We are on page 1-23, activity summary, office of Chief Electoral Officer, operations expenditure summary, $360,000.

We are moving on to page 1-24, information item, office of Chief Electoral Officer, activity positions.

Page 1-26, activity summary statutory officers.

Page 1-27, activity summary, statutory officers, operations expenditure summary, $1.299 million.

We are moving on to page 1-28, activity summary, statutory officers, grants and contributions, contributions, $200,000.

1-29, information item, statutory officers, activity positions.

We are going back to page 1-7, Legislative Assembly, department summary, operations expenditure summary, $15.650 million.

Does the committee agree that we have concluded the main estimates for the Legislative Assembly?

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

As we agreed, the next department that we will consider is the Department of Finance. At this time I would like to ask the Minister of Finance if he has any opening remarks. Mr. Miltenberger.

Thank you, Mr. Chairman. I am pleased to present the Department of Finance’s main estimates or the 2009-2010 fiscal year.

The main estimates reflect the consolidation of the current Department of Finance and the Financial Management Board Secretariat into a new Department of Finance, effective April 1, 2009. The objectives of the merger are to enhance the GNWT’s financial planning and administration and to ensure that resources are used in the most efficient way. By combining resources, the new department will be able to provide fiscal leadership to the GNWT and promote the principles of sound financial management.

This consolidation will bring together all of the GNWT’s key fiscal and financial functions, including expenditure and revenue management, intergovernmental fiscal arrangements, tax policy and collection, banking and cash management, financial reporting and systems, internal audit, collections, information management and risk management and insurance. The NWT Liquor Commission and liquor licensing and enforcement will also be a part of the new Department of Finance.

The relatively small size of the existing two departments, each with complementary functions that have extensive interaction, makes the proposed consolidation both logical and relatively straightforward. Almost all other provincial and territorial jurisdictions have a single Department of Finance responsible for financial, fiscal and economic policy and stewardship over public funds. The proposed reorganization is consistent with other provincial and territorial departments of Finance.

The department’s 2009-10 main estimates propose O and M expenditure levels of $74.875 million. This represents a reduction of $8.610 million or 10 percent from the 2008-09 main estimates.

The department’s proposed budget includes an increase of $1.2 million to reflect higher projected costs of the current Territorial Power Subsidy Program or TPSP. The TPSP subsidizes the cost of electricity up to a maximum of 700 kilowatt hours per month or consumers up to 1,000 kilowatt hours per month for eligible businesses in communities where cost of power is greater than that in Yellowknife. This additional funding will bring the budget for the current program to more than $11 million in 2009-10. In addition, as part of the government’s Energy Investment Initiatives, a further $3 million has been budgeted in 2009-10 to enhance the commercial subsidy provided through the TPSP. A key objective of the GNWT is to lower commercial power costs in order to foster economic development and reduce the cost of living, including the cost of food. Specific proposals for the use of this funding will follow the completion of the government’s review of electricity regulation rates and subsidy programs.

Each of the core business activities of the department provides a foundation for all other activities of government, through raising revenues, managing expenditures, protecting assets, providing critical fiscal, financial and economic information and promoting accountability.

However, there are specific departmental activities that directly support the government’s priority of refocusing government through the strengthening of service delivery and managing the costs of government. The department will be taking action to stabilize support to non-government organizations through the development of a funding policy; will be ensuring that the Duty Travel Policy directives are clear, well understood and useable in order to properly control; monitor and report on GNWT travel; and, will be updating and renewing the government’s Knowledge Management Strategy. The department’s proposed 2009-10 budget includes $300,000 to fund work on this strategy.

In 2009-10 the Department of Finance will be continuing the GNWT’s longer-term, broad-based initiative to modernize government management in order to better respond to changing expectations and priorities. Key activities being advanced include the update of the Financial Administration Act, updating the Knowledge Management Strategy and the implementation of a new Financial Information System for the government. This replacement of the government’s 25-year-old Financial Information System is a major undertaking both for the department and the government. The new system for accounting and management, or SAM, will go into effect this summer. The department’s 2009-10 proposed budget reflects a net increase to $522,000 to allow for the ongoing operation of the system, as well as $1.3 million in amortization

expense to reflect this major capital investment being brought into service.

The department’s 2009-10 budget also reflects a reduction of $14.692 million attributable to the lower contribution funding provided to the Northwest Territories Housing Corporation. The reduction reflects the sunsetting of federal funding from the Northern Housing Trust. The Department of Finance has no direct authority over this funding other than providing the corporation with its operating cash flow.

As the government’s lead revenue department, the Department of Finance revenues are projected to total $1.177 billion, which is approximately 90 percent of the total GNWT revenues currently being forecast for 2009-10. The department will be undertaking a number of revenue related initiatives in 2009-10, including:

• completing a review of all GNWT fees and making changes to our financial policies to ensure these revenues keep pace with inflation;

• following on last year’s revenue review, taking a closer look at how we raise revenues in the NWT, to see if there are changes to our tax system that might advance our economic, social and environmental objectives without increasing the amount of taxes we collect;

• continuing to participate in discussions on

devolution and resource revenue sharing; and

• exploring the concept of a heritage fund for the NWT.

The Department of Finance’s 2009-10 main estimates include a total staffing complement of 107 positions, 98 in headquarters and nine in the regions. This is an increase over the previous budget of six positions for the Department of Finance. However, after taking into account transfers in responsibility between the departments of Finance and Executive, the adjustments represent a net increase to the GNWT of one position. That concludes my opening remarks. Thank you.

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

Yes, Mr. Chairman.

Does the committee agree that the Minister brings his witnesses?

Sergeant-at-Arms, please escort the witnesses in.

Mr. Minister, for the record, could you introduce your witnesses.