We’ve had a break so we will just proceed with our business at hand. Mr. Miltenberger, with your opening remarks, please.

Thank you, Madam Chair. I am here to present Supplementary Estimates (Operations Expenditures), No. 1, 2012-2013. This document outlines a net increase of $4.601 million in operations expenditures for the 2012-2013 fiscal year.

The major items included in the supplementary estimates are:

1. $250,000 for the Department of Finance to

provide appropriation authority to transfer funds from the Consolidated Revenue Fund to the Heritage Fund.

2. $200,000 for the Department of Municipal and

Community Affairs to continue the Ground Ambulance Program.

3. $900,000 for the Department of Health and

Social Services to provide funding to increase prevention and promotion activities in 2012-13.

4. $367,000 for the Department of Health and

Social Services and $49,000 for the Department of Justice to support initiatives that support the design and implementation of phase 3 programming and evaluation of past activities of the Family Violence Action Plan.

5. $215,000 for the Department of Justice for

funding for the implementation of a pilot alcohol and drug treatment program at the South Mackenzie Correctional Centre.

6. $1.7 million for the Department of Environment

and Natural Resources to increase funding for alternative energy initiatives in 2012-13.

I am prepared to review the details of the supplementary estimates document.

Thank you, Minister Miltenberger. I’d like to ask the Minister if he would like to bring witnesses into the Chamber. Mr. Miltenberger.

Yes, Madam Chair.

Does committee agree?

I’ll ask the Sergeant-at-Arms to please escort the witnesses to the witness table.

For the record, Mr. Miltenberger, could you please introduce your witnesses?

Thank you, Madam Chair. I have with me the deputy minister of Finance, Mike Aumond; and deputy secretary to the FMB, Sandy Kalgutkar.

Thank you, Minister Miltenberger. General comments. Seeing no general comments, we’re ready to move to the detail. I’ll ask the Members to turn their attention please to the Supplementary Estimates (Operations Expenditures), No. 1, 2012-2013, and turn to page 3 of the document. The Department of Finance, operations expenditures, deputy minister’s office, not previously authorized, $250,000. Total department. Mr. Dolynny.

Thank you, Madam Chair. Again, welcome to the Minister and the department here today. I can tell you that the committee here and Regular Members are quite pleased with the fact that the Department of Finance has come forward to, I guess, commence the beginning of the Heritage Fund in a way that was meant for the people of the Northwest Territories.

My first question has to deal with now that we’ve seen some commitment in this, and I know we’re waiting for some of the devolution pieces of the puzzle to come forward. Can the Minister indicate, is there a plan of action with further funding, and if so, what is that formula? Thank you.

Thank you, Mr. Dolynny. Mr. Miltenberger.

Thank you, Madam Chair. The $250,000 will be ongoing, so it will be another $250,000 next year until we come to some greater certainty with devolution and other potential revenue streams. Thank you.

Madam Chair, again, we do appreciate the Department of Finance recognizing the need to commence the starting point for this fund. Given the fact that we have very low interest rates and the return on investments in the investing world is somewhat questionable, can the Minister indicate as to what vehicle and what type of vehicles will this money be invested to accrue the highest possible return for the people in the Northwest Territories?

Madam Chair, I’ll just make a couple of comments and I’ll ask Mr. Kalgutkar to provide some of the technical detail. We are going to ensure that this fund is very carefully invested, that it’s protected. It’s been put away for enough time to accrue some value. So we’re not going to be chasing after any high-risk investments, but I’ll ask Mr. Kalgutkar to speak to some of the technical detail. Thank you, Madam Chair.

Thank you, Minister Miltenberger. Mr. Kalgutkar.

Thank you, Mr. Kalgutkar. Mr. Dolynny.

Madam Chair, again, I appreciate the level of detail. Can the department indicate if

there was a target level interest accrual for the first year of this fund?

Thank you, Mr. Dolynny. Mr. Minister.

We are aiming at 1.2 percent.

As mentioned by Mr. Kalgutkar, there are various investment monies or investment opportunities that this money will be put in under, as they said, a guidance or profile. Can the department indicate who advises this investment? Will Regular Members have the opportunity to be part of the investment strategy and help coordinate a stronger thinking tank, so to speak, with this money in the future? Thank you.

Madam Chair, Mr. Kalgutkar indicated we will be coming back with the regulations. We will be reporting on the fund. It’s put away for 20 years. The whole intent of doing that is to keep it as politically tamperproof as possible. We want to keep that in mind as we move forward. We will have some role for ourselves, but this will be done according to the standard practice of managing our investments within the policy framework and regulations that are going to be set for this Heritage Fund. Thank you.

Correct me if I am wrong; I heard that this will not be reviewed for a period of 10 years. Is that correct, Madam Chair?