I’m not a mathematician, but there are 380 employees, or thereabouts, at Stanton. With 12 payrolls that’s probably about six months’ worth of payroll that the department has been paying. That’s about $20 million. How is this transaction recorded between FMBS and the authority? How does it appear on the books? And where is this $20 million coming from?

I could get more detailed if the Member needs it, but my understanding is that the FMBS covers the payroll for the staff and for the authority, because we do want to make sure that everyone is paid. Then the amounts are marked as accounts receivable, and it is really a cash flow issue there.

Time for question period has expired. I will allow the Member a short supplementary question. Mr. Ramsay.

Thank you, Mr.

Speaker. Is the

Minister proposing that somewhere down the line the government comes forward with a supplementary appropriation for 20-some-odd million dollars to bail the hospital out in terms of what they paid in payroll for six months? How long is this going to continue to be allowed to happen?

Mr. Speaker, we’re not expecting that we will be coming forward with a supplementary appropriation for that amount of money. We are working on stuff that would deal with the $11 million deficit, and at that time, I’m sure we could talk about some of the details.

I do appreciate that the Member is concerned about the accountability and the financial picture of the authority, and so am I, and so is the government. We have taken a number of steps to address that. The zero-based review is one of them. I have appointed a public administrator with a very broad

mandate to look at the details of the management or the programs that we’re offering and what possible recommendations he could make. I have given him a three-month time frame to come back with that. I have discussed that with the standing committee. Whether it’s the master plan, human resources plan, the deficit situation — there is a lot on the table that I am working on and that I am working closely on with the Standing Committee on Social Programs.

Item 8, written questions, Mr. Beaulieu.

Item 9, returns to written questions. Item 10, replies to opening address. Item 11, replies to Budget Address, day 4 of 7. Item 12, petitions. The honourable Member for Nahendeh, Mr. Menicoche.

Thank you very much, Mr. Speaker. I would like to present a petition dealing with the matter of the Wrigley ferry crossing.

The petition contains 66 signatures of Nahendeh residents. The petitioners request that the Department of Transportation work to have the Wrigley ferry in service at the end of May so that the students of the Chief Julian Yendo School can participate in the track and field event in Hay River from June 4

to 6, 2008.

Item 13, reports of standing and special

committees. The

honourable Member for

Nahendeh, Mr. Menicoche.

Mr. Speaker, the Standing Committee on Government Operations is pleased to present the report on its review of the Draft Main Estimates for 2008–2009.

Since the 16th Legislative Assembly was elected in

October 2007, the time frame of this transition year did not allow for full-budget circle review that would typically involve the review of business plans. Instead, the 16th Assembly approved an interim

appropriation in February 2008, followed by a main estimate to be introduced in the May–June session. In an attempt to better align government expenditures with anticipated revenue, the GNWT proposed reductions for the 2008–2009 Main Estimates. The government also included strategic investments that should support the vision, goals and priorities set by the 16th Legislative Assembly.

The Standing Committee on Government Operations is responsible for the oversight of the departments of the Executive, Finance, Human Resources, and the Financial Management Board Secretariat.

The committee has met with Ministers between April 1 and April 8, 2008, to review the Draft Main Estimates for each of the departments in detail. During these meetings committee members repeatedly expressed their concerns regarding the government decision-making process leading to the proposed reduction and proposed elimination.

The committee felt that Members were not sufficiently consulted and provided with details to make informed decisions on how they proposed strategic investment and how they relate back to the vision, goals and priorities of the 16th Assembly.

On March 31, 2008, the Standing Committee on Priorities and Planning also received a briefing from the Minister of Finance, outlining the fiscal framework and the fiscal strategy of the government.

Reductions

Overall, the committee found that it’s important to maintain fairness and consistency throughout all departments when looking for areas of reduction. The government has to find a balanced approach between position cuts and other operational cost reductions.

The committee is concerned that the reduction exercise focused too much on the elimination of positions, and instead more emphasis should have been placed on questioning how the departments conduct their day-to-day business.

Committee recognized that the departments look at their daily operations, seeking out opportunities to reduce and save expenditures for travel, materials and supplies. The committee feels that more could be done and encourages the government to continue seeking out cost savings in day-to-day expenditures; for example, exploring savings through bulk airline ticket purchases.

Mr. Speaker, I’ll turn the rest of the report over to the Deputy Chair, Mr. Hawkins.

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.

Thank you, Mr. Hawkins.

Department of Executive

On April 3, 2008, members of the Standing Committee on Government Operations met with the Premier to review the Draft Main Estimates for the Department of the Executive.

The committee members made note that the department is proposing to spend $12,976,000 in operation expenses for the Executive offices during the fiscal year of 2008–2009.

The committee members offered the following comments on the issues arising out of the review of the 2008–2009 Draft Main Estimates: mandate of the functions of the Executive and the Department of Aboriginal Affairs and Intergovernmental Relations.

During the review of the Department of Executive, the committee discussed the elimination of regional offices and re-profiling the remaining two offices in the north and the south regions.

Members recognize that the regional offices play an important role in relationship building and in communications with the aboriginal and the community governments. This function is also carried out by the intergovernmental relations division of the Department of Aboriginal Affairs and Intergovernmental Relations, contributing to the committee’s concerns about duplication of functions and mandates between the two departments. Furthermore, the devolution office, as part of the Executive, also deals with aspects of tri-governmental negotiations and relations.

Members are disappointed that no progress has been made in the negotiations with Canada on the resource revenue sharing and devolution. The self-government comprehensive agreement negotiations and the implementation of existing agreements are proceeding very slowly.

The committee also had concerns about capacity of the small, stand-alone Department of Aboriginal Affairs and Intergovernmental Relations. Pooling resources together would enhance the capacity of the GNWT to proceed with these activities while operating cost-effectively. The committee felt that a number of senior management positions in the Executive would allow for absorbing the oversight

of the functions of the Department of Aboriginal Affairs and Intergovernmental Relations.

Recommendations

The Standing Committee on Government Operations recommends that the Department of Aboriginal Affairs and Intergovernmental Relations be rolled back into the Executive.

New Proposed Approach to Supplementary Reserve Fund

Members also discussed the government’s proposed new approach to future supplementary appropriations based on the reduction of the supplementary reserve fund from $25 million to $10 million. The committee is concerned about Cabinet’s ability to enforce this approach and disallow future supplementary appropriations for non-emergency or non-foreseeable funding needs.

Effective and Efficient Government

Ideas and initiatives that would contribute to the goal of the 16th Assembly to create effective and

efficient government were discussed during the meeting with the Premier. On several points Members stressed the importance of keeping the committee informed and engaged with the GNWT plan and new initiatives or major changes.

Reductions

Members also suggested that it’s important to give any organizations outside the GNWT that are affected by the proposed reductions or cuts early notice of anticipated changes. Such an approach should be consistent throughout the GNWT departments and not depend on individual Ministers and preferences. Members were worried that the proposed cuts would affect the regions to a higher degree than offices at headquarters.

The committee noted that phase 2 of the family violence action plan is now entering its implementation stage and that the GNWT felt the family violence coordinator position with the Department of Executive is no longer required.

Mr. Speaker, I will ask my colleague the Member for Great Slave to continue. Thank you.

Thank you.

Department of Human Resources

The members of the Standing Committee on Government Operations met with the Minister of Human Resources on April 8, 2008, to review the Draft Main Estimates for 2008–2009.

Committee members made note that the Department of Human Resources is proposing spending $32.264 million in operation expenses in

fiscal year 2008–2009. Overall, the committee felt that the proposed reductions focused too much on position cuts and not enough on improving business practices and streamlining efficiencies.

Regional Human Resource Services

The committee made it clear that position cuts should not disproportionately affect the regions. Members were concerned about the overall human resource capacity of the GNWT to service the regions, especially in the field of recruitment and retention for health, social services and education. The committee stated that the government must provide support to the regions, especially during seasonal hiring requirements; for example, teachers in the spring, community nursing pool, and improved physician recruitment for regional and community health facilities.

Affirmative Action Policy

Members pointed to the importance of ensuring that the public service is representative of the population it serves. The committee urged the government to consider the affirmative action status of incumbents when positions are proposed for elimination. The government needs to apply the Affirmative Action Policy and ensure that layoffs of aboriginal employees do not exceed their proportional representation within the GNWT’s workforce.

Some of the priorities Members look forward to discussing with the Minister of Human Resources include the review of the effectiveness of the existing Affirmative Action Policy and the potential for replacing it with a new employment equity policy. Members were particularly concerned about the underrepresentation of aboriginal people in senior management positions.

Medical Travel Assistance and Dental Program Benefits for GNWT Employees

Members were very concerned about the steady increase in expenses for medical travel assistance and dental programs that are part of the benefits of GNWT employees. The committee recognizes that these expenditures are the biggest cost driver of the Department of Human Resources’ budget. An analysis of cost drivers would be the first step. Members look forward to discussing the review undertaken collaboratively between the departments of Human Resources and Health and Social Services with the Minister.

Recommendation

The Standing Committee on Government Operations recommends that the government look at alternative and more cost-efficient means to provide medical travel assistance and a dental program as a benefit to GNWT employees.

Maximizing Northern Employment Programs

Committee members were concerned about several reductions to Maximizing Northern Employment programs — in particular, cuts to graduate and summer student programs, the Graduate Transition Program, the Social Work and Teacher Graduate Programs.

Members fear that these reductions will have a disproportionate impact on smaller communities and the regions. The committee questions how the government will succeed in attracting young Northerners in the public service if programs with proven track records of success are being cancelled or reduced.

Given the demographics of the GNWT’s workforce, succession planning and the development of a younger northern workforce are crucial steps toward future sustainability of the GNWT public service.

Capacity and Mandate of the Department of Human Resources

Members also expressed concerns regarding the department’s capacity to fulfill its mandate and functions at the present time. The inherent backlog since the amalgamation of the human resource services of the GNWT is still not completely dealt with, and issues with the implementation of the Human Resource Information System took their toll on staff morale of the department and the overall confidence of GNWT employees.

The committee urges the government to look at ways to improve the everyday operation of the department and its financial and business planning and looks forward to discussing future improvements with the Minister.

Mr. Speaker, I’d like to ask the committee’s Chair to continue. Thank you.

Mr. Speaker, that concludes the report of the Standing Committee on Government Operations on the review of the Draft Main Estimates for 2008–2009.

Mr. Speaker, I move, seconded by the honourable Member for Great Slave, that Committee Report 5-16(2) be received by Assembly and moved into Committee of the Whole for consideration.

Motion carried; Committee Report 5-16(2)

received and referred to Committee of the Whole.

Mr. Speaker, I seek unanimous consent to waive rule 93(4) and that Committee Report 5-16(2) be moved into Committee of the Whole today.

Unanimous consent granted.

Item 14, reports of committees on the review of bills. Item 15, tabling of documents. The honourable Minister responsible for Justice, Mr. Lafferty.

Mahsi, Mr.

Speaker.

I wish to table the following document entitled Part 1 – 19th Annual Report of the Victims Assistance

Committee of the Northwest Territories.

Document 55-16(2), Part 1 – 19th Annual

Report of the Victims Assistance Committee of the Northwest Territories, tabled.

Thank you, Mr. Lafferty. Item 15, tabling of documents. Pursuant to section 21 of the Legislative Assembly Executive Retiring Allowances Act, I wish to table the Legislative Assembly Retiring Allowance Fund financial statements for the year ended March 31, 2008.

Document 56-16(2), Legislative Assembly

Retiring Allowance Fund financial statements for the year ended March 31, 2008, tabled.

Pursuant to section 42 of the Legislative Assembly and Executive Council Act, I wish to table the Legislative Assembly of the Northwest Territories Members’ Handbook.

Document 57-16(2), Legislative Assembly of

the Northwest Territories Members’ Handbook, tabled.

Item 16, notices of motion. Item 17, notices of motion for first reading of bills. Item 18, motions. Item 19, first reading of bills. Item 20, second reading of bills. Item 21, consideration in Committee of the Whole of bills and other matters, Bill 8, Tabled Document 37-16(2), with Mr. Bromley in the chair.

Okay. We have a number of issues before the committee right now. What is the wish of the committee? Mrs. Groenewegen.

Thank you, Mr. Chairman. It is the wish of the committee today to begin with the Department of Human Resources for the Main Estimates for 2008–2009.

Any comments? General comments? Okay. No general comments at this time. Does the committee agree? Mrs. Groenewegen.