Thank you, Mr. Guy. Mr. Krutko.

Again, Mr. Chairman, we find ourselves under the economic threat of what is going on in the world, especially coming to fuel

prices as we have just heard in the news since just yesterday that the fuel prices have exceeded $100 a barrel in which they are talking of the possibility of what is happening in Lebanon and other places in the world in regards to the Middle East that affects southern Arabia and other countries. It could be in excess of $200 a barrel. Are we prepared for that? Do we have enough fuel products that we purchased and at what time did we purchase and are we vulnerable to the changing prices in regards to our ability to basically fund that, realizing that we don’t have a surplus? What will the costs... I know we have had an arrangement where we are providing fuel products what you call over the top, that we are able to bring in fuel from around B.C. and through Alaska and over the top in which we are looking at savings there. I would like to know from the department in regards to the Petroleum Products Revolving Fund, how vulnerable are we in light of what has happened here in the last couple of weeks.

Thank you, Mr. Krutko. Minister McLeod.

Mr. Chairman, the revolving fund is something we can control as to what the inputs and outputs are for this program. We have purchased all of our fuel for the summer resupply. We have purchased the majority of our fuel for winter’s resupply. We look, as the Member raised, to the future. We expect we are going to see rising costs, but that should not affect our revolving fund. Thank you.

Mr. Chairman, do we have any long-term locked in contracts in regards to our suppliers in regards to the commitments we have with the Power Corporation and communities in regards to fuel resupply? Do we have long-term contract commitments or is it simply on a year-to-year basis?

Mr. Chairman, we have contracts signed for three years with our suppliers. Most of our fuel purchases are based on rack price.

Mr. Chairman, again, if it is rack price, we are definitely going to see a difference of what it was last week versus what it is this week. I think that is the vulnerability that we are under. If it is basically based on rack price, we are vulnerable. I think that, for me, having a locked in price and a long-term contract, again, if it is based on the rack price, that is my concern. I would just like to know, just using the scenario of what the prices were last week versus what the prices are this week, do we have any idea what that... I have to pull out the calculator here, but again, my point is that we are vulnerable by locking ourselves into a rack price.

Mr. Chairman, as I indicated, all of our summer purchases are done and have been delivered. Most of our winter supply

is in the communities. We are not very concerned at this point with the prices up to now. We have a fairly good reserve in the tanks in Inuvik. That will help us offset some of the future costs. Right now it is difficult to predict what our summer purchases will come in at. I would expect, as the Member has indicated, that it will come in a lot higher. Thank you.

Thank you, Minister McLeod. We are on page 7-31, Public Works and Services, information item, Petroleum Products Revolving Fund, active positions.

Page 7-32, Public Works and Services, information item, work performed on behalf of others.

Page 7-33, Public Works and Services, information item, work performed on behalf of others, continued.

That concludes our consideration of detail. I will get everybody to turn back to page 7-7, Public Works and Services, department summary, operations expenditure summary, $92.988 million. Agreed?

Does committee agree that we have concluded the consideration of Public Works and Services?

Agreed. Thank you, committee. Minister, if I can please get you to thank your witness, and thanks to the witness for being here. Sergeant-at-Arms, could I please get you to escort them out?

Is committee agreed that we proceed with the Department of Executive?

Agreed. We will just give the witnesses an opportunity to exit the Chamber.

Premier Roland, you have some opening remarks that you would like to make from the Department of Executive.

Yes, Mr. Chairman. The 2011-2012 main estimates for the Department of Executive. The goals for the Department of Executive are centred on our role in ensuring effective coordination of government activities, supporting informed decision-making related to policies and programming, and coordinating implementation of strategic initiatives that advance priorities of the 16th Legislative Assembly.

The overall proposed budget for the department is $15.07 million for 2011-2012, which is an increase of $764,000, or 5.3 percent, from the 2010-2011 main estimates. The overall increase since the last main estimates is due to $445,000 for strategic initiatives and $570,000 in forced growth, including $337,000 in collective bargaining increases, offset by sunsets of $251,000.

The 2011-2012 main estimates reflect the key activities where the department plays a critical role in leading or coordinating the development and implementation of strategic actions that advance the Assembly’s priorities.

The Executive operations branch includes the strategic planning unit, Program Review Office, Bureau of Statistics, office of devolution and the regional operations offices for the Department of Executive. In addition to the core business activities, there are a number of priority areas that have been advanced during 2011-2012.

As was noted in the budget address, the Northwest Territories has experienced virtually no population growth over the past five years. As part of the Maximizing Opportunities Strategic Initiative, these main estimates include $145,000 to support implementation of an overall growth strategy. The growth strategy is currently under development and will build on the existing activities like the national marketing campaign that support overall growth in the Northwest Territories.

An investment of $150,000 is also reflected in the main estimates related to the community price surveys that are being undertaken as part of the efforts to monitor impacts of the changes in electrical rates on consumer prices. This investment is supporting collection by the Bureau of Statistics in all communities that is being undertaken in six month intervals over 2010-2011 and 2011-2012.

The regional offices within the Executive operations branch are coordinating implementation of the pilot project for single-window service centres in rural and remote communities. That was advanced as part of the Refocusing Government Strategic Initiative. These offices, located in Ulukhaktok, Aklavik, Fort Good Hope, Colville Lake, Nahanni Butte, Fort Providence, Whati and Lutselk’e, were opened in the fall of 2010 and are staffed by a government service officer, or GSO. We have been fortunate in recruiting Aboriginal people for all of these positions who, in most cases, are able to deliver services and work in their own Aboriginal language. These GSOs are a great asset to our government. They provide assistance to residents of these smaller communities to access Government of the Northwest Territories programs and services. We are getting very positive feedback on the establishment of these offices. GSOs are using proactive approaches to help residents, like

elders. One day a week the GSOs are out of their offices and visiting with elders in the communities to listen to concerns and provide practical assistance to help elders access programs and services as required.

These main estimates do not reflect funding required for the next stage of devolution negotiations and implementation planning. As Members know, the AIP was signed last month, well after this budget was developed. The department will need to return to the Legislative Assembly for funding to support negotiations for a final agreement, including GNWT support for participation of regional Aboriginal governments. Members will be aware that the AIP includes funding for the GNWT and Aboriginal governments to complete a number of activities before a final agreement is reached, including developing an organizational design, completing work on waste sites, developing training plans, assessing IT requirements, and developing territorial legislation. The negotiations are separate from these activities, and the GNWT will need to ensure that participating northern governments have adequate resources to complete this next critical stage.

Also included in these main estimates is the Cabinet support branch of the Department of Executive, which is responsible for ensuring systems are in place to support informed decision-making and successful implementation of Cabinet direction. The branch includes the Cabinet secretariat, legislation and house planning, corporate communications and protocol, the women’s advisory office, and supports the Commissioner’s office.

Other key activities for the department that are reflected in these main estimates include the Ministers’ offices, which include the Premier’s office and support to Ministers as well as the Department of Executive’s portion of the federal Engagement Strategy activities. This activity is being coordinated by the Premier’s office and will support additional capacity to engage the federal government on our key priorities.

Also reflected in the main estimates is the office of the secretary to Cabinet, which is responsible for providing overall leadership for the public service, supporting Executive Council decision-making, and coordinating the development and implementation of overall government-wide direction. Finally, the department also provides operational support to the Public Utilities Board, which is the independent regulatory agency responsible for energy regulation within the Northwest Territories.

Mr. Chairman, that concludes my introductory remarks and I am prepared to answer any questions that committee members may have.

Thank you, Mr. Premier. Would you like to bring witnesses into the Chamber?