Thank you, Mr. Hawkins. I will take that as a final comment. Moving on with questions on 5-36, I have Mr. Menicoche.
Mr. Chair, this is in regards to some numbered questions here. Projected in the main estimates are liquor sales of $48.5 million, cost of goods sold, $16.9 million and last year we had $47.5 million in sales and cost of goods sold as $17 million, so what the numbers here are saying is that we are buying cheaper products or something there. We like to drink $1 million worth, so somehow we must be buying bulk sales but we are consuming the same product for almost $1 million less. Can I get an explanation on that?
Thank you, Mr. Menicoche. For that, we will go to Mr. Kalgutkar.
Mr. Chair, in terms of the increase in liquor sales, one of the prime drivers of that is the change in the liquor model in Yellowknife, going from the private store model to the consignment store model. We are hoping that change will drive sales up a little bit. In terms of why the cost of goods sold has gone down, we have realized some freight savings. Our costs are starting to go down. Thank you.
Mr. Chair, that is a good explanation for that. Liquor Commission agency expenses are up by $1 million over the last couple of years, maybe could we get an explanation for that?
Again, it is primarily due to the fact that we are changing our model in Yellowknife, going to a private store model, sorry, going to a consignment store model from a private store model, so when we go to a consignment store model we pay the store operators a commission on the sales. Thank you.
Mr. Chairman, that’s fine. Thank you.
Thank you. Committee, we are on 5-36. Mr. Yakeleya.
Thank you, Mr. Chairman. So we know the fact that we are making not bad money off our sales of buying liquor and the costs, and maybe stabilizing the costs here in the North. I guess my question is to the Minister. The main estimates are for the $25.372 million profit. I heard it before that the money goes into general revenues and they give it up. I know we passed a motion one time at least, to put a symbolic gesture to put at least a percentage to direct program services into alcohol prevention promotion programs in our communities. I am not too sure; the response wasn’t favourable from the Minister. Just a symbolic gesture because I know we put the $25 million we make off of selling booze to the people of the Northwest Territories, then as a direct symbolic gesture saying that it is important to us to save lives and we want to do this, even 1 percent of this money. I was looking at 10 percent, and so I still think that is the way to go in saying yes, this money can go directly into alcohol and drug prevention programs in our communities.
Also, I would like to get a breakdown of what the sales are like in Norman Wells liquor store. We make a profit. On a business deal, this is a good deal. I don’t know what the bootleggers make, but this is a good deal here for us as a legitimate government business. Making profits and the money goes into general revenue, and I understand, Mr. Miltenberger, last time you told me about all that goes into programs, but this is now directly hitting the pocketbooks. Bring it back into our communities on a percentage. That is what I would like to look at in this Liquor Revolving Fund.
We heard a lot of comments from the Sahtu communities on Bill 24. A lot of good, strong recommendations from the Members, which we know the $48 million that caused a lot of headaches in the North and what the sales are going to the Sahtu, but it has caused a lot of headaches and we would certainly like to combat that as much as we can. The operations of our liquor store have been questioned too. Some of our Members here, and for me, I just want to say this stuff is taken by some people which they can handle pretty good. A lot of our people you see in the reports, the crime reports, RCMP reports, are pretty high. They are unable yet to handle it and it causes a lot of headaches for us as a government.
So, I guess my last question before I leave this page, has there ever been a study about what alcohol costs our business and our community? We do that with tobacco, we do that with cancer, we do that with diabetes, but has there been any type of study within this government to say this is what it costs the community or a business, missing work, getting sick, everything, showing that. I know they did that in the Alberta government, and it cost the government, if you look at some of the factors in the trillions of dollars. Have we ever done anything like that in the Northwest Territories, to really see the devastating impact on the socio-economic and health level of understanding the real cost of all of this?
You know, we need to take a break, so I’m not interested in opening the bars and liquor stores on Sunday. Enough is enough. Modernize or not, we have to put our foot down to say this stuff is costing us dearly in our communities, so I hope the Minister doesn’t come and have the discussion with us in committee on looking at bars on Sunday. Let’s have a day of rest, okay? Thank you.
Thank you, Mr. Yakeleya. Minister Miltenberger.
Thank you, Mr. Chairman. I believe the Department of Health and Social Services can put out some broad numbers that show and point to the societal impacts of alcohol abuse right from babies being born with FASD right up to all the costs of work and jail, shelters being full and that type of thing. The issue of the money, this $25 million goes into general revenue, so we have general revenue of over $1.6 billion, $1.8 billion. Out of that, including this, we take now with the supplementary appropriations that are being considered, Health will get over $400 million of that, so it all gets mixed together, but in my mind, it’s clear that every cent of this goes into general revenue but we take $400 million, so we put in $25 million and we take out $400 million to go to Health and Social Services. Out of that $400 million, there are considerable millions that are spent on alcohol and drug related issues, in fact there is more money in the budget this year, as well, to improve those. We make the case. To me it is clear, we make $25 million and we spend 10 times that, actually we spend 20 times that roughly. So, I think we are talking about optics here because there is this money and as a government we choose to spend $400 million.
I will ask Mr. Koe to talk, you asked about the Norman Wells consumption. Sorry, Mr. Kalgutkar can do that.
Thank you, Mr. Miltenberger. Mr. Kalgutkar.
Thank you, Mr. Chairman. I believe the Member asked what the operating results of the Norman Wells liquor store were, so for the fiscal year 2012-13, the total sales generated in Norman Wells was about $2.6 million and had a net income of about $1.4 million. Thank you.
Thank you, Mr. Kalgutkar. Mr. Yakeleya.
Thank you, Mr. Chairman. The whistle is getting dry there. That is a lot of booze in our communities and regions. Again, I understand the Minister, and I believe we are talking optics on the profits, I understand what he is saying. He is saying it for symbolic. For us in the Sahtu, we can put aside a percentage, even 1 percent or even a half percent, symbolically that this money from the Sahtu sales go directly to our small communities – Colville Lake, Good Hope, Tulita, Norman Wells and Deline – and we are going to do something directly to work with alcohol abuse and prevention promotion. It is not much, and I understand that we appreciate the money that is going to help, but not all of it is going into prevention. There are doctors and everything else that needs to be looked after. That’s what I am talking about. If we can do that then we know, that’s what the chiefs are saying, this is the chiefs, not me, who brought this up in the Sahtu. We’ve got to show something. Right now, the optics don’t look too good. That’s what I’m saying.
I’ll leave it at that. Those are all my questions for this page.
Thank you, Mr. Yakeleya. Mr. Miltenberger.
Thank you, Mr. Chairman. I appreciate the Member’s concern. We could say in this budget that the $900,000 that is going to on-the-land programs have come out of this money. It’s all in general revenue. I appreciate the Member’s concern. I have no further comment, Mr. Chairman. Thank you.
Thank you, Minister Miltenberger. Committee, we’re on page 5-36, information item, Liquor Revolving Fund. Any questions? Mr. Yakeleya.
I do hear the Minister about the $900,000 going into on-the-land programs for communities. There is something symbolic in taking a percentage out of the sale and directing that into communities for school programs, wellness programs, literacy programs or some kind of program in the community. That’s what I’m saying. He’s right, he’s saying the $900,000 going into the on-the-land programs. That’s no different from us changing from Nats'ejee K'eh. It’s still going to Nats'ejee K'eh. We’ve just shifted the will of the House here. I’m still not getting what I want.
Thank you, Mr. Yakeleya. Minister Miltenberger.
Mr. Chairman, we could have the discussion about committing to dedicating this money, these profits will go into Health and Social Services budget. Out of that 25, X amount of it will go to whatever programs you can cover off. We can say we will coffer this money and it will go directly into those budgets in its entirety. Not a fraction, but we will put it into that area as a sign that we want this specifically streamed that way.
It’s something for the Member to consider. Thank you.
I think we’re moving somewhere. I would have to think about this. I can’t think very well on an empty stomach. I will think about this and we can come back for a discussion. I appreciate what the Minister is saying. We’re moving somewhere. I’m glad the government is thinking this way. I’m happy we can go this way for our discussion. Thank you.
Thank you, Mr. Yakeleya. We’ll take that as a final comment. We’re on page 5-26, information item, Liquor Revolving Fund. Any questions?
Agreed.
Thank you, committee. Page 5-37, information item, Liquor Revolving Fund, active positions. Any questions?
Agreed.
Thank you, committee. Page 5-38, information item, work performed on behalf of others. Any questions?
Agreed.
Committee, if I could get you to return to 5-7, Finance, department summary, operations expenditure summary, $210.630 million. Does committee agree?
Agreed.
Does committee agree that consideration of the Department of Finance is completed?
Agreed.
Thank you, committee. Before we dismiss our witnesses, I think you heard it from the Speaker, but on behalf of Committee of the Whole, Mr. Koe, good luck at the Brier representing Northwest Territories.
---Applause
I would like to thank our witnesses, Mr. Aumond, Mr. Koe, Mr. Kalgutkar, and thank you to the Minister. Sergeant-at-Arms, please escort the witnesses out. At this time, committee, we’ll take a short recess.
----SHORT RECESS
Welcome back, committee. We’re going to commence with the Department of Education. With that, we’ll turn it over to the Minister for opening comments. Mr. Lafferty.
Mahsi, Mr. Chair. I’m pleased to present the 2014-2015 Main Estimates for the Department of Education, Culture and Employment.
The department’s fiscal summary proposes an overall ECE budget of $305.6 million, an increase of $6 million, or 2 percent, over the 2013-2014 Main Estimates. There is $154.9 million of the budget allocated to schools and school contributions for all programs, which represents close to 51 percent of our budget, and $33.5 million is allocated to Aurora College, which represents almost 11 percent of our budget.
The department has a key role to play in furthering this Assembly’s theme of “Believing in people and building on the strength of Northerners.”
This budget represents over a year of hard work reflecting what we’ve heard from NWT residents. It means real change that will make a real difference in the lives of the people. We are moving forward with our part of the Early Childhood Action Plan to improve the lives of children. We will implement actions within the Anti-Poverty Strategy that will make a measurable difference in the lives of the most vulnerable of our society. The actions flowing from the Education Renewal Initiative will improve not only students’ success but their ability to take advantage of the economic opportunities the North has to offer.
It is evident that many NWT students are challenged to succeed in the current K to 12 education system. I am confident the inclusive nature of the Education Renewal and Innovation Initiative will make positive improvements to the system, enabling our students to thrive. In October we tabled Directions for Change, the Educational Renewal Innovation Framework. Since then, we have begun developing an action plan which, like the framework document, will be completed with full input from our partners. In total, the department plans to spend $8.2 million on early childhood development in 2014-2015.
The department will implement voluntary, free, full-day junior kindergarten offering access to quality, play-based programs through a three-year phased approach starting with small communities in 2014-2015. It will be introduced in the 29 smaller NWT communities first because they have the greatest need for early childhood development programming. Included in the main estimates is the re-profiling of $1.8 million in school contributions to fund these plans in 2014-2015.
Also, under the Early Childhood Development Framework, the department proposes to spend $511,000 for wage top-up and training to increase the wages of Early Childhood Program staff in licenced child care centres. This will provide a concrete incentive for staff to improve their early childhood qualifications.
The department plans to spend over $179 million in school and library programs; $154.9 million of this will go directly to education authorities for the delivery of K to 12 education.
Through the Anti-Poverty Strategy, the department proposes to spend $650,000 to enhance existing school food programs. This will help ensure all children have access to healthy nutritious food to fuel their learning.
In 2014-2015 the department plans to spend close to $7.2 million on culture and heritage programs and services. This includes maintaining territorial-wide museum operations, NWT archives, the Cultural Places Program and funding for community arts, culture and heritage programs.
In 2014-15 the department plans to spend over $6.7 million to support Aboriginal language programs and services. Approximately $5.2 million will be paid in contributions to support Aboriginal language and cultural programs in schools, at Aurora College and in communities across the NWT.
During stakeholder engagement we heard from our language partners that Aboriginal governments are best placed to revitalize their own languages in the context of their culture. In recognition of this, we will adopt a new approach to help regional Aboriginal governments implement their five-year regional language plans. Included in the 2014-15 Main Estimates is the re-profiling of $627,000 to increase contributions to Aboriginal governments. This will enable them to strengthen and revitalize their languages and hire language coordinators in the regions.
In 2014-15 the department plans to spend $2.6 million for the coordination of services and communications in French across the GNWT.
Working with all GNWT departments and agencies, the department continues to lead the implementation of the GNWT Strategic Plan on French Language Communications and Services in collaboration with the Federation Franco-Tenoise.
Included in the main estimates is new funding to support the GNWT’s efforts to increase student participation and increase awareness of career opportunities in mineral exploration and training. Also included is the funding to reinstate money and continue implementation of the Small Community Employment Support Program. Over the past fiscal year, 151 individuals in 20 NWT communities have accessed this particular program.
In total, the department plans to spend $10.7 million in 2014-15 to build essential work skills in small and remote communities, offer wage subsidies for on-the-job training, and support apprentices. This funding also supports community initiatives projects and provides continuing funding to partners such as Skills Canada and the Mine Training Society. All of these initiatives support the development of an educated, skilled and trained northern work force.
In 2014-15 the department plans to spend close to $42.1 million on income security programs to support the most vulnerable in our society.
Based on the office of the Auditor General’s review, our audit and oversight capacity has been increased and the culture of client-centred program delivery has been strengthened. The department will add a program auditor position in income security division to build capacity and meet the audit recommendations agreed to in the department’s response to the 2013 Auditor General’s report on income security.
Beyond insuring appropriate program delivery, the department has changed how eligibility for the Senior Home Heating Subsidy is determined. This change removes the barrier for adult children living in a senior’s home. We have also improved supports to post-secondary students by increasing their living allowance and increased the grant available for disabled post-secondary students.
The last year has been a year of real change and renewal for the department. Much has been driven by our responses to the recommendations made by the office of the Auditor General in the reports on education and income security programs. The department has improved our internal operations and how we interact with clients. The department is building a departmental culture that puts accountability and evidence-based decision-making at the forefront of how we do business.
The office of the Auditor General found that improvements in corporate governance were required in order to provide better programming to our clients and ensure greater system-wide accountability. As a result, we have established the policy, legislation and communications division, the finance and capital planning division and the planning, research and evaluation division. This new structure will improve strategic, lateral and long-term planning, department-wide coordination and evidence-based decision-making.
With these plans in place over the coming year, the department is well positioned to move ahead with important departmental and interdepartmental projects that will contribute to achieving the vision and priorities of the 17th Assembly.
Mr. Chair, I will be pleased to answer any questions the Members may ask at this time. Mahsi.
Thank you, Mr. Lafferty. Do you have witnesses to bring into the House?
Yes, I do, Mr. Chair.
Thank you, Mr. Lafferty. Does committee agree?
Agreed.
Thank you, committee. Sergeant-at-Arms, can you please escort the witnesses into the House.
Minister Lafferty, would you like to introduce your witnesses to the House?
Mr. Chair, to my left is deputy minister of ECE, Gabriela Eggenhofer. To my immediate right is Dana Heide. He is the associate deputy minister, and also Marissa Martin is the director of finance and capital planning to my far right. Mahsi.
Thank you, Minister Lafferty. I would like to welcome everyone to the House this evening. Committee, do you agree that we will proceed to detail?
Agreed.
Thank you, committee. Page 10-7 we will defer until we complete activities. Page 10-8, information item, infrastructure investment summary. Are there any questions? Seeing none, 10-9, information item, revenue summary. Are there any questions?
Agreed.
Thank you, committee. 10-10, information item, active positions. Are there any questions? Mr. Hawkins.
Thank you, Mr. Chair. I have been asking several departments about their positions. I believe this covers pretty much everyone in the Department of Education. I have been asking them for a list of the positions that are funded, unfunded, filled, unfilled and a fair bit of detailed question beyond that, but I think the department and certainly the Minister has been following along my general question asked. I will save a lot of time by asking if the department can provide me that detail. If so, we can move on, as far as I’m concerned. I will just wait until it’s in my office, if feasible. Thank you.
Thank you, Mr. Hawkins. I will go to Minister Lafferty.
Mahsi, Mr. Chair. We do have the detailed information. We can certainly provide that to Members. Mahsi.
Thank you, Mr. Lafferty. Page 10-10, information item, active position summary. Are there any questions?
