Certainly the Minister is correct in terms of reviewing some of the mandates that are before this government. Those are the marching orders to his generals and captains in terms of the process we’re going to be involved in. They have to answer to the Minister who answers to the Assembly in terms of the direction of the Northwest Territories. I think the Premier is certainly correct on his assessment here. I guess I was getting around in terms of a framework and our political development.

Certainly once the Gwich’in and the Inuvialuit start drawing down on their powers in terms of their jurisdiction, you’re going to see a major shift in this Assembly. The Tlicho are already in their self-governance. I guess I’m looking at in terms of a framework within this intergovernmental relationship with...and he may have more insights as to this discussion here and where it’s going. I guess what I’m looking at is a framework for a vision. Look at the board reform. See the result in the board reform. We had a framework with that type of guidance and I’m not too sure how it would be today, but the resource revenue sharing and devolution are certainly going to have a political and constitutional impact on this government within this Assembly.

That’s what I’m looking for and maybe the Premier through his department already has something that in fact would help us with our discussions. He’s made mention of the mandates that certainly we have to bring them forward and have discussions on them. Maybe that’s the start of building something. I’m afraid this House is going to fall down if we don’t look at serious stuff of the agreements that are happening now. The constitutional impacts of these agreements. I think in five or 10 years we should start preparing ourselves for some of these. I guess that’s what I’m saying. I’m hoping that we’ll have some direction before we pass the Assembly to the next group of MLAs. At least for the government in terms of intergovernmental relationships with the other governments, that’s what I’m looking for. These are some of my comments that I pass on. Certainly the Minister can respond or he can take them as comments and I look forward to the mandates review.

Just on closing, the mandate reviews that we’re going to have and the mandates that this current

government has in terms of how to deal with the communities in our regions.

The framework the Member is talking about I think is one that right now would be a fairly general one, the fact that there will need to be a public government in place. There’s a diversity in the Northwest Territories. There’s a public government. What role it would play, to what level it would be, and maybe this is just too simple of a comparison. But right now the arrangement we have with Ottawa, for example, to the Government of the Northwest Territories is there are some funding lines, agreements in place, and within those agreements there are certain minimum standards that have to be met and we have to deliver on that basis. Will it go down to that level? It definitely will be more complex than that. But we will, as each table becomes more defined about what’s being negotiated and the authorities that are being negotiated to a self-government, change the level of authority we have. We know that directly from the Tlicho Government itself. So that is indeed what is in place right now.

Some of the mandates we have operating with Aboriginal Affairs and Intergovernmental Relations fall back prior to these agreements. We know we have to update them. That will help us set a clear path where we go forward.

As for further development of that framework, I think that’s where, for example in the discussions with the Dene National Chief Mr. Erasmus about the future of the North and trying to begin a dialogue about what it could be, what it could mean with aboriginal leadership in the North. I think that discussion, there’s a recognition that the landscape has changed, that the field is different, and we must now look forward to what could be and what potentially will be in the Northwest Territories. We need to set about that work. Our sense, the Government of the Northwest Territories, is the mandate review is a starting point that will help us define some of that area, what will be the framework, and start building from there.

Thank you, Mr. Roland. We’re on page 4-23, intergovernmental relations, operations expenditure summary, $1.364 million.

Activity summary, grants and contributions, intergovernmental relations, grants, $350,000.

Information item, intergovernmental relations, active positions.

Lease commitments - infrastructure, information item, page 4-26.

Moving on to page 4-27, information item, work performed on behalf of others.

Moving on to page 4-28, information item, work performed on behalf of others, $509,000.

I’ll get you to move back to department summary, page 4-7, operations and expenditure summary, expenditure category, $6.807 million.

Does the committee agree that we’ve concluded the Department of Aboriginal Affairs and Intergovernmental Relations?

With that, I would like to thank the Minister and his witnesses. Sergeant-at-Arms, could you escort the witnesses out?

As agreed, the next department is the Department of Public Works and Services. At this time I would like to ask the Minister responsible for the department if he has any opening comments. Mr. Michael McLeod.

Yes, I do, Mr. Chairman. I am pleased to present the Department of Public Works and Services’ main estimates for the fiscal year 2009-2010.

The main estimates propose a department operations and maintenance budget for 2009-2010 of $56.1 million which represents a 2.8 per cent decrease in O and M funding over 2008-2009.

Public Works and Services is an essential partner in the achievement of government-wide goals, and the department continually strives to deliver high-quality services to its clients, while achieving the best value for government, communities, businesses and residents. The department achieves this through support and leadership in the areas of:

•

asset

management

•

information and communication technology

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procurement

•

records

management

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community fuel provision

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electrical and mechanical safety

The department also manages an additional $159 million for projects and services on behalf of its clients through revolving funds, chargebacks and capital transfers. These funds are used to provide:

•

computer and data communications for

government offices; fuel services for residents, businesses and the NWT Power Corporation in 22 communities; and

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delivery of capital infrastructure for our clients.

PWS is working to improve how we do business. In response to the direction given by the 16th Legislative Assembly, and specifically the stated priority of achieving effective and efficient government, Public Works is leading a change in the way the GNWT approaches infrastructure. Under the guidance and direction of the Ministerial Subcommittee for Infrastructure, implementation of the revisions to the capital planning process will continue in 2009-10. Examples of changes include:

•

planning

studies

•

peer reviews of large capital projects

•

value analysis of large capital projects

•

development of standardized designs

In 2009-10, we will see the continued implementation of programs in one of the department’s key areas of focus: facility risk management and safety. Safe, reliable infrastructure is essential for the delivery of GNWT programs and services. The department maintains 760 buildings, of which 60 have an age of over 30 years. To date, assessments have identified over $387 million in deferred maintenance costs for GNWT facilities. It is expected that costs will continue to increase as PWS carries out assessments on the remaining facilities.

The two programs covered by funding in this area are the Deferred Maintenance Program and the Woodpile Remediation Program. In 2009-10, PWS will spend $8 million on the work plan for the Deferred Maintenance Program, dealing with the highest priorities identified in the latest GNWT asset assessments. The Woodpile Remediation Program has been extended into 2009-10 with funding of $550,000 to allow for completion of the inspection and remediation of woodpile foundations across the Territory.

The department has initiated several energy conservation projects to reduce energy consumption and greenhouse gas emissions in GNWT facilities over the last couple of years a wood pellet heating system in the North Slave Correctional Facility, Chief Jimmy Bruneau School, Kalemi Dene School, St. Joseph School; the

application of Eco-Energy Validation Program standards in the design of schools for Ndilo, Gameti, Tulita, Fort Good Hope and Inuvik; energy audits of GNWT and community buildings, and accessing surplus power from the Taltson dam to provide electric heat for three facilities in Fort Smith all in support of the GNWT Energy Conservation Action Plan. Subject to funding becoming available, we will be pursuing other opportunities across the NWT.

In addition to the facilities owned and maintained by the GNWT, Public Works currently manages a lease portfolio valued at $17.3 million with 58 leases across the Territory. Public Works reviews this portfolio regularly to ensure that occupied space meets the program needs of our clients.

Through the Technology Service Centre, the department provides information technology support and services to meet the business objectives of the GNWT. More and more, the ability of the government to provide services to NWT residents is dependent upon the availability of secure and reliable information and communication systems.

Finally, I would like to mention the provision of essential fuel services. Through the Petroleum Products Revolving Fund, Public Works and Services funds the provision of heating fuel and gasoline in communities where a commercial operation does not exist. Through the Fuel Management Services Agreement, the petroleum products division provides the Northwest Territories Power Corporation with all of its fuel requirements and manages and operates its tank farms in 20 communities across the NWT. Under this agreement, PPD maintains safe tank farms in many remote locations, as well as contracting with and training local fuel delivery agents to provide necessary services. These agents have an important function in their communities, and Public Works and Services works with them to carry out this important service.

In response to the challenge of rising oil prices and increased variability in the market, the petroleum products division is focused on exploring strategic partnerships and ways to stabilize the cost of fuel products for people in communities served by the program.

To effectively reduce the cost of transportation, the petroleum products division will maximize the volume of fuel transported to the GNWT by bulk marine tanker via the Alaskan “over the top” route, and reduce the volume of fuel transported via the traditional Mackenzie River route. In 2008-2009, this exercise saved approximately $2 million for the Beaufort-Delta communities served by the petroleum products division.

Market prices for fuel have dropped substantially since the summer of 2008. Unfortunately, many of our remote communities have yet to benefit, as fuel has not been purchased and delivered to these communities at the current lower prices. To assist these communities and help provide some financial relief from these higher fuel costs, on January 26th the retail prices of heating oil and gasoline were reduced by 16 cents per litre for all communities served by the petroleum products division. Fuel prices will be adjusted again for all communities after annual 2009 fuel supplies are delivered. If current petroleum market prices continue, additional reductions in the retail prices for petroleum products can be expected in 2009.

In order to achieve the department’s mandate and achieve our reduction target, PWS concentrated on looking for opportunities to become more efficient in the “administrative” side of our business through amalgamating positions where possible and eliminating those vacant positions whose duties could be absorbed by existing staff.

The proposed O and M reductions have been targeted at areas where savings could be achieved by improving operational efficiencies through procedural changes and better use of in-house and contracted resources in achieving the reductions without adversely affecting the delivery of our mandated programs.

As a part of the target reduction exercise, PWS has identified five positions for elimination. Of these five positions, only one will be laid off as two positions have employees who will be retiring before the 2008-09 year-end. One position is occupied on a term basis that will expire on March 31, 2009, and the last position is vacant.

While PWS eliminated five positions as part of the target reduction exercise for 2009-10, five trades positions, including one apprentice electrician, have been created in the South Slave in addition to the electrical inspector position being created in the North Slave. Overall, Public Works will show an increase of two positions in 2009-10.

Public Works and Services continues to be responsive to its many clients and strives to provide high-quality services to departments and the people of the NWT. The budget that we are reviewing today will contribute to achieving this objective.

That concludes my opening remarks and I would be happy to answer any questions Members may have. Thank you, Mr. Chairman.

Thank you, Mr. Minister. At this time, I would like to ask if you will be bringing in any witnesses.

Yes, Mr. Chairman.

Does committee agree that the Minister brings in his witnesses?