Thank you, Madam Chairperson. I am pleased to present the Financial Management Board Secretariat's main estimates for the fiscal year 2005-06.

The secretariat's 2005-06 main estimates propose O and M expenditure levels of $30.051 million. This is a reduction of $2.204 million, or 6.8 percent, from the 2004-05 restated main estimates.

These adjustments are due to the following developments:

1. a $566,000 reduction associated with the elimination of six positions at headquarters;
2. a $1.238 million reduction associated with the discontinuation of a contribution program that flowed funds to the Workers' Compensation Board and the NWT Power Corporation for superannuation costs associated with federal changes to the Public Service Superannuation Act;
3. a $15,000 reduction to the grant-in-kind recorded for the foregone interest on the debt due from Deton'Cho Diamonds Inc.;
4. a $175,000 reduction to amortization expense due to the revaluation of the PeopleSoft system;
5. a net decrease of $235,000 associated with the reductions to Maximizing Northern Employment program and Staff Retention Program; and
6. an increase of $25,000 associated with increased systems and computer chargeback costs.

The secretariat's proposed infrastructure acquisition plan includes an allocation of $500,000 in the 2005-06 fiscal year for the completion of the systems selection phase of the government financial information system replacement project.

For the 2005-06 fiscal year, the FMB Secretariat's main estimates include a total staffing complement of 132 positions: 105 in headquarters and 27 in the regions. There is a net decrease over the previous fiscal year of four positions, which is comprised of a reduction of six positions at headquarters associated with the government-wide reduction exercise, partially offset by the addition of two new positions at headquarters associated with the creation of the assistant deputy minister, human resources.

During the last year the secretariat has:

• • completed the development of a third-party accountability framework;
• • completed the major department migrations associated with the implementation of the Technology Service Centre;
• • continued the implementation of the Knowledge Management Strategy as it relates to security, networks, enterprise architecture, software licensing and electronic records;
• • reached agreement with NWT Medical Association on a four-year agreement on the Physician Specialist and General Practitioner contracts;
• • along with the Department of Health and Social Services and the Union of Northern Workers, undertaken a review of all health care job evaluations to ensure that work performed by health care professionals within the GNWT is appropriately identified so that compensation is appropriate;
• • completed the interim public accounts and the 2003-04 consolidated public accounts ahead of the deadlines requested by the standing committee;
• • had the 2003 Annual Report on the Public Services tabled in June 2004;
• • completed and implemented the PeopleSoft system upgrade to version 8.3;
• • completed a business needs analysis of the replacement of the existing financial information system;
• • coordinated the 2004-05 and 2005-06 budget process;
• • commenced the human resource consolidation project.

That concludes my opening remarks. Thank you, Madam Chairperson.