Yes, I do. Thank you, Mr. Chair.
Mr. Chair, I am presenting the 2017-2018 Main Estimates for the Department of Finance. The proposed estimates for the department reflect the amalgamation of the Department of Finance and the Department of Human Resources.
These estimates total $235.7 million, which includes the GNWT's operating contributions of $74.9 million to the NWT Housing Corporation. Overall, the department’s estimates propose a decrease of approximately $3 million or 1.3 per cent when compared to the restated 2016-2017 Main Estimates for the Departments of Finance and Human Resources.
Highlights of the department’s proposed 2017-2018 Main Estimates are as follows:
• They include $20.0 million in strategic initiatives. This is primarily for the operations of the Mackenzie Valley Fibre Link Project, including the service payment and land access fees and for costs associated with the interim services agreement while the project is being completed.
• A total of $6 million of the strategic initiative funding is for NWT Housing Corporation activities.
• There is $557,000 in proposed forced growth. This is largely related to increases in the Cost of Living Tax Credit and interest expense related to long-term debt. A small amount of forced growth is related to the contribution to the NWT Housing Corporation.
The budget reflects transfers of $1.9 million. This is to implement the changes to the NWT Child Benefit and for the creation of the Shared Corporate Services Unit. These estimates also include increased amortization costs of $2.8 million.
The department’s budget reflects sunsets totalling $22.9 million. The Finance portion of this is $11.6 million and is mainly related to funds provided to the NWT Power Corporation to offset the costs related to low water and for costs associated with the development and construction of the Mackenzie Valley Fibre Link Project. The NWT Housing Corporation portion of the sunsets is $11.3 million.
Finally, the main estimates for 2017-18 reflect reductions totalling $4.1 million. This is primarily related to reduced travel, contracts and other O and M, and with savings associated with the amalgamation of Human Resources and Finance. A portion of these reductions also reflect the final budgetary impacts of the 2016-17 reductions. A total of $1.4 million of the reductions relate to the NWT Housing Corporation.
In conclusion, I would also like to highlight that page 129 of the 2017-2018 Main Estimates outlines the borrowing plan for the government. This plan proposes to establish a total borrowing limit for the GNWT of $771 million, which is comprised of the following:
• Short-term debt $370 million
• Long-term debt $400 million
• Capital Leases $1.45 million
The limits proposed in the borrowing plan will be included in the Appropriation Act (Operations Expenditures), 2017-2018.
That concludes my opening remarks, Mr. Chair. Thank you