Thank you, Mr. Chairman. The exact terms of the job or the program they're delivering will be spelled out in each of the payment directives. So in this case, for example, on intergovernmental relations initiative funding, if I took the $830,000 we provide to the seven aboriginal organizations, then in there that money is intended for them to be able to participate on a government-to-government basis in discussions with the GNWT and sometimes from the federal government on issues that are of common interest. So we could take an issue like economic development, for example. This would enable them, if they wanted to, to hire some expertise, to be able to travel to a meeting, to be able to come to the table and meet with us as much as possible on equal footings. There are several different grants, Mr. Chairman, and each one of them would spell out the terms of that task. Thank you.

Thank you, Mr. Handley. Mr. Braden.

Thank you, Mr. Chairman. Does the federal government also contribute directly to the aboriginal organizations and, for that matter, do the aboriginal governments themselves make investments? Some of them are the recipients of considerable cash through land claim settlements. Are they also, if you will, investing in their own interests, Mr. Chair?

Thank you, Mr. Braden. Mr. Handley.

Thank you, Mr. Chairman. Certainly the federal government does contribute to the aboriginal organizations as well. Again, for example, on the intergovernmental initiatives fund we provide $830,000, the federal government provides roughly $1.6 million, or about $2 for every one we provide. The extent to which the aboriginal governments themselves will use their own beneficiary money is something that probably varies depending on their own cash situation and whether it's a project that deals specifically with beneficiaries and so on, but that would vary a lot. But my expectation is that they do spend some of their own money as well on the intergovernmental initiatives or in the area covered by grants.

Thank you, Mr. Handley. Mr. Braden.

Thank you, Mr. Chairman. I believe in earlier discussions in the Assembly and specifically related to the situation faced by the Aboriginal Summit that contribution or funding that we were providing to the Aboriginal Summit, given their, if you will, stop in operations, was now being allocated to the individual organizations. Is that allocation covered under what we see here, or was there some different or exceptional funding pot that was going to the Aboriginal Summit?

Thank you. Can I have order please, quiet? We're on page 2-93, program summary, operations expenditure summary, $7.450 million. Thank you. Mr. Handley, I think Mr. Braden had a question there.

Thank you, Mr. Chairman. Yes, the $830,000 we provide, a lot of that was going to the summit before, directly from us, but our view is that they are leaders, they will make their own decisions. So we give the money to each of the groups on a regional basis. Those who participate in the summit could choose to take that money if they wanted to and pool it to create their own secretariat, rather than us doing it for them. Mr. Chairman, the same way, we wouldn't want the federal government or somebody doing that to us. So we feel we treat them on the same basis as we would expect any government to be treated. Thank you, Mr. Chairman.

Thank you, Mr. Handley. Mr. Braden.

Thank you, Mr. Chairman. I believe I got an answer, I just want to run this back to make sure I heard it the right way that the allocation that was going to the Aboriginal Summit is the same money that we are seeing here, there is not some different pot on top of this going to those aboriginal governments?

Thank you, Mr. Braden. Mr. Handley.

Mr. Chairman, yes, that's essentially the same pot of money. There's money in there for the intergovernmental forum and so on wrapped in there as well.

Thank you, Mr. Handley. Thank you. We're on page 2-93, Aboriginal Affairs and Intergovernmental Relations, program summary, operations expenditure summary, $7.450 million.

Thank you. Does committee agree that the consideration of the main estimates of Aboriginal Affairs and Intergovernmental Relations is concluded?

Thank you. I'd like to thank the Minister and his witnesses. Can the Sergeant please escort the witnesses out? Thank you. At this time we're going to take a short break. Thank you.

---SHORT RECESS

I will call Committee of the Whole back to order again. We are now going to review the Department of Finance. At this time, I would like to ask

the Minister responsible, Mr. Roland, if he has any opening comments. Thank you.

Yes, Mr. Chairman. I am pleased to present the Department of Finance's Main Estimates for the fiscal year 2007-08 fiscal year.

The main estimates for the Department of Finance identify a total expenditure budget of $11.461 million for 2007-08. This presents a 44 percent increase over the 2006-07 Main Estimates amount. The net increase is composed of:

• • an additional $3.2 million to fund interest costs associated with increased government borrowing;
• • $222,000 for projected insurance cost increases;
• • $179,000 to fund Collective Agreement increases and approved northern allowance adjustments; and
• • a reduction of $93,000 to reflect sunsetting of one-time implementation costs associated with establishing the macroeconomic policy function.

Although the GNWT is forecasting a small operating surplus for the coming fiscal year, capital acquisition costs and the repayment of the 2002 corporate income tax overpayment will result in the GNWT incurring a cash deficit in 2007-08. This will be the first time this has occurred since early 2001. An increase in the department's budget for interest costs is required to finance this debt. However, the government will remain within the guidelines of the fiscal responsibility policy and will not exceed the $300 million debt limit in 2007-08.

During 2007-08, the Department of Finance will continue to focus on the fiscal issues affecting the GNWT, such as territorial formula financing, the GNWT's borrowing strategy, and resource revenue sharing.

Another key initiative for the department in 2007-08 is the development of a new economic roadmap, or macroeconomic policy framework, for the Northwest Territories. The framework will build on the consultations held last fall, including the excellent discussions that occurred at the roundtables in Yellowknife and Inuvik. The report on those consultations has been completed and was tabled in this Assembly earlier this session. Later this spring, it is our intention to bring people together again to discuss key issues and help us chart the course for our economic future. By the end of this summer, the goal is to develop a policy framework to help guide the GNWT in its investment decisions and economic policy choices.

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

Thank you, Mr. Roland. At this time, I would like to ask Mr. Lafferty, chairperson of AOC, to make opening comments. Thank you.

Department Of Finance

Mahsi, Chair. The committee met with the Minister of Finance on September 19, 2006, to review the draft business plan for the Department of Finance.

Committee members noted that the department is proposing to spend $11.461 million in operations expenses in fiscal year 2007-2008. This substantial increase of $3.508 million, or 44.11 percent, since the 2006-2007 Main Estimates is mostly -- $3.2 million -- due to the increase of short-term interest expenses beside higher costs for insurance premiums and salaries and benefits.

Committee members offer the following comments on issues arising out of the review of the 2007-2008 Draft Main Estimates and budget-planning cycle:

Financial Relationship With Canada

The standing committee believes that the NWT has a bright future. However, its ability to use the unfolding opportunities to the benefit of the population will also depend on the GNWT's capacity to make timely investments in infrastructure and people. Therefore, the committee continues to support the Finance Minister in his efforts to secure a fair formula financing arrangement with Canada, and to have the arbitrarily imposed borrowing limit of $300 million increased. Mahsi cho.

Thank you, Mr. Lafferty. At this time, I would like to ask the Minister if he would like to invite in witnesses.

Yes, Mr. Chairman.