Thank you, Mr. Menicoche.
Department of Finance
Members of the Standing Committee on Government Operations met with the Minister of Finance on April 1, 2008, to review the Draft Main Estimates for the Department of Finance.
Committee members made note that the department is proposing to spend $10,959,000 in operation expenses for the fiscal year of 2008–2009.
Committee members offer the following comments on issues arising out of the review of the 2008–2009 Draft Main Estimates.
Revenue Increase and Stabilization
Committee members found that in order to create long-term financial stability for the Northwest Territories, the government should not only look at reducing costs but also explore options for revenue increases. The committee suggested that the Minister look into the following options:
The creation of a heritage trust fund that would allow for progress in the negotiations about resource revenue sharing. Such a heritage, or trust fund, would generate savings for future generations. The GNWT could also transfer a portion of potential future surpluses into the trust. The trust fund model to be considered for this undertaking would be the Norway and Alaska.
Other members felt that the fluctuation and adjustments of the GNWT’s revenues are too high and suggested the creation of a revenue stabilization fund. The goal of such a fund is to offset fluctuations in GNWT revenue from Canada, mainly grants; transfer payments; corporate income tax, CIP; and personal income tax, CIT.
The committee also encouraged the government to look into alternative means to generate revenue, like taxation of minerals and resources and the
introduction of a carbon tax, or changes to the fuel tax administration. The committee hopes that alternatives and new initiatives for revenue generation will be presented during the next business planning cycle.
Operations Review and Liquor Licensing Board and Liquor Commission
During the review of the Liquor Revolving Fund, members discussed the operation of the Liquor Commission and Liquor Licensing Board. Members suggested that the GNWT explore options to make the operations more efficient and consider alternative means for liquor control, licensing and distribution sales.
Recommendation
The Standing Committee on Government Operations recommends that the government undertake the functional review of the operation of the Liquor Commission and the Liquor Licensing Board.
Financial Management Board Secretariat
The members of the Standing Committee on Government Operations met with the Minister Responsible for the Financial Management Board Secretariat on April 1, 2008, to review the Draft Main Estimates for 2008–2009.
Committee members made note that the secretariat is proposing to spend $72,023,000 in operation expenses for the fiscal year 2008–2009 and $7.5 million on capital projects in the fiscal year of 2008–2009.
The committee notes that these operation expenditures include the contribution to the Northwest Territories Housing Corporation operational budget.
The committee members offer the following comments on issues arising out of the review of the 2008–2009 Draft Main Estimates.
Audit Bureau
Given the oversight function of the FMBS in terms of business conduct of all GNWT departments, the committee is very concerned with the ongoing vacancy rate of almost 50 per cent of the Audit Bureau. The committee urges the government to address these recruitment and retention issues in a timely fashion in order to ensure that the internal audit mandate and function can be fulfilled. Necessary steps may include a review of how business within the Audit Bureau is conducted and if there are alternative means to fulfill the Audit Bureau’s mandate and function.
Power Subsidy Program
Members expressed their concern about the rising costs of the Power Subsidy Program and urged the government to take measures to increase cost efficiency and improve the program delivery.
At this time, I’d like to pass the reading of the report on to Mr. Jacobson, the Member for Nunakput.