Debates of March 7, 2005 (day 50)

Thank you, Mr. Speaker. Mr. Speaker, I would like to address my questions today to Floyd Roland as either the Deputy Premier or as the Minister of Finance, because this question could go to either of those. Mr. Speaker, I would like to talk about the fairness with which we consider reduction initiatives in our government and how we spread the wealth when it comes to program services and employment opportunities in the Northwest Territories. Information has come to our attention, Mr. Speaker, indicating that there has been quite a significant growth in the public service in the Northwest Territories in the past five years, from 1999 to 2004. I had a chance to review that in light of tax-based municipalities, because that would be what Hay River would be comparable to. Hay River is the second-largest community in the Northwest Territories. If I could just say, Mr. Speaker, it would appear that, if I could just use Yellowknife as an example, I could choose other communities as well, it looks like between corporate headquarters and operations regional, there has been almost a 50 percent increase growth in the public service in Yellowknife in those two areas. In Hay River, there has actually been a decrease in the public service. This is not taking into account the projected reductions for the 2005-06 fiscal year. I would like to ask, Mr. Speaker, if the Deputy Premier could let us know, in terms of the reduction initiatives this government undertook, what were the total reduction initiatives? What was the total number of jobs that were eliminated? Thank you.

Thank you, Mrs. Groenewegen. The honourable Minister of Finance, Mr. Roland.

Return To Question 553-15(3): GNWT Position Reductions

Thank you, Mr. Speaker. Mr. Speaker, the numbers that Mrs. Groenewegen has used do not include, in some cases, health boards in the calculation of those. For the overall reduction scenarios that we are facing and positions that we are moving from the public service through the reduction exercise are approximately 70.

Thank you, Mr. Roland. Supplementary, Mrs. Groenewegen.

Supplementary To Question 553-15(3): GNWT Position Reductions

Thank you, Mr. Speaker. Okay, 70 reductions planned. I have recited in this House numerous times and I don’t need to do it again today. Prior to the reinstatement of the court registry, Hay River was scheduled for 43.5 positions reduced in one community. Out of the 70 government-wide, Hay River was going to have 43.5, until we pulled seven back from the brink. Mr. Speaker, I would like to ask the Finance Minister what kind of reasoning, with regard to fairness and not causing hardship in our community, is applied when these kinds of things are considered. Was it something even discussed in the Cabinet? Thank you.

Thank you, Mrs. Groenewegen. Mr. Roland.

Further Return To Question 553-15(3): GNWT Position Reductions

Thank you, Mr. Speaker. Mr. Speaker, of the 70 positions, 45 are not identified as Hay River. Mrs. Groenewegen is obviously including the casual positions into that equation. What we have counted as 70 positions are full-time positions. Either they have persons working there or vacant positions. In our numbers it is approximately 27 that Hay River is losing out of this scenario.

While I won’t go into what discussions Ministers had around the table, the scenarios that were brought forward by each Minister and the department were discussed. Concerns were raised either requesting the Minister to come back with more information or more detail for further consideration. There was no direction given to pinpoint or select one community for taking the majority of reductions.

Unfortunately, in the Department of Justice’s case, the facilities that are under that department hit a number of communities, the larger ones, and those reduction scenarios brought forward unfortunately impact the community of Hay River the most. Thank you.

Thank you, Mr. Roland. Supplementary, Mrs. Groenewegen.

Supplementary To Question 553-15(3): GNWT Position Reductions

Thank you, Mr. Speaker. Mr. Speaker it is just a little more than unfortunate, I must say, given the already relatively low number of public service jobs in Hay River; I believe there are only 281, excluding the health board positions. If you look at it on a percentage, in fact, the government was looking at almost 20 percent of the government jobs in Hay River in one fell swoop, in one year.

To keep my supplementary question brief, Mr. Speaker, I would like to ask the Finance Minister, when he laid out the reductions that were going to be attempted to be achieved over the next three years, is it not true in fact that after the first year, given the new fiscal picture, there will not be the depth of cuts anticipated for the next two years, after this first year’s exercise because of new fiscal factors? Thank you, Mr. Speaker.

Thank you, Mrs. Groenewegen. Mr. Roland.

Further Return To Question 553-15(3): GNWT Position Reductions

Thank you, Mr. Speaker. Mr. Speaker, for the scenario we entered into as Members of the 15th Assembly, with the fiscal forecast as it was, we laid out our fiscal strategy which included three years of reductions. The first budget we brought in had a $10 million capping of government expenditures plus own source revenues of $10 million.

This is our second piece of that. There is a $20 million reduction scenario that we are looking at and year three of the plan would bring another $20 million in reduction. With our fiscal picture changing as it is, we may not need to see any large-scale reductions coming in the third year. This is the second year of our budget, following through with the capping growth of government at about $26 million.

When we first laid out the plan, our fiscal picture was much more difficult than it is now. As we have it now, it is getting somewhat better, but we still have to be prudent in how we manage our programs. Thank you.

Thank you, Mr. Roland. Final supplementary, Mrs. Groenewegen.

Supplementary To Question 553-15(3): GNWT Position Reductions

Thank you, Mr. Speaker. Mr. Speaker, given that the first year was the hard year, and that was the year that Hay River got hit so desperately, and now it looks like the future is a little better; wouldn’t it be prudent as a government, to go back and revisit some of those reductions to try to mitigate some of that harm that has been brought to my community? Thank you, Mr. Speaker.

Thank you, Mrs. Groenewegen. Mr. Roland.

Further Return To Question 553-15(3): GNWT Position Reductions

Thank you, Mr. Speaker. Mr. Speaker, in this second year, or second budget as Members of the 15th Assembly, even though the fiscal picture is somewhat turning around, we still have to manage the government in a way that would see us operating more efficiently with what resources we do have. We are not out of the woods yet, as they say; there is no guarantee that things won’t change as quick as they have changed in the last six months.

When we put this plan together, our fiscal picture was still the same, even after the fall meeting with Members. The picture didn’t change until late in that process and things can shift quite quickly. We are still going to have to be prudent with what we do and how we expend the dollars. Thank you.