Thank you, Mr. Chairman. Thank you for the opportunity today to present the Department of Aboriginal Affairs and Intergovernmental Relations 2006-2007 Main Estimates.

For 2006-2007, the department is requesting a budget of $7.328 million which represents a 4.36 percent, or $334,000, decrease from the restated 2005-2006 Main Estimates.

During the review of the 2005-2006 Draft Main Estimates, the Standing Committee on Accountability and Oversight recommended that the Premier undertake an internal review of the Ministry of Aboriginal Affairs and the Department of Executive to identify areas of duplication. We met with Regular Members on several occasions over the past few months to look at options for improving the overall coordination and reducing overlap between the Department of Executive and the Ministry of Aboriginal Affairs.

In an effort to acknowledge the changing reality of intergovernmental relations between the GNWT and emerging aboriginal governments, the intergovernmental relations function has been moved to the newly named Department of Aboriginal Affairs and Intergovernmental Relations. The department will now be responsible for all federal-provincial-territorial-aboriginal intergovernmental relations. The reorganization also included moving the responsibilities of the devolution division to the Department of Executive.

The Department of Aboriginal Affairs and Intergovernmental Relations has been charged with streamlining and improving how we, as a government, do business with our aboriginal partner governments, and improving our intergovernmental relations will be top priority. The expanded mandate of the department allows this government to build upon and enhance intergovernmental working relationships, with a particular focus on those with existing and emerging aboriginal governments.

Of course, the new department will still continue to protect, develop and promote the interests of the GNWT and the residents of the Northwest Territories by negotiating and monitoring the implementation of land, resource and self-government agreements. We will keep producing mandates to provide instructions for negotiations and will continue to develop legislation to ratify agreements as they become finalized. Communications will play a key role during this transition period and it will ensure that the department makes every effort to keep various audiences informed about all its functions.

Every effort was made to ensure that the revised mandates of the departments of Executive and Aboriginal Affairs and Intergovernmental Relations would not result in increased costs to this government. Despite the expanded mandate of the department, no new positions were added to the organization.

The 2005-2006 Main Estimates have been restated from $8.198 million to $7.662 million reflecting an increase of $937,000 for the transfer of Intergovernmental Relations and a decrease of $1.473 million for the transfer of the budget for the Devolution Secretariat to the Executive.

Budgetary Requirements

The 2006-2007 Main Estimates shows a reduction of $334,000 due to the following factors:

Reductions

• • In response to the one percent cost reduction exercise, the department has reduced its budget by $109,000. This reduction will be achieved through the ongoing management of vacancies and reduced spending in other expenses, such as travel and contracted services.
• • The department is requesting less money to participate in lands, resources and self-government negotiations for 2006-2009 than the amount of funding that is sunsetting. The net result is a decrease of $73,000.
• • A $196,000 base transfer was made to the Department of Executive to assist with the costs of improving the planning and coordination functions in government.
• • $355,000 was sunsetted, representing the funds allocated to the department for 2005-2006 to develop and implement a Northern Strategy.
• • We concur with the standing committee that it is important to hold land, resource and self-government negotiating sessions where they matter most, which is in communities impacted by such negotiations. The department has decreased its travel budget by $102,000 and is committed to strengthen its lobbying efforts with the other parties to hold as many negotiating sessions as possible in the North.

Additions

However, despite best efforts to keep costs in check, there are some unavoidable forced growth increases reflected in the department's budget request. These increases total $438,000 and include:

• • $421,000 related to the salary increase resulting from the new Collective Agreement;
• • $9,000 for TSC/communication chargeback rate increases.

I would like to thank Members for their continued collaboration, advice and input on the departmental reorganization. I would now be pleased to answer any questions you may have. Thank you.