Question.
Question is being called. The motion is carried.
---Carried
Mr. Dolynny.
Thank you, Madam Chair. I have a motion. I move that, in future, the public accounts include a detailed explanation of how the Government of the Northwest Territories has performed for that fiscal year in relation to the Fiscal Responsibility Policy.
Thank you, Mr. Dolynny. The motion is in order. To the motion. Mr. Dolynny.
Thank you, Madam Chair. As I mentioned in my earlier comments today here, the Fiscal Responsibility Policy is very specific in how it deals with surplus, and clearly, this government has had surplus in years past, in some cases we’ve had substantial surplus, and that surplus has to follow within their own policy called the Fiscal Responsibility Policy, which states 50 percent of that is put into operation surpluses for infrastructure and 50 percent, roughly, goes back to short-term and long-term borrowing. I’m just kind of summarizing it in basic terms.
The concern committee had is we don’t know roughly where that surplus is indeed applicable, because the term of debt becomes the question. Is this debt new debt? Is this new debt for infrastructure or is this old debt, and are we actually physically paying down old debt which would really, when you look at the framework around the policy, it is definitely leading credence to. So committee had a grave concern as to whether or not this policy is as transparent as it can be. Quite frankly, that is the question at hand within the motion. We’re hoping that with future public accounts that the Fiscal Responsibility Policy is clearly articulated within the public accounts or in an addendum to which will actually break down what indeed is done with that surplus and how it is spent. Thank you, Madam Chair.
Thank you, Mr. Dolynny. To the motion.
Question.
Question is being called. The motion is carried.
---Carried
Mr. Moses.
Thank you, Madam Chair. I have a motion as well. I move that the Government of the Northwest Territories review its accounts receivable from Nunavut, the purpose of this review being to develop targets and measures to improve collections, and to identify and write off those debts that are deemed to be uncollectible. Thank you, Madam Chair.
Thank you, Mr. Moses. The motion is in order. To the motion. Mr. Moses.
Thank you, Madam Chair. Just before I begin, I too would like to thank the committee for all the hard work within the public accounts portfolio. Being this is the second time that we’ve moved forward in public accounts receivable, I just want to make note that again this year the standing committee noted with concern the substantial amount of money owing in accounts receivable from the Government of Nunavut. While this figure has decreased from close to $10 million in 2011-2012 to $7.78 million this year, the committee reiterates its concern that maintaining such a large interest-free receivable has cost implications for the GNWT in that the government may have to borrow and pay interest on additional funds for its own needs in addition to the loss of potential interest revenue.
The committee was encouraged last year that the government was reviewing its interest rate policy for other jurisdictions, with a view to perhaps charging Nunavut interest on individual items. The committee is far less encouraged this year to hear the comptroller general acknowledge that this account receivable is costing the GNWT money but that it’s not a common practice to charge interest to other jurisdictions, therefore bringing this motion forward, Madam Chair. Thank you.
Thank you, Mr. Moses. To the motion.
Question.
Question is being called. The motion is carried.
---Carried
Mr. Moses.
Thank you, Madam Chair. I move that the Government of the Northwest Territories monitor its loans receivable and develop targets and measures to improve collections, with a view to reducing the allowance for doubtful accounts to less than 30 percent. Thank you, Madam Chair.
Thank you, Mr. Moses. The motion is in order. To the motion. Mr. Moses.
Thank you, Madam Chair. The allowance for doubtful accounts is an estimate of the amount of accounts receivable upon which the GNWT does not expect to collect. In 2012-2013 allowance was about 41.4 percent of total loans receivable. In 2011-12 it was about 38.45 percent of the total loans receivable. The year prior it was approximately 30 percent.
The committee sees that this is a concern with the incremental increases over the years and wants to try to address that before next year gets a little bit higher. We want to make sure this government does the right thing in terms of monitoring it and setting targets and measures to improve these collections and do it sooner than later. Thank you, Madam Chair.
Thank you, Mr. Moses. To the motion. Mr. Dolynny.
Thank you, Madam Chair. I think Member Moses summarized it quite eloquently. I just need a few points to add to this motion.
What we’re referring to in this motion is hopefully setting up more of a target base approach for loans receivable. If we look at the history of this government, we were collecting literally at one point in time I call it 70-cent dollars, and that number has dwindled from 2011 to 2013 to about 60-cent dollars on our doubtful loans. This is a bit problematic. Losing 10 cents on the dollar really, in essence, will be significant in the long run.
Good accounting principles, public accounting principles clearly state that targets should be achieved within this type of framework, and I believe this motion speaks to good accounting practices. So I’m hoping that this motion does echo that and we’re hoping that this motion does reflect for future public accounts that the government of the day will set the appropriate targets for loans receivable. Thank you.
Thank you, Mr. Dolynny. To the motion.
Question.
Question is being called. The motion is carried.
---Carried
Mr. Nadli.
Thank you, Madam Chair. I have a motion too. I move that the Government of the Northwest Territories continue to provide updated timetables or schedules for the environmental assessment of all known potentially contaminated sites for which the government is responsible, to be included annually in the public accounts. Thank you, Madam Chair.
Thank you, Mr. Nadli. The motion is in order. To the motion. Mr. Nadli.
Thank you, Madam Chair. In terms of moving towards devolution and the target date of April 1st, this government is assuming several contaminated sites. Of course, that relates to mines and oil and gas sites that have been decommissioned or are no longer in use. What that leaves is a legacy of industrial footprints that are sometimes just not repairable, so it’s usually the practice to try and at least remediate the site so that it could go back to the state that it was before it was disturbed.
There’s a real need for, at least on an annual basis, an updated schedule and timetables for these sites that exist here in the NWT in terms of how it is that governments plan to employ teams to ensure that those sites are clean and remediated in a timely manner and, of course, within budget.
What’s also integral is just the value of information that needs to be very accurate in terms of being part of the integral process of decision-making related to this subject matter. Those are just some key points I wanted to bring up. Mahsi.
Thank you, Mr. Nadli. To the motion.
Question.
Question is being called. The motion is carried.
---Carried
Mr. Nadli.
Thank you, Madam Chair. I have another motion. I move that the Government of the Northwest Territories provide a comprehensive response to this report within 120 days. Thank you, Madam Chair.
Thank you, Mr. Nadli. The motion is in order. To the motion. Mr. Nadli.
Hopefully, by next session, in June, we’ll have a reply and report from the government. Mahsi.
Thank you, Mr. Nadli. Mr. Dolynny.
Thank you, Madam Chair. Again, to the motion, I’m hoping that we can get some information before the end of next session here and before the next round of public accounts. Again, for the record, I do want to thank my colleagues. It was a good journey, preparing for today and with the motions. Thank you.
Thank you, Mr. Dolynny. To the motion.
Question.
Question is being called. The motion is carried.
---Carried
Does the committee agree that consideration of Committee Report 2-17(5) is concluded?
Agreed.
Agreed. Thank you. What is the wish of the committee? Ms. Bisaro.
Thank you, Madam Chair. I move that we report process.
---Carried
Can I have the report of Committee of the Whole, Madam Chair.
Thank you, Mr. Speaker. Your committee has been considering Committee Report 2-17(5), Standing Committee on Government Operations Report on the Review of the 2012-2013 Public Accounts, and would like to report progress with 10 motions being adopted and that Committee Report 2-17(5) is concluded. Mr. Speaker, I move that the report of Committee of the Whole be concurred with. Thank you, Mr. Speaker.
Thank you, Mrs. Groenewegen. Do we have a seconder to the motion? Mr. Yakeleya.
---Carried
Thank you, Mr. Speaker. I move, seconded by the honourable Member for Great Slave, that Bill 5, An Act to Amend the Motor Vehicles Act, be read for the third time.
