Mr. Speaker, I am pleased to announce that the bargaining committees for this government and the Northwest Territories Teachers' Association have signed a memorandum of agreement. Before a new collective agreement is signed, the memorandum must be accepted by the Financial Management Board and the membership of the Northwest Territories Teachers' Association.

Over the past few weeks, in this House, we have talked about the challenges facing us. I believe there are three main themes: 1) We need to reshape northern government; 2) we need to improve our financial situation as there are serious financial problems. The Minister of Finance said in his Budget Address that we could have an accumulated deficit of close to $100 million by the end of the next fiscal year; and 3) we need to maintain a stable and professional public service. This is essential. As I stated to this House on February 19, 1992, our staff's abilities, contributions, and ideas are needed.

The memorandum of agreement that was signed this morning will help us achieve each of the three goals. The teachers' association must be congratulated for the leadership role it is taking. The agreement is for two years. This will provide stability and certainty.

The economic increase is zero per cent in September 1992, and 1.8 per cent in September 1993. I believe this is fair and fiscally responsible. The agreement provides a mechanism for rewriting the collective agreement to clean up outdated and unclear language.

In conclusion, Mr. Speaker, I do not think we have ever been confronted with more serious problems in collective bargaining. I am pleased with the memorandum that was signed. It shows a balance between our commitment to fiscal responsibility and our commitment to our employees. It provides a valuable mechanism for teachers to participate in the reshaping of our education system. Again, I would like to congratulate the teachers' association on the leadership role it has taken. Thank you.