Good morning. Orders of the day. Item 2, budget address. Mr. Pollard.

Thank you, Mr. Speaker. Mr. Speaker, the capital budget is much more than the appropriation of funds to provide essential infrastructure in communities such as housing, schools, health, social services facilities, roads, airports, wharves and basic services. Equally important, Mr. Speaker, are the opportunities for training and employment and the development of northern businesses.

While it is essential to meet public infrastructure requirements in a financially responsible manner, within a reasonable time frame and in response to the priorities of communities and the Legislative Assembly, we also believe this should be done in a manner that maximizes northern business, employment and training opportunities.

Mr. Speaker, the 1994-95 capital estimates provide for an overall spending level of $180.71 million compared to $176.45 million in the last fiscal year.

Mr. Speaker, that we have not only maintained the level of capital spending, but managed to increase it slightly in this time of fiscal restraint, illustrates the priority that is placed on capital. The importance of the government's capital program to the social and economic well-being of the people of the Northwest Territories is well recognized.

In developing the capital plan there are choices and trade-offs which have to be made as funding is limited. Capital priorities must be set based on Legislative Assembly and community input.

The provision of housing remains the number one priority of the government and this must be reflected in the allocation of capital funds. However, the withdrawal of federal funding support for new social housing dramatically reduces our ability to meet housing needs, a matter which I will discuss further in a few moments.

Mr. Speaker, construction of education facilities is also a high priority. With our growing population and recent success in getting our youth back in school, there is tremendous pressure on our educational facilities. Education is a significant key to

future prosperity and we must make the investments necessary to meet our residents' education needs today.

The Honourable Richard Nerysoo has a real dilemma. The good news is that more of our young people are staying in school and the population continues to increase. Mr. Speaker, the dilemma is trying to meet the needs for more classrooms while competing with many other worthy demands on scarce resources.

Over $37 million has been allocated to the Department of Education, Culture and Employment Programs for schools, community learning centres, to begin construction of the applied arts and library building in Fort Smith and to upgrade facilities of the Arctic College Aurora Campus in Inuvik.

In Municipal and Community Affairs, the Honourable Titus Allooloo is trying to respond to basic community needs, address infrastructure requirements to meet a growing population and to replace aging facilities. Over $35 million has been allocated to the Department of Municipal and Community Affairs to address the most urgent project needs which have been identified through a comprehensive consultation process with local councils.

In Transportation, the Honourable John Todd is also making inroads in the continuing development of our transportation links consisting of roads, marine services and airports, all of which are essential to economic development. Over $37 million has been allocated to the Department of Transportation to continue the planned development of a comprehensive transportation network. This includes $4 million that is recoverable from the federal government under the Canada/Northwest Territories strategic transportation improvement agreement.

Mr. Speaker, we also want to maximize benefits from government spending to accrue to northerners. We are committed to providing training in construction occupations to people in the communities so they can benefit from the capital program; that they can earn while they learn and have a real stake in projects built in their communities.

This past summer, pilot training projects were initiated in six communities under the new construction worker training program developed under the direction of Mr. Morin and Mr. Nerysoo. Community working groups were established to plan, manage and evaluate training relative to the local industry demands for various skilled needs to carry out specific capital projects. The communities involved included: Fort Simpson, Fort Good Hope, Aklavik, Gjoa Haven, Pangnirtung and Rankin Inlet. In addition, Mr. Speaker, where funds were available within existing appropriations, approval was given to expand training opportunities to other communities. Over 70 people participated in training programs this summer.

The NWT Construction Association should be recognized for its major role in helping the Departments of Public Works and Services, Education, Culture and Employment Programs and the NWT Housing Corporation to develop this construction worker training program that provides introductory, on-the-job trades training for northerners.

Mr. Speaker, the level of participation achieved in the construction training pilot projects this past summer demonstrates that such training programs, on an ongoing basis, can put capital dollars to work putting northerners to work.

Later in this session, the Honourable Don Morin will be providing further information on this new approach and will be addressing where we go from here in the larger context of a building and learning strategy.

Mr. Speaker, the provision of training to develop a northern workforce can only be successful if there are job opportunities for the people who are trained. To make sure that this happens, we have to keep emphasizing that we are committed to doing business in the Northwest Territories, with northern businesses, using northern labour.

The business incentive policy is intended to allow northern businesses to compete with southern enterprises through the recognition of the higher costs of operating a business in the north. This business incentive can encourage new northern businesses and enable them to develop the necessary experience and business skills. Northern businesses provide northern employment, not only in the trades but in administration and management as well.

The business incentive policy is continuously being reviewed with the objective of making it more equitable and even more responsive to northern content.

Mr. Speaker, so far this year, there have been 263 new contract awards for a total value of over $46 million. Only ten of them were awarded to southern contracts for a total of $6 million. This means that 253 contracts amounting to some $40 million, or 87 per cent of the dollar value, have been awarded to northern contractors.

---Applause

Mr. Speaker, for the whole of the 1992-93 fiscal year, there were 349 new contract awards for a total value of $45 million, of which 336 contracts amounting to $39 million were awarded to northern contractors.

To provide further opportunities for emerging northern businesses, Cabinet has approved a number of negotiated contracts. This year, to date, there have been 12 negotiated contracts valued at about $8 million. For all of last year there were a total of nine negotiated contracts valued at about $7 million.

The use of negotiated contracts provides northern organizations with the opportunity to develop experience and a reputation for performance.

Although competitive tenders are not called, the northern project contractor is still required to provide full value for money.

Mr. Speaker, this approach is not without some risks. From time to time the contractor may not quite meet expectations with respect to performance and satisfactory project completion, but this, Mr. Speaker, is a learning process.

We believe the calculated risk is worth it when the benefits accrue 100 per cent to the north in terms of contractors, labour and equipment.

Mr. Speaker, an integral part of capital planning is the extensive consultation process during which communities and MLAs have the opportunity to review a five year forecast for their communities and to provide advice on preferred priorities. Changes were made to the consultative process this year, in response to suggestions from communities and MLAs for improvement.

This year communities had more time to respond, additional information was provided and communities had the option to suggest projects which were not already in the capital forecast.

There was also greater consultation between departments and with communities to plan the most effective way to meet capital needs and respond to community priorities.

Over 20 communities responded and provided well considered advice which, in many cases, resulted in changes to the initial forecast.

As examples of the consultation process, Mr. Speaker, in Fort Providence the hamlet council expressed concern about the timing of the addition and renovations to the school and an airport perimeter fencing project. The school project is now scheduled to begin in 1995-96 instead of 1996-97 and the fencing project has been advanced to 1994-95.

In addition, there will be a roads and drainage study next year and a flooring problem that was identified in the community hall is being corrected this year.

Mr. Speaker, in Whale Cove the original plan was to build a new fire hall and renovate the existing hamlet office/fire hall building to accommodate the hamlet office needs, and to acquire some lease space in the community for government offices. This past year, the community presented an alternate plan which was adopted. This involved the renovation of the old school to serve as a hamlet office and a business service centre. The fire hall was renovated and the existing hamlet office was converted into office space which will be available for lease.

Last year in Trout Lake, the proposed community assembly building, community office and the school were combined into one facility where the assembly hall could be used as an indoor play area for the children and service areas could be shared. This facility is now close to completion. Mr. Speaker, these are just some examples to illustrate that community participation in the capital planning process does result in changes and additions where it is possible. Government departments cooperate in the examination of all suggestions and respond by making adjustments to the capital plan where feasible.

The government encourages the continuing participation of communities and MLAs in the capital planning process and is committed to making it even more open and responsive. We would like to see every community and MLA provide input into the process and would welcome suggestions for making further improvements.

Mr. Speaker, when the review of the capital budget was moved to the fall session of the Legislative Assembly, it was intended to provide communities, contractors and government departments with critical lead time to gear up and prepare for next year's construction season. It gives time to maximize local employment, training and business opportunities.

This has resulted in improvement in the timing of architectural and engineering contracts, proposal calls and the tendering of construction contracts. Contractors are now being provided with information on the capital projects scheduled for construction much earlier than before.

Mr. Speaker, this trend to earlier tenders and the availability of earlier information on capital projects has been well-received by the industry.

While the change to a fall review of the capital budget is having an effect on the timing of project starts, it will take a few times through the process to gain the maximum benefit.

Mr. Speaker, there is still room for improvement. To ensure that the government's planning processes were adjusting to the new timing for capital budget approval, a review of the capital planning process was recently conducted.

A committee of deputy ministers examined the process and an external consultant facilitated the review with the involvement of all departments and representatives of the construction association and the society of architects. This review has helped us identify changes to our processes which will further improve the speed with which we tender projects once the capital budget is approved by the Legislative Assembly. That report, which is the Harbottle report, Mr. Speaker, will be provided to the Standing Committee on Finance.

Mr. Speaker, as I mentioned earlier, the provision of adequate housing is the number one priority of the government. Without adequate housing, there are inevitably health and social problems.

The recent housing survey identified the need for 3,500 housing units in the Northwest Territories. It is difficult to keep this shortfall from increasing and almost impossible to reduce it as our population continues to increase at one of the fastest rates in Canada.

In prior years, Mr. Speaker, there has been support for the provision of social housing from the federal government through the Canada Mortgage and Housing Corporation. This federal support for new social housing has effectively dried up. This leaves the Government of the Northwest Territories without the means to even maintain the current housing stock, let alone address the critical shortfall in housing units or keep pace with growth requirements.

Federal funding for new social housing has decreased from $43 million in the year 1991-92, to only $3 million this year. This means that our cost-shared program for new housing is effectively reduced from 372 housing units per year to just 14.

Mr. Speaker, this government cannot make up the funding the federal government has cut and this means the shortfall of housing will continue to get worse. In addition, reduced housing building activity will reduce the number of jobs and affect the economic activity throughout the north. Mr. Speaker, this is a real crisis for all of us.

We can only hope that the new federal government in Ottawa will be more responsive than the previous government. The federal government must recognize the gravity of the housing issue in the north and reconsider the reinstatement of some form of cost-sharing for new social housing.

Hear, hear.

---Applause

Mr. Speaker, the new Prime Minister has already been briefed on this matter and the Minister of Housing, the Honourable Don Morin, will be aggressively pursuing this issue with his federal counterparts. In the meantime, the capital estimates assume only $3 million in recoveries from the federal government, compared to actual recoveries of some $35 million in 1992-93.

Mr. Speaker, the capital budget which is ready for the review of the Legislative Assembly, is the result of a comprehensive process involving a great deal of consultation. It is recognized as more than the provision of infrastructure. It provides the opportunity for northern businesses to develop and increase economic activity.

It provides the means for training and employment for northerners and for enhancing the quality of life in communities.

The capital budget forms part of the total budget for 1994-95. The operations and maintenance budget will be coming before the House during the winter session.

Mr. Speaker, before concluding my remarks, I wish to thank the Ministers and departments for the conscientious way in which the capital estimates were developed. I also wish to acknowledge those communities which provided valuable input and insight into their needs.

Finally, I would like to compliment the Standing Committee on Finance on its review of the capital budget. The review was thorough and insightful. The committee's recommendations were taken seriously and many have been implemented. Mr. Speaker, at the appropriate time I will submit the 1994-95 capital estimates to the Legislative Assembly for its consideration. Thank you, Mr. Speaker.

Thank you, Mr. Pollard.

---Applause

Item 3, Ministers' statements. Ms. Mike.

Thank you, Ms. Mike. Item 3, Ministers' statements. Item 4, Members' statements. Mr. Koe.

(Translation) Thank you, Mr. Speaker. I would like to speak a little in my language. Mr. Speaker, I rise today to congratulate the Sahtu Dene and Metis on their successful negotiation of their comprehensive land claim agreement. (Translation ends)

Mr. Speaker, they signed a comprehensive land claim agreement with the federal government. It is expected that the Sahtu Dene and Metis Land Claim Settlement Act will be tabled in the House of Commons in the spring of 1994. This will mark the completion of the fourth comprehensive land claim in the Northwest Territories since 1984. The Sahtu, Dene and Metis join the Inuvialuit, the Gwich'in and the Tungavik Federation of Nunavut on the way of achieving their goals of self-determination.

(Translation) The land claim act will create a co-management regime for land and water, allow for negotiation of self-government framework agreements and the Sahtu Dene and Metis will receive a fair amount of land and money to give future generations the ability to shape their own future. (Translation ends)

I ask that the Government of the Northwest Territories and this Legislative Assembly give their strong support to the Dene and Metis of the Sahtu and continue to support the other claimant groups. I ask my honourable colleagues to join me in offering my congratulations to the Dene and Metis of the Sahtu on achieving this land mark agreement. It is through their courage and conviction that they created a better future for their people. The Sahtu Dene and Metis leadership have worked long and hard with determination in the face of adversity. I also wish to thank all the parties involved, especially the negotiators who, I'm sure, had the support of their respective...

Mr. Koe, your allotted time has elapsed.

Mr. Speaker, I seek unanimous consent to conclude my statement.

Are there any nays? There are no nays. Please proceed, Mr. Koe.

Mahsi. I also wish to thank all the parties involved, especially the negotiators who, I'm sure, had the support of their respective governments to settle this claim. They deserve our congratulations for their accomplishments. Mahsi.

---Applause

Thank you, Mr. Koe. Mr. Gargan. Mr. Lewis is next on the list.

(Translation) Rebecca Mike made a statement about national addiction awareness week and I want to say something about this. There is a lot of work done on alcohol and drug abuse. I would like to say something about the things Hay River and Fort Providence are trying to do for national addiction awareness week. They are meeting to talk about the effects of drug and alcohol abuse. There are also meetings being held in Kakisa. They asked me to attend one of these meetings last Tuesday. They had a picnic and I helped with that.

I am having problems with my hearing. I would like to understand what Sam is saying. There is nothing coming out from my headphones.

Mr. Sergeant-at-Arms, could you please check out the system? Is anybody else having any problem? Mr. Todd.

It is very fuzzy. Thank you.

Mr. Gargan.

Mr. Speaker, due to the amount of time, I would maybe just like to do it again in English.

Let's wait for another minute and see how they do. If they don't fix it within a minute, we'll take a short break and allow them to fix it. You should be able to give your speech in your language. Okay, why don't we try it again. Mr. Gargan, you can pick up where you left off. If it doesn't work, we'll take a break and get it fixed.

(Translation) Thank you, Mr. Speaker. I would like to repeat what I said a while ago. In Fort Providence, it must have been about three years ago that we were working on alcohol and drug abuse. People from the reserve in Hay River travelled to Ottawa and attended workshops on drug and alcohol abuse. For those reasons there are no alcohol or drugs allowed on the reserve. I think for some people, if you look ahead I guess sometimes it's hard to leave alcohol.

When I think about the young people who are abusing alcohol and drugs, there should be something there for them. There are some people who have to drink. Maybe if they only drank once or twice a month that wouldn't be as bad. Some people who drink socially, I don't think there's any problem with that. That's all I have to say.

Item 4, Members' statements. Mr. Lewis.

Thank you, Mr. Speaker. This statement, Mr. Speaker, is on behalf of all Members on this side of the House and some Members who share seats with the government.

Mr. Speaker, we continue to be concerned about the method this government uses to inform Members and the public about the plans and priorities of government. That was the basis of Members' concerns yesterday.

Mr. Pollard insisted on using the media to inform us of a major development with health billing. Mr. Allooloo completely failed to communicate with Mr. Patterson about the firing of the elected people of the town council in Iqaluit.

My statement today, Mr. Speaker, is about the Commissioner's opening address. This is the place where the government informs the Members and the public about its plans and priorities. This year all we received was a very, very brief history lesson.

The Commissioner's address was, once again, delivered by the Premier. So, the notes I made for my response to the Commissioner's address were obviously very skimpy.

Mr. Speaker, the action of the Premier, yesterday, showed disrespect for the Crown, disrespect for the office of Commissioner, disrespect for the public and disrespect for Members of this Assembly. What is the point of having a Commissioner's address? What's the point of having replies to the Commissioner's address when there's nothing to reply to? If the Premier insists on delivering her own message, we should consider changing the rules to accommodate what the Premier wants to do. Thank you.

---Applause