Thank you, Mr. Bromley. Item 17, notices of motion for first reading of bills. Item 18, motions. The honourable Member for Weledeh, Mr. Bromley.

Thank you, Mr. Speaker. I seek unanimous consent to deal with the motion I gave notice of earlier today.

---Unanimous consent granted

WHEREAS Tabled Document 135-16(5) has been tabled in this House;

AND WHEREAS the Response to the Standing Committee on Social Programs Report on the Review of the Child and Family Services Act requires detailed consideration;

NOW THEREFORE I MOVE, seconded by the honourable Member for Great Slave, that Tabled Document 135-16(5), Response to the Standing Committee on Social Programs Report on the Review of the Child and Family Services Act, be referred to Committee of the Whole for consideration.

Thank you, Mr. Bromley. The motion is on the floor. The motion is in order. To the motion.

Question has been called.

---Carried

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: Tabled Document 4-16(5), Executive Summary of the Report of the Joint Review Panel for the Mackenzie Gas Project; Tabled Document 30-16(5), 2010 Review of Members’ Compensation and Benefits; Tabled Document 38-16(5), Supplementary Health Benefits – What We Heard; Tabled Document 62-16(5), Northwest Territories Water Stewardship Strategy; Tabled Document 75-16(5), Response to the Joint Review Panel for the Mackenzie Gas Project on the Federal and Territorial Governments’ Interim Response to Foundation for a Sustainable Northern Future; Tabled Document 103-16(5), GNWT Contracts over $5,000 Report, Year Ending March 31, 2010; Tabled Document 133-16(5), NWT Main Estimates, 2011-2012; Tabled Document 135-16(5), Response to the Standing Committee on Social Programs Report on the Review of the Child and Family Services Act; Bill 4, An Act to Amend the Social Assistance Act; Bill 14, An Act to Amend the Conflict of Interest Act; Bill 17, An Act to Amend the Income Tax Act; Bill 20, An Act to Amend the Evidence Act; Minister’s Statement 65-16(5), Devolution Agreement-in-Principle, Impact on Land Claims and Protection of Aboriginal Rights; Minister’s Statement 88-16(5), Sessional Statement, with Mr. Krutko in the chair.

Thank you, Mr. Chairman. The committee wishes to continue, please, with general comments on the NWT main estimates and after the general comments are completed to get into the detail with the first department, that being Health and Social Services, as time permits.

Does committee agree?

Before we go, I’d just like some direction. I know there were a bunch of questions or general comments made yesterday. I wonder if the Minister wants to respond to them now or wait for the other general comments.

Thank you, Mr. Chairman. There was a wide range of general comments made and I thank the Members for all their thoughtful feedback. All the Members, of course, are on notice and starting with Health that we’re now going to get into the detail and we’ll all be prepared to come to the table and have that detailed discussion of the very many specific issues that were mentioned by the various Members who did reply to general comments. For those that are yet to speak, I just want to offer that same assurance that we’re listening closely and will stand ready to respond when our departments come forward.

Does committee agree with that suggestion?

General comments. Mr. Hawkins.

Thank you, Mr. Chairman. I’m pleased to provide a few general comments to the opening address. First and foremost I will say that I am pleased, as a number of my constituents are certainly pleased, that there are no new taxes in this proposed budget. People are finding it difficult through the cost of living that we’re working through in Yellowknife. I can only imagine that is amplified in the communities, undoubtedly. That’s certainly well-taken news, if I may define it that way.

People are concerned about taxes the government may be flirting with. The expression is mixed, of course. A hotel tax may bring in new benefits, but exercising caution. A carbon tax being flirted with, as well, and again the general constituents who have stepped forward to provide me advice and guidance on this particular issue stress that caution needs to be exercised before we put a new burden on the average consumer, who is almost at the breaking point as it is.

The big fear, of course, from another side of the equation, is the supplementary health benefits and how that will proceed forward and look. There has undoubtedly been many calls of support for reform

on how we provide our health benefits. That said, in a fair and collective manner. I wish to take that point clearly to the government that this budget is presented and as the working group continues to make forward through our health programming, that they need to make sure that message is understood, that fairness is an important priority throughout.

Highlighting in the budget an additional $150,000 through SFA I think will be well received by our students, and often I like to say our students in university are the future taxpayers of our health care dollars and we should always make sure we support them correctly. In all honesty, they are our guiding gems towards our future and we must make sure that the compass rose always points to a way to support them. Critically, we have to be there for them and they will be here for us when it’s their turn to step into the leadership roles.

I see that there is going to be a continuation of a support of the tourism industry and I think that’s welcome news. I know the sector is still trying to find new ways to diversify as well as to attract a new clientele throughout the world. It was interesting bringing the mayor of Edmonton up. He talked greatly about the unexplored market of Edmonton being a primary target or focus of our tourism campaigns, which I will bring up on further days to discuss in detail. Although it falls under the broader scope of ITI, in the direct scope of our NWT tourism organization, but I know ITI provides them both with guidance and advice and certainly much needed programming dollars. There are many other areas that could be helped.

Just continuing on ITI, additional money for a marketing campaign into this new year is probably very significant. We’ve all looked at the challenges of our decreasing population and that affects all throughout the North about trying to get qualified people here to do the jobs that we need and we need a lot of people here, because I think a lot of skills are not being met and the demand there defined the pool of resources of human resources is very thin. I welcome the new or cranked-up national marketing campaign.

I believe strongly, as the Finance Minister had mentioned, about the child advocate position. I think that is a new way of doing business and certainly the right way of doing business. I think that establishing an Office of the Children’s lawyer makes a lot of sense. Sometimes when you say these things, you often wonder what took us so long to do such an obvious step, and that’s just the way things sort of roll. The reality here is, I think it’s a great initiative and if used properly, could do wonders.

As I said in my Member’s statement yesterday, as well as many other colleagues of mine, I’m still concerned about the underutilization, if I may

describe it as that, of our Program Review Office. Although I spoke at length yesterday, I still think that office has a lot of promise and can do a lot of good work. I’m just concerned on what’s come forward thus far.

As far as the surplus goes, I would not think of a surplus of $7 million as a lot of money when comparing it to a $1.3 billion budget. Truly it could be described as a drop in the bucket, but the reality says it’s more like dew on the side of the glass, it’s so small. One serious supplementary appropriation due to some horrible fire campaign we have in the summer would quickly draw that down. We need to protect communities, we need to protect people. That one example alone could eat up that whole surplus in a moment’s notice. That’s one example. There could be many others. Now not being the time or place, but the reality is we all know there are many other examples.

It was highlighted in the budget, and even I made mention of it yesterday, about the $41 million in drop of corporate tax rates. I did spend some time yesterday trying to highlight doing business better, because if business changes on us, such as a drop in corporate tax rates, how are we able to respond without cutting and slashing? That’s always the big concern of everybody, is there’s sometimes only one way to respond and it’s not a very pleasant way. I’ve often articulated our need for a revenue stabilization fund and I know that we will be seeing a Heritage Fund come forward one day, but I really think we need to be directing part of our projected surplus into a stabilization fund that can protect our revenues. As highlighted again, when we lose $41 million in corporate taxes, we’re able to respond quickly and safely to build stability through our system without sending shockwaves throughout.

Of course, we often forget about how lucky we are with 75 percent of our federal transfer being our money in the bank, but that also leaves us a very small zone to find revenue through our taxation and service fees.

Another area I’d like to highlight, although I welcome it under the principles of cost of living, where the government has made some adjustments to power rates throughout the Northwest Territories, we should not forget Yellowknife’s power rate was about to drop off due to the rate riders, although the government red circled it at its higher rates. It’s done a cost of living shift onto government as opposed to the end user. I only hope that adjusting the power rates -- although I’m very nervous about how they did this -- I welcome the fact that the target is to make things like food cheaper in the communities. We don’t have to look too far for examples of what frustration that’s caused around the world. Take a look at Egypt; there is one primary example of food costs

and crisis added together under the perfect storm of frustration. People express that with grave dismay.

Mr. Chairman, $925,000 is committed in this budget to support community employment and, I’ll be quite honest, I think that’s such a great thing, because if we can empower people to be healthy, employed within their own communities, that will create great synergies throughout the northern small communities, which makes a lot of sense. That also takes pressure off the Yellowknife region or even regional centres, whether that be Inuvik, Hay River, Fort Simpson or Fort Smith, where people are coming into those larger centres desperate for opportunities. That allows different types of pressures to come off in the larger communities.

As this is just an opening comment, I just want to thank the Finance Minister. I think, by and large, as many have said, it’s sort of a status quo budget. Not a lot of shocks, not a lot of surprises. I think we’re probably pretty safe with this particular budget. As I’ve highlighted, the big issue for me right at this particular case is the fact that are we prepared for any sort of financial shock and how do we work to prevent that. The efforts we put on focusing on that I don’t think have truly borne any fruit.

As I said earlier about the Program Review Office, I think some of the things that they could have proposed and we’ve been asking for is more detailed information on synergies we can create. For example, board reform, I don’t think, in principle, was a bad idea. It made a lot of sense, but it seemed as if it looked like lumping them all up and doing it all at once. That could have been a good economic way of doing business smarter, more efficient, but the problem is it seemed to be this is the way or nothing. I’ve often proposed, and I’ll suggest again, that small initiatives showing that they can work makes sense. Work with the communities, work with the Territory, industries, associations. I mean, people will work together in finding ways to find efficiencies.

I just want to leave on a last note, Mr. Chairman, as I had said yesterday that we can be caught up in the details of how to do things, but I think we have a lot of people who have a lot of skills and we have to empower them with the surety that we’ll stand with them, we’ll stand with the managers who are willing to make good, reasonable decisions. It’s unfortunate that politics sometimes get into the concern about who to blame and who to pay on a particular decision, but, Mr. Chairman, the real issue is to ensure that we stand behind our public service to make good decisions. As colleagues have said before, we’re spending too much money on contracts and whatnot. I think we could rely better on our public service to make those decisions and I support that. Give them the

direction and they’ll find a way to save money and run programs better. Thank you.

Next I have Mr. Beaulieu.

Thank you, Mr. Chairman. As indicated by my colleague Mr. Hawkins, I think it was a very good thing through the Committee on Rural and Remote Communities to put in an employment program for small communities. Very much needed. I’ve talked in this House about employment rates a lot, the low employment rates in the small communities. This is really an opportunity for some of those employment rates in these small communities to be increased. I know that this money that’s going into the sustainability of rural and remote communities goes into the base, so it’s a very positive move on the part of government. I certainly appreciate the committee’s efforts in putting this money in place.

I think that by using local labour we can use this money and also gain some economies of scale by working with the Housing Corporation, I believe, through some sort of contribution agreements with the communities and fix up the homes for the elderly, the elderly that can’t really go on a mortgage but are sometimes not able to access because of outstanding tax arrears on land. There’s a principle issue there with some of the elders that they don’t believe they actually owe money on the land that they believe belongs to them where their house that they own sits on.

There is some work to be done there, but I think that’s an opportunity with this employment program to work with the Housing Corporation. There may be an opportunity to bring a couple tradespeople into the communities and use that employment program, and with money from the Housing Corporation for materials and so on, may be able to leverage some of that money.

In addition, I think that there are also a lot of people in the communities that like to work on the land and so on, and I think we should start putting the pieces of the puzzle together with this money to at least complete assessments on the cost of remediating some of the sites, some of the more easily accessible sites near some of the communities using local people to clean up the land. I think that everybody knows that that has a lot of positive impacts to it. We’re cleaning up the land. We’re providing some employment in the community. Even if at this point all of these programs are even just to get people ready to draw employment insurance. Work for five or six months and draw employment and, you know, remediate all summer long, work all summer long on houses when the cost to do those jobs are at its cheapest, and get the federal government to support and put some income into the communities through the employment program and help the communities get

off income support and increase the employment rates in the communities. I think that’s a really positive thing in addition to the increased money into the SEED program for small businesses. I think that is a very positive thing as well.

And putting some money into tourism. Tourism operators are benefiting from that and that’s keeping money… One of things that it does, I think that it pulls money in from other jurisdictions, other countries and so on, and that’s very positive for small communities and even the larger communities as well. I feel that’s something that drives the money directly into our economy, the NWT economy, from outside of the country. Essentially, easy money to get into the community.

I was very pleased to see the Housing Corporation doing a $300,000 review of the policies. I think that’s going to be something that’s positive, I’m hoping. One of the things that the people had indicated to me always in the past when we’ve made changes to any of the policies in the government, is that they want to be consulted. I think this might be a good opportunity to consult people.

Still with some of the things that we need: I think that the government should look at a winter road into Lutselk'e. That’s something that I think is important, but again, it’s my job to discuss with the Minister and to see the cost of the whole thing. At least to have an assessment of that would be a positive thing, so that when we know that when we’re standing up here talking about this project, that we know exactly how much it’s going to cost the government in order to do it. I think that additional money to increase the budget of access roads from about three hundred and something thousand to $1 million, I think, was, again, something that went to sustainability on rural and remote communities. I think that’s, again, very positive.

The $475,000, that additional money that was put into the Community Harvesters Assistance Program; again, has a direct, positive impact on the communities. I feel that’s something that the trappers, hunters, gatherers, harvesters are able to use that money to help sustain their families and provide much needed income through trapping or even through hunting and into the families.

The reduction of power rates, of course, the impacts will start to become apparent in the small communities, in the diesel communities especially. I think that’s important and impacts Lutselk'e to a large degree, the power rates for diesel communities and then also impacts Fort Resolution to some degree, as well, that the power rates there are through diesel.

I think that the Education department getting back into career technical services is very, very good for the kids. I see all the brand new equipment. That’s

after the industrial arts class in the Deninu School in Fort Resolution sat dormant for 20 years. Now you can see all the new equipment and everything. That’s a very positive thing, very positive for the school. The next thing maybe we’d start working on some sort of physical education to that type of degree as well. I know that it’s in the schools, but maybe turning our attention to some of that in Lutselk'e, as far as the career technical services go. They have the money, they just need a place to put the equipment that it will need to continue that.

Of course, the continuation of the construction of Highway No. 6 is something that I am very pleased about, the reconstruction, I should say, of Highway No. 6. They are going to be finishing the chipseal that goes from Little Buffalo River into the community of Fort Resolution and then from Little Buffalo River out towards where Pine Point used to be. I think that is positive and, of course, the thing where we are looking at continuing some discussions on the mini-hydro on the Snowdrift River outside of Lutselk’e that, again, is expected to have additional positive impacts of the energy costs in that community.

I think that a very important thing in education that this government has to turn its attention to in a large way for small communities is daycares and preschool. We know that the kids leaving preschool and going to daycare and through preschool are showing up in kindergarten and are far ahead of the other kids that are not going to preschool or having stayed in daycare. The whole system seems to work well as kids go through the daycare system and so on. The way to build up daycare, again, is to go right back to my first topic, and that is employment in the community. Get the people employed. Get the kids into daycare and preschool. They have a much better chance at success in the education system if they are able to go through daycare. That is one aspect I think that is not here in a big way, and that is daycare and preschool for the kids in the small Aboriginal communities. Thank you, Mr. Chairman.

Thank you. General comments. Maybe I will just ask the Minister again if he would like to respond to general comments that were just given.

Thank you, Mr. Chairman. I have been asked by some Members to respond more specifically to some issues that were raised in some of the opening comments.

One of the issues that Member Bromley raised was the Program Review Office. As I pointed out yesterday, there was a presentation done last March 2010. The committee has yet to respond. The Member indicated there is a huge sense of frustration from Regular Members. We have a letter coming that I am going to be sending to committee

to offer a briefing based on some of the comments. As I pointed out yesterday, there was all the work that was outlined and laid out, and while we can provide the briefing, clearly we missed the window of opportunity to make any substantive changes at this point since the budget is now set and before us.

The issue of the investments in energy reduction are clearly that we are going to be monitoring those. The initial number of $775,000, the plan is to try to set up the table of revolving fund for their initiatives in terms of conservation and to be more effective and energy efficient.

We are, as the Member raised as well, the size and role of government, what do we do? How much can we afford to do? If we are not going to do some things or if we are going to add on new things, what things don’t we do? I can just quickly go through the lists.

There is a concern, of course, by the Member about the provision of basic needs, using northern materials, northern foods, trying to be self-sufficient as possible. We have tried to identify funds to do that. We are working on community energy plans. We are investing hugely in biomass and other alternative energy to control one of our biggest costs, which is our energy costs. The Member made a comment and he indicated he thought I misspoke about lowering the cost of electricity. It depends on how you would look at that particular issue. We have lowered the cost of -- and I think that was the intent -- electricity in the thermal communities or the cost to thermal communities. We recognize that we haven’t come up with a way to generate cheaper electricity at this point, but we looked at a way to make our system fairer and more equitable. By doing that, we believe we made a significant impact on the cost of living in communities, especially for the business, commercial rates which have come down dramatically, which we hope to see reflected in things like the grocery basket costs to individuals in communities. We continue to work on the issue of X-ray, reducing the costs. Clearly, as we invest in alternative energy and as the price of oil surges past $100 a barrel on the Brent scale, which is somewhat higher than West Texas crude costs, but it clearly indicates that those are going to become more efficient and be more economical.

We are going to continue to try to invest -- not as much as the Member would like, of course -- in agriculture and the commercial harvesting of wild foods, the push for communities to grow as many things as they can in their own communities.

Mr. Chairman, those are some things. I appreciate the general support the Member indicated that he would save some of the rest, but there are broader issues. The one that is going to be there for the next Assembly, the Member has identified in his

comments, so there is feedback for the Member. Thank you.

Thank you. There are no more general comments. As we agreed, we will go into main estimates. At this time I would like to ask the Minister of Department of Health and Social Services if she would be providing opening comments. Ms. Lee.

Thank you, Mr. Chairman. Yes, I would.

Mr. Chairman, we must work together with our residents, communities, governments and agencies to meet the health and social services challenges that we face, to help ensure a sustainable health care system for the future.

Today I am presenting the Department of Health and Social Services’ main estimates for fiscal year 2011-2012.

Across Canada and internationally, leaders are being faced with difficult choices around the sustainability and accessibility of health care. It is no different for us in the Northwest Territories. We know that we need to make changes to our health and social services system so our children can access the same quality care that exists in the NWT today.

Current demands include rising cost of health care providers, pharmaceuticals, chronic disease and treating our aging population. The department is requesting $345 million for 2011-12. This is a 6 percent increase from the current year. Twenty million dollars of this request is forced growth which is needed to try to keep up with demands to the system. This includes incremental salary and benefit increases to staff, higher medical travel expenditures, and increased costs for out-of-territory physicians.

One of our initiatives to reform the system is our strategic document, a Foundation for Change. Sustainability, wellness and accessibility to health and social services are three pillars of the Foundation for Change.

Mr. Chairman, we launched the Foundation for Change with the support of the Members of this House through the Standing Committee on Social Programs. I have committed to regular updates to show progress to Members. Since the plan was launched, we have made progress in a number of areas. Some highlights include expansion of the Health Promotion Fund, which has allowed communities of all sizes and from all regions to support Northerners in making healthy choices. We have increased supports and services for people who experience family violence and continue to implement the Small Communities Homelessness Fund.

We have been able to make great progress improving residents’ access to care, through continued implementation of the HealthNet electronic health system, which is bringing Northerners closer to quality care through technology. As well, residents have more equitable, needs-based access to long-term care through the Territorial Access Committee.

One of the key first-year activities of the plan was to engage with stakeholders regarding wellness priorities through the regional health and social services dialogues which were completed with the final session in Inuvik in mid-January. We also are working with health and social services authorities more effectively and as a system, and have implemented contribution agreements that clarify the roles and responsibilities around system funding.

The 2011-2012 proposed budget for Health and Social Services also includes $1.8 million in new funding for strategic initiatives. These include:

•

$650,000 to enhance continuing care services within the authorities by increasing the number of trained home support workers. This will allow the authorities to increase the hours available to clients, which has become increasingly critical as the NWT health and social services system responds to the new 48-hour rapid discharge of patients from Alberta.

•

$500,000 in further investment in the Healthy Choices Framework to fill in the gaps in early childhood initiatives at the community level aimed at promoting healthy living, including expanding the Healthy Family Program to Inuvik and Fort Simpson to allow for better supports to families before they are in need of a social worker.

•

$75,000 to expand respite services, which will enhance caregiver support and training to families of children and youth with special needs in areas outside of Yellowknife. This enhancement will meet the developmental needs of children with disabilities and reduce reliance on southern placements.

•

We will be investing $375,000 in our health benefits administrative systems to better deliver and achieve efficiencies in the delivery of extended health benefits. In addition, we are investing $10,000 in our HPV vaccination program as well as $23,000 to enhance our response to family violence.

I would also like to report on the extension of the Territorial Health System Sustainability Initiative, THSSI, until March 2012. This federal funding was used for a number of initiatives, including nursing midwifery and support for the Foundation for Change, as well as medical travel. This limited extension is an opportunity to consolidate progress

made within the first five years. However, we are faced with difficult decisions as federal funding is time limited.

Ensuring sustainability and addressing the challenges in our health and social services system will not be easy and requires the full support of this Assembly and our stakeholders. I look forward to working with Members and completing the vision of the 16

th

Assembly.

This concludes my opening remarks and I would be happy to answer questions.

Thank you, Ms. Lee. At this time I would like to ask the Minister if you will be bringing in witnesses.