Thank you, Mr. Chairman. The department is proposing capital estimates of $38.276 million for 1993-94. This is an increase of five per cent over the 1992-93 allocation. We continue to place priority on building new water and sanitation infrastructure and improvements to existing infrastructure in the interests of the good public and environmental health. This amounts to about 34 per cent or $13.163 million of our proposed capital estimates. Another 18 per cent or $7.027 million is proposed for the construction of the community recreation facilities. Our government continues to see the great social value of good recreation infrastructures in the communities. These facilities provide a focal point for community participation in sports, games and community events. All of these are vital for a strong sense of community and personal well-being. A further six per cent or $2.402 million is proposed for the provision of the mobile equipment for road maintenance, public health and fire protection. We continue to emphasize the funding of retrofits for mobile equipment. This approach is cost-effective in maintaining equipment usefulness while developing the capability of municipal works staff to repair it through hands-on training. Funding of $1.6 million is proposed for the construction of community firehalls. Funding of $5.038 million or 14 per cent of the proposed capital estimates is identified for construction of public buildings including municipal parking garages, maintenance garages, warehouses, staff houses and community offices. For the planning, designing, upgrading or reconstruction of the community roads, a further 7 per cent or $2.668 million is identified. The Department of Government Services and Public Works frequently assists in community road projects by providing engineering and contract management services to local governments. Funding of $3.240 million or about 8.5 per cent of our proposed capital estimates is identified for land development.

The department will be undertaking approximately 60 such projects across the N.W.T. For community planning, mapping and legal surveys programs, funding of $1.397 million is proposed. We need to respond to community population growth and to assist local governments to replace aging capital infrastructure when necessary and possible. We also should and can respond more effectively to assist the smaller communities in obtaining a basic level of community infrastructure. The department is undertaking the development of capital and O & M assistance policies especially geared to the needs of settlements and small communities.

For communities in general, we believe the department's comprehensive capital planning process has identified, through consultation with local councils, and most urgent needs. We are continuing to make local governments aware of the opportunities available for them to play greater roles in the management and development of municipal capital projects. Their levels of authority are based on the willingness and ability of local governments to accept full, partial or limited authority for those capital projects. Our support often involves direct capital contributions to local governments. In 1991-92, for example, approximately $11.5 million was transferred to local governments through municipal capital contributions, a good stimulus to local business and employment and greater community management. Mr. Chairman, I would now be pleased to respond to any of the questions that might arise, and further, Mr. Chairman, I would like to request that my deputy minister be in the House with us.