Prior to the break we decided to have the opening comments with regard to Bill 1, Interim Appropriation Act, 2008-2009. So with that, I’d like to ask the Minister if he has any opening comments.
Bill 1, Interim Appropriation Act, 2008-2009, requests authority for appropriations of $381.275 million for operational expenditures and $110.291 million for capital investment expenditures in the 2008-09 fiscal year.
This interim budget provides the necessary resources for the G.N.W.T. to operate for the first three months of the 2008-2009 fiscal year. The 2008-2009 main estimates will be presented during the May-June 2008 sitting of the Legislative Assembly and will include funding for the entire 2008-09 fiscal year.
The interim appropriation provides for only a portion of the full-year requirements for operational expenditures. The capital investment expenditures amount reflects the full-year requirements for those projects currently in construction or those projects that will need to be tendered at the start of the 2008-09 fiscal year in order to avoid construction delays.
The $381.275 million in operational expenditures represents 33 per cent of the total expenditures included in the 2007-08 main estimates. A number of departments are requesting funding that exceeds the average 33 per cent due to operational requirements and the need to put in place contracts for specific work at the beginning of a fiscal year. These departments include:
The Department of Municipal and Community Affairs (MACA) requests an appropriation of $58.79 million, or 52 per cent of the 2007-08 main estimates amount, as MACA provides funding up front for regional operations in the first quarter of each fiscal year. This primarily represents the funding for community infrastructure contributions totalling $33.6 million, and contributions for community operations totalling $12.4 million.
The Department of Environment and Natural Resources requests an appropriation of $27.2 million, or 49 per cent of the 2007-08 main estimates appropriation. At the beginning of the fiscal year, in anticipation that the fire season will start in early summer, the department puts in place contracts for fire suppression estimated at $11.5 million.
The Department of Public Works and Services requests an appropriation of $20.25 million, or approximately 42 per cent of the 2007-08 main estimates appropriation. The department puts in place as-and-when contracts for building maintenance for the full year at the start of the fiscal year.
The Department of Finance is requesting $4.2 million, or 37 per cent of the 200708 main estimates appropriation in part to cover the costs of insurance and the contractual obligations put in place on behalf of the G.N.W.T. at the beginning of the fiscal year.
The Financial Management Board Secretariat is requesting $20.5 million, or 29 per cent of the 2007-08 main estimates appropriation — $15.3 million of this amount is for the operating contribution to the NWT Housing Corporation.
As directed, departments were required to develop their 2008-09 interim appropriation requirements using the following parameters:
Funding is to be included only for the seven pay periods that fall within the time frame of the interim appropriation.
Contribution funding is only to be included for those recipients that require the funding within the time frame of the interim appropriation.
Other expenses should only include the minimum requirement during the interim time frame. However, where it is absolutely necessary to enter into contracts for the full year, the full-year requirements have been included.
The interim operations expenditures appropriation does not include any new funding that has not been approved by the Legislative Assembly.
Due to the nature of capital projects, in particular the logistics of planning for labour and materials, as well as the need to complete a project once construction has begun, it was decided that the full-year requirements of the preliminary Capital Acquisition Plan would be presented as part of the interim appropriation.
The $110.291 million in capital investment expenditures represents a 4.7 per cent increase from the 2007-08 capital plan.
Mr. Chairman, that concludes my opening remarks. I am prepared to review the details of the interim appropriation document and answer any questions Members may have.
I move that we report progress.
Motion carried.
