Thank you, Mr. Speaker. I have a return to an oral question asked by Mr. Pudluk on November 24, regarding the Nanisivik water and sewer disposal system.

The department considers Nanisivik to be the locale where mine personnel are served by the existing municipal type infrastructure, and not an organized community with a recognized level of local government.

The GNWT does not hold, and has never held, a municipal water license for Nanisivik. The only water license in existence is held by the mine and is solely for industrial use.

In June, 1974, under the terms of the primary agreement between the GNWT and Nanisivik Mines Ltd., the GNWT provided a loan to Nanisivik to develop the mine site, including water and sewer infrastructure. The loan has since been paid back in full, under the terms and conditions of a capital cost recovery agreement put in place in 1979. The government's position all along has been that responsibility for ownership, operation and maintenance on the water and sanitation rests with the mine, by virtue of the capital cost recovery agreement.

In its last meeting on July 12, 1993, it was agreed by all that Nanisivik Mines Ltd. should continue to operate and maintain the water and sewer system, and a cost-share agreement, based on the use by all customers, would be developed. The government's position continues to be that the responsibility for the ownership and operation and maintenance of the water and sanitation facilities at Nanisivik rests with the Nanisivik Mine. Therefore, the government has not undertaken any repairs to the system.

Departmental staff have contacted the mine to relay the Water Board's concerns regarding the sewage system and the need to chlorinate drinking water, and requested that repairs be undertaken at the earliest, consistent with the agreement reached with the mine on July 12, 1993. The mine has indicated that the creek into which the sewage is being discharged is still the same one into which Nanisivik Mines Ltd. has been discharging its tailings for years. The whole area has long been well-signed and posted to warn the general public to keep away, therefore, there is no immediate health hazard.

In the longer term, the principle of user-pay will be adopted by all parties applied to the water and sewer systems for Nanisivik. The GNWT, as a customer, will be responsible to the mine as the owner and operator of the system for the costs of services to the GNWT buildings. Thank you.