The Member is seeking unanimous consent to return to item 5, recognition of visitors in the gallery. Are there any nays? There are no nays. We will return to item 5, recognition of visitors in the gallery. The honourable Member for Hay River South, Mrs. Groenewegen.

Thank you, Mr. Speaker. Mr. Speaker, today I am pleased to recognize in the visitors' gallery, two well-known Hay Riverites, Mr. Paul Gammen and Mr. Vern Tordoff, and my assistant, Wendy Morgan. Thank you, Mr. Speaker.

----Applause

Thank you, Mrs. Groenewegen. Recognition of visitors in the gallery. I would like to welcome everybody in the gallery today. Welcome to the House. It's always a pleasure to have an audience. Written questions. The honourable Member for Range Lake, Ms. Lee.

Thank you, Mr. Speaker. Mr. Speaker, my question is for the Minister responsible for Northwest Territories Housing Corporation.

1. Please provide details of the number of visits the Minister and his staff have taken to the ATCO Novel plant in Calgary since taking up the portfolio, including the dates and duration and all costs associated with each trip.
2. What is the total cost the department has spent on behalf of any invited guests from the North who have taken up the Minister's invitation to visit the ATCO Novel plant in Calgary?

Thank you, Mr. Speaker.

Thank you, Ms. Lee. Written questions. Returns to written questions. Petitions. Reports of committees on the review of bills. Tabling of documents. Notices of motion. Notices of motion for the first reading of bills. First reading of bills. Second reading of bills. Consideration in Committee of the Whole of bills and other Matters: Bill 18, Committee Reports 5, 6 and 7, with Mrs. Groenewegen in the chair.

I will call Committee of the Whole to order. When we left off on Friday, we were on general comments for the Department of Health and Social Services, on Bill 18. Does committee agree that we stand down Health and Social Services?

What is the wish of the committee? Mr. Menicoche.

The committee wishes to consider Public Works and Services, Madam Chair.

Thank you, Mr. Menicoche. The committee agrees, and we will do that after we take a break. Thank you.

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Good afternoon. I'll call committee to order here. We'll be starting off with the Department of Public Works and Services. At this time, I'd like to ask the Minister if he has any opening comments.

Thank you, Mr. Chairman. I'm pleased to present the Department of Public Works and Services main estimates for the fiscal year 2006-2007. The main estimates propose a department operations and maintenance budget for 2006-2007 of $47.1 million and an infrastructure investment of $9.3 million. This is a 6.4 percent increase over the 2005-2006 Main Estimates.

The Department of Public Works and Services provides support services to departments and communities, including:

• • the management of capital construction projects,
• • operation and maintenance of infrastructure,
• • technical support in the provision of community drinking water,
• • leasing of government offices, and
• • records management services.

The department also manages an additional $112 million on behalf of its clients through a number of revolving funds, chargebacks and capital transfers. Through the use of these funds the department provides:

• • computer and data communication services for government offices throughout the territory,
• • fuel services for residents, businesses and the Northwest Territories Power Corporation in 22 communities, and
• • renovation and construction of territorial and community infrastructure.

Public Works and Services provides necessary technical and professional support to government departments. In this way, Public Works and Services contributes to achieving government-wide goals and an appropriate balance between the expectations of our residents for high quality services, the practical constraints of operating in our difficult northern environment, and the limitations of our current budgets.

The strong economic growth in the NWT has resulted in a dramatic increase in the number of large industrial, government, commercial and residential projects across the NWT. At the same time, similar activity increases are occurring across the country in many jurisdictions. Skilled tradespeople are at a premium, resulting in higher labour costs. Material costs are also on the rise due to sharp increases in demand from planned projects and unplanned events, such as hurricanes and other natural disasters in other parts of the world. Public Works and Services is currently projecting construction costs to increase a minimum of 10 percent in 2006-2007 and five percent in each of the fiscal years 2007-2008 and 2008-2009.

While these cost increases are, to a large extent, out of the department's control, it is incumbent upon Public Works and Services and all client departments to do what we can to keep costs within budget through better management of capital projects. Public Works and Services has incorporated higher energy-efficiency standards into our building designs that result in immediate and long-term savings in building operating costs.

I would like to take a moment to mention some of the more recent building and infrastructure projects served by Public Works and Services:

• • the new curling rink in Aklavik,
• • the new college student housing in Fort Smith and Inuvik,
• • Ecole Boreale - the new French school in Hay River,
• • the new tank farm in Gameti,
• • repairs in Fort Good Hope to seven flooded houses, and
• • the extensive Mildred Hall school renovations in Yellowknife.

All of these are important community, regional and territorial facilities that contribute in a positive way to achieving the government's long-term objectives.

The department also provides information systems and communication services for use by the government. More and more, the ability of the government to provide services to northern residents is dependent upon the availability of secure and reliable information and communication systems. Consolidation of the Technology Service Centre and the systems and communications division has enhanced the department's ability to provide IT services to government departments. This centralized service will play a key role as we make the necessary investments to upgrade outdated technology equipment and systems.

Another important role for this department is to be a key member of the GNWT team responsible for ensuring the quality of community drinking water, working closely with the departments of Health and Social Services, Municipal and Community Affairs, and Environment and Natural Resources. The Department of Public Works and Services provides technical support for the design, construction, operation and maintenance of community water systems.

Finally, I would like to mention the provision of essential fuel services. Through the petroleum products revolving fund, Public Works and Services funds the provision of heating fuel and gasoline in communities where a commercial operation does not exist. This includes providing safe tank farms in these remote locations, as well as contracting with and training local fuel delivery agents to provide the services. These agents have an important function in their communities and Public Works and Services works with them to carry out this important service.

In December 2005, the petroleum products division was contracted by the Northwest Territories Power Corporation to supply required fuel volumes and manage its tank farm facilities in 20 communities across the NWT. This additional business will increase the economies of scale of the operations of the petroleum products division and provide for some savings to both Public Works and Services and the Northwest Territories Power Corporation that would otherwise not be available.

Public Works and Services continues to strive to be responsive to its many clients and to provide a high level of support to departments and the people of the NWT. The budget that we are reviewing today will contribute to achieving this objective.

That concludes my opening remarks. I would be happy, at the appropriate time, to answer questions Members may have. Thank you.

Thank you, Mr. Roland. Now I would like to recognize Mrs. Groenewegen.

Public Works And Services

General Comments

Thank you, Mr. Chairman. These are the comments of the Standing Committee on Governance and Economic Development regarding Public Works and Services.

The committee met with the Minister and his officials on September 22, 2005, to review the draft business plan of the Department Public Works and Services.

Members also received a briefing from the Minister of Finance on January 17, 2006, outlining the changes to the budget of the Department of Public Works and Services since the committee reviewed the business plan in September.

Committee members made note that the department is proposing to spend $47 million in operations expense and $9.2 million on capital projects in fiscal year 2006-2007.

Committee members offer the following comment on issues arising out of the review of the 2006-2007 Draft Main Estimates and budget-planning cycle.

Consolidation Of Information Technology (IT) And Information Systems (IS) Within Public Works And Services

The Governance and Economic Development committee is always encouraging the departments within their envelope to realize cost savings and operate as efficiently as possible. For instance, the Governance and Economic Development committee has been working with Public Works and Services over the past year to see where more cost savings could be found by amalgamating all IT and IS staff under their department.

In the past, the committee had asked during their review of the department's 2005-2006 Main Estimates if there was a way to further amalgamate these applications in order to realize further efficiencies and savings. PWS replied that a number of departments have a large number of complex applications in house. The Informatics Policy Committee, a part of the Knowledge Management Strategy, was trying to come up with the best balance between resources that are dedicated to the departments and resources that are pooled corporately.

The committee then noted during their review of the PWS 2006-2009 Business Plan that although TSC and systems and communications were amalgamated, there are still department-specific applications and positions that remain decentralized.

The Governance and Economic Development committee recommended that PWS supply the committee with information about the IT and IS people who are still employed outside of the department, what applications these positions are supporting and if there is a plan to migrate these functions to the TSC.

Mr. Chairman, at this time, although it's not directly under Public Works and Services, I would like to ask our deputy chair of GED to bring the committee's general comments on the Cost of Living Strategy. Thank you, Mr. Chairman.

Thank you, Mrs. Groenewegen. Mr. Villeneuve.

General Comments

Cost Of Living Strategy

Mahsi, Mr. Chairman. General comments on the Cost of Living Strategy. As the high cost of living was one of the issues that members of the committee heard about during our pre-budget consultations, the committee is supportive of the Premier's initiative to establish a Cost of Living Strategy committee, composed of Cabinet and Regular Members.

One of the biggest cost drivers is the price of fuel. The increasing costs of energy will affect everyone across the Territories. Some communities will see an increase in fuel between one to 20 cents per litre because the government has decided it can no longer average the price of fuel that Public Works and Services delivers.

The Governance and Economic Development committee, after their review of the 2006-2009 Business Plans, wrote to the government asking them to establish a concise plan that balances the provision of affordable energy with plans for conservation.

This committee also commented that the government should be highly conscientious of its own use of energy and establish itself as a role model for the Northwest Territories. The cost of utilities for some government facilities, such as hospitals, is rising dramatically. Every opportunity to demonstrate commitment to controlling energy costs should be taken. For instance, government vehicles should be turned off and not left to idle, and appliances should be unplugged in vacant public housing units.

The Governance and Economic Development committee would like to see the government take the lead in pursuing demonstrable energy savings. The committee would prefer not to see a huge increase in forced growth cost as a result of energy consumption.

Recommendation

The Governance and Economic Development committee recommends that the government design its facilities to be energy efficient and also use their equipment in an energy-efficient manner.

The Governance and Economic Development committee also recommends the government develop a program to recognize and reward employees for suggesting ways to save energy.

Mahsi, Mr. Chairman. That concludes my general comments.

Thank you, Mr. Villeneuve. At this time I'd like to ask the Minister if he would like to bring in any witnesses.

Yes, Mr. Chairman.

Okay. Could the Sergeant-at-Arms please escort the...Oh, does committee agree?

Can the Sergeant-at-Arms please bring in the witnesses? Thank you.

Thanks a lot. Mr. Roland, could you introduce your witnesses, please?

Thank you, Mr. Chairman. To my right I have the acting deputy minister, Mr. Mike Aumond, and to my left I have the director of the Technology Service Centre, John Gable.

Thank you, Mr. Roland. General comments. Ms. Lee.

Thank you, Mr. Chairman. I just want to share a few general comments on the department and my comments will be on one topic, really, and that has to do with information technology. I'm glad the Minister has his staff there with him, although I don't think I'm going to be asking any real hard questions here. But I do just want to put on record the importance of keeping up with technology for this government. I know at times it seems like a luxury item as to whether we have up-to-date technology and all the advances that are being made, not only in technological hardware and computer technology software, but I think it's really important to look at it as an important tool that the government has to work with and make maximum use of. In a place that we operate in, which is a territory far from major centres in many ways, and we oversee the administration of 33 communities, I think technology is an important tool that can bring us together, keep all our regional centres and communities connected, and it's just simply something that needs to be updated.

I'm just concerned that because of some of the cost-cutting measures or the general feeling, perhaps, in certain areas that the IT area might be where we could economize. I'm not saying that I have evidence to suggest that, but things that I observe around me are giving me concerns.

I don't think our network system, our e-mail system, has had a lot of investment in recent years. I do believe that there's enough money being put in there to keep up with it, but I do believe that it's a pretty old system and I think that there will be a lot more disadvantages and costs associated with anything that could cause it to crash or something. I worry that it could happen if we don't continually invest.

I was telling the Minister that I was working in my office over the weekend and I wrote a statement that I wasn't prepared to finish yet for me to use the next day, so I e-mailed it to myself, to my home address in my house, and I didn't get it when I got home Sunday night. I didn't get it Monday morning. I came to work and wrote my own, I revised my statement, and then the next day, when I got home that night, I saw that the e-mail got there about 11 hours later. I know that government e-mail, I think, shuts down during the night because I have tried to access web mail at 2:00 or 3:00 in the morning and I could see that it was shut down. I guess it needs time to reset itself or clean up and stuff like that.

But, you know, we can't take these things for granted. I think it is a tool, not a luxury, and all the government employees have to be connected here. It has to be constantly upgraded. I just think it's also a very important tool for the regional staff and everybody to be connected to the work.

There was another area, upgrading of software. I'm not sure if we're keeping up with it or not. So I'd like to ask the Minister about what the government's plan is and what sort of investments the Minister is aware of that should be made that we're not making because of the budget restraints. Thank you, Mr. Chairman.