Thank you, Mr. Chair. The committee met with the Minister and his officials on Monday, April 7, 2008, to review the Draft Main Estimates of the Department of Education, Culture and Employment. Committee members made note that departments were proposing to spend $293.914
million in operations expense and
$24.408 million on capital projects in the fiscal year 2008–2009.
We would like to thank the Minister and his officials for appearing before committee. Committee members offer the following comments on issues arising out of the review of the 2008–2009 budget planning cycle.
Wage Subsidy Program — Apprentices
The department proposed during the Main Estimates review to eliminate all wage subsidy programs. Members of the committee were very concerned that funding to subsidize apprentice wages was included in this proposed reduction. While the elimination of Training on the Job and the Youth Employment Program subsidies is regrettable, it is clear to committee members that the same economic conditions that led the department to implement these programs no longer exist. The NWT economy is booming, and more and more students are graduating from high school and taking advantage of post-secondary educational opportunities. In addition, many of the large employers in the non-renewable resource sector are being good corporate citizens and are investing in education and training for their employees. All of these factors have lessened the need for the GNWT to offer wage subsidy programs as a way of fostering economic growth.
However, committee members believe that companies that hire apprentices still need to be subsidized to encourage them to continue to hire and train apprentices. Of particular concern to Members are the small business operators, the local housing authority, the municipalities that hire apprentices, which in recent years have lost many of their qualified tradespeople to the opportunities and higher wages offered by larger, multinational non-renewable resource companies operating in the Northwest Territories.
Apprentices and the time spent by journeypersons in instructing them and supervising on-the-job activities do not contribute to the bottom line of companies. It was generally acknowledged that apprentices do not start to contribute to the bottom line of a company until they are in their third year.
This is why the subsidy program does not subsidize fourth-year apprentices.
There is a shortage of qualified tradespeople in the North, and it is contributing to the higher costs that governments and residents are forced to pay in constructing or renovating infrastructure, homes and businesses. Members note that the department is planning to invest in improving opportunities for students in high school to be exposed to the trades and ensuring that the trades programs are delivered through Aurora College, using up-to-date equipment and technology.
In addition, Members had the opportunity to see mobile trades training in action on a recent trip to Inuvik and were impressed with the opportunities this type of innovative approach will offer adult learners and students in a secondary school. The committee supports the department’s plan to invest a further $200,000 per year in delivering this program.
The committee could not reconcile these increased investments that will encourage students to pursue trades training with reducing the potential number of available apprentice positions. The committee recommended that the department reinstate the apprentice wage subsidy for companies and organizations in the NWT that employ fewer than 100 people. The members were pleased that the department agreed with this recommendation and reinstated $100 million to the budget to subsidize businesses for the hiring of apprentices.
Mr. Chair, at this time I'd like to turn it over to my colleague Mr. Beaulieu. Thank you.