Mr. Speaker, as many people will know, the Regular Members of the Legislative Assembly have been meeting lately to talk about ideas for strategic reductions, since the government has advised us that we need to find $135 million over the next two years. It’s been a very interesting discussion, and at some point our report and recommendations will be made public.
For those who don’t know, there’s a very interesting document available in our library. It’s called “Contracts Over $5,000.” It’s a public description of all contracts over $5,000. To anybody who wants some interesting reading material, I highly recommend it.
Lately, since we’ve been looking at ways to save money, I had Research pull together a list of contracts related to consulting companies that do not reside in the Northwest Territories. It’s very easy to identify those from outside the Territories.
We procure things such as strategic advice, consulting services — this is the description from the contract book — communication services, a review, strategic planning, case studies, support services, speaking engagements, diamond advisory. These ones, just from outside of the Territories, come to over $4.4 million for one year, in the fiscal year ended March 31, 2007.
I have a couple of questions for the Premier about the way these kinds of contracts are let. I would like to know, when Ministers decide they need some kind of support in the consulting area of a very generic type, as many of these are, what process do they have to go through to get that approved? Do you get to approve that, as the Premier?
Mr. Speaker, the Ministers would work through their department, if it is work on behalf of the department — and I’d have to get a specific example. But through a department, the department can initiate that activity from direction given by the Minister, so I don’t get to review all of those areas for consulting contracts.
Mr. Speaker, the Premier said he’d have to have a specific example. Let me give you an example. “John Todd Holdings Ltd., consulting services, $48,000.” What kind of process goes into approving such a contract?
Mr. Speaker, I’m very familiar with that one, so I can inform the Member and this House about that process.
In trying to establish a contract with a firm, looking at what kind of work you want done and what you’re hoping to get the message out and the delivery on, in those cases one would approach — in my case, anyway — the Premier of the day to ask for advice in this area regarding the work that’s going to be undertaken.
In some cases that type of investment produces a much bigger benefit. If we want to get into that, I can talk about the $50 million it’s saved us as the Government of the Northwest Territories for having that strategic advice put in place.
Mr. Speaker, so these contracts are normally sole-sourced contracts, and we do spend a fair amount of money. I haven’t even gone into the ones where we hire people who actually reside in the Northwest Territories or who have their shingles hung out in the Northwest Territories.
In view of some of the need for cutbacks, does the Premier see any opportunity for savings on this particular type of discretionary spending?
Mr. Speaker, yes, I do.
Final supplementary, Mrs. Groenewegen.
Thank you very much, Mr. Speaker. I would like to ask the Premier, then, if he would also communicate to his Ministers and the departments that this may be an area where they might like to look for some savings that would contribute to that total amount that we need to save over the next two years, and if he would put some guidelines and some parameters in place to provide guidance and leadership for Ministers and other departments as well.
Mr. Speaker, as I’ve sat here and listened intently, I’m sure they wouldn’t want to be brought up to this floor with next year’s public accounts or contracts over $5,000 and be reminded of that.
It is something we are looking at, as well as departmental travel.
