The Standing Committee on Accountability and Oversight is pleased to present its second report on pre-budget consultations.

The committee held hearings in Aklavik, Fort Liard, Fort Resolution, Fort Simpson, Katlodeeche First Nation, Sachs Harbour, Wekweeti and Yellowknife between August 17th and September 5, 2006. Following the initial Yellowknife hearings, the committee members split into northern NWT and southern NWT groups in order to visit as many communities as possible within the time available.

The committee recognizes that the timing of the consultations in late summer made it difficult for many people and organizations to participate, and is considering other options for the future. However, the low turnout at some of our community hearings did not prevent us from having stimulating and productive discussions with those people who did attend. We also received a number of written submissions from people who were not able to attend in person. The committee is satisfied that we have heard a broad and representative range of views and strongly believes that the pre-budget consultations continue to be a relevant and worthwhile exercise which will continue to improve with time.

We would like to thank everyone who took the time to make presentations to us or to send us written comments. A list of their names and organizations is attached to this report.

As MLAs, having the chance to see other communities and meet each others' constituents helps us to do a better job when we make decisions that affect people across the territory. We would, therefore, also like to thank all the communities we visited for making us feel welcome and for helping us get to know them better.

Why Pre-Budget Consultations?

From the beginning of the 15th Assembly, our committee has looked for ways to give members of the public a meaningful opportunity to influence the government's business plans and budget. In the past, we do not think enough people and organizations have had a chance to tell MLAs about their priorities and views of how government should spend its money, Mr. Speaker.

The government's budgets are not made public until February. By this time, it is too late to make major changes, and even minor adjustments can be difficult to fit in. However, the work on the budget begins several months earlier. Standing committees get their first opportunity to see and to question potential cuts, new spending and other budget changes when they review the government's draft three-year business plans. This takes

place over a two-week period in September when there is some possibility of making changes, Mr. Speaker. Committees use this time to discuss government-wide issues with the Premier and Minister of Finance, and then meet with the Minister and senior staff of each department to go over the draft plans in detail.

Governments are often compared to large ships that take a long time to change course. As we did in last year's report, we would like to caution that many of the issues raised demand long-term solutions and are far beyond what can be addressed in one year's budget and business plans. However, Mr. Speaker, we would like to assure the public that the course is slowly changing and that participation in pre-budget consultations is helping to make that happen.

As Finance Minister Roland advised us, "the results of last year's consultation process were useful in identifying a number of specific areas of concern, not simply with respect to budget development, but also in terms of program and service delivery."

In September 2005, Members had the opportunity to ask the questions and raise the issues we heard during our first pre-budget consultations as we reviewed individual departmental business plans with the Ministers and senior staff. In the following months, Members continued to raise issues such as support for front-line organizations and workers, the need for affordable, accessible, adequate housing, and energy conservation. The timing did not allow for major changes to be made for the 2006-2007 budget, however, we expect to see more of an impact on the 2007-2008 budget that will be introduced next February.

As we went through the September 2006 draft business plan review, we were able to use what we heard this year to reinforce with Ministers positions we have taken earlier, and to introduce new ideas. The issues raised during the consultations will continue to be reflected in statements and questions by individual Members during upcoming sessions of the Legislative Assembly, in future reports by standing committees, and in the debate on the budget that will happen next February and March, Mr. Speaker.

As committee members, we will continue to do what we can to influence the government to align its plans more closely with what the public is telling us, and to encourage the government to keep going where it is already heading in the right direction. We look forward to working with the government over the remainder of our mandate on longer-term approaches and strategic investments toward addressing the issues identified and achieving the goals set for us.

Mr. Speaker, at this time I'd like to pass on the report to Mr. Braden. Thank you.