Thank you. We recognize that part of the issue in some of the authorities is the result of just not having the right budgeting for some. For some it’s the costs of doing business the way that each of the authorities do their business, bringing locums in from across the country. So as we move towards dealing with a governance issue at the health and social services authority and trying to change the way we manage our physician resources across the territory, trying to bring the physician resources to the Northwest Territories, we’re hoping to address these issues.
So I’ll just read some of the stuff that we’re doing. We’re continuing to work with individual health and social services authorities to get a clearer picture of the trends and the pressures. We’ll eliminate the ability to retain surpluses and then require that surpluses be reallocated so that we get a balance. Although the authorities are in deficits, they will not always all be in deficit. At some point some were in deficit, some had surpluses and were able to do reallocation.
We have taken the first steps towards the back office approach of financial management, which will allow the authorities to share resources to move to a common financial system. That was another thing that we found was a bit of an issue, was that everybody was off creating their own financial systems and we’d be doing it leaner, and probably more efficiently, if we just had the one system. As a first step we’re implementing a shared procurement approach that would have the common accounts receivable right across the entire system. So we think there are some savings there, as well, where we would all do our procurement. All, not us I suppose, but all of the health and social services authorities, including Stanton, would be doing the joint procurement. Then maybe we’ll have better ability to bulk purchase as one example of a way of saving in the future.
So we’re looking at things differently in many areas with a goal of reducing these ongoing deficits that have been going on for many, many years.
Thanks. I appreciate the explanation from the Minister, but it is, unfortunately, things I’ve been hearing about for quite a while and it sounds as though we are starting to move to take some serious action to try and increase efficiencies, and that’s great.
I note that the budget has an increase of about $4.5 million from the 2012-13 revised mains to be budgeted for ‘13-14. So to the Minister, is $4.5 million increase in the total budgets for all the authorities enough to allow them to meet their targets in ‘13-14 or are they going to be in deficit again? Thank you.
Thank you. The authorities will likely be in deficit again at the end of the ‘13-14 fiscal year.
Thanks to the Minister, but I guess I’m getting a little frustrated with the fact that our authorities are, in most cases, consistently underfunded. So when is the Minister and the department going to be able to adequately fund these authorities so they will not be in deficit? I realize it may be an increase to our budget, but we as Members should be hearing from the Minister that you need X number of millions of dollars in order for our authorities to operate on a breakeven situation and we’re not. So when is it that we’re going to get our authorities adequately funded? Thank you.
Thank you. I will ask the deputy minister to provide a more detailed response to that question. Thank you.
Thank you, Minister Beaulieu. Ms. DeLancey.
Thank you, Mr. Chair. One of the difficulties is that we still are in, as the Member noted, a long-term process of analyzing what is driving the deficits. In some cases it’s clear, there are physicians programs, medical travel, some unfunded payroll benefits, pension buybacks and some unique staffing pressures of staffing a 24/7 operation are driving these deficits. One of the problems we have, though, is to go forward to the Financial Management Board for base funding adjustments. We need to have a very well-analyzed and compelling business case, again, because authorities have capacity challenges because they use different financial systems. In some cases we have not been able to do 100 percent accurate analysis of where the deficit is, due to underfunding as opposed to some other pressure.
So by way of example, last year one authority that was projecting a deficit ended up with a surplus after our staff were able to go in and provide some assistance to their finance shop. This is why the Minister emphasizes the need to move to a back office where we have a set of staff that can do the financial analysis and projections for all authorities. Every year as we are able to come forward to FMB with a very compelling case for certain areas where we have clearly demonstrated there is a structural deficit, we have been successful in getting forced growth. So we are slowly addressing those items. Then, ultimately, we are working with the authorities and Department of Finance, as we talked about the other day, trying to move towards more of a predictable funding allocation model that would be tied to performance agreements. Once we have real clarity, then we can take the final steps to ensure that the authorities and the budgets are right sized or that they do have budgets that will allow them to operate without going into a deficit. It is a long and difficult process. Thank you.
Thank you, Ms. DeLancey. We’ll continue on with Minister Beaulieu.
Thank you, Mr. Chairman. Just a comment at this point. I appreciate the explanation from the deputy minister. I know it’s a long and involved process but I hope FMB is listening, because what my experience is, is that when authorities go into deficit we as a government turn around and FMB approves the supplementary appropriation that wipes away the deficit. I don’t quite understand, and I know it’s not just the department at this point dealing with a possible solution, but I don’t understand why we cannot adequately fund our authorities. That’s just a comment.
Thank you, Ms. Bisaro. Unfortunately we did cut off Mr. Beaulieu. He’ll have a chance to reply.
Thank you, Mr. Chairman. Just to add, that is why our work on the Integrated Service Delivery Model is so essential. Once we decide what services we need to deliver, we would cost out those services, then build in a funding formula. That would be the most accurate way to build the funding formula. As Ms. Bisaro had indicated, in developing the proper budget, well, this Integrated Service Delivery Model will help us to build a proper budget.
Thank you, Mr. Beaulieu. Page 8-35, Health and Social Services, information item, details of funding allocated to health and social services authorities.
Agreed.
Page 8-36, Health and Social Services, information item, lease commitments - infrastructure. Mr. Hawkins.
Oh, sorry. Page 8-36, you said?
Yes. I’ll repeat that again. Page 8-36, Health and Social Services, information item, lease commitments - infrastructure.
Agreed.
Page 8-37 to 8-41, Health and Social Services, information item, work performed on behalf of others. Mr. Hawkins.
Thank you, Mr. Chairman. I’m wondering if the Minister could provide some details on the NWT National Diabetes and Chronic Disease Surveillance System.
Thank you, Mr. Hawkins. Mr. Beaulieu.
Thank you, Mr. Chairman. We would like to have a few minutes to see if we have the information here with us.
We’ll give you a couple of minutes there, Mr. Beaulieu. Mr. Beaulieu.
Thank you, Mr. Chairman. I apologize, but we would like to hear the question on that item again.
Absolutely. Mr. Hawkins.
Thank you, Mr. Chairman. I just wanted some detail on the NWT National Diabetes and Chronic Disease Surveillance System. We have $177,000 committed to it, and I’m just wondering if I can get some details as to what it is and how it works.
Thank you, Mr. Hawkins. We’ll go to Ms. DeLancey.
Thank you, Mr. Chairman. There are a number of national surveillance systems set up under the Public Health Agency of Canada. These are systems where we enter information into national systems so that the Public Health Agency can track trends and diseases nationally. I believe I would have to get back with more detail if the Member wants more than this, but this just supports our staff position to participate in this national surveillance program.
I think that’s enough of a cursory intro to know exactly what that is. Just one other last question. Under drug treatment funding program, Nats’ejee K’eh Centre Youth Treatment Program, are there any deliverables under this particular section? We have a section worth commitment, requiring $345,000. I’m just wondering if there’s any reporting or deliverables that we see sent to the Legislature.
Thank you, Mr. Hawkins. Mr. Beaulieu.
Thank you, Mr. Chairman. There has been no deliverables on this budget. It was again, Nats’ejee K’eh being part of the Deh Cho Health and Social Services that we are reviewing Nats’ejee K’eh as we indicated earlier that we’re pulling the Nats’ejee K’eh Treatment Centre under the department and just need to do some logistical work, I suppose, with reserves, since the treatment centre sits on the reserve, they have not spent their budget since 2011-2012.
Thank you, Mr. Beaulieu. Mr. Hawkins.
I have to admit I didn’t quite understand the Minister’s response. We, in 2011-2012, funded them $430,000, in 2012-2013 we gave them $345,000, there’s a request for $345,000 continuing and he’s saying they’re not spending their money. What I was asking was, is there a report or deliverable done on this research. It looks like it says it’s funding provided by Health Canada to research, design and develop the intervention treatment services module that would have both residential and community components, and enhanced capacity, yada-yada-yada. I mean, I’m sure they have it in front of you. I’m just wondering what the deliverable is and what do we get to see.
I’ll have the deputy provide the detailed response.
Thank you, Mr. Beaulieu. Ms. DeLancey.
Thank you, Mr. Chairman. This was funding that was provided by Health Canada through a contribution agreement which went to the Deh Cho Health and Social Services Authority to do the work outlined by the Member to develop a youth treatment program. The authority did not receive the full amount of funding indicated here because they did not produce the deliverables, as I understand it. As the Minister indicated, we are taking over responsibility for this and whatever work was done we will draw upon to inform our own development of a youth addictions treatment program, but there is no formal report or deliverable that can be shared at this point.
Thank you, Ms. DeLancey. Mr. Hawkins.
That was the missing component there. Can I be sent a copy of the report once it’s been done?
Thank you, Mr. Hawkins. Mr. Beaulieu.
Thank you, Mr. Chairman. Yes, if we do get a report, we will provide it to the Members.
Thank you, Mr. Beaulieu. Page 8-37 to 8-41, Health and Social Services, information item, work performed on behalf of others.
Agreed.
Committee, I draw your attention to page 8-7, department summary, operations expenditure summary, $363.856 million. Mr. Nadli.
Thank you, Mr. Chairman. I move that this committee defer further consideration of the department summary for the Department of Health and Social Services 2013-2014 Main Estimates on page 8-7 at this time.
Thank you, Mr. Nadli. A motion is on the floor. The motion is in order. To the motion.
Question.
Question has been called.
---Carried
This concludes the Department of Health and Social Services for today. We would like to thank our witnesses, Ms. DeLancey and Ms. Mathison. Thank you for your efforts. Also to the Minister. Sergeant-at-Arms, if you could please escort the witnesses out of the Chamber. We will start Public Works and Services but we will take a short recess.
---SHORT RECESS
Committee, we will come back to order. We are going to start the Department of Public Works and Services. Mr. Abernethy, do you have opening remarks?
I am pleased to present the Department of Public Works and Services’ main estimates for the fiscal year 2013-14.
The department’s main estimates propose an operations expenditure budget of $104.5 million for 2013-14, an increase of 11.5 percent over the 2012-13 Main Estimates. This increase can be primarily attributed to the following activities:
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one-time funding for the demolition of the Sir Alexander Mackenzie School and Samuel Hearne Secondary School in Inuvik; and
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ongoing funding for the transfer of responsibility and funding for the administration of Health and Social Services leased space to the Department of Public Works and Services.
The demolition and removal of the old school buildings in Inuvik also represent an important part in the department’s Risk Management and Safety Program by helping the GNWT address its aging infrastructure problem while reducing our deferred maintenance deficit.
Our building infrastructure continues to age and requires ongoing investment to ensure continuity in the delivery of government programs and services in all of our northern communities. As in past years, Public Works and Services’ Deferred Maintenance Program is an essential part of our overall strategy to address our building infrastructure needs and is coordinated with capital planning, energy investments and regular preventative maintenance programs to maximize its effectiveness. For 2013-14 this department will have $3 million in operations and expenditure funding and another $5 million in capital expenditure funding, for a combined total of $8 million to spend towards reducing our government’s deferred maintenance deficit. By the end of 2013-14, through a combination of direct program expenditures, reductions from building demolitions and integrating deferred maintenance with the corporate capital planning process for major and minor capital projects, we are projecting the deficit to reduce to $290 million.
The transfer of responsibility and funding for the administration of leases from the Department of Health and Social Services to Public Works and Services is a significant change for this department in 2013-14. This transfer represents an increase of 46 percent for the number of leases managed by Public Works and Services and a further increase of 20 percent in its base lease funding for 2013-14 and beyond.
To effectively and efficiently manage this initiative, the department has created a new leased property administration position based in Hay River to support and coordinate the management of the health leases with the department’s overall property and accommodations portfolio.
I’d like to focus now on some of the other activities that the Department of Public Works and Services has planned for 2013-14.
With the implementation of the new digital communications network, or DCN, now complete, the department is actively monitoring its performance to ensure effective and efficient communication services are provided to all communities throughout the Northwest Territories. The new DCN was a key part of the 2008-2012 Enterprise Network Strategy, and the Technology Service Centre is now engaged in developing its next five-year strategy to ensure there is continued support for the government programs of today and the e-government requirements of tomorrow with a particular focus on health care and education applications.
A new initiative for the Technology Service Centre in 2013-14 will see its services to government expanded by assuming desktop support services for the Stanton Territorial Health Authority and its approximately 325 employees, joining the Sahtu and Deh Cho Health and Social Services authorities already supported by the Technology Service Centre. While support for the Stanton Territorial Health Authority will increase operational costs to the Technology Service Centre, those costs will be offset by the equivalent recoveries provided through the current chargeback model without an increase in rates.
In support of this government’s ongoing priority to increase employment opportunities where they are most needed, Public Works and Services continues to use a combination of in-house resources, including settlement maintainers and apprentices and locally contracted services, to assist in delivering its ongoing preventative and deferred maintenance programs for government facilities in every NWT community. These front-line positions enable the department to better manage maintenance activities and the availability of resources at the community level, while promoting and strengthening the economy and our northern workforce.
The Capital Asset Retrofit Fund program continues to be an important initiative for this department, and our government in 2013-14. It represents a multi-outcome Energy Management Program that aims to improve performance and reduce the costs associated with operating government infrastructure while supporting this government’s objectives in reducing greenhouse gas emissions and our reliance on fossil fuels.
Assessing GNWT facilities to prioritize and target program funding to achieve the greatest return on investment remains key to this program’s overall effectiveness. The Capital Asset Retrofit Fund program together with other energy conservation initiatives implemented by the department, have helped reduce government greenhouse gas emissions by an estimated 25,000 tonnes since 2007-08. Up to the end of 2012, the department is estimating the cumulative energy savings since 2007-08 have reached $3.9 million while displacing 9.2 million litres of fuel oil over this six-year period. This program is producing positive results which have allowed this government to re-profile ongoing savings back into the Capital Asset Retrofit Fund to support additional investment in energy conservation and alternative energy projects in many communities.
Finally, in keeping with this Assembly’s commitment to be effective and as efficient as possible, Public Works and Services is moving ahead with implementation of a Procurement Shared Services Centre during 2013-14 and we will continue to support the Department of Finance in their efforts towards completing implementation of financial shared service centres throughout government.
Through these and other programs and activities, Public Works and Services will continue to provide the high-quality services that support the public infrastructure our clients and the public rely upon in delivering our government’s much needed programs and services.
Thank you for providing an opportunity for this overview of the department’s 2013-14 Main Estimates. I look forward to discussing them with you in further detail.
