EdinburghNLP/nunavut-hansard-plusplus huggingface dataset:
I am pleased to be here today to discuss the 2005/06 main estimates and business plans for the Department of Finance.
For 2005, 2006 the Department of Finance has been allocated $48.3 million for operations and maintenance expenditures as compared to $52.5 million in the 2004, 2005 main estimates.
The major components of the department’s budget are $16.5 million for compensation and benefits. $28.4 million for centrally administered programs and costs including $10.6 million for Government wide employee benefits such as dental premiums versus compensation premiums and employee medical travel.
$10.5 million for the lease costs for the legislative assembly building and other office buildings constructed by the Nunavut Construction Corporation prior to April 1, 1999. $5 million for the regular power subsidy program. $2.3 million for the Government of Nunavut insurance premiums and $3.4 million for other operations and maintenance costs.
Compared to the 2004, 2005 main estimates the significant changes are $10 million reduction resulting from an addition contribution to the Nunavut Power Corporation in 2004, 2005. $3.2 million increase for the Workers Compensation Premiums, dental premiums and employee medical travel.
$1.2 million increase for the impact of Nunavut Employees Union Collective Agreement, .5 million to increase the funds for activities on the liquor licensing board.
Actually, five hundred thousand.
Finance has six branches.
Directed fiscal management internal audit services.
Financial operations, centrally administered funds and liquor management.
The department currently has a complement of 159 person years comprised of 115 at headquarters. 15 Qikitaaluk, 16 in Kivalliq and 13 Kitikmeot.
In addition there are 8 positions funded under the liquor revolving fund.
The department’s focus for 2005, 2006 will be continue to provide centrally agency services in areas that include support for the Financial Management Board, managing the government’s overall fiscal positions and overseeing the financial framework and accounting processes.
Mr. Chairman, the members will note that the main estimates include 2003, 2004 actual expenditures.
This is the first year that actual expenditures have been included.
Member will notice in certain cases that there are wide variations when comparing this 2003, 2004 actual to the 2004, 2005 and 2005, 2006 budgets.
This is largely due to the recording of year end accrual for certain items that are not budgeted.
When the Government of Nunavut implements accrual base budgeting in the next year or two these variations will be eliminated.
Thank you, Mr. Chairman and committee members and I welcome your comments.
Chairperson (interpretation): Thank you, Miss Aglukaq.
Hon. Leona Aglukkaq: Mr. Chairman, they are probably on their way.
If you can proceed with your opening remarks while they are on their way.
Chairperson (interpretation): Thank you. Does the chair of the standing committee have opening comments?
Mr. Peterson: Yes, I do Mr. Chairman.
I am pleased to provide you with the committee’s comments on the 2005-2006 main estimates and business plan of the Department of Finance
The committee notes that the department’s proposed budget is $48,338,000 is over 75% higher than the department’s initial allocation of $27,548,000 in 1999-2000.
The department’s budget has decreased from 2004-2005, primarily as a consequences of there not being a contribution in this years main estimates for the Qulliq Energy Corporation.
Members recognize that a significant proportion of the department’s budget is allocated for such government-wide functions as employee benefits, commercial leases, insurance coverage and power subsidies.
Members recognize the role that the department plays as a central agency.
One of the most important functions that the department performs is coordinating the government’s budget process and preparing the annual estimates documentation and the Public Accounts.
Over the past several years, Members of the Legislative Assembly have consistently called on the department to enhance the transparency and accountability of government operations through such measures as ensuring that the government’s financial statements are tabled within the timelines established by law, and expanding the level of detail contained in the Main Estimates, including information on prior years’ actual expenditures.
Members were pleased to see that the 2005-2006 Main Estimates, for the first time ever, contain information on the government’s prior years’ actual spending.
This improvement is to be applauded, and Members hope to see similar information provided in the upcoming 2006-2007 Capital Estimates with respect to the actual costs of capital projects previously approved by the Legislative Assembly.
Mr. Chairman, the late tabling of the GN’s Public Accounts continues to be a concern.
The Standing Committee addressed this issue in its report of last November.
Members look forward to the government’s response, and note that it is due in March.
Mr. Chairman, one of the goals agreed to by all MLAs at our recent Arviat Caucus Retreat was to manage Nunavut’s financial resources responsibly by acting decisively on the recommendations of the Auditor General and Legislative Assembly Standing Committees with respect to strengthened financial management across government departments and Crown corporations.
Members will be scrutinizing progress towards this commitment with close attention.
On May 18, 2004, the Minister of Finance publicly revealed that the Government of Nunavut had only $57 million remaining with respect to the $200 million borrowing limit that was initially established for Nunavut by way of a federal order in council.
We learned last week that this amount has since fallen to $53.5 million.
It is also alarming to Members that the Auditor General’s report indicated that further work needs to be done to achieve a clear picture of exactly how much we owe.
The Committee would also wish to see the government’s annual consolidated financial statements include comprehensive information on its lending and borrowing activities under section 27 of the Nunavut Act, and that such information include a clear picture of the government’s available borrowing room.
Members would also wish to see the Minister clarify whether or not it is time to approach the federal government for an increase in our borrowing limit.
Mr. Chairman, Members have taken careful note of the major changes that have occurred over the past year with respect to territorial formula financing.
In the past, the base amount transferred to the GN from the federal government was provided for under the framework of a bilateral Formula Financing Agreement between Ottawa and Iqaluit.
Now, with the recent passage of federal Bill C-24, the annual amounts for each of the three territories are provided for in statute.
In October of 2004, it was announced that a national independent experts’ panel would be established to review how equalization and territorial formula financing levels would be allocated among provinces and territories in 2006-2007 and subsequent years.
The panel is supposed to report back by the end of this year.
The Committee urges the GN to continue to strongly advance the case that our unique needs and gaps in such areas as infrastructure and housing require recognition.
Mr. Chairman, the department provides the support function for the Financial Management Board.
One issue with GN-wide implications that I would like to comment on today concerns the growth in the size of the Public Service since the creation of Nunavut in 1999.
According to the GN’s own departmental business plans, the number of PYs in 2004-2005 was 3,040.2, not including the approximately 148 positions in the Qulliq Energy Corporation.
The number of PYs in 2005-2006 is projected at 3,255.9.
This is an increase of 7percent in just one fiscal year.
According to the GN’s own figures contained in its quarterly Inuit Employment Plan reports, there were 2,664 PYs in January of 2000.
In just five years, this amount has increased by approximately 20 percent.
What is more disturbing is the growth of management positions.
In January 2000 there were 233 positions classified as middle management.
That number has since grown to approximately 410 positions, an increase of over 75 percent.
By contrast, none of the administrative support positions have actually decreased by almost 20 percent.
Indeed, from September 30th to December 31st 2004, the number of middle management positions jumped from 380 to 410, an increase of almost 8 percent in just one fiscal quarter.
In a five year period, the numbers of executive management positions have grown by over 50 percent, more then three times as fast as the growth of the non-management positions.
It has appeared to the committee as to how this management growth has delivered better programs and services to our constituents and communities.
The government of finance has spent close to $300,000,000 in 2005/06 for compensations and benefits.
An amount which counts for approximately 30 percent of total spending.
It is important to keep in mind that a dollar spent on compensation and benefits for employees is a dollar that is not available for other spending, such as capital projects in communities, or financial assistance for young people to attend university.
Mr. Chairman, in exercising its government-wide responsibilities, the FMB must carefully consider whether it is wise to continue to allow departments to increase the number of PY’s in their organizational charts when almost 1 out of every 5 GN positions still remains vacant.
In the past, the Government of Nunavut has been able to use unspent salary dollars to make up for overspending in other areas.
To an extent, this may encourage undesirable management practices, as the ongoing vacancy rate in the government almost ensures that money will be unspent and available for other purposes at the end of the fiscal year.
It is time that we recognize that the bureaucracy cannot grow forever, and that a reasonably definitive size cap must be determined.
Mr. Chairman, as I mentioned earlier, a significant portion of the department’s budget has been allocated for paying the Government of Nunavut’s commercial leases in 2005-2006. Over ten million dollars has been allocated for this purpose.
The issue of leasing was raised in the committee’s public hearings in June of last year.
During these hearings, a Deputy Minister of the Government of Nunavut told the committee, on the public record, that a comprehensive list of the Government of Nunavut leased properties was being prepared and would be submitted to the appropriate minister during the summer of 2004.
Fully nine months after we were told this, the public is no closer to knowing exactly where millions of their dollars are going.
The committee reiterates its position that the Government of Nunavut must seriously address its addiction to secrecy in the area of its leasing practices.
Mr. Chairman, the issue of crown corporation governance has engendered much discussion in recent months at both the territorial and national levels.
The work and actual accomplishments of the Government of Nunavut’s Crown Agency Council in addressing issues related to the governance of Nunavut’s entities will bear close scrutiny over the coming year.
It is worth noting, Mr. Chairman, that although the Government of Nunavut provides millions of dollars in direct funding to Nunavut’s crowns each year through the main estimates process, the business plans for these entities are rarely provided in time for meaningful scrutiny to occur prior to the funds being voted.
The committee would wish to see the annual business plans for crown corporations to be tabled at the same time as the main estimates and budget documentation.
The committee also reiterates its call for all ministerial directives, instructions, letters of expectation and other instruments directed to crowns to be tabled in this House.
Mr. Chairman, energy issues have consumed much attention over the past year.
As you will recall, the Standing Committee was disturbed last year when the GN provided only 17 words of explanation in the main estimates to justify its request for $10 million in funding for the QEC.
Although this funding was originally described as being for, and I quote, “domestic and commercial power subsidies to consumers of electricity, specific to the implementation of the fuel rider,” it took the combined efforts of Members on this side of the House to get the government to admit its actual purpose; a conditional contribution agreement with the QEC, which was eventually signed on August 4, 2004.
Although there is no QEC-specific funding in this year’s departmental budget, Members recognize that further supplementary appropriation requests will likely be brought forward this year to provide more funding to the QEC in relation to the recent announcements concerning power rates and the GN’s power subsidy program.
Members are aware of the significant tax cuts that were considered and passed by the Legislative Assembly in 2002, and urge the department to closely monitor, and subsequently report on, their actual success in achieving such policy goals as attracting more businesses to establish operations in Nunavut.
Members noted with interest that the department’s business plan indicates that a new GN capital planning process is being developed, and that further recommendations to the Financial Management Board will be made.
Given the importance of capital planning to our communities, the Committee expects the opportunity to comment on any new process prior to its finalization and adoption.
Although Members recognize that the government’s resources are limited and not every project can be funded, communities must have clear opportunities to provide input into the overall planning process in order to articulate local priorities.
In the past, Members have noted with concern the apparently uncontrollable growth in information technology expenditures across Government.
Members noted a 300 percent increase since 2003-2004 in the Department of Finance’s budget for application support for its financial systems, including the implementation of a new payroll system.
It is important that costs not be allowed to get out of control.
Mr. Chairman, the operations of the Nunavut Liquor Commission fall under the jurisdiction of the Department of Finance.
Members have noted from the Government of Nunavut’s recent announcement of January 24 that the transfer of responsibilities back to Nunavut for the management of liquor sales and distribution has been completed.
The issue of access to liquor is a contentious one, and Members recognize that different communities have different views on the extent to which access should be permitted.
Members are also aware that in those communities where alcohol is allowed, excessive barriers to the legal importation and purchase of alcohol can result in the unintended consequence of driving people into the hands of bootleggers.
In 2003, the government of the day introduced significant amendments to Nunavut’s Liquor Act, including major increases in fines and other penalties for violations of the law.
In a response to a Written Question posed in the House in November of last year, it was revealed that the GN does not actually keep records of violations of the Liquor Act or the amounts levied in fines.
It is puzzling that while the government made the effort to amend the legislation in this area, it apparently does not track the actual impact of its own law.
The Committee expects that the recent functional repatriation will enable the branch to do a better job in this area, and expand its cooperation with the RCMP in combating bootlegging.
Mr. Chairman, according to the RCMP’s 2004 annual report, a total of 3,506 liquor offences were recorded from 2001 to 2003.
It is unknown what fines were paid by offenders.
The idea of using fine revenue for the specific purpose of substance abuse treatment and awareness programs is worth considering.
For example, Mr. Chairman, the recent federal Bill C-15, which amended the Canadian Environmental Protection Act and the Migratory Birds Convention Act, included a specific provision to have all fines received in respect of violations to be credited to the federal Environmental Damages Fund and used for protecting and conserving the environment.
Mr. Chairman, doing something similar here could help to send a message that we are serious about the issue of substance abuse.
This could help to address the confusion that arose after the government’s news release of January.
In that announcement, the Health and Social Services Minister was quoted as saying that the extra revenue generated by the repatriation of the liquor management function will help to address the negative social repercussions of alcohol.
Although this statement clearly implied that the additional funds raised by the GN through the sale of alcohol would go directly to treatment and awareness programs, subsequent news coverage indicated that this was not, in fact, the case. Mr. Chairman, these sorts of mixed messages to our public are not desirable.
Individual members may wish to raise their own questions and concerns as we proceed.
What’s the wish of the Committee?
I would like to take this opportunity to report progress.
Chairman: There’s a motion on the Floor to report progress and this is not debatable.
Also, Mr. Speaker, I move that the Report of the Committee of the Whole be agreed to.
Speaker (interpretation): There’s a motion on the Floor.
Orders for the day for Friday, March 11, 2005:
Speaker (interpretation): This house stands adjourned until Friday, March 11, 2005 at 10:30 a.m.
>>House adjourned at 17:59  Nunavut Canada
Friday March 11, 2005
Pages 1527 – 1610
Opening Prayer 1527
Ministers’ Statements 1527
Members’ Statements 1528
Returns to Oral Questions 1534
Recognition of Visitors in the Gallery 1535
Oral Questions 1538
Reports of Committees on the Review of Bills 1555
Tabled Documents 1556
First Reading of Bills 1556
Second Reading of Bills 1557  Consideration in Committee of the Whole of Bills and Other Matters 1558
Report of the Committee of the Whole 1608
Orders of the Day 1609
Friday, March 11, 2005 1527
080 – 2(2): Framer Helpers (Picco) 1527
081 – 2(2): Nunavut Volunteer Symposium (Tapardjuk) 1528
189 – 2(2): 2005 Mining Symposium at Rankin Inlet (Curley) 1528
190 – 2(2): Medical Travel Escort Policy (Evyagotailak) 1529
191 – 2(2): Checker Players of Pangnirtung (Kilabuk) 1529
192 – 2(2): Hockey Game Against Firefighters (Okalik) 1530
193 – 2(2): Amauti from Alice Panipakoocho (Brown) 1530
194 – 2(2): Develop an Inuit Qaujimajatuqangit Relevant Game (Alagalak) 1530
195 – 2(2): Hockey Game Against Firefighters (Tootoo) 1531
196 – 2(2): Inuktitut Item on CBC Newsworld (Kattuk) 1531
197 – 2(2): Hockey Game Against Firefighters (Barnabas) 1532
198 – 2(2): New Hair Colour by Arctic College Students (Picco) 1532
199 – 2(2): Cape Dorset Hockey Team in Iqaluit Tournament (Akesuk) 1533
200 – 2(2): Daughter in Hair Dressing Class (Tapardjuk) 1534
Return to Oral Question 227 – 2(2): Access Housing Causing Hardship (Kilabuk) 1534
256 – 2(2): Non-Provision of Medical Travel Escorts (Evyagotailak) 1539
257 – 2(2): Attendance at 2005 Mining Symposium (Alagalak) 1540
258 – 2(2): Cost Share Profits from Homeowner S.T.O. NHC (Barnabas) 1541
259 – 2(2): Selection of Independent Body (Tootoo) 1542
260 – 2(2): Caribou Population Count – Coral Harbour (Netser) 1544
261 – 2(2): Repatriation of Patient Files (Kattuk) 1544
262 – 2(2): Housing Allocation Policy (Curley) 1546
263 – 2(2): Plans for Selling of Sealskins (Barnabas) 1547
264 – 2(2): Update on Medical Conditions of Staff in Cambridge Bay (Peterson) 1549
265 – 2(2): Assistance to University Students (Tootoo) 1550
266 – 2(2): Plans to Repatriate Artifacts (Kattuk) 1553
002 – 2(2): Bill 13 – An Act to Amend the Wills Act and Bill 14, Miscellaneous Statutes Amendment Act (Mapsalak) 1555
003 – 2(2): Bill 11 – Loan Authorization Act, 2005 – 2006 (Tootoo) 1555
004 – 2(2): Bill 12 Write Off of Assets and Debts Act, 2004 – 2005 (Tootoo) 1555
100 – 2(2): Government of Nunavut Leased Properties Report Ending March 31st, 2004 (Kilabuk) 1556
101 – 2(2): Procurement and Contracting Report for the Fiscal Year 2003/2004 (Kilabuk) 1556
102 – 2(2): Annual Contracts Data Report for the Fiscal Year 2003/2004 (Kilabuk) 1556
Bill 9 – Supplementary Appropriation (Capital) Act No. 3, 2004/05 – First Reading 1556
Bill 10 – Supplementary Appropriation (O & M) Act No. 3, 2004/05 – First Reading 1557
Bill 10 – Supplementary Appropriation (O & M) Act No. 3, 2004/05 – Second Reading 1557
Bill 9 – Supplementary Appropriation (Capital) Act No. 3, 2004/05 – Second Reading 1557
Friday, March 11, 2005
Speaker (interpretation): I would like to ask Mr.Curley to say the opening prayer.
Good morning Mr. Premier, Ministers and Members.
Minister’s Statement 080 – 2(2): Framer Helpers
As you know, providing training opportunities in construction and housing maintenance and housing maintenance has been identified as one the government’s priorities during our current mandate.
I am pleased to inform the House that in conjunction with my colleague Hon. Peter Kilabuk, the Department of Education, Nunavut Housing Corporation and Nunavut Arctic College in Rankin Inlet are working together to train Framer Helpers for the construction industry.
A joint training program is being offered which combines an Introductory Carpentry Program and Introduction to Framing Program from January 05 to May 05 for 15 students.
Some of these students will be hired by the General Contractors on Nunavut Housing Corporation job sites this summer to work with a journeyman to continue learning framing on the job site in Kivalliq communities.
Framer Helpers is a recognized trade in other areas of Canada and leads to a Framer and Framer Contractor designation.
The College and Nunavut Housing Corporation are working with the Department of Education to develop the designation Framer Helpers of Nunavut.
This project is funded by the Department of Education and the Nunavut Housing Corporation.
Minister’s Statement 081 – 2(2): Nunavut Volunteer Symposium
I rise today to inform Members of an important initiative that my department in partnering with the Volunteer Nunavut Network.
I would like to take this opportunity to remind the House of how important it is that we all show our support for volunteers in Nunavut.
They make a valuable contribution to strong, self-reliant and healthy communities.
My department has developed a recognition program and a management training program for volunteers.
We, along with our partners, the Volunteer Nunavut Network, are hosting Nunavut’s first Volunteer Symposium to take place in Iqaluit from March 11-13, 2005.
The purpose of the Symposium is to determine the needs and priorities, both short-term and long-term, for the Nunavut Volunteer Network and the development of strategies to strengthen and develop the Nunavut volunteer sector.
It will also build capacity within the voluntary sector in communities.
We anticipate that there will be approximately 35 Nunavummiut in attendance.
Please join me in thanking all volunteers for giving their time so freely to Nunavummiut.
Ministers’ statement.
Member's Statement 189 – 2(2): 2005 Mining Symposium at Rankin Inlet
I rise today to invite all Members to join me in April when Rankin Inlet hosts the 2005 Nunavut Mining Symposium.
My colleague from Cambridge Bay has been vocal in this House about mining development in the Kitikmeot.
I would like to share some of the exciting developments that are taking shape in the Kivalliq.
Members may be most familiar with Cumberland Resources, Meadow Bank and Meladine Properties but they are not the only ongoing projects.
In 2004 there were 11 projects in the region.
Gold, diamond, nickel, copper, cobalt, platinum, palladium, silver, lead and zinc have been found.
My constituents are very familiar with the mining process.
The North Rankin Nickel Mine operated from 1959 to 1962.
Mining has changed a lot in the last 40 years.
What hasn’t changed is the fact the people of Rankin Inlet will welcome in this sector.
Private businesses are well equipped to provide services to mining companies.