FIRST REPORT OF THE STANDING COMMITTEE ON CROWN CORPORATIONS Second Session Fifty-fifth Legislative Assembly of the Province of New Brunswick May 5, 2005 MEMBERS OF THE COMMITTEE Mr. Stiles, Chair Mr. Holder, Vice-Chair Mr. Betts Mr. Carr Mr. MacDonald Mr. Malley Mr. Sherwood Mr. Arseneault Mr. V. Boudreau Mr. Doucet Mr. MacIntyre Ms. Weir

May 5, 2005 To The Honourable The Legislative Assembly of The Province of New Brunswick Mr. Speaker: Your Standing Committee on Crown Corporations begs leave to submit this, their First Report. Pursuant to Standing Rule 99, the Clerk convened a meeting of the Committee on Wednesday August 6, 2003, and presided over the election of a Chair and Vice Chair. On motion of Mr. Allaby, seconded by Mr. D oucet, Mr. Stiles was elected Chair of the Committee. On motion of Mr. Sherwood, seconded by Mr. Betts, Mr. Holder was elected Vice-Chair.

On September 23, 2003, the Committee held an in camera working session with the Office of the Auditor General. The Auditor General , Daryl Wilson, and senior staff briefed Members on various topics of interest to the Committee, including accountability and the Office of the Auditor General, the government’s annual report policy, and how to effectively review and make use of annual reports. The Committee met in the Legislative Council Chamber on September 24, 25 and 26, 2003 to review the activities and financial stat ements of various Crown corporations and agencies for the year ending March 31, 2002.

Officials of the following Crown corporations and agencies appeared before the Committee: Algonquin Properties Limited (year ending Dec. 31, 2002) Kings Landing Corporation New Brunswick Forest Products Commission New Brunswick Liquor Corporation New Brunswick Municipal Finance Corporation Regional Development Corporation

2 On September 30 and October 1, 2003, your Committee met in the Legislative Council Chamber to review the activities and expenditures of New Brunswick Power Corporation and NB Coal Limited, for the fiscal years ending March 31, 2002 and March 31, 2003. Senior management officials appeared before the Committee and answered questions for the years under review. The Committee met on October 2 and 3, 2003, to continue its review of Crown corporations and agencies for the year ending March 31, 2002. Officials of the following Crown corporations and agencies appeared before the Committee: Provincial Holdings Ltd.

Service New Brunswick Workplace Health Safety and Compensation Commission of New Brunswick (Dec. 31, 2002) On December 9, 2003, the Committee met in a joint session with the Standing Committee on Public Accounts to receive and review the Report of the Auditor General of New Brunswick Volume I, 2003. The Auditor General briefed Committee members on the nature of the work undertaken during the year and on the contents and findings of the Report.

Your Committee met in the Legislative Council Chamber on February 3, 4, 5, 10, 12 and March 16 and 17, 2004, to review the activities and financial statements of various Crown corporations and agencies for the year(

s) ending March 31, 2003.

Officials of the following Crown corporations and agencies appeared before the Committee: Acadia-Bathurst Health Authority Atlantic Health Sciences Corporation Beauséjour Regional Health Authority Miramichi Regional Health Authority Regional Health Authority 4 Restigouche Health Authority River Valley Health South-East Regional Health Authority Atlantic Lottery Corporation Lotteries Commission of New Brunswick New Brunswick Board of Commissioners of Public Utilities New Brunswick Investment Management Corporation In March, 2004, four days of hearings were held to review issues surrounding the agreement with Venezuela to secure a suppl y of Orimulsion at the Coleson Cove Generating Station in Saint John.

The Committee met on Thursday, Friday and Saturday, March 25, 26 and 27, 2004 in the Legislative Assembly Chamber and on Monday, March 29, 2004 in the Legislative Council Chamber. The following individuals appeared before the Committee and answered questions:

3 - David D.

Hay, President and Chief Executive Officer, NB Power - Stewart MacPherson, Former President and Chief Executive Officer, NB Power - Leon Furlong, Chairman, NB Power - John Mallory, Deputy Minister, Department of Finance - Bill Marshall, Director of Strategic Planning, NB Power - Sharon MacFarlane, Vice President, Finance and Information Systems, NB Power - Jim Brogan, Vice President, Generation, NB Power - David Reid, Senior Advisor, Contract Development, NB Power - Ian Blue, Q.C., (Cassels Brock, Toronto), Solicitor for NB Power - Don Barnett, Former Assistant Deputy Mini ster, Department of Natural Resources and Energy - W.

David Ferguson, Deputy Minister, Department of Natural Resources - David C. Nicholson, Chairman, NB Board of Commissioners of Public Utilities - William M. Thompson, Deputy Minister, Department of Energy The Committee met in camera on Tuesday, April 13, 2004, with respect to the recently completed hearings on Orimulsion. The Committee agreed to retain research staff to review the transcripts and prepare a

summary of the proceedings. The Committee met in the Legislative Counc il Chamber on October 13, 22, 27, 28, November 2, 3, 4, and 5, 2004, to continue its review of the activities and financial statements of various Crown corporations and agencies. The following Crown corporations and agencies were reviewed to the end of the 2003 fiscal year.

Algonquin Properties Limited (Dec. 31, 2003) Kings Landing Corporation New Brunswick Credit Union Deposit Corporation (Dec. 31, 2003) New Brunswick Crop Insurance Commission New Brunswick Forest Products Commission New Brunswick Municipal Finance Corporation Provincial Holdings Ltd. Regional Development Corporation Workplace Health, Safety and Compensat ion Commission of New Brunswick (Dec. 31, 2003) The following Crown corporations and agencies were reviewed to the end of the 2004 fiscal year.

Atlantic Lottery Corporation Forest Protection Limited New Brunswick Farm Products Commission New Brunswick Highway Corporation New Brunswick Liquor Corporation

4 New Brunswick Museum New Brunswick Research and Productivity Council Staff of the Office of the Auditor General appeared on November 5, 2004, and provided a briefing on

Chapter 6 of the Report of the Auditor General of New Brunswick, Volume 1, 2003, entitled Crown Agency Governance. The Committee met on November 10, 2004, to receive the Analyses of Orimulsion Hearing Transcripts, prepared by AJM Consulting Inc., a co py of which is attached hereto as Appendix “A”. On motion of Mr. Carr, seconded by Mr. Sherwood, the Committee accepted the

summary prepared by AJM Consulting Inc. and received the Dissenting Report by the Opposition, a copy of which is attached hereto as Appendix “B”. On December 14, 2004, the Committee met in a joint session with the Standing Committee on Public Accounts to receive and review the Report of the Auditor General of New Brunswick Volume 2, 2004. The Auditor General, Daryl Wilson, and senior staff provided a briefing on the report and answered questions posed by Committee members.

Your Committee wishes to thank the officials of the various Regional Health Authorities, Crown corporations and agencies that appeared before the Committee. Your Committee also wishes to thank the Auditor General and staff for the assistance provided. And your Committee begs leave to make a further report. Wally Stiles, MLA Chairperson