Fourth Session - Fortieth Legislature of the Legislative Assembly of Manitoba Standing Committee on Public Accounts Chairperson Mr. Reg Helwer Constituency of Brandon West Vol. LXVII No. 4 - 6 p.m., Thursday, May 21, 2015 ISSN 0713-9462 MANITOBA LEGISLATIVE ASSEMBLY Fortieth Legislature Member Constituency Political Affiliation ALLAN, Nancy St. Vital NDP ALLUM, James, Hon. Fort Garry-Riverview NDP ALTEMEYER, Rob Wolseley NDP ASHTON, Steve, Hon. Thompson NDP BJORNSON, Peter Gimli NDP BLADY, Sharon, Hon. Kirkfield Park NDP BRAUN, Erna, Hon. Rossmere NDP BRIESE, Stuart Agassiz PC CALDWELL, Drew, Hon. Brandon East NDP CHIEF, Kevin, Hon. Point Douglas NDP CHOMIAK, Dave, Hon. Kildonan NDP CROTHERS, Deanne, Hon. St. James NDP CULLEN, Cliff Spruce Woods PC DEWAR, Greg, Hon. Selkirk NDP DRIEDGER, Myrna Charleswood PC EICHLER, Ralph Lakeside PC EWASKO, Wayne Lac du Bonnet PC FRIESEN, Cameron Morden-Winkler PC GAUDREAU, Dave St. Norbert NDP GERRARD, Jon, Hon. River Heights Liberal GOERTZEN, Kelvin Steinbach PC GRAYDON, Cliff Emerson PC HELWER, Reg Brandon West PC HOWARD, Jennifer Fort Rouge NDP IRVIN-ROSS, Kerri, Hon. Fort Richmond NDP JHA, Bidhu Radisson NDP KOSTYSHYN, Ron, Hon. Swan River NDP LATHLIN, Amanda The Pas NDP LEMIEUX, Ron, Hon. Dawson Trail NDP MACKINTOSH, Gord, Hon. St. Johns NDP MALOWAY, Jim Elmwood NDP MARCELINO, Flor, Hon. Logan NDP MARCELINO, Ted Tyndall Park NDP MARTIN, Shannon Morris PC MELNICK, Christine Riel NDP MITCHELSON, Bonnie River East PC NEVAKSHONOFF, Thomas, Hon. Interlake NDP OSWALD, Theresa Seine River NDP PALLISTER, Brian Fort Whyte PC PEDERSEN, Blaine Midland PC PETTERSEN, Clarence Flin Flon NDP PIWNIUK, Doyle Arthur-Virden PC REID, Daryl, Hon. Transcona NDP ROBINSON, Eric, Hon. Kewatinook NDP RONDEAU, Jim Assiniboia NDP ROWAT, Leanne Riding Mountain PC SARAN, Mohinder, Hon. The Maples NDP SCHULER, Ron St. Paul PC SELBY, Erin Southdale NDP SELINGER, Greg, Hon. St. Boniface NDP SMOOK, Dennis La Verendrye PC STEFANSON, Heather Tuxedo PC STRUTHERS, Stan Dauphin NDP SWAN, Andrew Minto NDP WIEBE, Matt Concordia NDP WIGHT, Melanie, Hon. Burrows NDP WISHART, Ian Portage la Prairie PC 49 LEGISLATIVE ASSEMBLY OF MANITOBA THE STANDING COMMITTEE ON PUBLIC ACCOUNTS Thursday, May 21, 2015 TIME – 6 p.m. Section 18–Report on the Rural Municipality of St. Clements LOCATION – Winnipeg, Manitoba Section 19–Special Audit: Rural CHAIRPERSON – Mr. Reg Helwer (Brandon Municipality of St. Laurent West) Auditor General's Report–Rural Municipality of VICE-CHAIRPERSON – Mr. Matt Wiebe St. Clements, dated June 2012 (Concordia) Auditor General's Report–Rural Municipality of ATTENDANCE – 11 QUORUM – 6 Lac du Bonnet, dated August 2013 Members of the Committee present: * * * Hon. Messrs. Dewar, Gerrard Mr. Chairperson: Good evening. Will the Standing Committee on Public Accounts please come to order. Messrs. Friesen, Graydon, Helwer, Jha, Ms. Lathlin, Messrs. Maloway, Marcelino, This meeting has been called to consider the Pedersen, Wiebe following reports: Auditor General's Report–Annual Report to the Legislature, dated January 2013, Substitutions: chapter 2–Citizen concerns–"part 4–North Portage Mr. Graydon for Mr. Schuler Development Corporation"; Auditor General's Report–Annual Report to the Legislature, dated APPEARING: March 2014, chapter 2–Citizen concerns; Auditor Mr. Norm Ricard, Acting Auditor General General's Report–Follow-Up of Previously Issued Recommendations, dated May 2014, section 1– WITNESSES: Assessment Services Branch, section 4–The Hon. Drew Caldwell, Minister of Municipal Province's management of contaminated sites and Government landfills, section 10–Special audit: Rural Mr. Fred Meier, Deputy Minister of Municipal Municipality of La Broquerie, section 18–Report on Government the Rural Municipality of St. Clements, section 19– Special audit: Rural Municipality of St. Laurent; MATTERS UNDER CONSIDERATION: Auditor General's Report–Rural Municipality of Auditor General's Report–Annual Report to the St. Clements, dated June 2012; Auditor General's Legislature, dated January 2013 Report–Rural Municipality of Lac du Bonnet, dated August 2013. Chapter 2–Citizen Concerns–"Part 4–North Portage Development Corporation" Committee Substitution Auditor General's Report–Annual Report to the Mr. Chairperson: For the committee's information, Legislature, dated March 2014 pursuant to our rule 85(2), I would like to note the following substitution for this evening's meeting: Mr. Chapter 2–Citizen Concerns Graydon for Mr. Schuler. Auditor General's Report–Follow-Up of * * * Previously Issued Recommendations, dated May 2014 Mr. Chairperson: Also, I'd like to welcome Ms. Lathlin as our new permanent PAC member. Section 1–Assessment Services Branch Section 4–The Province's Management of Prior to dealing with this evening's business, I'd Contaminated Sites and Landfills like to inform those who are new to this committee Section 10–Special Audit: Rural of the process that is undertaken with regards to Municipality of La Broquerie outstanding questions. At the end of every meeting, 50 LEGISLATIVE ASSEMBLY OF MANITOBA May 21, 2015 the research officer reviews the Hansard for any Special audit, just prior to the Rural Municipality of outstanding questions that the witness commits to St. Clements. answer–commits to provide an answer–and will draft All right, I'd like to invite the minister and a questions-pending-response document to send to deputy minister to the table. All right, welcome. the deputy minister. Upon receipt of these answers– the answers to those questions–the research officer Does the acting Auditor General wish to make then forwards the responses to every PAC member an opening statement? and to every member recorded as having attended Mr. Norm Ricard (Acting Auditor General): I that meeting. At the next PAC meeting, the Chair really don't have any opening statements on anything tables the responses for the record. here other than the chapter 2, Citizen concerns, for Therefore, I am pleased to table the responses the March 2014 report. So did you want me to do provided by the Deputy Minister of Finance to those now or when that chapter comes up? all the questions pending responses from the Mr. Chairperson: Perhaps when that chapter comes January 28th, 2015, meeting. These responses were up, so chapter 2, the one that we moved down? previously forwarded to all the members of this Okay. Thank you. committee by the research officer. Does the deputy minister wish to make an Are there any suggestions from the committee as opening statement? Mr. Meier, welcome. to how long we should sit this evening? Mr. Fred Meier (Deputy Minister of Municipal Mr. Blaine Pedersen (Midland): Mr. Chairman, I Government): Thank you, Mr. Chair. would suggest we sit until we pass or get through Mr. Chairperson: And could you introduce any these reports, whether they are passed or not. staff that you have with you, please. Mr. Chairperson: Is that the will of the committee? Mr. Meier: I'd like to introduce Laurie Davidson, an Sit until we–until the business is done? [Agreed] assistant deputy minister with the department; as Are there any suggestions as to order in which well as Ramona Mattix, another assistant deputy we should consider the reports? minister. We have a few directors as well. We have Lynne Nesbitt with us tonight; Jennifer Lloyd, who Mr. Pedersen: Well, I would suggest, if it works, is the–acting on behalf of the director of Assessment that we just go as they were presented in the agenda. Services here tonight as well; and Mike Sosiak, Hon. Drew Caldwell (Minister of Municipal another director inside of the department, so. Government): If I might, Mr. Chair, just, I'm fine Mr. Chairperson: Thank you. Please proceed. with that. The department who's here suggested that perhaps we put the second bullet point, the Citizen Mr. Meier: I'd like to start by thanking the Auditor concerns, underneath the–which is currently the third General for the recommendations and generally all of item–because there's a number of municipal issues the recommendations on the reports that we'll be and they've got them all–the municipal issues they've going through today. We have a very strong got together so that we're not going from municipal relationship with the Office of the Auditor General issues to another one and then back to municipal and worked through a number of different items again. together. So I wanted to recognize that as well. Mr. Matt Wiebe (Concordia): So I just would like So I'll start. I have opening statements on each of to concur with the sentiment of the minister and the the audits as we go, and we'll do one at a time and recommendation that he's making. You know, if that provide you with some opening statements, and as is an issue for any members of PAC, we could also for the instructions, the opening statements do relate look at the reports globally. So I think we're open to to the audits and some specific information on making that change as well, whichever is easiest for– follow-up that we've done since the audit recom- mendations were tabled as well. Mr. Chairperson: Is that acceptable to the In January of 2013, the Office of the Auditor committee? [Agreed] General's report reviewed some citizen concerns All right, they will move the second Auditor about the North Portage Development Corporation. General's Report, chapter 2, Citizen concerns, This corporation is a partnership of the Province, the underneath–if you look on your agenda, section 19, City of Winnipeg and the federal government which May 21, 2015 LEGISLATIVE ASSEMBLY OF MANITOBA 51 was created in the 1980s to redevelop the brownfield provincial government and is available for inspection site now known as The Forks. The corporation has at the office of The Forks North Portage Partnership. several subsidiaries, including The Forks Renewal * (18:10) Corporation and The Forks North Portage Parking.