You have completed your three supplementary questions, Mr. Gargan. Oral questions. Mr. Antoine.

Mahsi, Mr. Speaker. My question is for the Minister of Economic Development and Tourism. I heard that the NWT Development Corporation, which gets its funding from this Legislature, recently purchased the Patterson Sawmill out of Hay River for $1.6 million. I have been thinking about this quite a bit, and I have a few concerns about it. A lot of sawmills in the North never did make it. An example of this is Fort Resolution. The government pumped millions of dollars into it over the years. The sawmill was never successful. I wonder why the NWT Development Corporation bought this sawmill. Mahsi.

Minister of Economic Development and Tourism, Mr. Pollard.

Thank you, Mr. Speaker. Mr. Speaker, it was not a government decision, although it is my responsibility, and I take full responsibility for it. It was a decision of the board of the NWT Development Corporation. They decided that it was the last sawmill left in the Northwest Territories. It had been viable in the past and had been in existence for 18 years. Mr. Patterson had fallen victim to the price of lumber falling from $330 per thousand down to $225 per thousand board feet, the same as the rest of the lumber industry in Canada. He was unable to come to terms with Renewable Resources, at times, on his logging area which he was occupying in the Cameron Hills. He moved further toward Fort Simpson and Jean Marie River which proved very, very expensive for him to haul logs in from there. Mr. Patterson wanted to return to Cameron Hills, but he was facing bankruptcy. There were some 40 jobs throughout the year at stake. There were several hundred thousand dollars worth of purchases made in the Northwest Territories by this company. The board of directors of the NWT Development Corporation assessed it and felt that if they could bring him out of this slump, because he was debt-ridden, the possibility existed that this business could be returned to the private sector and continue to make a profit.

That is the story, Mr. Speaker. As I said, I take full responsibility for this decision. Thank you.

Supplementary, Mr. Antoine.

The cost of $1.6 million is quite a bit of money for a sawmill. I would like to know what is included in the package as far as assets, et cetera. Mahsi.

Mr. Pollard.

Mr. Speaker, the NWT Development Corporation spent public funds. I have to account to the House for that and, unfortunately, I am going to involve the private lives of the Pattersons. I think there is a misconception that Mr. and Mrs. Patterson walked away with their pockets jingling. What happened, Mr. Speaker, is that $500,000 of the money was owed to ourselves through the business loan fund; $600,000 of those dollars went into the working capital to enable them to put an inventory together; $300,000 went to the Canadian Imperial Bank of Commerce to pay the loan, and Mr. and Mrs. Patterson each received two dollars, Mr. Speaker. They gave up the loans and personal guarantees that they had put into their company. That is how the $1.4 million was disbursed, Mr. Speaker.

Oral questions. Supplementary, Mr. Antoine.

Thank you, Mr. Speaker. Now that we indirectly own the sawmill, what are we going to do with it? Thank you.

Mr. Pollard.

Mr. Speaker, the first thing we had to do was to decide whether we were in the business of sawing and planing lumber and selling it to lumber yards, or whether we were in the business of bidding on government contracts. We decided that we were going to cut the lumber, saw it and plane it, and we are presently making arrangements with the lumber yards in the Northwest Territories for them to carry our product. We are not going to compete with the private sector in that regard.

The purpose of the sawmill, obviously, will ultimately be to make money. The more volume we can put through, the better. This year, we are aiming at five million board feet. Our department is now entering into discussions with Fort Resolution to make an arrangement with them whereby they will cut one million board feet per year, rough cut it and supply it to the Patterson's sawmill in Hay River for planing. That will bring us to six million board feet. I think we can get to eight million board feet and sell into the Northwest Territories. Our intention is to supply the Northwest Territories. If we can run some into Alberta, we will do that as well, Mr. Speaker. Thank you.

Oral questions. Supplementary, Mr. Antoine.

Mahsi, Mr. Speaker. Who is presently managing this operation? Who is running Patterson Mills at this time?

Mr. Pollard.

Thank you, Mr. Speaker. Mr. Patterson has a contract with us. He also has an option to buy back part of the sawmill if he is able to. We have given him certain managerial responsibilities, but at the same time

the Development Corporation will be overseeing the whole operation. We will see how that works out, Mr. Speaker, and make some decisions along the road if it is not working out.

Oral questions. Mr. Koe.

Minister of Culture and Communications, Mr. Allooloo.

Mr. Speaker, our position in regard to assisting native communication societies throughout the NWT has not changed. We will continue to assist them in areas that we can, and also, we will continue to support them in the area of television communication, where we can.

Supplementary, Mr. Koe.

I understand that the Native Communications Society of the Western NWT has had a request in with the Minister, looking for a commitment so that they can proceed with their development plans for television. When will they receive an answer from the Minister?

Mr. Allooloo.