Thank you, Mr. Chairman. Two major issues were raised during the committee's review of the Department of Economic Development and Tourism capital forecasts. These issues are outlined below:

-The relative economic benefits associated with tourism projects; and,

-The absence of policy to guide capital expenditures for parks development.

The committee also expressed concern regarding the department's response to the previous year's recommendation on the fisheries industry.

Economic Benefits

The committee is very concerned about the absence of a strong rationale for the overall allocation of capital funding to tourism projects. It is imperative that a comprehensive economic assessment, which clearly identifies the real and potential benefits to communities, be conducted. The results of such an assessment are necessary to determine the appropriate allocation of overall capital funding to parks development and other tourism projects. In light of the $4.5 million the government plans to commit next year, this type of information will prove invaluable.

A specific example of the need for further information is provided by the Katannalik Park, near Lake Harbour on Baffin Island. The planned investment in this park, between 1992 and 1998, is $1.4 million. Katannalik is a destination park where visitors come specifically to experience its remote location and Arctic environment. The park undoubtedly contributes directly to the community's economy, in terms of employment generation and local purchasing, but adequate measures of indirect benefit to the community and region have not been quantified.

The committee would like to see the department use Katannalik Park, specifically, for a detailed forecast of economic costs and benefits associated with the parks program. As well, detailed economic benefit forecasts should also be carried out for other types of parks facilities such as Blackstone, a tourism support park; the Fort Smith Mission Historic Park, a community park; and, the Western Arctic Regional Visitors' Centre in Inuvik, a visitors' centre.

The committee recommends that the Department of Economic Development and Tourism complete a detailed forecast for direct and indirect net economic benefit expected:

-from its tourism and parks program, in general; and,

-from specific projects, in the context of the communities where the benefits are expected.

The committee further recommends that this detailed forecast be completed in sufficient time to guide the allocation of overall capital spending for the fiscal year 1995-96.

Parks Development Policy

The committee noted, and the Minister confirmed, that the Department of Economic Development and Tourism is operating without the benefit of a policy to guide its parks development program. The Minister committed, during the review, to develop a comprehensive policy. The department indicated that it would take about eight or nine months to develop and implement this policy.

Fisheries Industry

In its review of the 1993-94 capital forecasts, the committee recommended that the Department of Economic Development and Tourism develop a long-term plan for the fisheries industry in the Northwest Territories, including examining the feasibility of increasing the processing capacity of existing fish plants. The departmental response has been to initiate a comprehensive study of the industry, prior to developing a long-range plan. The committee is not satisfied with this response. Members would like to impress upon the department that a long-range plan is urgently required.

Mr. Chairman, I have one motion.