Thank you, Mr. Chairman. I am pleased to present 1992-93 Main Estimates for the Department of Government Services.

The main estimates requirement for the department is $14.581 million in O and M. An estimated $14.985 million will be generated in revenue. The proposed budget represents a nine percent decrease over the main estimates for the previous fiscal year.

The department's mandate is to provide specialist services to government departments, boards and agencies. It also makes certain products available for sale to the public, such as fuel products and liquor.

Another role of the department is to act as an advocate for communities that have problems with NorthwesTel or Canada Post. In this House, we have talked about the provisions of telephone services for currently unserved communities. The department is working with representatives of Northwestel to look for ways to speed up the development of telephone services to these communities.

The department provides centralized purchasing, warehousing, mail delivery, and transportation of goods. To improve the access by northern business a phone link to a computer now allows companies to access information on current tenders. In support of northern business, the public stores inventories in Iqaluit and Cambridge Bay are being reduced, strengthening private retail prospects in these communities.

Budget requirements in the supply services activity are driven to a large degree by the activity levels of other departments. A decrease in costs in the area of freight and mail is anticipated for 1992-93. 3.5 person years will be deleted. These are a result of reductions to other departments' activities.

Reduction in the proposed budget for systems and computer services result from reduction in the number and type of telephones. The department is implementing a program to reduce the inventory of telephone lines and specialized rental equipment in headquarters departments. Saving are expected to be about $400,000. each year.

The petroleum products division, through a revolving fund, provides heating oil, gasoline, naphtha or white gas, and aviation fuel to 45 communities not served by private sector. All fuel is delivered by local contractors who will earn about $7 million in commissions during 1992-93. The proposed budget for P.O.L. shows a decrease in the cost of the product for 1992-93.

The 1991-92 budget was based on expected high fuel costs due to the Gulf Crisis. However, these increases did not materialize and the world price of oil has stabilized at $23.00 per barrel.

The liquor revolving fund provides a varied selection of alcoholic beverages to the residents of the N.W.T., and administers the licensing, inspection and local options functions under the Liquor Act. Net revenues for the fiscal year 1992-93 are estimated at $14.935 million.

A notable change to this revolving fund is the transfer into the fund of the liquor licensing, inspections and local options functions. The previous structure for the administration of the Liquor Act, consisted of three separate units, and resulted in inefficiency and duplication of effort. As a result of the consolidation of Government Services with the Department of Public Works, headquarters administrative divisions and regional offices have been joined together.

The three liquor units are being moved to Safety and Public Services. The total reductions for this department are $1.477 million, and 10 PYs. The reduction of 10 PYs represents 7.1 percent of the department's total PYs.

This completes my opening remarks, Mr. Chairman. Thank you.