Good afternoon. Orders of the day. Item 2, Ministers' Statements. Ministers' statements. Ms. Cournoyea.

Mr. Speaker, the Hon. Stephen Kakfwi will be absent from March 11th to the 15th. Mr. Kakfwi will be attending a meeting of federal, provincial, and aboriginal representatives in Ottawa on March 12, to do a preliminary assessment of the Report of the Special Joint Committee on a Renewed Canada. The meeting will be chaired by the Hon. Joe Clark, Minister responsible for Constitutional Affairs.

Mr. Kakfwi will also be attending the sixth National Unity Conference, which will deal with first peoples and the Constitution on March 13, 14, and 15. Thank you, Mr. Speaker.

Ministers' statements. Mr. Patterson.

Mr. Speaker, I am pleased to advise this House that Bill C-35, the Miscellaneous Statute Law Amendments Act 1990, was given Royal Assent on February 28, 1992. Included in this act is an amendment to the Municipal Grants Act (Canada) which will provide the authority for Public Works Canada to pay grants in lieu of property taxes for certain federal property.

This amendment will provide partial relief to tax-based municipalities and this government on the long-standing issue of unpaid federal grants in lieu of taxes. Since 1986, the Department of Public Works Canada had suspended payment of grants in lieu of taxes on certain federal properties, pending amendment of the Municipal Grants Act.

Mr. Speaker, while the payment of grants in lieu is at the discretion of the Government of Canada, we do expect payments will be made now that the amendment is law. The Department of Municipal and Community Affairs has estimated, based on the applications submitted to Public Works Canada for grants in lieu, that the municipalities will receive a total of approximately $2.7 million. These payments will be for vacant federal lands reserved for Indian use and for federal lands and improvements reserved for other federal departments.

Unfortunately, Mr. Speaker, the federal government's opinion is that this amendment does not authorize the payment of grants in lieu of taxes on federal lands reserved for Indian use that contain improvements, and therefore they will not pay on these lands and improvements. The Government of Canada

Hon. Michael Ballantyne, Hon. Nellie Cournoyea, Mr. Dent, Mr. John Ningark, Hon. Dennis Patterson, Hon. John Pollard, Mr.

is of the opinion that these improved properties reserved for Indian use no longer fall under their management and control and therefore are not subject to the payment of federal grants in lieu. The Department of Indian Affairs and Northern Development claim that federal funding for the payment of grants in lieu was earmarked and transferred to the Government of the Northwest Territories as part of the 1969 agreement for the transfer of housing.

In the opinion of this government's legal counsel, the amendment to the Municipal Grants Act (Canada) gives the Government of Canada the authority to pay all of the outstanding grants in lieu of taxes, including those lands with improvements for which the Government of Canada has stated they will not pay.

The position of the Government of the Northwest Territories, Mr. Speaker, is that grants in lieu were clearly not part of the housing transfer agreement entered into between the Minister of Indian Affairs and Northern Development and the Commissioner of the Northwest Territories in 1969. The fact the federal government continued to make payments on these properties from 1969 to 1985 supports this view. In addition, while management responsibilities for the lands were transferred to the Government of the Northwest Territories, legal land title transfer did not occur, showing continued federal interest in the land. The fact, the federal government specifically states, in the agreement, their continued ownership of the properties. In the opinion of the Government of the Northwest Territories, this ownership indicates that the federal government continues to have a degree of management and control interest in the properties.

Mr. Speaker, we understand that Public Works Canada, western region, will be issuing cheques to the tax-based municipalities to cover grants in lieu of taxes that have been held back since 1985 pending amendment of the Municipal Grants Act. It has been estimated that Fort Simpson will receive $37,000; Fort Smith $136,000; Hay River $176,000; Inuvik, $825,00; lqaluit, $697,000; Norman Wells, $100,000; and Yellowknife, $785,000. The amounts are to cover those federal grants held back during the period 1985 to 1991, pending the approval of the amendment to the Municipal Grants Act (Canada). These amounts are estimates only, as Public Works Canada, western region, is still in the process of reviewing the assessments done on these eligible federal properties, and these amounts do not include still-disputed payments on certain federal properties or payments made in the normal manner by Public Works Canada.

While this is no doubt welcome news, Mr. Speaker, it is, unfortunately, not a total solution to this long-outstanding issue. These payments will cover only a portion of what we believe is owed to the tax-based municipalities and this government. While these payments will alleviate some of the problems that are being experienced due to the failure of the Government of Canada to meet its obligations, it will not result in municipalities getting all that is owed.

Mr. Speaker, your government fully intends to vigorously pursue this issue until the Government of Canada accepts its full responsibility to pay grants in lieu on those properties still in dispute. Thank you.

Ministers' statements. Mr. Patterson.

If I may, Mr. Speaker, today I would like to take the opportunity to pay tribute to Mr. Shorty Brown of Yellowknife and publicly express our gratitude for his outstanding efforts in conceiving, implementing, and successfully completing "Project Arctic Ice Skates."

Mr. Brown and many others began the crusade to provide every child in the Northwest Territories with a pair of hockey skates in November, 1990. At the time, Mr. Brown, who has over 45 years of personal involvement in ice hockey in the Northwest Territories, observed that over the past few years opportunities to participate have grown rapidly as ice rinks have been completed in many of our communities, but that many young people were prevented from fully using these facilities because they did not have equipment.

Through Mr. Brown's efforts, Mr. Speaker, this is no longer the case today. I am pleased to report that Shorty Brown and his many tireless volunteers have reached their goal of providing over 4800 pairs of new and used skates and more than eight tons of hockey equipment to our youth throughout the Northwest Territories.

It is this type of vision and ambition, Mr. Speaker, that makes the Northwest Territories the special place it is to live and raise a family. Volunteers like Mr. Brown serve our youth, our communities, and our Territories unselfishly and tirelessly.

Nothing short of the highest praise is due to Shorty Brown and his group of volunteers for "Project Arctic Ice Skates." Mr. Speaker, I am sure Members will join me in offering Mr. Brown, and the host of volunteers and companies who worked with him, our grateful appreciation for "Project Arctic Ice Skates." Thank you, Mr. Speaker.

--- Applause

Ministers' statements. Item 3, Members' statements. Mr. Gargan.

Thank you, Mr. Speaker. I rise today to give a statement on Our Lady of Fort Providence Catholic Church in my home constituency. As all Members are aware, the church has been shut down since the fall of 1989. Since that time, I have asked the Department of Culture and Communications to provide the funding necessary to stabilize and restore this historic property.

During the first session of this Assembly, I lobbied aggressively to have this funding made available so that the church could be open in time for the Christmas holidays. Unfortunately, I was not successful in my attempt. I would like all Members to know that the stabilization and restoration of this church remains a priority of mine. It remains of great historic and cultural significance to the people of Fort Providence.

I know that the 1992-93 capital budget contains funding of $251,000 for Our Lady of Fort Good Hope Church in Fort Good Hope. I understand that this church is recognized as a national historic property and the funding for its restoration is cost-shared with the federal government. Mr. Speaker, I have

I would ask the cabinet to develop a consistent policy that sets out the priorities and requirements for funding historic property so that the rules are known by all. In the meantime, our church at Fort Providence continues to sit empty. I will continue to lobby to ensure that this does not continue. Thank you, Mr. Speaker.

Members' statements. Mr. Todd.

Thank you, Mr. Speaker. I would like to make another statement on education and its importance in the NWT. I made a statement two weeks ago on what I see as one of the failures of our education system -- the lack of graduates. I said at the time that education, especially kindergarten to grade 12, should be one of, if not the top priority of the Legislative Assembly. Since that time the standing committee on finance, of which I am chairman, has set kindergarten to grade 12 as one of its priorities over the next four years.

Mr. Speaker, last week one of the Members on the other side of the House, who will remain anonymous, approached me about this issue. That Member stated, among other things, that I should not be so critical of the education system and the teachers in that system -- an education basher, I believe was the term used. I think some Members seem to have misunderstood what I am trying to say, so I will try to clarify it today.

First of all, I have never criticized the teachers in our system, nor would I ever. I know that in my own region, our teachers are very dedicated and hard-working. They deserve nothing but praise. However, the fact remains that there is something fundamentally wrong with the system when we cannot get our kids through kindergarten to grade 12. It is our responsibility -- Members of the Legislative Assembly, cabinet and the Minister of Education -- to ensure that this system is improved. To do this we have to pay more than lip service to the problem. We have to develop both short and long-term plans. I do not believe that this is education-bashing. On the contrary, I think it is simply being prudent.

Mr. Speaker, sometimes I am told that I wear my emotions on my sleeve. But to me, education of my children and your children is an emotional issue. It is about kids; it is about their future. It is not a philosophical issue that we sometimes debate in this House. It is a real issue. It is about developing concrete strategies to get our kids through kindergarten to grade 12 and into post-secondary studies. It is about developing leaders of tomorrow. It is about ensuring that the quality of education is the same in Pangnirtung, Rankin Inlet, Inuvik and Yellowknife. It is about ensuring that our kids can get jobs and that they have some hope for the future.

Mr. Speaker, I do not believe I am an education-basher. What I am is afraid....

Mr. Todd, your time has expired. Members' statements. Mr. Arngna'naaq.

Thank you, Mr. Speaker. Mode of transportation has traditionally been a slow process. Inuit travel by dog teams in the winter and travel with kayaks and umiaks in the summertime. Some even walk, both in the winter and during the summer. My father has told me stories of when he was a boy, how they would walk to Baker Lake from their camp to trade for tobacco and other necessities for their camp. These trips would take him a week to two weeks. When the traders first started coming north, mail had to be delivered to Churchill, Manitoba, at least in the Keewatin Region. A person would go down to Churchill by dog team, and this would take anywhere from four to six weeks, depending on weather, dogs, food, et cetera.

However, Mr. Speaker, in this day and age, not only do we have dog teams and umiaks, but we have snowmobiles, boats and motors, cars, trains, and airplanes. These modes of transportation could take us thousands of miles in a matter of hours, and what concerns me is to go to the post office and find out that something that I or my wife had ordered two weeks ago is still not in.

Mr. Speaker, Mr. Pudluk made a statement regarding this same subject during this session, and I am merely trying to make it apparent that in the East we still have some basic infrastructure problems, and this is one of them. Thank you, Mr. Speaker.

Members' statements. Mr. Pudlat.

(Translation) Thank you, Mr. Speaker. Mr. Speaker, I am going to direct my question to the Minister of Transportation in regards to a rescue boat that they need in Sanikiluaq. In Sanikiluaq, when there is an emergency, they do not have any rescue boats that would be appropriate to use during an emergency, so I would like to ask the Minister if they could put this project into the capital estimates. This is a question to the Minister of Transportation and the Minister of MACA. Thank you.

Mr. Pudlat, that was your Member's statement, and you can pose your question when we get to Item 5, oral questions. Members' statements. Item 4, returns to oral questions. Mr. Ningark.

Thank you, Mr. Speaker. I have a return to an oral question, Question O285-12(2), asked by Mr. Pudluk on March 9, 1992, on local input in study of Peary caribou. The survey of the Peary caribou in the High Arctic is being conducted by Dr. Frank Miller from the Canadian Wildlife Service. The study is part of a federal/territorial research program organized under the RENEW, recovery of nationally endangered wildlife, program. A biologist from the Department of Renewable Resources is the chairman of the Peary caribou RENEW program.

The communities are aware of this research program and know Dr. Miller, who has done research on Peary caribou in the High Arctic for many years. However, to ensure that Dr. Miller is aware of the concerns raised by Mr. Pudluk, the Department of Renewable Resources is writing a letter to Dr. Miller. The department will ask him to contact the communities before the survey is conducted to discuss their

concerns. The Department of Renewable Resources is as concerned as the residents of the High Arctic about the future of the Peary caribou. I would like to commend the communities for their conservation efforts and for their interest and support in the RENEW research program. Thank you.

I would like to recognize in the gallery today Mr. George Diveky and his grade 10 northern studies class from Sir John Franklin High School.

--- Applause

Returns to oral questions. Mr. Patterson.

Thank you, Mr. Speaker. This is a return to an oral question, Question O228-12(2), asked by Mr. Gargan on March 2, 1992, regarding contribution agreements to communities. The arrangements that this department has with municipal corporations on their quarterly operating contributions are the same as they have been for some time.

As hamlets are a separate, distinct level of public government, unconditional hamlet funding is provided to the municipal corporations on a quarterly contribution basis. This procedure allows the hamlets to anticipate their revenue on a regular basis and to more accurately project their cash flow requirements.

However, special circumstances prevail for the 1992-93 fiscal year. Because the 1992-93 main estimates will not be introduced to the Legislative Assembly until June 1992, the government will operate on an approved interim appropriation from April until July. This interim appropriation will not allow us to provide a full second quarter contribution; so payments for July through September will be paid to hamlets on a monthly basis. Thank you.

Returns to oral questions. Mr. Allooloo.

Thank you, Mr. Speaker. I have a return to oral questions, Questions 0170-12(2) and 0171-12(2), asked by Mr. Lewis and Mr. Todd on February 26, 1992, concerning students. The Department of Education is currently providing funding for two students from the Northwest Territories to attend high school in southern Canada. Both students have exceptional emotional needs. One is attending school in British Columbia, and the other is attending in Alberta. A few other students of high school age are also supported by the Department of Social Services for treatment in residential facilities in southern Canada.

The Education Act provides the general authority for the delivery of education programs and services. A directive on special needs education was developed in 1986. In 1991, the department published "Our Students, Our Future - An Educational Framework,' which provides the philosophical direction guiding all education programs and services. Respecting that philosophy, a new policy on special needs education is being drafted.

Returns to oral questions. Mr. Ningark.

Thank you, Mr. Speaker. I have a return to an oral question, Question O273-12(2), asked by Mr. Gargan on March 6, 1992 regarding optional years for Evergreen Forestry. The department has been pleased with the services provided by Evergreen Forestry during the forest fire season. I would like to assure Mr. Gargan that the Department of Renewable Resources will be contacting Evergreen Forestry to discuss arrangements for the upcoming fire season. Existing levels of service will be maintained. Thank you.

Returns to oral questions. Returns to oral questions. Item 5, oral questions. Mr. Nerysoo.

Thank you, Mr. Speaker. I would like to ask the Government Leader the following question: On February 20, 1 asked a written question regarding the tendering processes of this government. To date, I have not received a response to that particular question. I would like to ask the Government Leader what time she intends to respond to that particular question.

Madam Government Leader.

Mr. Speaker, I will ensure that the honourable Member has a response on Friday morning.

Oral questions. Mr. Dent.

The Member is asking not for his opinion but the government's position through the Minister. Mr. Pollard.

Thank you, Mr. Speaker. I have accepted Mr. Abbott's report and I have taken note of his recommendations and we will continue with the operation, taking into consideration those recommendations made by Mr. Abbott.

Supplementary, Mr. Dent.

Mr. Pollard.

Mr. Speaker, I believe the contract was signed on Monday, and I have hired Mr. Robert Ward to be our on-site director in Seville.

Supplementary, Mr. Dent.

Mr. Pollard.

Mr. Speaker, yes. Because of the distance that Seville is from Yellowknife, because of the logistics, a great deal of responsibility has been placed upon the supervisory staff at Expo. They have to be able to make those decisions on site. Any other decisions will come through my office, Mr. Speaker.

Final supplementary, Mr. Dent.

Mr. Pollard.

Mr. Speaker, that is one of the recommendations in Mr. Abbott's report. I think I am going to have to wait for Mr. Ward's assessment and also the assessment of the other supervisors on staff before I would be able to make such a decision. If we were to attempt to close our operation in the Canadian Pavilion, it would be a blow against the Northwest Territories and we would also be letting Canada down, Mr. Speaker, and I really must take those things into consideration. I will however, take into account any recommendations from the on-site staff who may wish to change some of the activities in that particular operation for the better of the NWT. But as far as making a decision and saying, "Yes, I will close it," or recommending to cabinet that we close it, I cannot say that without knowing all of the circumstances.

Oral questions. Mr. Pudlat.

(Translation) Thank you, Mr. Speaker. I began talking about this during Members' statements. I was confused on whether I should direct my question to the Minister of Municipal and Community Affairs or the Minister of Transportation. There has been a request for a big rescue

boat in Sanikiluaq, because they live out in the sea and there are big waves. When there are emergencies they cannot really fall back on anything because they do not have a big boat. I would like to ask the two Ministers about this request for Sanikiluaq. It may be through Renewable Resources. I would like to know if this could be put into the capital estimates for this year. Thank you.

Minister for Municipal and Community Affairs.

Thank you, Mr. Speaker. I am responsible for emergency measures in the NWT and I can tell the honourable Member that it is possible for a community to apply for funding for a search and rescue vessel under a Government of Canada program. My department would be very happy to assist the honourable Member and his community to find out what is required and to make the necessary application.

Oral questions. Mr. Gargan.

Thank you, Mr. Speaker. I would like to direct my question to the Minister of Safety and Public Services, and it is with regard to flood alert. I received a fax today with regard to the Hay River Reserve requesting the department to provide them with emergency radios while the ice is breaking up in that area. I understand that Fort Liard and Fort Simpson are also in the high risk area and they have been provided with radios for that. Can the Minister assist the community of the Hay River Reserve to obtain communication in the event of a flood?

Minister of Safety and Public Services, Mr. Patterson.

Mr. Speaker, the Member's request makes sense. I can inform the Member that there is a program under which an application can be made for funds to provide the reserve with the emergency radio equipment that he is describing. That program would take some time, but I would be very happy to assist the Member to help his community to make the application under that program which is called the JEPP, joint emergency preparedness program.

In the meantime, Mr. Speaker, I can assure the honourable Member that as we have done for the past number of years, the equipment can be loaned through my department to the reserve and we will hope that through the JEPP program we can arrange for permanent equipment upon application.

Oral questions. Mr. Antoine.

Thank you, Mr. Speaker. My question is to the Minister responsible for Renewable Resources. I understand that a feasibility study was carried out for the Department of Renewable Resources with the incentive for a 'tender North" decision. It has to do with the water bombers. I understand this feasibility study was to evaluate the feasibility of building bases for water bombers. Will the Minister inform the House about the status of this feasibility study? Thank you.

Minister of Renewable Resources, Mr. Ningark.

Thank you, Mr. Speaker. Yes, a study was done to determine the location for the hangar to house the firefighting aircraft equipment. According to the report Fort Smith was considered as a logical location, but this is a preliminary report and no decision has been made by my department or by cabinet. Thank you,

Supplementary, Mr. Antoine.

Thank you, Mr. Speaker. Can the Minister state whether his department is committed to the establishment of northern maintenance and storage space for air tankers which could be used during the winter months?

Mr. Ningark.

Thank you, Mr. Speaker. Because we are spending about $1.5 million to house this aircraft firefighting equipment, our goal is to see that this money stays within the Territories. Mr. Speaker, that is our goal and objective. Thank you.

Supplementary, Mr. Antoine.

Thank you, Mr. Speaker. Has any criteria been proposed by the Minister to use in evaluating potential sites, for the maintenance and storage space of water bombers? Thank you.

Mr. Ningark.

Thank you, Mr. Speaker. According to the report the potential location was based on a number of criteria. That is what we are looking at. Thank you, Mr. Speaker.

Supplementary, Mr. Antoine.

Thank you, Mr. Speaker. Can the Minister

advise the House as to when his department will be making the recommendations on the establishment of a maintenance and storage space for water bombers? Thank you.

Mr. Ningark.

Thank you, Mr. Speaker. Once I review the report with cabinet, we will be making a statement on it. Thank you.

Oral questions. Mr. Gargan.

Thank you, Mr. Speaker. I would like to direct my question to the Minister of Finance. The Minister of Municipal and Community Affairs responded to my question regarding the funding arrangement for hamlets being on a quarterly basis. Funding for the education boards is on a monthly basis. Has the Minister done any cost estimates on whether or not it is more effective doing it quarterly, or on a monthly basis? Thank you, Mr. Speaker.

Minister of Finance, Mr. Pollard.

Mr. Speaker, it is much better for the Government of the Northwest Territories, if it is done on a monthly basis. I have asked the Department of Finance, Comptroller General, to get a hold of the Auditor General for Canada, because the Auditor General did not mention specifically municipalities or hamlets when he made the report with regard to health boards and education boards. I have asked to get an opinion from the Auditor General whether they fall into the same category, because it would not seem fair to be handling one board in a particular manner and another hamlet in a different manner. It is much better, financially, for us on a monthly basis, but also I think we have to be consistent, Mr. Speaker. Thank you.

Supplementary, Mr. Gargan.

Thank you, Mr. Speaker. Mr. Speaker, I would like to ask the Minister of Finance -- I know it is a lot better to do it on a monthly basis, but cost-wise what is better? We are, as the Minister of Finance is aware, in restraint, so having it done on a monthly basis would mean that you would have to have a fair sized staff. I am just wondering whether or not, for cost saving measures, doing it on a quarterly basis would be better than doing it on a monthly basis.

Mr. Pollard.

Mr. Speaker, I asked the same question to the Department of Finance this morning, and although they did not give me any details, Mr. Speaker, they did tell me that it was more cost effective for the government overall to do it on a monthly basis. Thank you, Mr. Speaker.

Oral questions. Mr. Antoine.

Thank you, Mr. Speaker. I would like to address the Minister of Economic Development. Last Friday, in the discussion about sending the Hon. Titus Allooloo to Japan to promote Inuit art, the discussion was about that, and Mr. Pollard made a statement saying that we are talking art; he said we are not talking crafts or handicrafts in this instance. Later on in the discussion on Economic Development, he indicated that the Japanese market was targeted for true Inuit sculpture and art, and that handicrafts and crafts were targeted for Toronto, I believe.

You know, after talking to a lot of Dene people, it is like an insult, that the decision is already made by somebody on your side to market only Inuit art. We have Dene art too, birch bark, moose hair tufting. We have art, too, on our side, and if the government is going to be spending money to send a delegation to Japan, they should also include Dene art in this situation. So I want to know if this could be done; if Dene art could be included with Inuit art when you go to Japan. Thank you.

Minister of Economic Development and Tourism, Mr. Pollard

Mr. Speaker, I did not mean to insult anybody. What has happened is that the Japanese people seem to have taken great interest in Inuit people, their culture and their art, particularly in the soapstone, Mr. Speaker. Also in prints to a certain extent, and wall hangings. So when we get a person from Japan who comes to us and says, 'We are very interested in this form of art that you have in the Northwest Territories," then we are going to supply that person with the product that he or she is requesting. When the market opens up and it is there, it is our job to do everything we can to promote that particular product that the Japanese have indicated to us that they are interested in.

So it is not as if we selectively took something there and said, "Look, this is all we have got." The approach was made to us when Mr. Mulroney was there last year. I think Mr. Patterson was there as well. Amway had taken a display over there and met with great success, and we are merely following up on that success, Mr. Speaker. Thank you.

Supplementary, Mr. Antoine.

Thank you, Mr. Speaker. Like I said, we are going to be spending money sending people there, and a certain portion of the Northwest Territories are Dene. Is there a possibility to include Dene art work in this display or whatever is going to happen over there? Thank you.

Mr. Pollard.

Thank you, Mr. Speaker. Mr. Speaker, Niimi San came to Canada, purchased $70,000 worth of carvings and also a number of wall hangings, and that is the inventory that is going to Japan, that which he owns, that he is going to put on display. We are not taking things over there. He is going to be having an art exhibition. He has purchased that stuff from the co-op already, and I was asked

to attend on behalf of the Northwest Territories. I felt it would be much better if Mr. Allooloo was there, because it is an Inuit art collection that is going to be on display and for sale, and that is our part in it. We are not putting on the display ourselves. We are merely participating as representatives of the government. Thank you, Mr. Speaker.

Supplementary, Mr. Antoine.

Mr. Speaker, some of the people from here came with me to play hockey in Liard, and had an opportunity to visit the craft shop there, and you could see that the craft shop was full of art work from the Dene in that area. It is not the only community that provides art work, and there needs to be an opportunity like this, a world market, to have that type of art work exposed, and that is the opportunity I am looking for. That is what I am asking. Is there a possibility at all to have something included in there that says that we have something other than Inuit carvings in the Northwest Territories, like Dene art? Thank you.

Mr. Pollard.

Mr. Speaker, I will make sure that Niimi San is made aware of what else is available in the Northwest Territories. He has been around to all the stores. He has seen what we have available. I will reiterate that to him, Mr. Speaker. I would also remind the Member that we are sending a considerable amount of Dene art and handicrafts to Seville, and also to the store in Toronto. In Toronto, although there will be some carvings on display, that will not be the main feature. We will be looking more at Dene arts and crafts. As I say, I will make him aware of the availability and we will see what he says. Thank you, Mr. Speaker.

Mr. Todd.

My question is to the Minister of Economic Development. While I can appreciate that this is an entrepreneurial initiative in Japan, there is a cost attached to the territorial government. I wonder if the Minister can provide us with the anticipated costs of this joint marketing strategy of Inuit art in Japan.

Mr. Pollard.

Thank you, Mr. Speaker. I know that one staff member from of my department is going to travel with Mr. Allooloo. Mr. Allooloo, of course, will be going. It has not been decided yet if there will be other people. As soon as we have the itinerary worked out and the budget, I will gladly provide it to the Member. Thank you, Mr. Speaker.

Supplementary, Mr. Todd.

Thank you. Can the Minister also monitor or provide us with the projected sales on an ongoing basis? In

other words, we are paying a price to go there. What are we getting back in return? What we need to know is, what kind of anticipated sales are we expecting for this venture into the East.

Mr. Pollard.

I think there has been $70,000 spent already at Arctic Co-operatives, Mr. Speaker, so I will start out with that number. I will commit to keep the House updated on how sales are going in the Japanese market. Thank you, Mr. Speaker.

Supplementary, Mr. Todd.

Last but not least, considering that we are selling Inuit art and we understand it is prestigious to send Mr. Allooloo to Japan, would we be sending an Inuit delegate from the department, or would it be someone who is not Inuit; somebody who speaks Japanese, perhaps?

Mr. Pollard.

Mr. Speaker, we are sending our director of arts and crafts along with Mr. Allooloo. I said before that we had not completely decided on who else would go. There has been a request from the Japanese that we provide two throat singers and a drummer, and I think Mr. Allooloo is working on that at the present time. Thank you, Mr. Speaker.

Oral questions. Mr. Nerysoo.

Thank you, Mr. Speaker. If I could ask the Minister of Economic Development and Tourism if he has, in fact, requested or sought the advice of staff or any Japanese entrepreneurs that might be interested in addressing the matter of exhibiting Dene arts or crafts.

Mr. Pollard.

Mr. Speaker, we have been dealing through -- you must forgive me, I forget the gentleman's name. He is a Japanese Canadian from Toronto who resides in Canada, and he is very familiar with Canada. What we have been doing is responding to their request from us for assistance in this particular regard. As I say, when these two gentlemen were here they were taken to all of the outlets in Yellowknife, and to the museum, to see what exactly was available to them.

I might add, Mr. Speaker, it is traditional for the Japanese to exchange gifts when they come here. It is ironic that the gift that I gave to Mr. Niimi was a birchbark basket made in Liard. Thank you.

Supplementary, Mr. Nerysoo.

Mr. Speaker, again, if I could ask the honourable Member, if he has sought the advice of whether or not there could be a major Dene exhibit of arts and crafts in Japan.

Mr. Pollard.

Mr. Speaker, I hate to keep saying this, but I am responding to the Japanese who came to us and said, 'We are particularly interested in this product.' We have taken them around and shown them what else is available in the Northwest Territories. We talked about muskox, we talked about arctic char, we talked about whitefish. We talked about everything that is available in the Northwest Territories and that is as much as I can do. Did I specifically say, "Could we bring an exhibition of Dene art to Japan?" No, sir, I did not.

Supplementary, Mr. Nerysoo.

Maybe it is an indication, Mr. Speaker, of how much this Minister really cares about Dene art. I want to ask the honourable Member again: Has he even indicated to the director of arts and crafts in the department, that one of the responsibilities that he could consider is, in fact, considering whether or not Dene arts or crafts could be exhibited in -even in the Embassy of Canada in Tokyo?

Mr. Pollard.

Mr. Speaker, late last year the department and I sat down and we went over all the things that we were doing to market products in the Northwest Territories. We tried to come up with a strategy where there would be the line of least resistance, as far as sales were concerned. I have reported to this House that when the Japanese showed extreme interest in Inuit art, that is the market that we have been trying to fulfill for them. When it came down to what we were going to try and sell at Expo, then we went over that and decided it would be a range of arts and handicrafts from the Northwest Territories, including Dene arts and handicrafts. In the store in Toronto, that store will be featuring Dene arts and handicrafts. I would repeat, again: Have I approached the Embassy in Japan about displaying Dene arts and handicrafts? I have not, sir.

Oral questions. Mr. Gargan.

Thank you, Mr. Speaker. I would like to direct my question to the Minister of Finance with regard to the funding arrangements to municipalities, as opposed to the boards of education. One of the things that was in the Beatty report, Mr. Speaker, stated that most experts around the world agree a quality improvement would result from simplification, and streamlining often leads to large cost reductions. It also says that some people have trouble accepting this, especially in the Northwest Territories.

My question is, Mr. Speaker, in his response the Minister of Finance indicated that doing it on a monthly basis saves money. I just cannot accept that either; that is what I am saying. The point is that if you have 12 pay cheques you need someone to make those 12 cheques, as opposed to making four cheques. You use more paper, and you use more time to do the cheques, if we do 12 as opposed to four. I do not know what the Minister means when he says that doing it on a 12-month basis is a lot cheaper than doing it on a quarterly basis. I would think that doing it on a quarterly basis saves more money, but I stand to be corrected. I would like to ask the Minister exactly how, in his opinion, delivering 12 pay cheques, as opposed to four, is saving money.

Minister of Finance, Mr. Pollard.

Thank you, Mr. Speaker. Mr. Speaker, perhaps I did not make myself clear enough. The reason is, Mr. Speaker, that we have to borrow, at the present time, that money to give to the hamlets, or to the municipalities. We have to borrow money for three months, for that payment to them, and pay it out in one month, whereas our funding is coming monthly. So the cost is in the borrowing cost, Mr. Speaker. Thank you.

Oral questions. Mr. Lewis.