Good afternoon. Before I proceed with the orders of the day, I have an announcement I would like to make. Friends, today I'm making an announcement that leaves me with a sense of regret and anticipation at the same time. I will be stepping down, retiring as it were, as Speaker of the Legislative Assembly of the Northwest Territories, at the conclusion of this session. It has been a tremendous honour to have been elected as your Speaker, and a tremendous challenge to have served in this important role for over two years.

Time has flown by and now is the appropriate time for me to move on to new challenges. The hectic task of building and opening the new Legislative Assembly is now complete. A new education program, consisting of tours, videos, information kits and educational packages for all our schools will be fully in place, by April, 1994.

It is the right time for a new person to move the office of the Speaker to its next stage. The role of Speaker is evolving as rapidly as is the Legislative Assembly, itself. The operation under the control of the Speaker is increasing, in its complexity and magnitude. During the difficult era of rapid change that we will experience during the next decade, it will become increasingly important to have a fair, impartial and steady hand at the tiller of the good ship Legislative Assembly, as we navigate uncharted waters.

It is again time for me to be directly involved in the political dynamics of the day and to be able to articulate my concerns and the concerns of my constituents on the floor of the House. I have no intention of seeking a Cabinet post during the next two years. I will be more than pleased to carry out my responsibility as an ordinary Member and on committees of this House.

I thank Members for respecting my decision. I also thank them for the honour they gave me in letting me preside over the official opening of the new Legislative Assembly building. I want to thank Deputy Speaker Pudluk, the Dean of the House, for his advice and assistance during my term and the chairs of committee of the whole, Mr. Ningark and Mr. Whitford. I would like to thank Mrs. Marie-Jewell and the Ordinary Members' Committee, and Madam Premier Cournoyea and her Cabinet for the courtesy and support they've shown me.

There have been times when there have been disagreements with my decisions, but everybody has always respected and followed them. I would like to thank Members of the Management and Services Board, Mrs. Marie-Jewell, Mr. Patterson, Mr. Antoine, Mr. Nerysoo, Ms. Mike and Mr. Pollard, for the many meetings they've endured, and the tough decisions they've made, to make this a better Assembly.

I want to take this opportunity to thank David Hamilton, Clerk of the Assembly, the table officers, the secretaries that have worked with me, Sharron Morrow and Anne Todd, my assistant, Paul Jones and all of our staff, our interpreters, our Hansard staff, our pages from all over the territories, Cabinet staff, and everyone who provides support to the Assembly. I believe they provide a service, second to none in this country. I will thank many of them by name in my first Member's statement.

Finally, I would like to thank my wife Penny, for her patience and understanding and my children, Erin, Alexandria and Nicholas, for letting me give up a big office that has a TV and a shower.

---Laughter

My retirement as Speaker will be effective on the day the commissioner prorogues the Fourth Session of the 12th Assembly. Thank you all very much.

---Applause

Orders of the day. Item 2, Ministers' statements. Mr. Nerysoo.

Point of order, Mr. Speaker. I wanted to deal with a concern raised by Mr. Koe yesterday.

Point of order. Proceed please, Mr. Nerysoo.

Point Of Order

Thank you, Mr. Speaker. In considering your advice and in responding to the suggestion made by Mr. Koe, the MLA from Inuvik, that I had made allegations, otherwise known as unproven statements, that he was misleading the House when using quotes from the unedited Hansard. Mr. Speaker, I take seriously your remarks, directions and cautions to this House. Mr. Speaker, many Members have spoken in great detail and laid before this House complaints about misinterpretations or misrepresentation of Members' remarks, publicly, either through statements, public remarks, or published stories through the media.

I believe, Mr. Speaker, that your direction yesterday captured my concern. Mr. Speaker, I have risen, along with my colleagues on this side of the House and on that side, to state my concern about how quotations used or misused can lead to public impressions or release of information that does not capture the essence of the statements or remarks that are being made.

I believe that this institution is a good forum for public debate, and, as such, part of that debate requires my accountability. But it also requires the ability for me to challenge the remarks, information provided to me, or questions directed at me. Mr. Speaker, I also take seriously the role of Members and the institutions of this Legislature, including the rules adopted for addressing matters or reports with recommendations. I do not wish to create any impression that I do not want to be accountable.

In fact, Mr. Speaker, nothing could be further from the truth. Mr. Speaker, in this context, I apologize to the honourable -- and I use this word respectfully -- Member for Inuvik for suggesting that he may have misled the House. Even so, I would ask him to use all the quotations in the context they were presented and not present them in the normal media method of the so-called ten second sound bite.

Mr. Speaker, I hope that this House will accept my apology.

Thank you, Mr. Nerysoo. Item 2, Ministers' statements. Mr. Pollard.

Thank you, Mr. Speaker. Mr. Speaker, on December 1, 1993, the federal/provincial/territorial Ministers of Finance met in Halifax, Nova Scotia. The discussion centred around what can be done by governments in Canada to promote stronger growth and employment within their current fiscal constraints. The Canadian economy has not been growing as expected and jurisdictions in Canada are facing crippling deficits. There is a need, Mr. Speaker, to bolster confidence and to take government action which will promote stronger growth and job creation.

While a number of provinces were concerned that the federal government might act independently to reduce transfer payments, the foundation was laid to address financing and program issues cooperatively. A number of common objectives were identified which will require governments in Canada to make some difficult decisions. However, with some program restructuring, it is hoped that governments will be able to delivery their programs better, at less cost. Almost all provinces expressed a willingness to put all programs and financing issues on the table. At the same time, it was recognized that the basic objectives of our social programs must be preserved.

Ministers of Finance will be meeting again in early 1994, to more specifically address some federal proposals concerning the major transfers to the provinces, the reduction of overlap and duplication in some programs, monetary policy and changes to the tax system. While the Government of the Northwest Territories is not faced with the burgeoning deficit and debt problems of the provinces, we also do not have their revenue -raising capability. Our financial dependence on southern Canadian jurisdictions is enormous.

We must participate cooperatively in measures taken to limit the growth in government debt and to increase the efficiency of the public sector.

Mr. Speaker, Members are aware of the major restraint measures which were imposed by the Government of Canada on our formula financing arrangements. We will continue to press the Government of Canada to change those arrangements in ways that will help stimulate economic growth in the Northwest Territories, and make federally-imposed constraints more comparable to provinces. However, we are dependent on the federal government in extreme financial difficulty and this will continue to make funding levels uncertain.

The work done in Halifax was a beginning. We will continue to work with Canada and the provinces to develop solutions which will reduce overlap and duplication in government, preserve our social programs and make them more affordable, and to orient policies and programs to foster stronger economic growth and employment. Thank you, Mr. Speaker.

Thank you, Mr. Pollard. Item 2, Ministers' statements. Item 3, Members' statements. Mrs. Marie-Jewell.

Thank you, Mr. Speaker. I'd like to take the opportunity to thank the Minister of Transportation and the Minister of Education for their support, in assisting with the winter road from Fort Smith to Fort Chipewyan.

Mr. Speaker, last year, Members will recall that Parks Canada had a very difficult time in keeping the road open to Fort Chipewyan. However, this year the Minister of Education has allowed the heavy equipment operators program to work on opening the road from Fort Smith to Fort Chipewyan. This has been greatly appreciated by my constituents.

I'd like to thank the heavy equipment operators' instructors, who are assisting in developing the opening of the road. The senior instructor, Don Tourangeau; instructors Gordon Mercredi and Raymond Tourangeau are to be commended for their work, in addition to the students who are training.

One of my constituents, Matthew Fraser, took annual leave and donated his time to help achieve the goal for the opening of the winter road. This is greatly appreciated. Mr. Speaker, we look forward to the opening of the road in the near future.

Mr. Speaker, this initiative must not go unnoticed. Members are aware, for the past six years as a Member of this House, I have been continually seeking support for a road south. The road which I believe is the most achievable, is the road from Fort Smith through Wood Buffalo Park to Fort Vermilion. In

today's fiscal climate, I believe this is the most cost-effective method in acquiring such a goal.

Mr. Speaker, since the Arctic College heavy equipment program is currently working on the opening of the winter road, I would encourage the Minister of Transportation to request the federal and Alberta governments to allow them to work on the road south to Fort Vermilion from Fort Smith.

I know this goal is one of a reality, in fact when the Right Honourable Prime Minister was here, he indicated his support for development of a winter road to Fort Vermilion.

Mr. Speaker, today I will give notice of motion for this Assembly to express its support for the construction of a road through Wood Buffalo National Park from Fort Smith to Fort Vermilion. I encourage Members of this House to assist my constituency in making what was once a dream, a reality.

Thank you, Mr. Speaker. Once again, thank you to the Honourable Ministers of Transportation and Education, and to the Cabinet and this House for their support.

---Applause

Thank you, Mrs. Marie-Jewell. Item 3, Members' statements. Mr. Whitford.

Thank you, Mr. Whitford. Item 3, Members' statements. Mr. Gargan.

Thank you, Mr. Speaker. I rise today, in anger about the plague of our young people who find themselves caught in a situation that generally ends in disaster. I am talking, Mr. Speaker, about teen pregnancy.

Although we all see pregnant young girls in each and every one of our communities, each and every day, we have become indifferent to the pain and suffering these young girls will go through. We offer little compassion or support. These young girls experience feelings of abandonment. They are lost in a limbo land, between adult and childhood, neither group accepting them within their circle.

This anguished experience has dire consequences for these young people. Alcohol and drug abuse, as well as suicide and physical abuse and little resistance to adoption or response to adoption options, all stem from society's lack of response to this issue.

This government is doing an admirable job in addressing women's issues. Women now have rape shield laws and zero tolerance to violence policies. Advances are being made every day to assist women in taking their own place in society.

What are we doing for teens? We provide public information, safe sex campaigns, AIDs campaigns and conferences on teen sexual assaults, that is all. When it comes to teen pregnancies, it embarrasses me, Mr. Speaker, that very little is being said or done about it. Our government provides financial assistance, counselling and placement service to pregnant girls, but those are merely band-aid solutions. They do not deal with the problem of unwanted pregnancies, they are not preventative solutions. We pay lip service to our young people. We say we are encouraging our youth to develop healthy life-styles and values when, in reality, Mr. Speaker, we are not really doing anything. Thank you, Mr. Speaker.

Thank you, Mr. Gargan. Item 3, Members' statements. Mr. Todd.

Thank you, Mr. Speaker. My Speaker, it's my distinct pleasure to stand today to congratulate the Member from Pond Inlet, for Nunatsiaq, Jack Anawak, on his appointment as Parliamentary Secretary to the Minister of Indian Affairs and Northern Development.

---Applause

Mr. Speaker, the Prime Minister officially announced this appointment yesterday, through the Minister of DIAND, during

the annual general meeting of the Nunavut Tunngavik group in Rankin Inlet.

Mr. Speaker, as Parliamentary Secretary, Mr. Anawak will assist the Honourable Ron Irwin with both his parliamentary and departmental responsibilities. Mr. Speaker, I had the opportunity to meet with the Minister of Indian Affairs and Northern Development and Mr. Anawak this week, in Rankin Inlet. It was obvious, from our meetings and our private conversations, of the value that Mr. Irwin places on Mr. Anawak's opinion, particularly with regard to northern issues. I am confident that with the new responsibilities given to Mr. Anawak, the views of the Northwest Territories will be well represented with both the Minister and the Department of Indian Affairs and Northern Development. The appointment of Mr. Anawak to this influential position, as well as the appointment last month of the Honourable Ethel Blondin-Andrew as Minister of State, sends a clear message of the importance that the Prime Minister places on the north. It also signals the tremendously able representation of the Northwest Territories by both Members of this Parliament. Mr. Speaker, I know that other Members of this House will join me in congratulating Mr. Anawak in this important appointment.

---Applause

Thank you, Mr. Todd. Item 3, Members' statements. Mr. Kakfwi.

Thank you. I would like to note, since the Member's first statement, we have worked very hard on it. There's a process involved here and we are dealing with that process. We hope to report a conclusion to that process very shortly. Item 3, Members' statements. I would like to take this opportunity to recognize Chief James Ross in the public gallery. Welcome.

---Applause

Item 4, returns to oral questions. Mr. Todd.

Thank you, Mr. Speaker. I have several returns to oral questions. One was asked by Mr. Dent on November 25, with respect to the policy for vehicles in the maintenance compound.

In response to a question asked by the Member for Yellowknife Frame Lake on November 25, I wish to advise that the departmental policy is to have all vehicle keys placed inside the office at the end of daily operations.

The incident referred to by the Member, occurred when a casual employee, in a hurry to get home, inadvertently left the keys in the rental vehicle. Steps have been taken to ensure that departmental policy will be followed in the future.

I have a second return, Mr. Speaker, asked by Mr. Ng on November 30, with respect to sand and silt problems in the Coppermine River.

This is in response to questions from Mr. Ng, Member for Kitikmeot on November 30, with regard to a possible increase in Northern Transportation Company Limited's sea-lift rates to Coppermine. Senior officials at NTCL have assured the Department of Transportation that they have no intention to increase barge rates to Kitikmeot, and western Arctic communities, including Coppermine. NTCL also advised that, although there are draft restriction problems in the approaches to the sea-lift landing site, barges to Coppermine continue to be fully loaded.

The Canadian Coast Guard is responsible for ensuring safe conditions for commercial operators delivering cargo to western Arctic coast communities. In fact, the Coast Guard also owns and maintains the public wharf and landing in Coppermine. The Department of Transportation and the Canadian Coast Guard have been aware of the sand and silt problem in the Coppermine river delta for several years. Community suggestions, in 1990, to relocate the sea-lift landing to a new site located about seven kilometres west of Coppermine, have been evaluated.

Following consultations with the main sea-lift operator and the community stakeholders, department and Coast Guard officials concluded that the existing sea-lift site offered the best protection for NTCL's current operations. It is anticipated that some dredging may be required in the future to improve access for barges delivering cargo to the community landing.

As I mentioned, NTCL has no intention, I repeat, no intention of increasing barge costs to Coppermine, as a result of the sand and silt problem. The department and NTCL will continue to lobby the Coast Guard for dredging of problem areas in Coppermine, to ensure that sea-lift services to the community will not be disrupted.

I have another return to oral question asked by Mrs. Marie-Jewell on December 6, with respect to GNWT contribution toward the road in Fort Chipewyan.

In response to the Member for Thebacha's question yesterday, I can advise that the report in the Slave River Journal, of a $1 million GNWT contribution towards the cost of an all-weather road between Fort Smith and Fort McMurray, through Fort Chipewyan, is without foundation. No discussions have taken place about this matter with federal or Alberta officials.

Last one then, Mr. Speaker. This was a return to an oral question by Mr. Koe, on November 29, with respect to the report prepared on the Fort Resolution sawmill.

Further to the response to Mr. Koe, on November 29, the review of the Slave River Sawmill has been completed. In order to respond to Mr. Koe's written question 30-12(3), the history of the mill had to be reconstructed, thus the delay in responding. The information put together is the best available and is as accurate as possible. It should be noted that there are few records available for the time the mill was privately owned. Few of the original documents respecting GNWT funding are readily available. Available government records, historical reports and audited financial statements from 1975 to 1987 were used to reconstruct the financial history of the mill.

Historical Territorial Government Involvement

The territorial government got involved in the operation in Fort Resolution in the mid 1960s. All private mills in the area were closed, the local economy was stagnant and residents dependent on welfare. Economic stimulus was required. The cooperative movement was encouraged to become involved in the area and, in 1965, the Fort Resolution Cooperative Association was formed to establish a sawmill. During the 1965-66 fiscal year, the GNWT invested $35,000 in the mill. The mill, over the years, has provided many benefits to the people of Fort Resolution; training, jobs, a decrease in dependence on social assistance and an enlarging of the Fort Resolution economy.

Since 1965-66, the Government of the Northwest Territories has invested $4.2 million in the operation through contributions, grants and direct payments. In addition, the territorial government advanced $993,000 in loans, of which $529,000 has been converted to grants, written off or forgiven.

Existing records provide very little detail as to the purposes of grants and contributions. Financial statements indicate that some contributions were used to purchase fixed assets but do not give the purchase price or list the assets purchased. Fixed asset purchases were accounted for as deferred government assistance and the value was amortized at the same rate as corresponding fixed assets.

Other contributions and direct payments were provided for operating assistance and to cover off bank loans. Again, financial statements do not detail exactly how specific contributions were used.

The mill has also received funding from the federal government. Various departments and agencies have invested at least $3.3 million in the operation through grants and contributions. The mill received some loans from the federal government.

Production

Between 1965 and 1986, over 30 million board feet of lumber was produced at the mill.

Employment And Income

Employment records for the mill are sketchy, but reports done over the years provide some indication of employment levels. During the years 1965 to 1968, for example, 113 individuals worked in the mill. These were not full-time jobs, as the mill only averaged 17 person years of employment each year. People combined work in the mill with pursuing traditional life-styles. The numbers suggest that a large number of people received training that could be applied in the future. By 1986, the mill averaged 40 direct person years of employment.

Information on earnings is more complete than that on numbers of people employed. From 1975 to 1987, $3 million, 31 per cent of the operating expenditures for the period was paid to employees (salaries and benefits), most of whom were residents of Fort Resolution. These figures do not include employees of contractors. The number of contractors used by the mill for logging and hauling, between 1975 and 1987, is not known, but available information indicates that over 18 per cent of expenditures, $1.7 million, went towards these activities.

Plans To Reopen The Mill

In late 1992, the Northwest Territories Development Corporation was approached by the community of Fort Resolution to inquire about the possibility of reopening the sawmill. In January of 1993, the Development Corporation responded in the affirmative.

The Development Corporation negotiated a deal with the community. Nuni (Ye) Forest Product Ltd. would sell the mill and all the harvest permits to a Development Corporation subsidiary in exchange for preferred shares issued to Nuni (Ye) in the amount of the appraised value of the mill. Northern Forest Products Ltd., a Development Corporation majority-owned subsidiary, would manage the mill and the mill would only remain open when the price of lumber would allow for profitable operation. No subsidy is planned once the mill is up and running.

In February of 1993, the band council, Nuni (Ye) Forest Products Ltd...

(Microphone turned off)

...I have been gone for a week....

---Laughter

...and the community council all agreed to the framework proposed in the agreement. The Development Corporation board accepted the proposal on March 5, 1993.

The Development Corporation investment will be in the form of money provided for capital purchases, retirement of astounding debts -- not astounding, sorry -- outstanding debts...

---Laughter

...some might say astounding -- and one-time start up costs of $820,000 and working capital of $700,000. The Development Corporation's total proposed investment is $1.52 million. The capital purchases include the cost of repairing the existing mill, the purchase of new equipment and the acquisition of an office.

It is expected that the mill will employ about 16 community residents. Additional jobs will be created as logging of the Slave River lowlands will be carried out by Fort Resolution residents. The sawmill production is targeted at five million board feet per year. It has been estimated that there is enough wood in the Slave River lowlands to support this production pace for 20 to 25 years. It is anticipated logging activities will begin in January of 1994, with milling in February or March of 1994.

Closure Of The Mill

A number of factors lead to the demise of the mill operation. Some of the major causes of the demise of the mill were:

- from its beginning, new operations were hampered by poor equipment;

- the mill had a reputation for being unreliable and for not having a quality product, and to eradicate this reputation, sold lumber at lower than cost prices to attract the buyers;

- management fraud;

- in March of 1987, the Slave River Sawmill Ltd. entered into an agreement with the Native Economic Development Program (NEDP) for funding. The first payment was delayed because all conditions were not met resulting in the new mill not being completed until well beyond milling season, thus remaining inoperative;

- poor weather caused a delay in the 1987 to 1988 logging season, but the NEDP pressured management to move forward before further assistance would be forthcoming. The company broke its contract with the logging contractor and retained the service of another, resulting in a further delay and the logging quota for the year not being met.

Other factors contributed to the unsuccessful operation of the mill. For example, instead of selling logs for firewood to raise working capital, logs were given away to community members. Lumber was sold to a southern company. When the truck arrived, no one was hired to load the vehicle and the truck returned south empty. Thank you, Mr. Speaker. It was somewhat lengthy, but important.