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

Planning and Accountability Framework

One of the ways that Bill 37 increases the focus on fiscal accountability is by providing the authority for the Financial Management Board to establish a framework for planning by and accountability of

government and public agencies. As originally drafted, Bill 37 required that this Planning and Accountability Framework be tabled in the Legislative Assembly at the earliest opportunity after being established and after any amendments. The standing committee was concerned that this approach did not allow for the Legislative Assembly or its standing committees to have input into this important accountability framework while it was still in the draft stages. The Minister of Finance acknowledged this concern and agreed to a motion to amend Bill 37, which ensures that the Legislative Assembly or one of its standing committees is consulted before the FMB approves or amends the Planning and Accountability Framework.

Fiscal Responsibility Policy

The GNWT introduced the Fiscal Responsibility Policy during the 16th Legislative Assembly. This

policy is composed of the 1400 Section of the Financial Administration Manual and contains key rules that the government is bound by when borrowing money. Despite the significance of the policy, and the GNWT’s commitment to be bound by it, the policy was never formally approved by the Commissioner in Executive Council or signed by the Premier. For this reason, it exists outside of the 17th Legislative Assembly’s process convention for

the standing committee review of proposed policy initiatives and implementation plans. This means that the policy was brought into effect and can be amended without input from Regular Members of the Legislative Assembly.

The standing committee is pleased to see that Section 13 of Bill 37 acknowledges the existence of the Fiscal Responsibility Policy by providing authority to the Minister of Finance to develop and implement this policy. However, as was the case with the Planning and Accountability Framework, the standing committee was concerned that there is no allowance in Bill 37 for the Legislative Assembly or its standing committees to have input into this important policy before it is amended.

The Minister and Department of Finance clarified for the standing committee their interpretation that Section 13(2)(d) of Bill 37 requires the Minister of Finance to bring the Fiscal Responsibility Policy forward for formal approval before the coming into force date of Bill 37, set for April 1, 2016. In addition to providing this reassurance, the Minister of Finance concurred with an amendment to Bill 37 to ensure that the Legislative Assembly or one of its standing committees is consulted before the Financial Management Board approves or amends the Fiscal Responsibility Policy.

Forgiveness of Debts and Obligations

Under Section 25 of the current Financial Administration Act, the GNWT must have the authorization of an act in order to forgive a debt or obligation owed to the government which exceeds

$1,000. The standing committee normally reviews these forgiveness of debts bills, and as part of that process, the committee has been accustomed to receiving detailed briefing materials from the Department of Finance explaining the circumstances giving rise to the decision to forgive a debt. Although this material is provided and reviewed in confidence, it provides important information that allows the standing committee to fulfill its oversight role.

Under Bill 37 the Financial Management Board may write off a debt or obligation owing to the government or a public agency without the authority of an act, provided that where the debt is owed to a public agency they do so on the recommendation of the governing body of a public agency. Instead of requiring the authority of an act, Bill 37 requires that any debt or obligation forgiven pursuant to the act, be reported in the annual report of the public agency [S. 62(6)] or in the public accounts in the case of government [S. 65(1)(b)]. Because the standing committee will no longer be reviewing forgiveness of debts bills, the standing committee sought reassurances from the Minister of Finance that the briefing materials that were once provided to the standing committee to substantiate the decision to forgive particular debts or obligations would continue to be provided to the standing committee for future reviews of the public accounts. The Minister of Finance provided the standing committee with written confirmation of this commitment and assurances that an arrangement to this effect would be formalized.

Section 62 of Bill 37 provides the authority for the Financial Management Board to forgive a debt owed to government or a public agency. The consultant’s report contained a recommendation to the standing committee that this section of Bill 37 be amended to include qualifiers which would, in effect, describe the circumstances under which debts owed to the government or public agencies could be forgiven. After discussion with the Minister and Department of Finance, it was agreed that a motion would be made to amend Bill 37 such that debts owed to the government or public agencies may be forgiven by the Financial Management Board if the board considers that the collection of the debt is unreasonable or unjust or if the board believes that it is otherwise in the public interest to forgive the debt. The wording for this amended provision is based on similar wording contained in the federal Financial Administration Act.

Mr. Speaker, I would now like to move the reading of the report along to my colleague Mr. Nadli. Thank you.