Thank you, Madam Chair. I am pleased to present the Department of Human Resources' main estimates for the fiscal year 2006-2007. This department will be created effected April 1, 2006.

The department's 2006-2007 main estimates propose O and M expenditures of $29.237 million which represents a $120,000, or about .5 percent, increase over the revised 2005-2006 Main Estimates. We are using the revised estimates for comparison purpose as the human resources amalgamation was not reflected in the government's original 2005-2006 budget. The net increase primarily results from Collective Agreement adjustments offset by the sunsetting of some equal pay activities.

The proposed capital expenditure of $500,000 will support the first year of a two-year upgrade of the human resources information system. Based on the experiences of the past year, it has become clear that one of the steps required to improve human resource service is to make better, more efficient use of the PeopleSoft system. This upgrade to version 8.9 will involve conversion of

processes and approaches to increase the functionality of the system and reduce duplicate manual processes.

The Department of Human Resources' main estimates includes 188 positions: 54 in regional service centres and 134 in Yellowknife. There is no net increase in positions for fiscal year 2006-2007, although some positions have been deleted and some added as we continue to fine tune our organizational structure through the implementation period.

After nine months of operation, human resources has made significant progress in identifying issues around the people, processes and systems needed to provide a consistent human resource service to assist managers in effective management of the government's human resources. However, it is clear that there is still work to do. To assist in moving forward towards best practices, human resources is currently engaged in a full review, lead by a firm that specializes in supporting business and organization transformation to achieve excellence in service.

This review is very intensive and will be complete by early April. The results of the review will help guide revisions and adjustments to the processes, staff competencies and systems for human resources in the years to come.

In addition to taking action on the results of the current review, there are initiatives the department plans to continue working on in 2006-2007:

1. the action plan to implement the future management and direction of the public service;
2. strategies and policies on a northern public service for consideration by Cabinet and the Standing Committee on Accountability and Oversight;
3. the GNWT's compensation policy;
4. specific approaches to better support the promotion of northerners and the disabled in all sectors of government;
5. a GNWT statement of ethics for employees; and
6. a GNWT human resource plan.

Fair and consistent GNWT recruitment and retention practices are critical to the success of our programs and services. This needs to be driven by effective human resource planning that looks beyond today. With the amalgamation of human resources, we have made significant strides towards creating the environment for effective management of the public service and will continue this work in 2006-2007.

That concludes my opening comments. I would be pleased to answer any questions Members may have. Thank you.