Thank you, Mr. Chairman. During the review of the 2005-5006 Draft Main Estimates, the committee had an opportunity to speak with the Premier about the federal initiative to establish an expert panel to look into issues related to equalization payments to provinces, and the proposed sub-panel that will consider the financing formulas that govern the flow of federal money to the territories. The committee was pleased to hear of this initiative and is hopeful this process will lead to an improved financing formula that addresses many of the shortcomings of previous financial arrangements with the federal government.
The committee was even more pleased to hear of the First Ministers' intentions to establish a corresponding panel, through the Council of the Federation, to look at the fiscal imbalances of federal financing, the amount of money that goes to the federal government as compared to what stays with the provinces and territories. Both panels will report back by the end of December 2005.
The Premier advised Members that he had had some opportunity to provide input into the composition of the Panel on Fiscal Imbalance. The committee feels it is absolutely crucial that the sub-panel on formula financing and the panel on fiscal imbalance have representation from individuals familiar with the NWT's issues, given that the fiscal history of the GNWT is not widely known. The committee looks forward to being advised of the composition of these panels once it has been established.
Understanding that the work this group will undertake has the potential to have an enormous and far-reaching affect on the fiscal situation of the NWT, the Standing Committee on Accountability and Oversight strongly believes that it is essential that the history and current situation of the territory be clearly communicated to the panel: billions of dollars in resource royalty revenue, collected from the extraction of territorial resources over the years, have been funnelled into federal coffers.
Recommendation
The Standing Committee on Accountability and Oversight recommends a proactive approach to communication with the Expert Panel on Equalization and the Council of the Federation Panel on Fiscal Imbalance to ensure the NWT's position is fully understood and represented;
And further, the Standing Committee on Accountability and Oversight also recommends that the government adopt a collaborative approach with the Aboriginal Summit with respect to a communications plan for input into the two panels.
Beaufort-Delta Regional Office Review
The Beaufort-Delta regional office was established during the 2003-04 fiscal year to assist the region to coordinate its preparation for the implementation of a final regional self-government agreement. The office was to be implemented on a one-year trial basis, and evaluated after that period to determine if it should be continued.
The regional superintendent of Education, Culture and Employment took on the Beaufort-Delta regional director position on a trial basis. In September 2004, the Premier advised the committee that he had met with the incumbent who informed him that in her view, the workload at the Beaufort-Delta regional office did not, at that time, merit a full-time position. She suggested she could do her former position and the new position simultaneously. In addition, the fiscal restraint and government-wide cost-cutting initiatives led to the decision to eliminate the office's administrative assistant position.
After the one-year trial period, the Premier advised the committee that the regional director would be producing a progress report on the work of the regional office, to be submitted by December 31, 2004. The committee was, therefore, surprised to learn that, in fact, a private contractor had been commissioned to write another report on the need for the Beaufort regional office. The committee is somewhat critical of the decision to hire another contractor to review the regional office. This is seen as yet another example of using scarce funds to hire costly outside contractors to provide "expert" advice on a situation that consultation with internal staff would reveal just as effectively. The Premier had received the report at the time of the review of the 2005-2006 Draft Main Estimates and he committed to sharing it with the committee after Cabinet had been briefed.
The standing committee is of the opinion that the initiative to establish a regional office in the Beaufort-Delta was commendable and that there is a strong need to formalize GNWT coordination in the Beaufort-Delta and other regions. The complex political environment in the regions, which is in part a result of self-government negotiations and agreements and rapid resource development initiatives, demands a stepped up coordinated effort on the part of the Government of the Northwest Territories. A coordinated presence in the regions is essential. As it stands, circumstantial evidence suggests that interdepartmental coordination and communication at the regional level is inadequate.
Regional directors were eliminated in 1996, as a substantial cost-saving initiative. The role of regional directors was replaced by a somewhat haphazard approach coordinated through a committee of regional superintendents, with varying degrees of effectiveness depending on the region. Since then there have been considerable changes in regions as self-government negotiations advance. The committee is of the opinion that the establishment of the Beaufort-Delta regional office on a trial basis indicates the government's willingness to explore the possibility of formalizing much needed regional coordination and is pleased with this effort. The committee looks forward to reviewing the two reports on the Beaufort-Delta regional office, and exploring possible options to move forward on regional coordination in the Beaufort-Delta and other regions.
Recommendation
The committee recommends that the Department of Executive consider different options to use already existing personnel and resources to create a consistent system of coordination in the regions;
And further, that the options be presented to the Standing Committee on Accountability and Oversight prior to the committee review of 2006-2009 Business Plans.
Thank you, Mr. Chairman.