Thank you, Mr. Speaker. Mr. Speaker, upon returning to this session, I started preparing my reply to the Finance Minister's budget address. It has been an interesting process, to say the least. I have worked for the government for more than 23 years as a public servant and always wondered how the budget was developed, scratching my head and wondering how Ordinary MLAs could allow things to happen as they did. Now that I've been through the process, I still am scratching my head, but now I know the process a little bit better.
Mr. Speaker, I'll start with a bit of history. For me to understand the process, I looked to the past as I always do. I started my research with the 20082009 budget address. Why, you would ask. This was the year that GNWT needed to cut $135 million and proposed huge cut or huge job reductions. As I was working away on Sunday, May 29th, I took a break to see what was on TV, and, as I flipped through the channels, I came upon an amazing document or documentary called “NWT1973, One Third of Canada.” I strongly recommend watching it. It was well worth it, for sure. Mr. Speaker, I will share some of the highlights from the documentary:
People of the Northwest Territories were asked to debate, discuss, and provide recommendations for the budget, but, in the end, the bureaucracy did what they wanted.
The budget was developed by the senior bureaucracy and given to the elected officials without consulting them very much.
The elected officials could delete items in the budget but could not add to it.
There were close to 5,000 civil servants working, looking after the 4,000 people living in the NWT, which included Nunavut.
The greatest resource for the Northwest Territories is its people.
Housing was an issue with the government.
Companies from down south used the “smash and grab” approach to work up north, taking employment opportunities for Northerners. These companies found ways around the regulations and northern companies had to follow. There were no benefit to northern companies or communities, and the money left here with southern companies and workers.
There was a debate about resources and who owned them.
Less fortunate people were not being treated like the fortunate people. There was better housing in larger centres than in the smaller centres.
Finally, Mr. Speaker, the reporter ended with some wise words from a Dene elder: “No one learns unless they learn to listen.” He was talking about bureaucracy and some politicians not listening to the people. Does this not sound familiar? I was totally taken back by this documentary. It was surprising to see that in 43 years some things have not changed.
After hearing our Finance Minister's budget address on Wednesday, June 1st, I continued to review the 20082009 address, budget address, and did a comparison. Now, I'd like you to close your eyes and go back in time as I read a few quotes from the 20082009 budget address:
We depend on people and business around the world to buy our products and services, so the health of the world market and the pocket books of the world consumers affect our economy.
The budget I am including today begins to make the substantial investment needed to advance our priorities. It is built on key existing programs and services and moves our territories towards our vision and goals.
Now, Mr. Speaker, if we are to achieve the vision that Members have set, then we cannot continue to do business in the same old way.
We have limited revenue in the NWT. They are growing, but, without change, our expenditures will grow faster. We face a situation where our operating expenditures have continued to eat into our revenue base, eroding our ability to fund important priorities like roads, schools, water treatment plants. If this is addressed, it will hurt our longterm financial position, and our ability to invest in our strategic priorities towards building a better future will be compromised.
NWT residents know what it means to make financial choices. Households, families deal with the same set of choices every day. They know that, if you spend money faster than you earn it, you will eventually end up in debt. You'll end up using your credit cards for daytoday expenditures like rent and food, and you don't have any extra cash along the way to make major investments and improve your standard of living, like buying a truck or renovating your home. Worse yet, if you haven't put your financial affairs in order during the good times, then it's even more difficult and dangerous when rough times arrive. We all know that that's not a prudent way to secure the future of our families.
It is amazing how similar the wording is that of the 201617 budget address. After reading the old budget, I wondered if the Regular Members of the 16th Assembly felt the same way I did through the whole process, so I checked the Hansard to find what they said. I'd like to share some of those comments:
“Mr. Speaker, I listened today to the Premier's budget address with some interest. There were a lot of positive things in there, but, at the beginning of the 16th Assembly, we were informed that reductions were needed and that we had to live within our means or we would be in dire fiscal or financial situations down the road. I want to buy into that argument and believe we could have goodquality input into the whole budget process, Mr. Speaker. I was wrong. As a Regular Member, I thought my input was going to be important and would be a part of the whole budget process. I found out differently. I was not part of the whole process. I still believe and listen to the financial situation of this government down the road that reductions are needed, but I think good, thoughtout reductions that come from the 19 Members are reflective of what we hear from the residents. We have to listen to their voice. I don't think these reductions should be coming from bureaucrats who are in debt or protecting their backsides. At the end of the day, they don't have to wear the reductions back in their communities.”
Who said that? It was the Member from Inuvik Twin Lakes, Mr. R.C. McLeod.
Another one, here's another one:
“On several occasions since I was elected, I have gone on the record talking about morale in the public service. The staff of the GNWT are our most valuable resources. They are people who provide the essential services to all the residents in NWT. Without a happy and motivated public service, we are failing in the delivery of these essential services we are expected to deliver as the government. Now, with this Premier's announcement of $135 million in reductions over the next two years, there are waves of terror running through the public service. The continuous reference from the Premier to cut jobs does nothing to raise an already poor morale. It seems to me that focusing on job cuts is exactly the wrong way to pursue a course of correction with respect to the government's spending patterns. Once every reasonable effort has been made to reduce our overall spending through streamlining as well as creative and innovative thinking and planning, we may still be faced with some job cuts. These cuts must be a last resort. They should not be the government's first solution to our fiscal difficulties. In 1976, the Government made the mistake of implementing shortsighted job cuts with intent to reduce spending. It failed. It did not result in fundamental changes in how the public service does business, which is what is truly required. In the end, people of the NWT left, which affected the amount of money we received from the federal government. All the structural changes, such as eliminating personnel, and consolidating renewable resources, and economic development tourism have reversed themselves to the great cost of GNWT. Let's not relive these same mistakes. Let's get it right. To this end, I encourage the Premier and Cabinet to engage staff, the public, as well as the 11 MLAs on the other side of the house to find creative solutions that will improve our fiscal situations without cutting public service jobs. We must support our valuable resource. Our dedicated and committed staff deserve better than the message they are currently receiving.”
Some of you may remember those words from the Member of Yellowknife's Great Slave, Mr. Glen Abernethy.
During question period, Ms. Bisaro asked the Minister of Human Resources: what mechanisms currently exist for staff to provide input into our annual budget process?
Here is the Minister's response:
“We certainly recognize that human resources are our biggest asset, and we are always trying to get the input of the individual staff and employees because we find that they're the ones that work with the programs and services that they deliver. Generally, they come up with some of the best ideas that we have. We have developed, as a government, a communications strategy and approach for dealing with our budget process. We have requested our deputy ministers send the information to the managers, and all managers are familiar with the process. I would suggest to employees that have any suggestions or comments and want to have input in the process to raise them with their supervisors or managers. We would welcome their commitments.”
The Minister who said that was Bob McLeod.
Now, I'm not trying to embarrass the three Ministers, but these are the words where cuts were being proposed in the 200809 budget. Mr. Speaker, I feel totally just like they did eight years ago. I guess things change when we get to the other side of the House.
I totally believe our employees are the best and most valuable resources, a resource that is not tapped into yet at all. The Minister and senior bureaucrats need to be open to suggestions from all employees. Most of the time, the best ideas come from those in the trenches who see the waste and inefficiencies within the government on a daily basis.
The current Minister of Finance says we have to reduce our budget by $150 million. I'm not sure that we have to. The question we need to address is: what is the best way to reduce spending? I do not believe it is by setting arbitrary targets on each department. To be fiscally responsible, you must encourage or engage everybody in a dialogue to identify areas of waste, limited results, and low priority according to our mandate, not only listen to the bureaucrats and senior management. The old style of acrosstheboard reductions has not worked in the past. Why do you think it's going to work now? Changes need to be made, but those changes need to be carefully analyzed, which takes time. This has not been done, from my eyes. This is a government that wants to be visionary and proactive, not reactive. This is what they need to do. Unfortunately, I do not see this happening during this budget process. I hope that they do that for the next business cycle. As well, as we are moving, if we are going to do it right, we need to do zerobased budgeting for all departments, just not a few. This way we can do the job right once and for all. I do not want to say the whole process was bad and that the sky is still falling. I think the government did a great job in scaring everybody, including me. After it is all said and done, the Finance Minister is actually proposing a $31 million reduction with a $35.5 million in new incentives. Overall, spending is up almost $15 million from last year. Some of the highlights for me are:
Education, Culture and Employment, with an increase of $6 million to enhance support for postsecondary students, to support children and families with lowcost, low and moderate income, and for employment programs for people with disabilities.
Municipal and community government, core increase by two per cent. A little short of the $40 million, but it's a good start.
Department of Justice, Aboriginal Justice Strategy Fund, there's a $316,000 for communitybased justice programs.
The Housing Corporation will receive $35.4 million in new federal funding.
Mr. Speaker, I would like to thank our Finance Minister for being in the spirit of cooperation and collaboration to protect the $4.3 million of program in this budget. However, I must say I was disappointed that I did not see an increase in the sport, recreation, youth area. I realize that approximately $6.5 million is allocated. Sounds like a lot, but, if you compare it to the overall budget, it is only approximately 0.3 to 0.9, depending on which numbers we use from the budget, $1.6 million to $1.98 billion. This does not say much about where youth sit in the priorities of this government. We need to invest in them in addition to what we've done, in education. It was disappointing to see the government did not take the opportunity to invest more on our youth returning from school. As I've said numerous times, this is our most important resource for our future. Why hasn't the government developed a strategy to encourage summer employment as a priority or available to our Priority 1 and Priority 2 students upon their return home? Wouldn't this be a great way to show them that they are important and that we want them back where they graduate? If they cannot or are not able to develop a strategy to address this issue, they are easily earmark funds to hire at least 350 summer students each year.
As for staff reductions, I am disappointed the government did not try to trim the cream from the top. It always seems to be the people in the trenches who are affected. I appreciate the government has staff retention policy and is doing its best to ensure that affected employees are offered their positions, other positions in the Government of Northwest Territories. To better realize budget efficiency, I ask the question: where are the senior management bureaucrats' reductions in the process?
In closing, Mr. Speaker, I must say I'm very disappointed in the Government of the Northwest Territories. This government seems to be making life more difficult for communities outside of the major centres of Yellowknife, Hay River, Fort Smith, and Inuvik. The government is bringing positions back to Yellowknife, and that isn't right. I guess we are now centralizing positions. I hope that we learn from these lessons from our first budget that will lead us to changes for the better in the second one. If not, we will continue to go around and around as history has shown us today. Thank you, Mr. Speaker.
