Thank you, Mr. Chair. Just a few questions on 12-30. Under the disaster compensation, I see you have only budgeted $15,000. As you may recall, in this past year there was a number of people that were flooded out in both Fort McPherson and Aklavik that needed this funding. I believe out of 20-odd claims only one person was approved, so I would like a little information on that. Thank you.
Thank you, Mr. Blake. Deputy Minister Vician.
Thank you, Mr. Chairman. Just in terms of disaster compensation, those funds are made available to hunters and trappers that fall under the Hunters’ and Trappers’ Association. Those are for residents in the NWT that hold a GHL, general hunting licence, and are land claim beneficiaries and are earning at least 25 percent of their gross income from renewable resource harvesting. The conditions of the policy are set out and if the person is active in this field, they are eligible. The department’s regional offices administer that program on a regular basis and we would be happy to deal with any particular issues at the regional level if any harvesters have questions with regard to their eligibility. Thank you.
Just on that note, you know, most of the people that live… I will just use Eight Miles for example, just south of Fort McPherson. Many of those people that live there are elders and a lot of them don’t sell a lot of the products they make, for example dry fish, even though there is a huge demand. A lot of people take their families out there and I think that would be eligible. Thank you.
The policy is set out fairly specifically; however, regional offices are able to review an application and the situation pertaining to an application. If there are, again, particular issues pertaining to a harvester, then we would be happy to have those discussions, particularly with those in the communities. So I would encourage any harvesters that have some questions in this area to deal with our regional staff. They would be more than happy to work with them on possible eligibility. Thank you, Mr. Chairman.
Just on another note, under the Community Harvester Assistance Program, I will use the same community as an example, Fort McPherson. This program, by the time you break it down to each community, I believe they get about $12,500. When you have 50 harvesters in the community, for example in Fort McPherson which has just under a thousand people, it’s very difficult for the local RRC to divide that amount of money. At the end of the day, harvesters only receive maybe $100 or $200. That doesn’t go a long way when you are buying gas; that is barely a 45-gallon drum. I think we do need to take a better look at that. We are promoting our harvesting of wild furs, which is doing very well right now. That’s my question. Thank you.
Thank you, Mr. Blake. Minister Ramsay.
Thank you, Mr. Chairman. As I mentioned earlier, the CHAP funding was doubled late in the life of the 16th Assembly, I believe it was in 2010. We understand that there is a pressure on community hunters and harvesters to get out on the land. I have a breakdown of regional contributions under this. I don’t have it by community, but in the Inuvik region it was $266,000 and that would be divided, the Member is correct, by the communities that are there. I can get that further breakdown for the Member if he likes. Thank you.
As you know, in the Beaufort-Delta region there are almost 15 communities there so it doesn’t go a long way, but I think we need to relook at that. There are two different pots, actually, CHAP, as you mentioned and also, it is different under each land claim group, but it is the Gwich’in Harvester Assistance Program or the same under the Inuvialuit, but I think we do need to take a better look at that. There are more people wanting to go out and trap and hunt and make a partial living off of wild furs and hunting. It helps out a lot with the cost of living up in that area and I just wanted to raise that point. Thank you.
I certainly look forward to the discussion during the business planning process next fall. We also have the Genuine Mackenzie Valley Fur Program. Just late last year we increased the Fur Revolving Fund by $600,000. We have had a great deal of success in getting trappers top dollar for fur at market and we are seeing more people get out on the land that are trapping and pursuing that activity. It has been very successful for us, and again, I look forward to the questions in the fall in the business planning process. Thank you.
Mr. Chairman, just along those lines, I have maybe more of a recommendation that maybe the Minister work with the Minister of ENR to try to work out some sort of an increase in price for beaver pelts. Many people in the Beaufort-Delta will know the population has really exploded up in that area and I’m sure it’s the same in all areas, but there is just no demand for those pelts right now. Instead of letting the population double and double, I think we need to help manage that resource and try to put I don’t know whether it’s a bounty to help harvesters try to harvest those furs. Thank you.
Mr. Chairman, that is a good recommendation by the Member and it is certainly something that I can discuss with the Minister of ENR, Minister Miltenberger. We can have a discussion about that. Thank you.
Thank you, Minister Ramsay. Committee, we are on 12-30 to 12-33. I have Ms. Bisaro.
Thank you, Mr. Chairman. I just couldn’t let this section go by without asking about the Business Development Investment Corporation. I recognize that we have the Investment Corporation and they are to support economic objectives of the GNWT, to help the development of northern businesses and so on, but I read the description of activities under the department itself and it seems to me that we are duplicating investment services. We have investment services through the department and we have investment services through the BDIC.
I’ve talked to the Minister about this before, and I guess I would just like to know if the Minister has done any consideration of combining investment services so that they are all in one place so that we don’t have people working in two different places basically doing the same thing.
I believe the Minister earlier spoke to a review of BDIC, and I guess my question is whether efficiency in BDIC and in the investment section of ITI is something that is being considered as part of the review of BDIC. Thank you.
Thank you, Ms. Bisaro. Mr. Ramsay.
Thank you, Mr. Chairman. We had a review of the Business Development Investment Corporation. We’ve just got that report back. We’re currently reviewing that report. It’s our expectation that we’ll have to respond to that report, at which time there are going to be some decisions, obviously, that will need to be made, and we certainly look forward to sharing the report and its findings with Members and talking about next steps forward when it comes to the Business Development Investment Corporation and where we go from here. Thank you.
Thanks to the Minister for the explanation. My understanding was the review was looking at the programs of BDIC. My question goes to a bigger picture to the whole issue of duplication of services. Is that something that is/was part of the review? If not, is it something that the Minister will consider in addition to this current review? Thank you.
The program review was for programs and services delivered by BDIC. That also gets to efficiency and effectiveness of those programs. That certainly would draw us into having some question about, I know the Member calls it duplication, and if we could look into a different way of doing things, those things are going to be taken into consideration. We’re not making decisions overnight. This is going to be something that we put a lot of thought and effort into. Thank you, Mr. Chairman.
I appreciate that this isn’t being rushed into. I’m never one to rush into anything and do it post-haste. I just wonder if the review is looking at, and again I’ll call it duplication of services, and the Minister may not agree and that’s fine and dandy, but it’s my understanding that somebody starting a business will need to or can go to ITI for certain things, can go to BDIC for certain things and it seems to me that if we are investing in businesses in the NWT, we would want to make it as easy as possible for somebody to go to one place and get everything that they need, advice from start to finish and the ability to get the money they need in one place and not have to go to one place for money and another place for advice. Is that something that has been part of the review of BDIC? Again, if not, will it be considered as the Minister is looking at making changes? Thank you.
Yes, getting back to the review on effectiveness and efficiency, the answer to the Member’s question is yes. As we move this forward, I look forward to the input of Regular Members on where we go from here. Thank you.
I guess I’d just like to ask the Minister when he expects that review will be available to Members. I certainly look forward to reading it and being able to provide some input on where we go next. Thank you.
Before the end of the fiscal year, I could say with some certainty.
Committee, we are on page 12-33, activity summary, economic diversification and business support, grants and contributions, $13.858 million. Agreed?
Agreed.
Thank you. Committee, page 12-34, economic diversification and business support, active positions. Any questions?
Agreed.
Thank you. Page 12-35, information item, lease commitments - infrastructure. Any questions?
Agreed.
Seeing none, page 12-36, information item, Fur Marketing Service Revolving Fund. Any questions?
Agreed.
Thank you. Page 12-37 and 12-38 are combined, information item, work performed on behalf of others. Any questions?
Agreed.
If I could get you to return to page 12-7. Mr. Ramsay.
Thank you, Mr. Chairman. I think when we were going through page by page, the chairperson at the time didn’t call 12-14. You may just want to call 12-14 again, for the record, just before we conclude.
Thank you, Minister Ramsay. We’ll just check with the Clerk’s staff.
I just checked with the Clerk’s staff and there’s nothing reported, so we don’t need to include it, but I appreciate the Minister’s vigilance.
Page 12-7, Industry, Tourism and Investment, department summary, operations expenditure summary, $67.541 million. Agreed?
Agreed.
Does committee agree that consideration of the Department of Industry, Tourism and Investment is completed?
Agreed.
Thank you, committee. I’d like to thank our witnesses here, Ms. Magrum, Mr. Vician and Mr. Ramsay. Mr. Ramsay.
Thank you, Mr. Chairman. I know it’s not Ms. Magrum’s last time at the table as ENR is coming up, but I just wanted to thank her. I know she’s going to be retiring soon and leaving the Government of the Northwest Territories. I just wanted to thank her for all of her hard work that she does on behalf of ITI. I know Minister Miltenberger will get a chance to thank her as well. Thank you.
---Applause
Thank you, Minister Ramsay, for those kind words. Ms. Magrum, enjoy your retirement.
Agreed!
---Laughter
We’re in agreement mode here today, that’s great. Sergeant-at-Arms, please escort the witnesses out of the Chamber. Thank you.
As per committee wishes, we will turn our attention now to the Minister of Finance for his opening comments. Minister of Finance.
I am pleased to present the 2014-15 Main Estimates for the Department of Finance. Overall, the department’s estimates, propose an increase of $33.4 million, or 19 percent over the restated 2013-2014 estimates. Highlights of the proposed estimates include:
a total contribution of $83.5 million to the Northwest Territories Housing Corporation to provide the corporation with its operating cash flow for the fiscal period, which is a 24 percent increase, or $16 million, over the previous year. The increase includes $6.75 million to expand the portfolio of market rental units and a $5 million increase for capital projects;
inclusion of an initial estimate of $15 million for the transfer of 25 percent of the Government of the Northwest Territories’ net fiscal benefit from resource revenues to Aboriginal parties;
inclusion of $1.7 million to fund nine positions associated with devolution implementation in order to process financial transactions, process employee service functions as well as supporting the GNWT’s financial reporting and fiscal policy functions;
creation of two new tax auditor positions in Hay River and Inuvik to support the decentralization initiative;
base budget transfer of $21 million from the Department of Human Resources as well as $1.7 million from the Department of Executive to reflect the transfer of the functions of Human Resources, the program review office and the Bureau of Statistics;
base budget transfers of $3.8 million from departments to recognize full implementation of financial shared services across all regions.
The proposed Department of Finance 2014-2015 Main Estimates continue to support the priorities of the 17th Assembly and continue to advance initiatives that will support the sustainability of our territory for future generations. Specific activities in support of these priorities include:
prudently managing the GNWT’s financial resources, reaffirmed by Moody’s Investor Service with a continued credit rating of Aa1;
coordinating the GNWT decentralization initiative;
strategic infrastructure investments such as the Mackenzie Valley fibre optic link;
supporting the implementation of devolution;
moving to an increased service-focused organization through implementation of the Service Innovation Strategy and functions of Finance operating under service partnership agreements such as financial shared services, employee benefits and payroll.
The department’s estimates have been restated to include the transfer of specific functions that are better aligned with the core business of Finance.
In order to enhance the GNWT business planning process, the program review office and the Bureau of Statistics will be transferred to Finance from the Department of Executive.
Increased ability for the program review office to work closely with the Management Board Secretariat of Finance to develop and implement a systematic review of operations as well as the Bureau of Statistics in developing forecasting, and integrating those processes into the business planning process;
Ability to integrate program review office recommendations directly into decisions materials when appropriate;
Increased efficiencies as the program review office operates under the direction of Refocusing Government committees which are chaired by the deputy minister and Minister of Finance respectively.
The Department of Human Resources will be transferring the employee services section which includes a regional presence, the Human Resources information systems, or PeopleSoft, as well as the helpdesk function. Advantages of the transfer are:
allowing HR to focus on a leadership role in HR management;
payroll and benefits operating in an environment focused on transaction processing and controls with a shared services mandate;
information system support resources will be more integrated and effective.
Thank you, Minister Miltenberger. Minister Miltenberger, do you have witnesses you’d like to bring into the House?
Yes, Mr. Chair.
Thank you, Minister Miltenberger. Does committee agree?
Agreed.
Thank you, committee. Sergeant-at-Arms, will you please escort the witnesses into the House, please and thank you.
Minister Miltenberger, if you’d like to introduce your witnesses to the House, please.
Thank you, Mr. Chairman. I have with me Mr. Mike Aumond, Mr. Sandy Kalgutkar and Mr. Jamie Koe from the Department of Finance.
