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Bill 22 – Appropriation (Operations & Maintenance) Act, 2010-2011 – Economic Development and Transportation – Consideration in Committee
We can now move on to another department.
The Minister of the Department of Economic Development and Transportation, Minister Taptuna, you can now begin your opening comments.
I am pleased to be here before the Committee of the Whole to present the budget of the Department of Economic Development and Transportation for 2010-11.
I will use this opportunity to describe the changes proposed in next year’s main estimates and business plan and to outline some of the spending priorities proposed by the department.
Following my opening comments, I will be pleased to answer your questions and those of other members of this committee about our proposed budget and program activities for 2010-11.
With me today are members of senior management from the department.
The management team is: Deputy Minister Robert Long; Methusalah Kunuk, Assistant Deputy Minister responsible for the Transportation Branch; and Sherri Rowe, Director of the Finance and Administration Division.
The total budget I am proposing for the 2010-11 fiscal year is $53,284,000.
In the current year, the department’s budget is $55,386,000.
Our new budget therefore represents a decrease of $2,102,000 from the current year’s budget.
The principal cause of the overall reduction in our total budget will be the completion this year of the department’s work coordinating the Government of Nunavut’s participation in the cultural festivals and events associated with the 2010 Vancouver Winter Olympic Games.
As you know, $2,091,000 is allocated to the games-related projects this year and all but $200,000, or $1,891,000 of this one-time funding, will be completed March 31, 2010.
Similarly, the last of the federal Northern Strategy funds totalling $1,331,000 were used this year to complete the Small Communities Initiatives Program.
This funding also sunsets on March 31 this year.
The other major changes for the upcoming 2010-11 main estimates represent budgetary increases.
The department has received additional financial resources to support the Nunavut Employees Union salary increase of $620,000.
The department has been allocated an additional $500,000 to support the preparation of a Poverty Reduction Strategy.
With these major exceptions and despite increases to the funding allocated to certain programs which I will outline later, the department’s total budget allocation is substantially unchanged from 2009-2010.
In 2010-11, the department will maintain its current program commitments to ensure that important initiatives and key priorities already underway continue to receive support.
Continuing improvements to the operations of the Motor Vehicles Office in Iqaluit.
Undertaking public consultations on the proposed new Traffic Safety Act for the territory.
Ongoing implementation of Sanaugait, the Nunavut Arts and Crafts Strategy, including continuing promotion of the successful Nunavut brand for arts and crafts.
Implementation of Parnautit, the Nunavut Mineral Exploration and Mining Strategy.
Implementation of the new Tourism Development Strategy for Nunavut.
Continuing implementation of the Nunavut Transportation Strategy; and
Implementation of the recommendations of the comprehensive review of the NNI Policy.
However, despite the department’s commitment to these ongoing programs and the limitations of a status quo budget allocation, there will be a number of important changes to how the department will do business in 2010-11.
First, I want to point out a number of small but significant changes we propose to make to the allocation of current program funding within the 2010-11 main estimates.
This year, the Community Access Roads Program has been added to the department’s operating budget.
As some members will know, community access road development has been supported in the past through the department’s capital budget.
However, the department can no longer maintain the program with the available capital funds.
The Community Access Roads Program is both popular and effective.
I directed the department to identify the funds for the program from within the 2010-11 operating budget.
As you can see on page K-7 of the main estimates and on page K-10 of the business plan, community access roads now appear as a new program within our Transportation Branch, with a budget of $500,000.
We propose to maintain this successful program.
To improve the delivery of programs and services in the coming year, additional reallocation of current program funding has been necessary. These changes are listed on page K-7 of the main estimates.
To increase our support for Nunavummiut who wish to participate in Nunavut’s dynamic mineral exploration and mining industry, the department has renewed and expanded the popular Prospector’s Assistance Program this year and next year, we will increase the budget by 50 percent to $150,000.
This is in addition to continuing work on the implementation of the mining strategy and the maintenance of the mine training round table.
For our cultural industries, two program expansions are proposed.
First, the department proposes to increase the operating budget provided to the Nunavut Arts and Crafts Association by $100,000 to $300,000 so that the organization can play a larger developmental role in our communities and in the implementation of the arts and crafts strategy.
Another major increase is proposed to the Nunavut Film, Television and New Media Development Program from the current $650,000 to $825,000.
This year, the Nunavut Film Development Corporation prepared an analysis of the considerable economic impact of this important new cultural industry.
The additional funding will allow the corporation to extend this impact by introducing new programming in 2010-11 and to expand the marketing of Nunavut as an international film location.
The department continues to support the strengthening of the private sector’s role in our economy.
It is proposed that funding for the Business Development Centres Program be increased to $1,050,000, an increase of $250,000, which will allow enhancements to the operating budgets for the centres in each region and bring the funding for the Kitikmeot Community Futures Organization to an equitable level.
The department also will increase its support for the operations of the Nunavut Broadband Development Corporation from $200,000 to $300,000.
As committee members know, the corporation has secured substantial funding for broadband expansion and new Internet services in the territory, and it needs the additional operating support to manage its new responsibilities.
These economic development and transportation program funding increases which total $1,175,000 will be achieved through reductions to the contract services’ budgets of the Corporate Management and Economic Development branches and by applying a vacancy factor to the calculation of compensation and benefits’ budgets across the department.
Put simply, the department will do more with less.
In addition to the improvement of our programs and services, the department’s principal consideration in calculating the budget for 2010-11 has been to ensure that our mission and guiding principles contribute to the government’s vision expressed in the Tamapta Action Plan.
In our business plan for 2010-11, the department focuses on three priority areas from the action plan.
The first of these priority areas is “Reduce Poverty.”
To assist with the preparation of a Poverty Reduction Strategy and the implementation of specific measures to alleviate poverty and its effects, the department has been provided a proposed one-time budget adjustment of $500,000.
These funds are reported in the business plan on page K-2 as the Nunavut Anti-Poverty Secretariat.
At this time, a detailed work plan and budget for the use of the $500,000 in 2010-11 is in preparation.
In the meantime, by earmarking the funds under this name, it signals the lead role the department must play as the coordinating agency for the work of other departments, Inuit organizations, other governments, non-governmental organizations, and our business community – all of whom will be involved in this important new endeavour.
Secondly, the department has a key role to play in the Tamapta Action Plan priority to “Increase support for culture and the arts,” and the effort to build a more cohesive culture and arts sector.
I have already referred to the department’s proposal to increase its support for the Nunavut Arts and Crafts Association and the Nunavut Film Development Corporation and to continue the implementation of the arts of crafts strategy.
The department is currently evaluating the outcomes of its new Arts and Crafts Development Program and while the $425,000 budget will be maintained, improvements will be made to the program in the coming year.
The department is also examining ways to make additional financial resources available to arts organizations through the Strategic Investments Program, especially those organizations that sponsor festivals and other cultural events for local artists in our communities.
Finally, the department leads in the effort to achieve a third Tamapta Action Plan priority, “Support community-based, sustainable economies.”
The department, as I have mentioned, has increased the funding for the development of small business in our communities through enhancements to the Business Development Centres Program.
Both the Small Business Support Program and the Strategic Investments Program also provide direct financial support to community-based businesses and organizations.
The department currently supports from within its operating budget the work of regional socio-economic monitoring committees, which bring together community representatives with representatives from the mining companies, governments, and Inuit organizations to discuss the effects of major development projects and to find ways to ensure there is growing local participation in the benefits of these projects.
The continuing implementation of our sector strategies and in particular, Parnautit: the Nunavut Exploration Mining Strategy will help strengthen community economies.
The department’s support of the ongoing work of the Nunavut Broadband Development Corporation to ensure Internet access is improving and available to all Nunavummiut, helps community-based business to access the information it needs, and to identify and reach new business partners and markets.
As we all aware, the continuing development of our community economies depends above all on the maintenance and improvement of a safe and efficient transportation system and community transportation infrastructure.
Work in 2010-11 in this area includes a number projects.
While some of these are capital projects, they are worth noting here because the planning and management of these projects is performed by departmental staff and as a result, has implications for the department’s operations and maintenance budget.
These transportation projects include:
Completion, with Transport Canada, of a study on the marine transportation needs of the territory, including the feasibility of regional ports.
Development of a detailed engineering design for the proposed Iqaluit Marine Facility.
Initiate the engineering design work for the Cambridge Bay Airport improvements.
Completion of design, site selection, and engineering of a new air terminal building for the Iqaluit International Airport.
Implementing a safety management system at all airports in Nunavut in accordance with Transport Canada regulations.
A review of the airport operating funding formula and improvements in communications with communities to help ensure the funding process for each community airport is equitable and meets individual community needs.
Since taking on this portfolio, it has become apparent to me that the lack of transportation infrastructure is a serious impediment to economic development in Nunavut, and I will continue to work with my department, my cabinet colleagues, Members of the Legislative Assembly, and other levels of government to ensure that Nunavut’s transportation needs are recognized as a priority.
The department has a very ambitious agenda for 2010-11, Mr. Chairman, one that now reflects the Tamapta Action Plan priorities and sets the course for improvements that will be made over the next three years.
While our budget is limited, I am confident that with effective planning, the department can make good progress this year on the achievement of its priorities.
Mr. Chairman, I welcome comments and questions from committee members on the 2010-11 Main Estimates and Business Plan for the Department of Economic Development and Transportation.
Chairman (interpretation): Thank you, Minister Taptuna. I want to remind you that in the previous year, I stated that we were reviewing operations and maintenance budget estimates, not the capital estimates.
Whenever you mention capital estimates, it just opens the door to misunderstanding and the members tend to go off on a tangent.
This is just a friendly reminder to you so that you don’t make the same titling error when referencing the budget estimates as the House deals with capital items in the fall session.
Before we begin, Minister Taptuna, would you like to have witnesses brought to the table?
Chairman (interpretation): Sergeant-at-Arms, please escort the witnesses in so that they can be introduced.
My colleagues, do you agree to allow the minister to have his officials accompany him?
Chairman (interpretation): The witnesses have been escorted in and are at the table.
Minister Taptuna, if you would please introduce your witnesses.
On my left is Gordon MacKay, Assistant Deputy Minister of Economics and on my right is Deputy Minister Bob Long.
The Chairman of the Standing Committee on Community and Economic Development, Mr. Rumbolt, you may now proceed with your opening comments.
I welcome the minister and his staff to our committee meeting.
I am pleased to provide opening comments on behalf of the Standing Committee on Community and Economic Development on its review of the 2010-11 main estimates and 2010-13 business plan for the Department of Economic Development and Transportation.
The standing committee notes that the department’s proposed 2010-11 operations and maintenance budget of $53,284,000 has decreased by approximately 1.43 percent since the introduction of the department’s 2009-2010 main estimates.
This decrease is due in part to the end of the funding which was allocated towards the government’s involvement in the 2010 Vancouver Winter Olympic Games.
The number of positions in the department is 130.
This is an increase of 24.5 PYs from its 2004-05 business plan.
Mr. Chairman, the department’s 2010-13 business plan indicates that one of its priorities is to “Establish the Anti-Poverty Secretariat to develop a Poverty Reduction Strategy that addresses priorities as outlined in the Tamapta Action Plan.”
The department’s proposed 2010-11 main estimates has allocated $500,000 towards this initiative.
During the minister’s recent appearance before the standing committee, members questioned why the department plans to hire only one PY for this secretariat.
While the standing committee supports measures to address poverty in Nunavut, members encourage the minister to look into alternate ways of drafting a strategy without an overreliance on the use of outside consultants.
The standing committee looks forward to ongoing updates on the status of this issue.
Members are aware that the current government, through its Public Agencies Council, is undertaking a new approach to this exercise and looks forward to the timely tabling in the Legislative Assembly of priority-setting items directed to these Crown agencies.
The standing committee strongly recommends that information concerning these Crown corporations’ activities also be tabled in the Legislative Assembly on an annual basis.
The standing committee also notes with disappointment that neither the Nunavut Business Credit Corporation nor the Nunavut Development Corporation have provided business plans to the standing committee for its review since 2008-09.
Members strongly encourage the minister to provide these for the standing committee’s next annual review.
The standing committee also urges the minister to table the 2009-2010 and 2010-13 business plans for the Nunavut Development Corporation and the Nunavut Business Credit Corporation in the House at the earliest opportunity.
Mr. Chairman, the standing committee also notes that the Nunavut Development Corporation is required by law to “create employment and income for residents of Nunavut, primarily in small communities.”
The standing committee encourages the minister to look into increasing the economic opportunities for Nunavut’s smaller communities and looks forward to ongoing updates on this issue.
The department’s 2009-2010 main estimates included $167,000 in funding for a new subsidiary investment for the Nunavut Development Corporation.
During the minister’s recent appearance before the standing committee, members asked questions on how this funding was spent and questioned why the proposed 2010-11 main estimates does not include funding for a new subsidiary investment.
The minister committed to providing this information to the standing committee.
The standing committee encourages the minister to provide this to the members at the earliest opportunity.
Mr. Chairman, the department’s proposed 2010-11 main estimates include $20,044,000 in grants and contributions expenditures.
In 2009-2010, the department’s actual spending on grants and contributions was $20,300,000.
During the minister’s appearance before the standing committee, members questioned how the department measures and evaluates the results of its grants and contributions expenditures.
Members were informed that the department uses community and business feedback to measure and evaluate these expenditures.
The standing committee recommends that the minister provide detailed information to the House on exactly how the department measures and evaluates its grants and contributions expenditures.
The department’s 2010-13 business plan provides updates regarding its 2009-2010 goals, which included developing a new Film, Television and New Media Development Program policy, reviewing and revising the Strategic Investments Program, and reviewing and revising the Policy on Program Partnerships.
Mr. Chairman, the department’s 2009-2010 business plan indicated that one of its priorities was to undertake the second five-year comprehensive review of the NNI Policy in cooperation with Nunavut Tunngavik Incorporated.
During the minister’s recent appearance before the standing committee, members were informed that the department’s review of the NNI Policy is expected to be completed by March 31, 2010.
The standing committee looks forward to the results of this review and urges the minister to table the annual reports of the Contracting Appeals Board in a timely manner.
Last year, the new federal Northern Economic Development Agency established its headquarters in Iqaluit.
During the minister’s appearance before the standing committee, members asked questions on the status of the relationship between this new federal agency and the department with respect to how they are working together for the benefit of Nunavut’s economy.
The standing committee was pleased to hear that CanNor and ED&T are in regular contact and have begun distributing funds throughout Nunavut.
Members look forward to the minister providing regular updates on this collaboration to the Legislative Assembly.
The department’s proposed 2010-11 main estimates include $1,050,000 in funding for Nunavut’s three business development centres.
The department’s 2010-13 business plan states that “A working group, consisting of Business Development Centre and departmental staff has prepared an implementation plan and begun work on specific action items.”
Mr. Chairman, members were pleased with the recent announcement that the First Nations Bank of Canada will be opening a branch in Iqaluit and is expected to be operational in April of this year.
During the minister’s appearance before the standing committee, members asked a question on the issue of the department’s plan to “Assess and correct gaps and inconsistencies in legislation and policies for the support of social enterprises including the Cooperative Associations Act, the Credit Unions Act, and Community Development Corporations.”
The minister committed to providing an update to the standing committee on this issue.
The standing committee encourages the minister to provide an update on this issue at the earliest opportunity.
The release indicated that “the principles will serve as a framework for the development of a uranium development and mining management plan for the Government of Nunavut.”
During the minister’s appearance before the standing committee, members requested an update on the status of the government’s development of this plan.
It was unclear from the minister’s response exactly what progress the GN has made in developing a plan.
The standing committee strongly urges the minister to update the Legislative Assembly and Nunavummiut on developments in this area at the earliest opportunity.
The department’s proposed main estimates for 2010-11 include $2,175,000 in grants and contributions funding for tourism development, including funding for Nunavut Tourism.
The department’s 2010-13 business plan indicates “A steering committee… has completed a tourism industry assessment, conducted a review of current legislation, and developed a preliminary framework for a new tourism strategy.”
The department’s 2010-13 business plan indicates that the Nunavut Tourism Strategy will be completed by March 31, 2010.
The standing committee looks forward to the tabling of an updated Nunavut Tourism Strategy.
The standing committee was pleased by the minister’s tabling of the Nunavut Transportation Strategy on June 5, 2009 in the Legislative Assembly and looks forward to the ongoing updates on its implementation of the strategy.
The department’s 2010-13 business plan also indicates that one of its priorities is to continue work in relation to a number of significant megaprojects, including the Bathurst Inlet Port and Road, the Iqaluit Marine Facility, and the Nunavut-Manitoba Road.
The department’s 2010-13 business plan also indicates that it will continue to work on having the recommendations on the Nunavut Small Craft Harbours Report implemented.
The standing committee looks forward to ongoing updates from the minister on these important initiatives.
Mr. Chairman, that concludes my opening comments on the 2010-11 main estimates and 2010-13 business plan of the Department of Economic Development and Transportation.
Are there any general comments before we go to the page-by-page review?
Mr. Arvaluk: Thank you, Mr. Chairman. (interpretation) I am a little confused looking at the main estimates.
I realize that in the minister’s opening comments, they plan to conduct a departmental review for 2010-11 main estimates and business plan, but they are not talking about the capital plan per se.
Perhaps this will happen later on.
On page 4 of the opening comments, in the third paragraph, it speaks to matters pertaining to access roads.
It says in the opening comments that there is $500,000 in the budget put aside for the construction of new community access roads, but I don’t see the budget item in the main estimates.
I don’t need an immediate reply for this, mind you, but the major contents of the minister’s opening comments must be reflected in the main estimates which we are now reviewing. If we are going to talk about his opening comments, we will inevitably deal with capital items.
So I want to ask, Mr. Chairman, with your permission: why has this budget item of $500,000 remained the same since before you were born? The department already knows that this budgeted item is always insufficient.
We have made various attempts in the past at applying for these funds, but we have been told that funding that year was insufficient.
I would like to know if this has changed.