Thank you, Mr. Beaulieu. The honourable Member for Nunakput, Mr. Jacobson.

Thank you, Mr. Speaker. Several months ago the federal government tabled a budget that included $150 million for the Tuk-Inuvik highway, not Highway No. 7, finally linking Canada coast to coast to coast. The result of many years of lobbying and hard work from the community, the leaders in the Beaufort-Delta, my office, and other organizations.

Unfortunately, with calling the election, the budget was not ratified in the House of Commons. However, the residents of Inuvik and Tuk and all over Nunakput are hopeful that the commitment with the first budget with this new federal government that this project will provide employment for the Beaufort-Delta, reduce the cost of living for the residents of Nunakput, and will be a vital piece of infrastructure for the industry in the region. Once the highway is built, many contractors and their employees will benefit from maintenance contracts to keep the road open and in good operating condition.

We’re all facing a delicate situation here that needs to be coordinated in a focused approach, to ensure that the funding commitment from the federal government does not fall through the cracks. The Tuk-Inuvik highway is an important first step for

building the Mackenzie Valley Highway. It is important that we remain focused on the prize, and that it does not fracture along regional lines and confuse messaging to the federal government.

The Mackenzie Valley Pipeline is another important consideration that makes building the highway down the river more feasible for Canada to consider.

I’m urging the government to work with me, the leadership of the Beaufort-Delta and other organizations that work tirelessly for funding in this important project and important infrastructure for the whole territory. This will create jobs for everybody that we haven’t had work in the Beaufort-Delta in the last four years. Everybody is finding there’s a lot of struggling going on.

I will have questions for the Minister of Transportation at the appropriate time.

Thank you, Mr. Jacobson. The honourable Member for Frame Lake, Ms. Bisaro.

Thank you, Mr. Speaker. Today I want to use my Member’s statement to speak about two accomplished Yellowknife women. Arlene Hache and Lyda Fuller are both well-known non-government organization leaders at the Centre for Northern Families and at the YWCA. Both of these women work diligently and tirelessly on behalf of all NWT women and families who are in need. These talented ladies have just demonstrated their skills and commitment at a national conference: the first ever Canadian Forum on Housing and Safe Communities for Women. They were presenters at several sessions.

A few years ago both the Y and the Centre for Northern Families collaborated with the Yukon and Nunavut women’s organizations to research women’s homelessness in the North. That research was compiled into a valuable report entitled, You Just Blink and It Can Happen: A Study of Women’s Homelessness North of 60. Ms. Hache and Ms. Fuller presented that research project at one of the conference breakout sessions this past Monday. In addition, Ms. Hache presented at another breakout session on Tuesday on Fetal Alcohol Syndrome Disorder and Women’s Health, and she was a panellist for the closing plenary yesterday.

The NWT is blessed to have such accomplished, nationally recognized women working to provide better living situations for NWT women. Housing is a huge issue in all of our communities, and the work that these ladies and their organizations do on behalf of northern women provides the NWT with a

vital part of the continuum of housing that we need in the North.

Many women move here to the NWT capital and then become at risk. When they do, their saviours are the Centre for Northern Families and Ms. Hache, and the YWCA and Ms. Fuller. For Ms. Hache, a resident of Weledeh, and Ms. Fuller, a Frame Lake constituent, their goal is to provide the following for their clients. This is a quote from Susan Scott, who is the author of a book entitled, All Our Sisters, “Home is about safety. A home where they can sleep unmolested, where their children are safe and their treasures secure.” I hope that this government agrees with that goal and that we will soon see that goal accomplished.

Thank you, Ms. Bisaro. The honourable Member for Sahtu, Mr. Yakeleya.

Thank you, Mr. Yakeleya. Item 4, reports of standing and special committees. The honourable Member for Nahendeh, Mr. Menicoche.

Thank you very much, Mr. Speaker. Your Standing Committee on Government Operations is pleased to provide its Report on the Review of the Report of the Auditor General on the Northwest Territories Deh Cho Bridge Project – 2011, Department of Transportation, and commends it to the House.

The Standing Committee on Government Operations held its public review of the report of the Auditor General of the Northwest Territories Deh Cho Bridge Project – 2011, Department of Transportation, on April 19th and 20th, 2011. The committee thanks the Auditor General, Ms. Sheila Fraser, and her staff for their work in preparing the report and in assisting the committee with its review. The committee also thanks the deputy minister of Transportation and his staff for their participation, as well as officials from the Financial Management Board Secretariat and the Department of Justice.

General Comments

The committee’s mandate includes reviewing reports of the Auditor General of Canada, and making recommendations to the Government of the Northwest Territories (GNWT). The committee wants to ensure that the GNWT demonstrates its accountability to the public.

The audit was undertaken at the request of the Legislative Assembly in March, 2010. It covered the period between September 2000 and October 2010. The Auditor General’s work for this report, “Northwest Territories Deh Cho Bridge Project – 2011, Department of Transportation” was substantially completed by October 29, 2010. It was tabled on March 1, 2011, during the Fifth Session of the 16th Legislative Assembly.

Bridge construction was in progress throughout the audit and it remains under construction with a target completion date of November 2011.

Phase I refers to the period between 2000 and 2010 when the Deh Cho Bridge project was referred to as a public-private partnership (P3). Phase II began in April 2010 when the GNWT

formally assumed full responsibility for the project, including construction management.

The Auditor General found that the project was not a P3, in that no significant risks were shared with the private partner. The project’s risks increased substantially when the GNWT authorized construction without a fully developed bridge design. After taking over the project, the Department of Transportation (the department) had a framework in place to manage the key risks, but the audit found weaknesses in the risk matrix. In the auditor’s view, significant risks remain in the areas of scope, schedule and cost.

The focus of the audit was to determine whether the GNWT adequately managed the risks of entering into a P3; and, whether, since taking over the project, the department had established a framework to manage the key risks associated with the project’s quality, schedule, scope and cost. The audit considered only the actions of the GNWT, not other aspects of the project such as the Deh Cho Bridge Corporation (DCBC) or contractors.

The audit report makes three recommendations related to the Deh Cho Bridge and future projects. The committee agrees with the recommendations and supports the department’s response to them.

With that, Mr. Speaker, I’d like to return the rest of the reading of the report to my honourable colleague, Mr. Robert Hawkins.

Thank you, Mr. Menicoche. The honourable Member for Yellowknife Centre, Mr. Hawkins.

Thank you, Mr. Speaker, and I’d like to thank our committee chair, Mr. Menicoche, as well.

Phase I

As the audit report explains, the purpose of a P3 is to shift a portion of the risks of a public project to a private sector partner who brings technical and financial capacities to the project. A P3 procurement strategy carries risks in that the public sector must establish a working relationship with a suitable partner and clearly negotiate each party’s obligations to the project.

In the case of the Deh Cho Bridge, the audit found that the project was not a P3 because the private sector partner had no equity to invest in the project, and limited capacity to manage a project on that scale. The GNWT assumed more and more risk as the cost of the project increased, without shifting any significant risks to the private partner as anticipated in a conventional P3.

As a sidebar, the Auditor General’s report presents an exhibit of the perspective of the community of Fort Providence and its relationship with the GNWT throughout the Deh Cho Bridge project. The committee does not want to preclude the possibility

of future partnerships between communities and the GNWT in the area of infrastructure projects, but stresses that an approved process must be followed, consistent with the Auditor General’s recommendation that the GNWT establish a senior project oversight committee to provide advice on the steps required to develop a major project and act as a forum for discussing project objectives, risks, procurement and other relevant matters.

Recommendation 1

The Standing Committee on Government Operations recommends that the GNWT finalize a public-private partnership policy. This policy should include provisions to ensure that:

•

the GNWT undertakes an analysis of its full financial exposure;

•

the roles and responsibilities of the GNWT and its partner(s) are clearly defined;

•

due diligence is carried out on the

partner’s capacity to fulfill its roles and obligations.

•

risks and opportunities are proportionately shared; and

•

the GNWT establishes a clear

understanding of a community’s objectives and abilities when entering a partnership with a community.

Cabinet should provide a timeline for the finalization of the public-private partnership policy within the life of the 16th Legislative

Assembly.

Mr. Speaker, at this time now I’d like to pass the report on to Mr. Abernethy, my colleague from Great Slave.

Thank you, Mr. Hawkins. The honourable Member for Great Slave, Mr. Abernethy.

Thank you, Mr. Speaker, and I’d like to thank my colleagues Mr. Hawkins and Mr. Menicoche.

Members are pleased that the Department agreed to share the Process Convention for Review for alternatively financed projects with the committee, mentioned in the department’s response to the Auditor General’s first recommendation. This process convention forms the basis of a P3 policy.

The findings in Paragraph 33 of the Auditor General’s report raised concern among some Members. In September 2007, the Contract of Indemnification Exemption Regulations was amended to allow for a specific indemnity in the Concession Agreement in favour of the Deh Cho Bridge Corporation. This amendment exempted the Minister of Finance from, among other statutory requirements, the requirement to give Members of the Legislative Assembly at least 14 days notice,

and enabled the GNWT to make a major financial commitment that now approaches $200 million. Members noted that the Concession Agreement was signed and the amendment to the regulations made after the Legislature had been dissolved.

During the public meeting, the Auditor General’s review team expressed the opinion that the Executive Council acted within its legal authority to make the amendment. The Financial Management Board Secretariat confirmed that the GNWT had used exemption regulations to enter into a contract or agreement on previous occasions.

The committee is pleased that, as indicated in the public meeting, the government is considering bringing forward changes to the Financial Administration Act that would modify the current process so that all indemnities would come before the Legislative Assembly.

Phase II

The committee is satisfied that the department has updated the information in its risk matrix in response to the Auditor General’s second recommendation, that the department update the risk matrix and provide more complete information on mitigation measures responding to potential risks.

The department provided the committee a measure of confidence that it is closely monitoring the day-to-day progress of the bridge. Department officials identified plans for environmental remediation at the site, electrical work, and clean-up within the project’s current budget and general environmental liabilities. The department has considered the cost of an ice bridge and ferry service should the bridge be delayed. The department has $1 million in a separate budget for toll collection, which, it concedes, is small, but the amount is being discussed.

The department did not address lifecycle or additional remedial costs in its responses. The committee observes that paragraph 65 of the Auditor General’s report includes mention of a catwalk as a necessary part of the design, however, in the public meeting, the department stated it has decided to build the bridge without one. The committee is at a loss to explain this discrepancy.

Recommendation 2

The Standing Committee on Government Operations recommends that the Department of Transportation thoroughly investigate the necessity and practicality of installing a catwalk, and report back to Members with other options for maintenance and inspection duly compared, within the scope of the Canadian Highway Bridge Design Code.

Mr. Speaker, I’d like to pass on the continued reading of this report to my colleague Mr. Yakeleya. Thank you, Mr. Speaker.

Thank you, Mr. Abernethy. The honourable Member for Sahtu, Mr. Yakeleya.

Thank you, Mr. Speaker, and thank you honourable Members.

The Auditor General’s final recommendation is that the department ensure that a single authority certifies that the design and construction of the bridge meet the Canadian Highway Bridge Design Code, and that certification be obtained before the bridge is open to traffic. The department assured the committee that it is seeking the most practical means to ensure that the bridge is signed off by an Engineer of Record.

Further quality testing will be required for a single Engineer of Record to sign off on the bridge, which will carry additional costs. If the GNWT’s own engineer signs off as Engineer of Record, the GNWT will once again assume all the risk that entails.

Recommendation 3

The Standing Committee on Government Operations recommends that before the Deh Cho Bridge opens to traffic, the Department of Transportation ensure that a qualified authority certifies that the design and construction of the Deh Cho Bridge meet the Canadian Highway Bridge Design Code.

The committee is concerned that the department may bury or delay costs in an effort to remain within the current project budget. The committee noted that the Deh Cho Bridge Project includes many costs that are internal to the department and the GNWT as a whole. For example, the committee understands that legal action is being considered, but cost implications are unknown.

Recommendation 4

The Standing Committee on Government Operations recommends that the department keep all Members of the Legislative Assembly fully apprised of progress on the bridge and cost implications, and provide regular updates to the Standing Committee on Economic Development and Infrastructure. These updates should include details specifically related to project risks, schedule, toll collection and establishing an Engineer of Record.

The department should provide Members with a timeline and total cost for the completion of the Deh Cho Bridge project at the earliest possible date.

Recommendation 5

The Standing Committee on Government Operations recommends the department

should provide an all-in, total cost for the project when it is complete that clearly identifies internal costs to the Legislative Assembly and the public.

The committee understands that the department has yet to provide a formal action plan on how it will implement the Auditor General’s recommendations.

Recommendation 6

The Standing Committee on Government Operations recommends that the Department of Transportation provide and make public a detailed action plan to implement the recommendations contained in the Auditor General’s report on the Deh Cho Bridge Project, within 90 days.

Mr. Speaker, I now return the report back to the chairman, Mr. Menicoche.

Thank you, Mr. Yakeleya. The honourable Member for Nahendeh, Mr. Menicoche.

Conclusion

Members expressed varied levels of satisfaction that the department is working to implement the Auditor General’s recommendations. Further work is needed to finalize a policy for alternatively financed projects, address inspection and maintenance requirements for the bridge, and ensure it is certified as an integrated unit by an appropriate authority. The committee is keenly aware that risks remain in the areas of the project’s schedule, scope and cost, and expects to be kept fully apprised of the progress made toward the project’s completion.

Recommendation 7

The Standing Committee on Government Operations recommends that the Government of the Northwest Territories provide a comprehensive response to this report within 90 days.

Mr. Speaker, I move, seconded by the honourable Member for Yellowknife Centre, that Committee Report 1-16(6) be received by the Assembly and moved into Committee of the Whole for further consideration.

Thank you, Mr. Menicoche. Motion is on the floor. Motion is in order. To the motion.

Question is being called.

---Carried

Committee Report 1-16(6) will be moved into Committee of the Whole for further consideration.

The honourable Member for Nahendeh, Mr. Menicoche.

Mr. Speaker, your Standing Committee on Government Operations held its public review of the Report of the Auditor General on Northwest Territories Health Programs and Services – 2011, Department of Health and Social Services, and commends it to the House.

The Standing Committee on Government Operations held its public review of the Report of the Auditor General on Northwest Territories Health Programs and Services – 2011, Department of Health and Social Services, on April 19 and 20, 2011. The committee thanks the Auditor General, Ms. Sheila Fraser, and her staff for their work in preparing the report and in assisting the committee with its review. The committee also thanks the deputy minister of Health and Social Services and her staff for their participation.

General Comments

The committee’s mandate includes reviewing reports of the Auditor General of Canada and making recommendations to the Government of the Northwest Territories. The committee wants to ensure that the Government of the Northwest Territories demonstrates its accountability to the public.

The Auditor General’s work for this report, Northwest Territories Health Programs and Services – 2011, was substantially completed by September 30, 2010. It was tabled on March 1, 2011, during the Fifth Session of the 16th Legislative Assembly.

The committee is pleased to report that the Auditor General found that the Department of Health and Social Services (DHSS) is managing the health system adequately and setting clear direction for the future. However, new technology, rising costs, and national shortages of professional staff are driving systemic changes in the health system. The Auditor General found that the department’s ability to achieve its priorities is limited by the absence of system-wide performance indicators, the lack of performance agreements with health authorities, and the fact that there is no service agreement with the Department of Human Resources, which has a key role in recruiting health professionals. The lack of performance indicators and agreements also

hampers reporting on the performance of the health system to both the public and the Legislative Assembly. This must change.

The Auditor General’s review team focused on programs and services for diabetes, home care, long-term care, medical travel, and recruitment of professional staff. Social services were not reviewed. Authorities were not officially included, but three were visited and consulted in the context of the departmental review. Although the review did not and could not reasonably be expected to cover the entire health system, the committee is satisfied that the review was very thorough, reliable, and fair. Despite the limitations noted above, the review sheds considerable light on the state of our health system, particularly the department’s ability to assess its effectiveness and plan accordingly.

The Auditor General made seven major recommendations to improve the administration and effectiveness of the NWT health system. All were accepted by the Department of Health and Social Services, and where relevant, by the Department of Human Resources, as well. The committee is pleased that the departments intend to implement the prescribed changes. The government should have a plan and timeline for doing so, and provide them to both Members of the Legislative Assembly and the public.

Recommendation 1

The Standing Committee on Government Operations recommends that the Government of the Northwest Territories develop a plan for implementing all the Auditor General’s recommendations on health programs and services, and provide it to Members of the Legislative Assembly and the public.

The implementation plan should include a timeline and quarterly progress updates to the Standing Committee on Social Programs, beginning in June 2011.

Mr. Speaker, I turn the reading of the report over to my deputy chair, Mr. Robert Hawkins. Mahsi.

Thank you, Mr. Menicoche. The honourable Member for Yellowknife Centre, Mr. Hawkins.

Thank you, Mr. Speaker, and thank you, Mr. Menicoche.

The committee agrees with the Auditor General that the department’s capacity to achieve its priority of a sustainable, effective health system depends on the ability to monitor performance and health outcomes. As both are currently deficient, both must be improved. The government must support the department’s efforts to do this, including appropriate funding through the annual budget process. It must be understood that data collection and performance monitoring are crucial to sound

planning, determining spending priorities, and shaping a client-focused health system.

The committee also recognizes that many factors affect the sustainability of the health system, some of which are beyond the department’s control. Demand for health services and the general health of the population are also influenced by education, the availability of employment, housing conditions, addictions, and poverty. The government’s overall priorities and strategy must address these problems at the same time as DHSS modernizes the health system as outlined in “A Foundation for Change.”

Setting Direction for the Health Care System and Funding Health Authorities

The Auditor General found that DHSS has set clear goals, priorities and actions to improve the health system, and set them out clearly in “A Foundation for Change.” Strategic plans of three health authorities were reviewed and found consistent with DHSS’ priorities.

However, there are no performance agreements with the authorities, and the model for funding them is being overhauled to better align resources with patient flow and program delivery. Essentially, this will result in realistic budgets for each authority, reflecting the work that is done and the resources allocated to it. DHSS stresses that “right-sizing” budgets is a prerequisite for performance agreements with the authorities.

This is critically important work, as it is the job of the authorities to actually deliver health care services and programs to the people of the Northwest Territories. Therefore, the committee stresses that DHSS and the government must make it a particular priority to implement the Auditor General’s recommendation in paragraph 31 during the 2012-13 fiscal year, as promised in DHSS’ response.

Recommendation 2

The Standing Committee on Government Operations recommends that the Department of Health and Social Services follow through on commitments made in its strategic plan and action plan to:

•

revise the model to allocate funding to

Health and Social Services authorities, and

•

develop performance agreements that

include expected results for key programs and services, and corresponding reporting requirements.

Mr. Speaker, that now brings me to the point to pass the further reading of the report on to my colleague Mr. Yakeleya, MLA for Sahtu. Thank you.

Thank you, Mr. Hawkins. The honourable Member for Sahtu, Mr. Yakeleya.

Supporting Health Programs and Monitoring Delivery