Thank you, Madam Premier. Member for Hay River South.
Thank you, Madam Chair. Would the Minister provide some insight as to why an Aboriginal group would not sign on to the devolution agreement? Thank you, Madam Chair.
Thank you, Member for Hay River South. I'm going to put this question out, but I think that we're straying away from the mains. So, one more round of this; thank you. Madam Premier.
Thank you, Madam Chair. There are a few different reasons, but the biggest reason that I understand is that some people, to this day still, believe that the GNWT has no place in any negotiations, and so therefore they refuse to sign on because they did not want the Government of the Northwest Territories to have any say in land and water issues. Thank you, Madam Chair.
Thank you, Madam Premier. Do you have any further questions for the Minister of Finance, Member for Hay River South?
No, that's all. Thank you, Madam Chair.
Thank you. Any further questions for the Minister of Finance on the Management Board Secretariat? Seeing none, I will call this page. Finance, Management Board Secretariat, operations expenditure summary, 2020-2021 Main Estimates, program details, $87,485,000. Does committee agree?
Agreed.
Thank you, committee. The next activity is Office of the Comptroller General, beginning on page 151. Are there Members who have questions on the Office of the Comptroller General? Member for Yellowknife North.
Thank you, Madam Chair. My question is to the just over $1 million we spend on the Internal Audit Bureau, something that I think sounds great. Are any of the audits conducted by the Internal Audit Bureau public?
Thank you, Member for Yellowknife North. Minister of Finance.
Madam Chair, they are not. Thank you.
Thank you, Minister. Member for Yellowknife North.
Thank you, Madam Chair. I believe I was well aware of that when I asked that question. Would the Minister be willing to share the reports or the work that the Internal Audit Bureau does with the appropriate standing committee?
Thank you, Member for Yellowknife North. Minister of Finance.
Madam Chair, I do recognize I think I've made a few commitments to various technical briefings today and, in the interests of making sure that that's done effectively, whether it's in conjunction with one of the others or whether it's on its own, we would certainly come back and better describe and explain the work of the Internal Audit Bureau, including appropriate examples of its work. I guess I'm hesitant to say that we would bring every audit done, but maybe I will work with the Member directly in advance of that briefing to ensure that what we bring forward provides enough information about the working of this division. Thank you, Madam Chair.
Thank you, Minister. Member for Yellowknife North.
Thank you, Madam Chair. I think it's clear I'm not going to get a commitment out of you, but once again I find myself, here I am, passing $1 million to an Internal Audit Bureau, and I have no idea what they do. I have no ability to ever see any reports that they produce. I have no ability to know if they're good work, and I guess that troubles me. I think that it's a larger issue of, simply, if we are auditing ourselves, why is that not public information? I'll leave that as a comment, Madam Chair.
Thank you, Member for Yellowknife North. Are there further questions on the Office of the Comptroller General? Seeing nothing further, I'm going to call the page. Finance, Office of the Comptroller General, operations expenditure summary, 2020-2021 Main Estimates, program detail, $73,169,000. Does the committee agree?
Agreed.
Thank you, committee. Committee, we have some information items following these areas. I'm on page 154; no, sorry. I'll go to page 155, Northwest Territories Heritage Fund. Are there questions on this information item? Member for Frame Lake.
Thanks, Madam Chair. Maybe I can start with there is a mandated 10-year review required of the Heritage Fund Act that is going to take place during the life of this Assembly. Can the Minister tell us what her department is doing to get ready for that review? Thanks, Madam Chair.
Thank you, Member for Frame Lake. Minister of Finance.
Thank you, Madam Chair. I apologize for the delay. At this point, significant planning has not begun for that review, but the good news with that is it gives an opportunity for the 19th Assembly to be involved in the planning of the review, and we will be engaging with the committee as we do begin those preparations. Thank you, Madam Chair.
Thank you, Minister of Finance. Member for Frame Lake.
Thanks, Madam Chair. It came to light in the last Assembly that the money in the Heritage Fund was actually starting to lose value because of the very, very conservative investment policies that were requirements under the act and the regulations at the time. It was actually starting to lose money against inflation and had to be topped up, I think, if I remember correctly. Can the Minister tell us what's happened since? Is this still losing money against inflation? Thanks, Madam Chair.
Thank you, Member for Frame Lake. Minister of Finance.
Thank you, Madam Chair. The fund has now become professionally managed. That has improved the returns that are being received on the fund. The projection on the rate of the percent of the fund that is now actually interest, as opposed to the principal, it's projected to be close to 5 percent in the course of this fiscal year. Thank you, Madam Chair.
Thank you, Minister of Finance. Member of Frame Lake.
Thanks, Madam Chair. So, we've contracted out the management of the Heritage Fund. What kind of management fees are involved in management of our Heritage Fund now? Thanks, Madam Chair.
Thank you, Member for Frame Lake. Minister of Finance.
Madam Chair, I don't have that specific detail in front of me, but I know there is an annual report that is tabled, and I expect that that information will be available at that time. Thank you.
Thank you, Minister. Member for Frame Lake.
Thanks, Madam Chair. Is the Minister talking about the public accounts, or is there a separate report that's tabled in the House with regard to the Heritage Fund on an annual basis? Thanks, Madam Chair.
Thank you, Member for Frame Lake. Minister of Finance.
Thank you, Madam Chair. I may have just created an extra piece of work for the Department of Finance. It was part of the public accounts, but it certainly could be tabled on its own, or as part of the public accounts. I suppose that if there is a preference of the committee, we'd be open to hearing back from them. Thank you, Madam Chair.
Thank you, Minister of Finance. Member for Frame Lake.
Thanks, Madam Chair. I'm not sure it really makes much difference, but I guess I do think that we owe it to the public to be able to tell them, and disclose publicly, how much the management fees are that we are paying to a contracted party to manage our Heritage Fund. Can I get a commitment out of the Minister to provide that information publicly? Thanks, Madam Chair.
Thank you, Member for Frame Lake. Minister of Finance.
Madam Chair, that's fine. I have no problem making that commitment. On the theme of there being some fees that are being paid for the management of the fund, I point out again that the fund is actually doing better as a result of that. So, it is my hope that that's going to be overall, that we will see a positive return on our investment for having sought those fees. Obviously, if that's not turning out to be the case, since that change is fairly new, then further change can be looked at. Thank you, Madam Chair.
Thank you, Minister. Member for Frame Lake.
Thanks, Madam Chair. Moving forward, has the department put its mind to whether it's now time to have some kind of direct public oversight, or involvement in the management, of the Heritage Fund? At the end of this upcoming year it's going to be almost $35 million. This was a criticism at the time the legislation came forward 10 years ago, and why I know is because I was one of the ones criticizing it at the time, the need for some kind of public engagement, or public involvement, in the management of the funds in account it with appropriate accountabilities, and that the revenue stream into it should be defined in legislation, not by convention, or agreement, or, the, pardon me, whim of the Finance Minister of the day. Are those things that are the radar for the department? Thanks, Madam Chair.
Thank you, Member for Frame Lake. Minister of Finance.
Thank you, Madam Chair. Those are the kinds of questions I would think would be appropriate for the 10-year review. Given that that process will be undertaken within the life of this Assembly, I can at the very least, commit to ensuring that those kinds of questions are back as part of the process with the committee. Thank you, Madam Chair.
Thank you, Minister. Are there any further question on the information item Northwest Territories Heritage Fund? Seeing none, page 156. Liquor and Cannabis Revolving Fund (information item). Any questions? Member for Yellowknife North.
Thank you, Madam Chair. Looking at the 2019 Main Estimates, there was $65 million for the liquor and cannabis sales. I see that the actuals were $54 million in 2018-2019. Now we are estimating $54 million. Is that due to us simply selling less cannabis than we expected, or what is the cause for that?
Thank you, Member for Yellowknife North. Minister of Finance.
Thank you, Madam Chair. The question I think I'm answering is: why the rates are low in terms of our profits? There have been reduced sales across Canada, in many jurisdictions, so, in that regard we would not be alone. I'm sorry, Madam Chair, if I did not fully answer the Member's question.
Thank you, Minister of Finance. Member for Yellowknife North.
Thank you, Madam Chair. Yes, I guess I'm looking for a breakdown when I look at the Main Estimates 2019-2020, and then they were revised to be lower, and what the cause in that $11 million drop is, and if that was due largely to lack of cannabis sales.
