Thank you, Member for Yellowknife North. The motion is in order. To the motion.
Question.
Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. The report is deemed read.
Carried
Bill 92: An Act to Amend the Petroleum Products and Carbon Tax Act, No. 3 (Bill 92)1 received second reading on June 1, 2023, and was referred to the Standing Committee on Government Operations (Committee) for review.
On June 27, 2023, the Minister of Finance and departmental officials provided a public briefing on the Bill. Bill 92 requires the government to set up an unconditional carbon tax revenue sharing grant with community governments. Bill 92 also requires the government to prepare and release an annual report on the carbon tax. Bill 92 ultimately fulfills commitments from the Minister of Finance to improve the government’s carbon tax approach, in response to Members’ concerns during the third reading of Bill 60: An Act to Amend the Petroleum Products and Carbon Tax Act (Bill 60).
This report summarizes Committee’s review of Bill 92, focusing on our amendments to improve the Bill. As originally drafted, Bill 92 fell short of the improvements many Regular Members wanted to see to the government’s carbon tax approach – so much so that the Member for Frame Lake introduced a parallel private member’s bill. Committee worked with departmental officials and the Member for Frame Lake to develop amendments to strengthen Bill 92 that everyone could support.
Ultimately, Committee put forward four amendments, which are included in Appendix B of this report. The Minister concurred with all four amendments, which were then adopted at the clause-by-clause review on July 28, 2023. Committee is satisfied that the changes to Bill 92 represent a reasonable compromise between the views of the Government of the Northwest Territories (GNWT) and of Regular Members.
The Legislation Division initiated two minor changes to re-arrange the definitions in the Bill and make several resulting grammatical changes. These changes were minor and non-substantive. Committee agreed to both changes.
Bill 92 sets the amount of the community revenue sharing grant at 10 percent of net carbon tax revenues. While this amount is consistent with the Minister’s commitment in the House, Committee was concerned that this may not be consistent with Committee’s vision for the grant’s purpose – to compensate community governments for the fiscal impacts of the carbon tax.
Using data from the Department of Finance, Committee projected communities’ grant revenues with their tax burden. The projections included two scenarios: one in which communities’ fuel use stays the same from 2021 through 2030, and another in which fuel use in 2030 is 15 percent lower than 2021 levels. A 15 percent reduction is consistent with a target in the 2030 Energy Strategy. Committee found that, in both scenarios, communities’ total tax burden overtakes the total grant amount in 2025. The gap widens to between $1 million and $2 million after 2028.
When the Minister committed to the 10 percent grant amount, Regular Members assumed that meant the carbon tax would be revenue-neutral for community governments. Our analysis suggested that would not be the case.
Committee sought to confirm whether the government also projects that the carbon tax would not be revenue-neutral for community governments. The government did not confirm or deny this point and emphasized that the community grants were not intended to reduce communities’ carbon tax burden to zero. The department characterized the 10 percent as a “minimum” revenue sharing rate.
However, as Bill 92 was originally drafted, the revenue sharing grants had to be “equal to” 10 percent of net carbon tax revenues. With this wording, the 10 percent was not really a minimum revenue sharing rate, but rather an exact revenue sharing rate.
Committee wanted to ensure that a future Minister would have legislative discretion to provide a bigger grant, above 10 percent of net carbon tax revenues. We would have preferred that the legislation require the carbon tax to be revenue-neutral for community governments, but this proposal was unlikely to receive support from the department. Instead, Committee developed a motion to tweak the wording for the revenue sharing rate from “equal to 10 percent” to “at least 10 percent.” The government accepted this compromise.
Committee therefore recommends:
That the Department of Finance ensure that the carbon tax is revenue-neutral for community governments. Total carbon tax revenue sharing grants should equal or exceed community governments’ total carbon tax burden each year.
Bill 92 requires the government to prepare and release an annual report on the carbon tax. Although the Department of Finance already does this work, reporting on the administration of the carbon tax was not previously required in legislation. Committee has sought legislative requirements for carbon tax reporting since the 18th Assembly, and more recently during our review of Bill 60. While Bill 92, as originally drafted, required an annual report, it did not specify a deadline for completing the report or what types of information must be disclosed.
The Member for Frame Lake, in particular, was dissatisfied with these omissions. He advocated unsuccessfully for these requirements to be included in the government’s bill before it was tabled in the Assembly. As a result, the Member for Frame Lake introduced a private member’s bill – Bill 91: An Act to Amend the Petroleum Products and Carbon Tax Act, No. 2 (Bill 91). Bill 91 provided a list of 17 types of financial and other items to be disclosed in the annual report, and a six-month deadline to prepare and release the annual report. Committee was tasked with reviewing Bill 91 alongside Bill 92. Committee received a public briefing on Bill 91 from the Member for Frame Lake on June 27, 2023.
Committee considered the competing visions for carbon tax annual reporting in Bills 91 and 92 and compared these with the department’s current reporting practices. Committee found that Bill 91’s reporting requirements surpass the department’s current voluntary reporting practices. For example, the current annual report does not disclose information on penalties and fines, refunds, and emissions reductions. Our detailed analysis on this topic is available in Appendix A of this report.
Committee preferred the annual reporting approach in Bill 91, with its more prescriptive requirements, over the approach in Bill 92. Committee believes the detailed reporting requirements in Bill 91 would ensure transparency from future Ministers and promote accountability for the government’s work to address the effects of climate change – without imposing an unreasonable burden on the department.
However, advancing the changes in Bill 91 presented a procedural challenge that implicated Bill 92. Bill 91 and Bill 92 both placed measures related to annual reporting in sections numbered ’20.2’. The Legislative Assembly could not pass two section ’20.2’s’ with different wording and legal effect.
Committee’s preferred approach was to insert the list of required contents in the annual report from Bill 91 into Bill 92. Committee sought the Minister’s support for this approach. The government was concerned that certain reporting requirements in Bill 91 would create legal obligations on matters that were impossible to measure. Two subclauses in Bill 91 highlighted this concern:
- Subclause 20.2(2)(k), which requires reporting on the anticipated reduction of emissions in the Northwest Territories thanks to the carbon tax; and
- Subclause 20.2(2)(l), which requires a description of the effectiveness of the carbon tax in reducing emissions. The government department further asserted that subclauses (k) and (l), with their focus on emissions, are outside the purpose of the Petroleum Products and Carbon Tax Act (Act), which focuses on tax rates and collection.
Committee accepted the government’s concern with subclause (k), but not with subclause (l). Committee believes subclause (l) provides enough discretion on how to report on the effectiveness of the carbon tax. We also stress that emissions reductions are indeed integral to the purpose of the Act and should not be out of scope for the annual report. The Minister has said that the carbon tax is meant to meet the territory’s commitments under the Pan-Canadian Framework on Clean Growth and Climate Change.
Under this federal framework, the government has committed to both a minimum level of carbon taxation and a target for emissions reductions. The 2030 Energy Strategy explicitly links the carbon tax with emissions reductions.
Committee therefore put forward a motion to insert the list of annual reporting requirements from clause 20.2(2) in Bill 91 into Bill 92, save and except for subclause (k). The wording of the motion contained several other minor differences from Bill 91, for clearer and more consistent wording. The Minister concurred with the motion and Committee approved the amendment at the clause-by-clause review.
Given the Minister’s concurrence with motion #4, Committee decided to not proceed with Bill 91. The government’s legislation now includes detailed annual reporting requirements that Committee supported. Committee is satisfied with this outcome. We thank the Member for Frame Lake for his tireless advocacy for greater transparency and accountability around the government’s work to address climate change.
This concludes the Standing Committee on Government Operations’ review of Bill 92. Typically, Committee includes a recommendation in each report requesting a response from government within 120 days. The recommendation is then moved as a motion in the House and Cabinet is required to respond. However, since the 19th Legislative Assembly will dissolve in less than 120 days, Committee has decided to leave out this recommendation and requests that the government provide a public response to this report, even of a preliminary nature, before the beginning of the 20th Assembly.
Reports of standing and special committees. Member for Yellowknife North.
Mr. Speaker, I move, seconded by the Member for Thebacha, that Committee Report 6619(2), Standing Committee on Government Operations Report on the Review of Bill 92: An Act to Amend the Petroleum Products and Carbon Tax Act, No. 3, be received and adopted by the Assembly. Thank you, Mr. Speaker.
Thank you, Member for Yellowknife North. The motion is in order. To the motion.
Question.
Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. The committee report has been received and adopted by the Assembly.
Carried
Reports of standing and special committees. Member for Yellowknife North.
Mr. Speaker, your Standing Committee on Government Operations is pleased to provide its report on the review of the 2021/2022 Public Accounts.
Mr. Speaker, I move, seconded by the Member for Thebacha, that Committee Report 6719(2), Standing Committee on Government Operations Report on the Review of the 2021/2022 Public Accounts be deemed read and printed in Hansard in its entirety. Thank you, Mr. Speaker.
Thank you, Member for Yellowknife North. The motion is in order. To the motion.
Question.
Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. The committee report is deemed read.
Carried
In December 2022, the Standing Committee on Government Operations (Committee) publicly reviewed the 2021-22 Public Accounts. The Public Accounts are the financial statements that show the financial results of the Government of the Northwest Territories (GNWT) for a given year.
To address key issues identified in the review and by the Office of the Auditor General, Committee developed four recommendations to:
- Enhance reporting on the health sustainability plan;
- Evaluate and improve health governance;
- Reduce lapses of grants and contributions; and
- Require more detailed reporting from crown corporations.
This report also reiterates ten previous recommendations that the government has not implemented and includes observations regarding rising net debt, unauthorized spending at departments, and the revised Fiscal Responsibility Policy.
The Public Accounts are financial statements that show the financial results of the Government of the Northwest Territories (GNWT) for a given year.
Each year, the Standing Committee on Government Operations (Committee) reviews the Public Accounts. These reviews assess the credibility of the government’s financial position and provide accountability for the government’s financial results. Put differently, these reviews matter because they ask whether public money was spent prudently and as intended by the Legislative Assembly.
In November 2022, the Minister of Finance released the 2021-22 Public Accounts. These were the fourth and final Public Accounts that Committee reviewed during the 19th Assembly. Within weeks, on December 5, 2022, Committee held the public portion of its review.
Committee invited officials from the Office of the Auditor General (OAG) and the Office of the Comptroller General (CG) to identify and clarify key issues. This public review was the earliest in at least twenty years. This timing meant Committee could review the 2021-22 Public Accounts ahead of the 2023-24 Main Estimates, in January, making the review more relevant and supporting more transparent public finances. Committee appreciates the OAG’s and the Comptroller General’s collaboration to move up this review. Committee encourages the 20th Assembly to continue and improve upon this practice.
In recent years, the Comptroller General has brought incremental improvements to the Public Accounts. The changes are most noticeable in the financial highlights section, which now provide more details on variances. These changes have both been self-initiated by the Comptroller General and in response to recommendations from Committee.
However, many other recommendations from Committee in the 19th Assembly to enhance fiscal reporting and transparency are still outstanding. Outstanding recommendations include:
1. Classify the Stanton Legacy Project as a public-private partnership (P3);
2. Enhance reporting on contingent liabilities, including identifying individual claims above a certain threshold;
3. Quantify and disclose each cost driver of the operating deficit at the Northwest Territories Health and Social Services Authority (NTHSSA);
4. Enhance reporting on the Environmental Liabilities Dashboard;
5. Enhance reporting on resource revenues;
6. Add reporting on tangible capital assets with zero book value;
7. Move up the deadline for the Public Accounts;
8. Publish in-year fiscal reports each quarter;
9. Digitize the Public Accounts;
10. Add program-level spending information to the Public Accounts.
Officials from the OAG have said that many of these proposed changes have merit, though may take time to implement. Committee stands by these recommendations and encourages the 20th Assembly to continue advocating for these changes.
In the six years since the NTHSSA was created, its accumulated deficit has almost quadrupled to $194 million. Committee has expressed alarm at the size and persistence of the operating deficit. Last year, Committee recommended more transparency in this area. We asked that the government quantify and disclose each cost driver of the NTHSSA’s operating deficit. This kind of break down – for example, showing the total cost of unbudgeted overtime or of locum staff across the entire health authority – is not available in the NTHSSA’s annual report, its financial statements, or in the Public Accounts.
In its February 2023 response, the government said it knows the significant deficit drivers and listed each one, but stopped short of divulging dollar figures to each driver. Committee is not clear whether the government truly knows the cost of each deficit driver at a system level. The government should be more forthcoming in this area. The government’s response also emphasized the role of the Health and Social Services Systems Sustainability Plan (Sustainability Plan) to manage cost growth and find efficiencies. However, reporting in the department’s business plan, its annual report, and in the NTHSSA’s annual report provide only limited information about the targets, progress, and achievements of the Sustainability Plan. Committee expects more transparency and accountability. The Legislative Assembly and the public need to be able to scrutinize whether Sustainability Plan is delivering improvements to contain costs and improve health services. A public briefing on the Plan in August 2023, which is included in Appendix A, was a good opportunity to promote accountability. This information should be more accessible to all residents and updated on a regular basis.
Committee therefore recommends:
Recommendation 1: That the Government of the Northwest Territories enhance reporting on the Northwest Territories Health and Social Services System Sustainability Plan, including measures, targets, timelines, financial outcomes, and other outcomes related to quality and operational efficiency.
Committee’s concerns about the NTHSSA’s performance extend beyond the accumulated deficit. For example, last year the OAG reported that “many areas of internal controls needed improvement” at the NTHSSA and issued a management letter to this effect.
The Northwest Territories Health and Social Services Leadership Council (Leadership Council) plays an important role in holding the health authority to account. The Leadership Council’s role is “to oversee the management and affairs of NTHSSA and to take reasonable steps to ensure that NTHSSA achieves its legislated mandate.” This responsibility goes as far as appointing and replacing the NTHSSA’s CEO as needed.
The depth, breadth, and persistence of performance issues at the NTHSSA raise questions of whether the Leadership Council has the tools, information, and supports to ensure accountability. Committee is also under the impression that the key players in the NTHSSA’s governance framework – the Minister, the Department, the NTHSSA, the Leadership Council, and the Regional Wellness Councils – are not clear on their roles and how they relate to one another. Regional Wellness Councils do not appear to be empowered to meaningfully participate within the governance structure.
With these concerns in mind, Committee recommends:
Recommendation 2: That the Minister of Health and Social Services commission a review and evaluation of governance at the Northwest Territories Health and Social Services Authority (NTHSSA) since amalgamation. The review should focus on the Leadership Council’s responsibility to oversee the NTHSSA’s performance, including strategy development and risk management oversight, as well as the role of the Regional Wellness Councils. The review should be led by an independent body, such as the Internal Audit Bureau or an external audit group.
The Public Accounts allow the Legislative Assembly to scrutinize the government’s budget implementation. This scrutiny helps hold the government accountable for delivering the programs, services, and investments it committed to in the budget.
There are two significant areas of “lapsed” spending – where the government appropriated money through the budget process but did not spend the full amount by the end of the year. The first area is in capital expenditures. In 2021-22, the government appropriated $476 million to acquire tangible capital assets but only spent $261 million.18 The remaining $215 million, or 45% of the budgeted amount, was left unspent. Committee is waiting to see whether the government’s new capital budgeting approach – which caps the departmental portion of capital spending at $260 million – will make the capital budget more achievable.
The second significant area for lapsed spending was in grants and contributions (Gs and Cs). Gs and Cs are allocations to other individuals, organizations, businesses, or levels of government. They allow the government to deliver various services and support initiatives without providing the services itself.
In 2021-22, the government left millions of dollars unspent for key Gs and Cs.20 For example: Three funds for Indigenous Governments to support addictions recovery, aftercare, and on the land healing left $1.1 million unspent, over 40% of its $2.8 million budget. The Low Carbon Economy Leadership Fund, which supports the 2030 NWT Climate Change Strategic Framework, left $5.4 million unspent, or 60% of its budget.
Several reasons can contribute to allocated funds going unspent: inefficient planning, project delays, lengthy procurement process, onerous administrative requirements, or changing priorities, among others. In any case, when the Legislative Assembly authorizes spending on Gs and Cs, it expects those funds to be spent and to deliver results for residents. When significant amounts are left unspent, it is unclear whether the government can deliver results in those funding areas. More work is needed to ensure effective budget implementation of grants and contributions.
Committee therefore recommends:
Recommendation 3: That the Government of the Northwest Territories identify challenges and take steps to improve the distribution of budgeted funds for grants and contributions.
The Public Accounts are an important tool to promote transparency of the public sector. However, not all government entities have the same reporting requirements in the Public Accounts. Departments’ reporting requirements in Section II of the Public Accounts surpass in many ways those of most boards, agencies, and crown corporations. Certain entities, notably the Northwest Territories Power Corporation (NTPC), do not report at all in the Public Accounts on a non-consolidated basis. While NTPC does separately release audited financial statements, this disclosure misses various categories of information that must be disclosed by departments. The federal Public Accounts Committee recently reviewed this issue and recommended that the federal government study enhanced spending disclosure from crown corporations in the Public Accounts. Committee believes this idea has merit and is relevant to the Northwest Territories.
Committee therefore recommends:
Recommendation 4: That the Government of the Northwest Territories consider requiring all Crown Corporations, boards, and agencies to divulge all expenditures in the same manner as territorial departments in Section II of the Public Accounts. The government should consult with stakeholders on how this change could be achieved, its advantages, and the potential administrative burden, and report back to Committee on the matter.
In the year up to March 2022, the government’s net debt grew by 2.5%, reaching $1.37 billion. The net debt is approaching the federally-imposed borrowing limit of $1.80 billion. It is even closer to the territorial debt cushion in the Fiscal Responsibility Policy, which basically limits net debt to $1.68 billion. The Auditor General observed that the government “will need to take action in the future to rebalance its finances.” Committee is concerned by the fiscal constraints outlined in the Public Accounts, which do not include the fiscal impacts of the 2023 wildfire season. Committee is disappointed that one of the government’s primary responses to the territory’s fiscal challenges – the Government Renewal Initiative – has not delivered substantive results to improve budgeting in the 19th Assembly.
Four departments collectively spent $10 million in funds that the Legislative Assembly did not authorize. Those departments, and their unauthorized amounts, include:
- The Department of Municipal and Community Affairs ($5.1 million);
- The Department of Environment and Natural Resources ($3.1 million);
- The Department of Justice ($1.2 million); and
- The Department of Finance ($0.8 million).
Over-expenditures of this nature contravene the Financial Administration Act (FAA). However, the FAA also allows the Comptroller General to “deem” these overexpenditures as a “supplementary appropriation”.
Committee asked officials from the OAG about the appropriateness of these overexpenditures and the practice of “deeming”. The OAG found the government’s explanation for these overexpenditures to be “reasonable” but noted that neither the Yukon nor Nunavut allow “deeming”.
Last year, the Minister of Finance invited Regular Members to provide input on revising the Fiscal Responsibility Policy. The Fiscal Responsibility Policy guides the government’s debt management. The government was recommending seven changes to improve the policy.
In November 2022, the Standing Committee on Accountability and Oversight provided feedback on the seven recommendations, as well as 14 additional, detailed comments on how the government could further improve the Fiscal Responsibility Policy. These comments sought to align the Northwest Territories’ fiscal approach with international best practices on fiscal rules and had implications for the Public Accounts.
In April 2023, the government released the revised Fiscal Responsibility Policy. 27 Committee was disappointed that the revised policy did not incorporate any of the additional comments. This input has been included as in Appendix B of this report. Committee hopes it will be considered by the Minister of Finance in the 20th Assembly.
This concludes the Standing Committee on Government Operations’ Report on the Review of the 2021-22 Public Accounts. Typically, Committee includes a recommendation in each report requesting a response from government within 120 days. The recommendation is then moved as a motion in the House and Cabinet is required to respond. However, since the 19th Legislative Assembly will dissolve in less than 120 days, Committee has decided to leave out this recommendation and requests that the government provide a public response to this report, even of a preliminary nature, before the beginning of the 20th Assembly.
Reports of standing and special committees. Member for Yellowknife North.
Mr. Speaker, I move, seconded by the Member for Thebacha, that Committee Report 6719(2), Standing Committee on Government Operations Report on the Review of the 2021/2022 Public Accounts, be received and adopted by the Assembly. Thank you, Mr. Speaker.
Thank you, Member for Yellowknife North. The motion is in order. To the motion.
Question.
Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. The committee report has been received and adopted by the Assembly.
Carried
Reports of standing and special committees. Member for Yellowknife North.
Thank you, Mr. Speaker. Your Standing Committee on Government Operations is pleased to provide its report on the review of the 2022 Audit of Addictions Prevention and Recovery Services, No. 2.
Mr. Speaker, I move, seconded by the Member for Thebacha, that Committee Report 6819(2), Standing Committee on Government Operations Report on the Review of the 2022 Audit of Addictions Prevention and Recovery Services, No. 2, be deemed read and printed in Hansard in its entirety. Thank you, Mr. Speaker.
Thank you, Member for Yellowknife North. The motion is in order. To the motion.
Question.
Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. The committee report is deemed read.
Carried
Reports of standing and special committees. Member for Yellowknife North.
Mr. Speaker, I move, seconded by the Member for Thebacha, that Committee Report 6819(2), Standing Committee on Government Operations Report on the Review of the 2022 Audit of Addictions Prevention and Recovery Services, No. 2, be received and adopted by the Assembly. Thank you, Mr. Speaker.
Thank you, Member for Yellowknife North. The motion is in order. To the motion.
Question.
Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. The committee report is received and adopted by the Assembly.
Carried
Reports of standing and special committees. Member for Yellowknife North.
Mr. Speaker, your Standing Committee on Government Operations is pleased to provide its report on the review of the 2020 Audit of Early Childhood to Grade 12 Education, No. 2.
Mr. Speaker, I move, seconded by the Member for Thebacha, that Committee Report 6919(2), Standing Committee on Government Operations Report on the Review of the 2020 Audit of Early Childhood to Grade 12 Education, No. 2, be deemed read and printed in Hansard in its entirety. Thank you, Mr. Speaker.
Thank you, Member for Yellowknife North. The motion is in order. To the motion.
Question.
Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. The committee report is deemed read.
Carried
In November 2020, the Department of Education, Culture and Employment (ECE) released an action plan to address deficiencies identified in an audit of the delivery of education in the Northwest Territories.
As the 19th Assembly draws to a close, the Standing Committee on Government Operations (Committee) sought to ensure accountability at ECE for implementing the Action Plan. Committee requested and received a status update on each of the 60 action items. Committee found that two thirds of the deliverables are either complete or on-track for completion within their original timelines. The remaining third of the deliverables have revised timelines, are delayed, or are on hold.
The results show that a lot of work has been done, but a lot of work remains to be done to ensure education programs and services are fair, inclusive, and culturally relevant. Committee urges the department to prioritize work on incomplete action items. Committee also encourages Members in the 20th Assembly to build on this review and develop a consistent approach to ensuring accountability for audit follow-up work.
On February 6, 2020, the Speaker tabled an audit report entitled Early Childhood to Grade 12 Education in the Northwest Territories. 1 This performance audit was conducted by the Auditor General of Canada, who is also the Auditor for the Government of the Northwest Territories (GNWT).
The Auditor General sought to find out whether, to improve student outcomes, the Department of Education, Culture and Employment (ECE) planned, supported, and kept track of the delivery of fair and inclusive education programs and services that reflect Indigenous languages and cultures. As a result, the Auditor General made nine recommendations. ECE agreed with all recommendations.
Independently of the audit, ECE evaluated the Education Renewal and Innovation Framework (Evaluation). The Evaluation also identified recommendations for improvement.
In response to the Auditor General’s report and the ECE Evaluation, the department released An Action Plan to Improve JK-12 Student Outcomes in the NWT (Action Plan). The Action Plan addressed seven themes with 60 action items. Each action item is tracked in an online progress tracker. In June 2021, the Standing Committee on Government Operations (Committee) issued five recommendations to increase the impact of the Auditor General’s recommendations, by requesting additional actions and reporting. The government tabled its response to the recommendations in November 2021.
Committee is responsible for holding the department accountable for addressing the administrative deficiencies identified in the audit. In June 2023, as the 19th Assembly was concluding its work, Committee sought to follow up on the education audit.
Committee requested an update on the department’s progress implementing its 60 action items and Committee’s five recommendations. Committee provided the department a response template to ensure a concise and comprehensive status update.
The department’s response is disclosed in Appendix A. 40 of the 60 action items – or two thirds – are considered either “complete” or incomplete but “on-track” according to their original timelines. 13 further action items are also “on-track” but now have “revised timelines” stretching into 2024 or 2025. The remaining 7 action items are “delayed” or “on hold”.
Considerable work remains to fulfill the 38 action plan items that are not yet complete. Committee urges the department to prioritize work this work. Examples of incomplete items include:
Research and develop a 3-year pilot Indigenous Language Diploma (ILD). This deliverable was supposed to be completed by the end of 2022 but is “on hold”. ECE says it only received a program proposal from Aurora College in June 2023, and research and development will only start in 2023-24.
Develop greater integration of services for children and youth in the education system through expanding regional capacity. ECE wanted to do research and prepare for a pilot on expanding the Territorial-Based Support Team (TBST) to the regional level by the end of 2022, but this work is “on hold”. ECE says it has been difficult to staff TBST positions due to labour shortages. It is unclear what the department is doing instead to better integrate school-based services regionally.
Committee also asked the department follow-up questions on key action items and deliverables. Committee wanted more information regarding Indigenous language education, equitable access to education, and the department’s use of data. Committee’s questions and the department’s responses are included in Appendix B.
This concludes the Standing Committee on Government Operations’ Report on the Review of the 2020 Audit of Early Childhood to Grade 12 Education, No. 2.
Reports of standing and special committees. Member for Yellowknife North.
Mr. Speaker, I move, seconded by the Member for Thebacha, that Committee Report 6919(2), Standing Committee on Government Operations Report on the Review of the 2020 Audit of Early Childhood to Grade 12 Education, No. 2, be received and adopted by the Assembly. Thank you, Mr. Speaker.
Thank you, Member for Yellowknife North. The motion is in order. To the motion.
Question.
Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. The committee report is received and adopted by the Assembly.
Carried
Reports of standing and special committees. Member for Yellowknife North.
Halfway, Mr. Speaker. Mr. Speaker, your Standing Committee on Government Operations is pleased to provide its report on the review of the 20212022 Annual Report of the Information and Privacy Commissioner.
Mr. Speaker, I move, seconded by the Member for Thebacha, that Committee Report 7019(2), Standing Committee on Government Operations Report on the Review of the 20212022 Annual Report of the Information and Privacy Commissioner, be deemed read and printed in Hansard in its entirety. Thank you, Mr. Speaker.
Thank you, Member for Yellowknife North. The motion is in order. To the motion.
Question.
Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. The committee report is deemed read.
Carried
The Standing Committee on Government Operations (Committee) has reviewed the 2021-2022 Annual Report of the Information and Privacy Commissioner (IPC).
The Access to Information and Protection of Privacy Act (ATIPP Act) and the Health Information Act (HIA) require the IPC to prepare an annual report. The report includes information on the number of files the IPC opens to review complaints. It can also include recommendations. The Speaker tables the report in the Legislative Assembly. Once tabled, Committee reviews the report.
As part of the review, the Information and Privacy Commissioner (IPC), Mr. Andrew Fox, appeared before Committee on June 27, 2023. Committee appreciates his continued work to enhance the public’s exercise of the right to access information and uphold the protection of residents’ personal information.
This report is an opportunity to reinforce previous Committee recommendations where the government has not moved as far as Committee has requested. Last year, Committee recommended four “upstream” access and privacy measures to reduce “downstream” complaints and costs. Committee found partial uptake and mixed progress in this area. We are hopeful that new recommendations to promote one key “upstream” measure – proactive disclosure – will help streamline the access and privacy regime.
This report also presents Committee’s response to eight recommendations in the IPC’s annual report. Committee carefully considered each one. Committee decided to endorse seven of the IPC’s eight recommendations. We are pleased to advance these recommendations and hope the government will act.
In Committee’s previous report on the IPC, we brought attention to the extraordinary growth in the number of files opened, a trend that has continued again this year. Since 2012-13, the number of files opened has increased twenty-fold, from 16 files to over 320 files. Much of this growth comes from files opened under the Health Information Act, which came into force in 2015-16. The IPC says that this surging workload “raises questions regarding the efficacy of privacy protection policies and processes governing health information custodians.”
Committee shares the IPC’s concerns. In our earlier report, Committee made four recommendations for “upstream” measures and investments to the access and privacy regime to reduce “downstream” complaints and costs. Our recommendations addressed gaps identified by the IPC. Those recommendations, the government’s responses, and recent developments include:
1. Making information privacy training mandatory for all government employees. The government declined this recommendation.
2. Updating the Mobile Handheld Devices Policy, by April 2023. The government agreed to this recommendation, but with a longer timeline. As of July 2023, the policy did not appear to have been updated.
3. Reinforcing accountability for reducing faxing across the health and social services system. The government provided an update on this issue and identified the barriers to reducing faxing. However, the government did not disclose associated metrics, targets, or timelines, as Committee recommended.
4. Reinforcing accountability for proactive disclosure. The government said it would implement proactive disclosure directives, as required by section 72(1) of the ATIPP Act, by early 2023. In July 2023, the government released the Proactive Disclosure (Open Government) Directive. The Directive identifies 14 categories of information that the government must make publicly available without request. Many of these categories were already being disclosed proactively.
Committee stands by the recommendations and encourages the government to implement further “upstream” access and privacy measures, noting that at this point, the government has only achieved partial uptake on those recommendations.
Committee is pleased the government has released its Proactive Disclosure (Open Government) Directive. The Directive is a promising foundation to increase government transparency. Committee encourages the government to introduce additional categories of information for proactive disclosure, to meet residents’ expectation for increased access to government records.
To ensure accountability for this work, the government should include updates in its annual report on the administration of the ATIPP Act. The most recent annual report, for 2021-2022, does not mention any work on proactive disclosure or implementing section 72(1) of the ATIPP Act.
Committee also encourages the government to increase the accessibility of already completed access to information requests. The federal government publishes a searchable list of completed requests and allows the public to ask for a copy of the records at no cost.10 Committee believes investing in a similar dataset for the territory would increase transparency. Having this information available by default would also reduce the number of formal requests and costs.
Committee therefore recommends:
Recommendation 1: That the Government of the Northwest Territories expand the categories of records that must be proactively disclosed under the Proactive Disclosure (Open Information) Directive. Progress on this and other work to implement section 72(1) of the Access to Information and Protection of Privacy Act should be regularly reported in the government’s annual report on the Act.
Recommendation 2: That the Government of the Northwest Territories take steps to make available, on a website, summaries of completed access requests and allow the public to request a copy of the records at no cost.
The Information and Privacy Commissioner made eight recommendations in his annual report. Committee carefully considered each one. Those recommendations, Committee’s thoughts, and our decision whether to endorse each one, are as follows:
1. Time extensions for third-party consultation. The IPC wants the ATIPP Act amended to allow public bodies to extend the deadline to complete third-party consultation one time without his authorization. The IPC says he has no reason to deny the first request for extension and that this process is just a “rubber stamp.” Committee endorses recommendation #1. The government should formally consider this proposal during the next statutory review of the ATIPP Act, which must start within 18 months of the start of the 20th Legislative Assembly.
2. More resources for the Access and Privacy Office. The IPC wants public bodies that depend on the Access and Privacy Office (APO) to ensure it has enough staff and resources. The IPC heard of departments and agencies blaming lack of capacity at the APO for missing statutory deadlines. Committee endorses recommendation #2. Committee is alarmed that in 2021-22, one third (32%) of access requests were considered late.15 This means there was no legislative authority under section 11 of the ATIPP Act to exceed the statutory deadline. The Department of Finance and the Department of Lands have particularly poor track records – over half of their access requests were considered late. Committee reminds the government that it is departments and agencies, and not the centralized Access and Privacy Office, that are legally required to meet deadlines set out in the ATIPP Act. The government should consider a chargeback model, like the approach to the Technology Service Centre (TSC), to internally manage the access and privacy regime. By treating access and privacy as a core government service, this approach could support departments and agencies in meeting their statutory deadlines.
3. Discretion to extend IPC timelines. Until July 2021, the IPC had 180 calendar days to complete a review. Amendments passed in the 18th Assembly have now reduced that time to 90 business days. The IPC says it is “unlikely” that he can complete most reviews within 90 business days and wants the ATIPP Act amended so he can have discretion to extend the deadline.
Committee rejects recommendation #3. The Legislative Assembly recently shortened the review period and Committee continues to support this change. When the IPC cannot meet a deadline, he should still provide notice to all parties that he needs more time. The government should also ensure that the IPC has the resources he needs to fulfill his mandate and meet deadlines.
4. Reporting on implementing recommendations. The IPC wants health information custodians to be required to report to him about implementing recommendations – either through a government policy or an amendment to the Health Information Act. The IPC noted that oversight and legal obligation are lacking for information custodians to implement recommendations. Committee endorses recommendation #4. The government should formally consider this proposal during the next statutory review of the Health Information Act, which must start by October 2025, 10 years after this legislation came into force. In the meantime, this recommendation should be implemented through a government policy.
5. Reducing or eliminating faxing. The IPC repeated a long-standing recommendation for health information custodians to reduce or eliminate the use of fax machines. He is not aware of any government plan to meet this goal and emphasized that faxing remains a significant source of privacy breaches.19 Committee endorses recommendation #5. Committee has not been satisfied with the government’s previous responses to recommendations on this topic and wants to see more reporting in this area, potentially in the government’s annual report on the ATIPP Act.
6. Ensuring privacy training for employees in health and social services. Despite the Department of Health and Social Services’ Mandatory [Privacy] Training Policy, the IPC has found that lack of training is a significant cause for persistent privacy issues. He wants to ensure proper implementation of the Mandatory Training Policy. Committee endorses recommendation #6.
7. Earlier requests for privacy impact assessments. The IPC wants requests for privacy impact assessments to be submitted earlier so he has enough time to review, and organizations have enough time to consider the results. Committee endorses recommendation #7.
8. Extending privacy impact assessments to health information. Right now, privacy impact assessments are only required in the ATIPP Act. The IPC wants an amendment to section 89 of the Health Information Act so that privacy impact assessments are also used for health information. Committee endorses recommendation #8. The government should formally consider this proposal during the next statutory review of the Health Information Act, which must start by October 2025, 10 years after this legislation came into force.23
Committee has endorsed most of the recommendations in the IPC’s annual report.
Committee therefore recommends:
Recommendation 3: That the Government of the Northwest Territories implement, or commit to time-bound plans to implement, recommendations #1, #2, #4, #5, #6, #7, and #8 in the Information and Privacy Commissioner’s Annual Report 2021-2022 – Tabled Document 711-19(2).
This concludes the Standing Committee on Government Operations’ Report on the Review of the 2021-2022 Annual Report of the Information and Privacy Commissioner. Typically, Committee includes a recommendation in each report requesting a response from government within 120 days. The recommendation is then moved as a motion in the House and Cabinet is required to respond. However, since the 19th Legislative Assembly will dissolve in less than 120 days, Committee has decided to leave out this recommendation and requests that the government provide a public response to this report, even of a preliminary nature, before the beginning of the 20th Assembly.
Reports of standing and special committees. Member for Yellowknife North.
Mr. Speaker, I move, seconded by the Member for Thebacha, that Committee Report 7019(2), Standing Committee on Government Operations Report on the Review of the 20212022 Annual Report of the Information and Privacy Commissioner, be received and adopted by the Assembly. Thank you, Mr. Speaker.
Thank you, Member for Yellowknife North. The motion is in order. To the motion.
Question.
Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. The committee report has been received and adopted by the Assembly.
Carried
Reports of standing and special committees. Member for Yellowknife North.
Committee Report 71-19(2):
Mr. Speaker, your Standing Committee on Government Operations is pleased to provide its report on the review of the 20212022 Annual Report of the Ombud.
Thank you, Member for Yellowknife North. The motion is in order.
