some issues with respect to the way departments currently account for their expenditures. Each department can describe expenditures in their main estimates differently. For example, FMBS has a zero-based budgeting practice; other Departments do not. MACA's capital plan is split between two places in the budget; other Departments are not. The committee is concerned that this complicated process may make it difficult for members of the general public to review the main estimates and determine how the government is spending their money. The committee would like to see a plain language approach to government accounting and would appreciate the opportunity to have more discussions with the Minister with regard to this matter.

Finally, the committee again would like to see changes to the corporate capital planning process. The committee would also like to reiterate its concerns with the CCP, which it provided in its report on the draft 2004-2005 Main Estimates:

1. The prioritization process, which includes the protection of people and protection of assets, unfairly penalizes less developed and less populated communities.

2. Cost overruns on large projects, a lack of adherence to maximum construction costs in some cases and major increases to the scope of existing projects have the potential to impact funding and timelines for other projects. Members are concerned there may be an incentive for contractors to purposely bid low if they are led to believe by past practices that overruns will be approved later.

3. The membership of the Capital Review Committee is made up entirely of deputy ministers. Regional representation on the Capital Review Committee is non-existent.

Mr. Speaker, that concludes the introductory remarks for GED. Mr. Speaker, I move, seconded by the honourable Member for Tu Nedhe, that Committee Report 10-15(3) be received by the Assembly and moved into Committee of the Whole for consideration. Thank you, Mr. Speaker.

Thank you, Mrs. Groenewegen. There is a motion on the floor. The motion is in order. The motion is not debatable. All those in favour? All those opposed? The motion is carried.

---Carried

Committee Report 10-15(3) is received by the Assembly and moved into Committee of the Whole for consideration. Mrs. Groenewegen.

Thank you, Mr. Speaker. Mr. Speaker, I seek unanimous consent to waive Rule 93(4) and have Committee Report 10-15(3) moved into Committee of the Whole for Monday, February 14, 2005. Thank you, Mr. Speaker.

Thank you, Mrs. Groenewegen. The Member is seeking unanimous consent to move Committee Report 10-15(3) into Committee of the Whole for Monday, February 14th. Are there any nays? There are no nays. Committee Report 10-15(3) will be moved into Committee of the Whole for Monday, February 14, 2005. Item 12, reports of standing and special committees. The honourable Member for Range Lake, Ms. Lee.

Thank you, Mr. Speaker. Mr. Speaker, I am pleased to present the report of the Standing Committee on Social Programs. The comments specific to departments will be provided as the departments come up for debate in Committee of the Whole.

Therefore, I would like to move, seconded by the honourable Member for Sahtu, that Committee Report 11-15(3) be received by the Assembly and moved into Committee of the Whole for Consideration. Thank you, Mr. Speaker.

Thank you, Ms. Lee. There is a motion on the floor. The motion is in order. All those in favour? All those opposed? The motion is carried.

---Carried

Committee Report 11-15(3) will be received by the Assembly and moved into Committee of the Whole for consideration. Ms. Lee.

Thank you, Mr. Speaker. Mr. Speaker, I seek unanimous consent to waive Rule 93(4) and have Committee Report 11-15(3) moved into Committee of the Whole for Monday, February 14, 2005. Thank you.

Thank you, Mrs Lee. The Member is seeking unanimous consent to move Committee Report 11-15(3) into Committee of the Whole for Monday, February 14th. Are there any nays? There are no nays. Committee Report 11-15(3) will be moved into Committee of the Whole for Monday, February 14, 2005. Item 12, reports of standing and special committees. Item 13, reports of committees on the review of bills. Item 14, tabling of documents. The honourable Member for Nahendeh, Mr. Menicoche.

Thank you, Mr. Menicoche. Item 14, tabling of documents. Member for Nahendeh, Mr. Menicoche.

Mr. Speaker, I have in my hand a letter from the Minister of MACA to the principal stating he's not in a position to develop the school gymnasium in the capital budgeting process in the near future.

Thank you, Mr. Menicoche. Item 14, tabling of documents. Item 15, notices of motion. Item 16, notices of motion for first reading of bills. Item 17, motions. The honourable Member for Kam Lake, Mr. Ramsay.

Thank you, Mr. Speaker.

WHEREAS the Constitution Act provides that every citizen of Canada has the right to vote in an election of Members of the House of Commons or a Legislative Assembly;

AND WHEREAS eligible residents of the Northwest Territories have the right to exercise their democratic right of franchise;

AND WHEREAS the Legislative Assembly has ensured that all residents have the ability to exercise their constitutional right of franchise by enacting the Elections Act;

AND WHEREAS the Elections Act provides for the appointment of a Chief Electoral Officer who has the responsibility to exercise general direction and supervision over the administrative conduct of an election and enforce, on the part of all election officers, fairness, impartiality and compliance with the act;

NOW THEREFORE I MOVE, seconded by the honourable Member for Yellowknife South, that this Legislative Assembly, by virtue of section 3 of the Elections Act, recommends to the Commissioner the appointment of Glen McLean as Chief Electoral Officer for the Northwest Territories;

AND FURTHER that this appointment shall be in effect until June 30, 2008.

Thank you, Mr. Speaker.

Thank you, Mr. Ramsay. The motion is in order. To the motion.

Question has been called. All those in favour? All those in opposed? The motion is carried unanimously.

---Carried

---Applause

Members, I notice that Mr. McLean is in the gallery today. Congratulations, Mr. McLean, on your appointment.

---Applause

Item 17, motions. Item 18, first reading of bills. The honourable Premier, Mr. Handley.