Thank you, Madam Chair. Madam Chair, the committee met with the Minister and his officials on Thursday, September 21, 2006, to review the draft business plan of the Department of Health and Social Services.

Members considered the draft main estimates, including the changes to the budget of the Department of Health and Social Services since the committee reviewed the business plan in September, on January 16, 2007.

Committee members made note that the department is proposing to spend $277.395 million in operations expense and $10.109 million on capital projects in fiscal year 2007-2008.

Committee members offer the following comments on issues arising out of the review of the 2007-2008 budget planning cycle.

Non-Governmental Organization Funding

The committee was pleased that the department has provided extra funding for forced growth for some of the first tier non-governmental organizations that provide programs and services to NWT residents. While Members are sure that each affected NGO will be pleased they are receiving additional funding, it is not clear whether the funding will be adequate to meet the actual forced growth costs being experienced by the NGO.

It is the hope of Members that the examination of NGO forced growth requirements would become part of the annual business planning exercise for the department.

Another aspect of our relationship with NGOs is that most operate under short-term, one-year agreements. Many of these are renewed, but only through annual, exhaustive renegotiations and full-blown audits that sap the energy of NGO volunteers and bureaucrats alike, and chew up scarce administrative dollars.

Members and committees have long advocated multi-year contracts where continuous services delivered by NGOs with good track records are the norm. Ministers have assured us that FAA rules do allow it. It is time the government direct its staff to proactively seek out these opportunities and act on them.

At this time, Madam Chair, I'd like to ask the Member for Monfwi to continue with the report. Thank you.