Question has been called. All those in favour? All those opposed? The motion is carried. Tabled Document 747-19(2) will be reported as ready for consideration in formal session through the form of an appropriation bill.

---Carried

Thank you, Minister, and thank you to the witnesses for appearing before us. Sergeant-at-arms, please escort the witnesses from the chamber. Mahsi.

Committee, we have agreed to consider Tabled Document 748-19(2), Supplementary Estimates (Operations Expenditures), No. 2, 2022-2023. Does the Minister have any opening remarks?

Thank you, Mr. Chair. I am happy to present the Supplementary Estimates (Operations Expenditures), No. 2, 2022-2023. These supplementary estimates propose a total increase of $80.684 million of which $27.7 million will be offset by revenues from the Government of Canada.

Included in this amount is $22.4 million in changes in accounting treatment that was previously reported as work on behalf of others. These agreements include the following agreements:

• • $8 million to provide support for RCMP facilities, including maintenance, utilities, janitorial services, and minor capital repairs;
  • $4.6 million to support the Labour Market Development Agreement;
  • $2.5 million in support of the Mutual Aid Resources Sharing Agreement;
  • $2.1 million for road maintenance across the Northwest Territories; and
  • $1.6 million for the protection of caribou.

We are also proposing to support federally funded agreements, including:

• • $2.3 million in support of the Building Skills 4 Success Program in the Northwest Territories;
• $1.4 million to support legal aid services under the agreement respecting access to justice services; and,
  • $1.4 million to support other access to justice services for Indigenous residents, families, and victims of crime.

These supplementary estimates include two significant items to support the government's response to combat natural disasters:

• • $39.2 million for flood relief and recovery in the Town of Hay River and the K'atlodeeche First Nation; and
  • $5 million for additional fire suppression support during the 2022 fire season.

These supplementary estimates also propose the following items which are not offset by federal funding programs:

• • $5.3 million for the government's share of costs related to the RCMP collective agreement; and
  • $2.7 million to support the retention and recruitment of health professionals.

That concludes my opening remarks, Mr. Chair. I'm happy to answer any questions committee may have.

Mahsi, Minister. Does the Minister of Finance wish to bring witnesses into the House?

Yes, Mr. Chair.

Mahsi. Sergeant-at-arms, please escort the witnesses into the chamber. Minister, please introduce your witnesses.

Thank you, Mr. Chair. Back again for a second time I have deputy minister of finance Bill MacKay, and the assistant deputy minister Terence Courtoreille.

I will now open the floor to general comments. Mr. O'Reilly.

Thanks, Mr. Chair. So can someone explain to me, in plain language, what this extra $22.4 million is all about? It's some sort of change in accounting treatment. Thanks, Mr. Chair.

Minister.

Thank you, Mr. Chair. Let me turn that to the deputy minister, please.

Deputy minister.

Mr. O'Reilly.

Thanks, Mr. Chair. And thanks for that. So do we have to go back in prior years and try to fix this? Thanks, Mr. Chair.

Minister.

No, Mr. Chair.

Mr. O'Reilly.

Mr. Chair, well good thing I'm not an accountant. So I guess the bottom line here is that we have to -- this money is now showing up on our books as money that we're spending, and we've got $22.4 million less to work with? I am confused at the best of times. Thanks, Mr. Chair.

Minister.

Thank you, Mr. Chair. So no, Mr. Chair, fortunately it doesn't work out that way. It really is just a way in which the funds are classified and where it's being reported upon. It's not a change to the funding arrangements or funding agreements that are in place but just a change in that it's being reported now as an appropriation whereas before, it was not. But it doesn't change money available to the government. It's just money that was previously being classified as money that was brought in to do work for others, federal government being probably the top of that list, as opposed to now wanting to show up elsewhere. It is -- maybe I should just start with this -- or just end with this, Mr. Chair. It's money that's fully offset from third parties. So whether it's money that we say is on behalf of others or that we now show as a different -- under a different classification to work on behalf of, that's really all that's happening here. So no actual changes to the financial standing of the government.

Did you get all of that, Mr. O'Reilly?

Minister.