Mr. Clerk, it appears we do not have a quorum. Which Members are present?

Mr. Dent, Mrs. Marie-Jewell, Mr. Gargan, Mr. Koe, Mr. Lewis, Mr. Allooloo, Ms. Mike, Mr. Pollard, Ms. Cournoyea, Mr. Patterson, Mr. Ningark, Mr. Nerysoo, Mr. Whitford.

The chair now recognizes a quorum. Good morning. Orders of the day. Item 2, budget address. Mr. Pollard.

Thank you, Mr. Speaker. Mr. Speaker, the people absent are probably not interested in another dry speech, so you will have to excuse them.

Mr. Speaker, the 1993-94 budget being tabled today is a balanced budget. This is a significant achievement in light of the federal funding cutbacks and expenditure pressures which our government faces. This budget is balanced in another sense, its effects are distributed fairly among all sectors and all individuals. It balances the need for restraint with the need to adequately fund essential programs such as health, education and social assistance.

Mr. Speaker, this budget is also forward looking. It recognizes that decisive steps in support of economic development and job training are needed if the Government of the Northwest Territories is to reduce its economic and fiscal dependence on the rest of Canada. It includes measures which will improve economic efficiency and prepare more northern residents to fill available jobs.

Fiscal Position And Outlook

With regard to our fiscal position and outlook, Mr. Speaker, the 1993-94 budget totals $1.16 billion and achieves the government's target of eliminating the deficit in the coming fiscal year.

Mr. Speaker, when this government took office in 1991, returning to a sound fiscal position became one of the Cabinet's most urgent priorities. Faced with a deficit approaching $50 million in 1991-92, the government set as its target a $25 million deficit for 1992-93 and a balanced budget in 1993-94. It was vital to act quickly in the government's mandate. If action had not been taken this government would be facing $100 million of accumulated debt by the end of 1993-94. The government would have been forced to cut at least $10 million from badly needed programs in future years just to pay the interest on this debt.

Mr. Speaker, the 1992-93 deficit will come in close to a target at $26.8 million. The 1993-94 budget will have a small surplus of $1.3 million. Mr. Speaker, I would like to explain to the House that at the time this budget was printed that was in fact the number. Since that time there have been some adjustments with regard to the staff housing policy and that will cause us to lose another $2.1 million. So, in effect, to correct the $1.3 million surplus, Mr. Speaker, it should now read an $800,000 deficit. I am still prepared to say that the budget is essentially balanced although there are some elements of uncertainty which could affect the bottom line. These include the current hospital billings dispute with the federal government, resolution of the pay equity issue and potential unexpected expenditure requirements, such as higher social assistance costs.

Although a number of revenue measures have been required, these targets, to a large degree, have been achieved by keeping a tight rein on expenditure growth. There is virtually no expenditure growth in 1992-93 over the previous year's levels and expenditure growth in 1993-94 has been kept below inflation. The expenditure and revenue measures taken so far mean that this government is now in a better position to address future expenditure needs. However, Mr. Speaker, our accumulated surplus will be gone by the end of 1993-94. In 1988-89 the accumulated surplus was almost $70 million. Four years of federal funding cutbacks have wiped out the surplus. There is no cushion to fall back on to give us the flexibility to respond to unexpected needs. This means the government is exposed to the risks of further federal cuts or unforseen spending requirements. Mr. Speaker, we must all remain fiscally vigilant in the government if the government is to maintain a balanced budget within current funding arrangements and tax levels.

Federal-Territorial Fiscal Relations

With regard to our federal-territorial fiscal relations, Mr. Speaker, for this reason the government is still actively involved in discussions with the federal government on the formula financing agreement. The federal government has agreed to a partial review of the formula in 1993 and it is hoped that changes will be made before the agreement expires in 1995.

This government recognizes the serious fiscal challenges faced by all levels of government. However, federal expenditure reductions are having a grave effect on the north. The federal government has introduced spending cutbacks in vital areas. Canada Mortgage and Housing Corporation funding for social housing in the north has been cut. Services have been withdrawn in numerous other areas. The Government of the Northwest Territories does not have the financial resources to fill this void. The current fiscal arrangements are a disincentive to economic growth in the Northwest Territories and we are making every effort to persuade the federal government to correct this. In our opinion, it would be in the best interest of the federal government to make changes to the formula financing agreement. During his recent visit to the Northwest Territories, the federal Minister of Indian Affairs and Northern Development stated that increased self-reliance with the Northwest Territories was a key objective. Mr. Speaker, we share this objective. By acting now on the formula, the goals of both governments could be achieved earlier.

There are other aspects of the formula which need to be addressed. Funding to the Northwest Territories is linked to economic growth in southern Canada, a measure that has no relation to northern conditions. This has cost us hundreds of millions of dollars in lost revenues, proportionately more than the federal restraint measures have cost other "have-not" jurisdictions.

Mr. Speaker, Members are aware the government has been embroiled in a serious dispute with the federal government over health billings. This dispute involves a sum of $79 million, which has been billed to the federal government, for which the federal government does not recognize as being due. The origin of this dispute lies in the 1988 health transfer agreement and in the hospital contribution agreement originally signed in 1986 and renewed in 1989. The federal government interprets some parts of these agreements in a manner in which we believe is incorrect and, consequently, does not pay, to the Government of the Northwest Territories, the amounts that are due under those agreements.

Mr. Speaker, after nearly three years of unfruitful negotiations between the Department of Health and the Department of Indian Affairs and Northern Development, it was decided there was no other alternative but to seek legal redress. A statement of claim against Canada was therefore filed in the federal court of Canada in November of last year claiming the sum of $79 million. Canada filed a statement of defence in January, denying that this sum is owed. Legal procedures are continuing and the case will in all probability go to trial.

Expenditures

On the expenditure side, Mr. Speaker, the government's resolve to achieve a balanced budget, in light of declining revenue growth, meant that the increase in total spending had to be kept to a minimum. Total spending will increase by less than two per cent in 1993-94. This comes after a year when spending did not increase at all.

Achieving this result required taking a tough stand. The government has developed a large package of expenditure control and revenue measures to reach the goal of a balanced budget. However, the budget's expenditure measures will provide continued and in some cases, enhanced support where it is most needed and will increase the efficiency of government spending.

Conservation And Efficiency

Mr. Speaker, nowhere in Canada is it more important to operate efficiently and conserve resources than in the Northwest Territories. Vast distances, sparse population, extreme climate, insensitive environment all mean that conservation and efficiency must be a major consideration in setting government policy.

The public sector is both a major direct supplier and consumer, of water and sewer services and electricity and heat. Therefore, conservation by government is doubly important. This budget includes a number of initiatives to encourage all Northwest Territories residents to conserve.

Mr. Speaker, funding to government departments, boards, agencies and hamlets for utilities will be reduced by five per cent in anticipation of the consumption reductions that will flow from the development and implementation of utility conservation plans.

A 50 per cent reduction to the commercial water/sewer subsidy in hamlets and settlements will be phased in over the next three years. This will establish parody with the subsidy level of commercial users in those towns and villages where subsidy is provided.

Mr. Speaker, effective April 1, 1993, the amount paid by public housing tenants towards the cost of electricity consumption under the public housing user-pay power program will increase from $.03 to $.06 per kilowatt hour. On average this will increase the amount paid by public housing tenants by $21 per month, but a large subsidy will still be provided by the Government of the Northwest Territories. That subsidy will average approximately $200 per month or 83 per cent of the cost of utilities.

It is estimated that these conservation initiatives will save the government approximately $4 million.

Mr. Speaker, we believe we can achieve savings in our travel expenditures.

Extensive air travel is a fact of northern life. Heavy dependency on air travel carries a high price tag for the Government of the Northwest Territories. It is extremely important, therefore, that when we do travel we travel as economically as possible. Recent reviews of government-funded travel have pointed out inefficiencies and abuses of travel practices. Based on these reviews a number of improvements are reflected in this budget.

A travel management office will be established within the government to monitor government staff travel practices and patterns and recommend improvements. This office will also be responsible for negotiating volume discounts with air carriers, hotels and automobile rental agencies. However, Mr. Speaker, the travel management office will not, and I repeat not, do travel bookings. The government will continue to use travel agencies for this. The travel management office will also be responsible for improving the government's use of aircraft charters. In anticipation of the savings from travelling smarter, departmental travel budgets have been reduced this year.

Mr. Speaker, beginning in 1993-94 all medical travel will be administered by the Department of Health, including medical travel for government staff previously administered by the Department of Personnel. This will eliminate administrative duplication and inconsistencies. The Department of Health is taking steps to ensure that medical travel is done in the most economic manner appropriate to each situation.

Implementing these travel-related efficiency measures will save close to $2.5 million in 1993-94.

Supporting Essential Services

Mr. Speaker, this budget contains many tough measures to save money, raise revenue or remove inequities. The people directly affected by these actions should be assured that the increased burden they are being asked to bear is necessary and justified. The government must ensure that public money is spent where it is needed most. In this budget there are few areas where government is spending more money. However, the limited spending increases that are being proposed are necessary to support essential services.

In 1993-94, increased spending is needed to operate new public housing and to maintain new transportation and municipal infrastructure. Funding will also be needed to pay the higher costs of providing health care and ongoing policing services. Social assistance costs have risen, and more money will be needed to operate schools in the fact of higher enrolments. Maintaining these essential services will require almost $12 million more in the upcoming year.

Investing In The Future

We are prepared in the future, Mr. Speaker. Even in times of restraint, government has a responsibility to the future. The groundwork must be laid for better and more productive times. Government must invest in people to ensure that the Northwest Territories has the educated and trained work-force needed for economic progress.

Mr. Speaker, this budget includes $6 million in one-time funding to establish the Northwest Territories workers' training fund. Many residents of the Northwest Territories need upgrading and skills training to have a better chance to become employed and more self-sufficient. This fund will be available for community-sponsored employment training projects. Access to funding will be kept simple and communities will have considerable flexibility in developing the employment training projects most suitable for their needs. Further details on this fund will be provided by the Minister of Education, Culture and Employment Programs.

Mr. Speaker, a further $500,000 has been budgeted for grade extensions in the communities of Tuktoyaktuk, Rae-Edzo, Cape Dorset, Fort Good Hope, Coppermine, Cambridge Bay and Coral Harbour. Many students from small Northwest Territories communities have had to leave home to attend high school. Often this has resulted in higher drop-out rates and lower academic achievement. Although all grades cannot be offered in all communities, the government remains committed to making a high school education more accessible to Northwest Territories students.

Mr. Speaker, last June the Premier announced a number of decentralization initiatives, most of which will be implemented during 1993-94. These initiatives are designed to bring the operation of government programs closer to the clients being served, and to invest in training and employment in the recipient communities. The implementation of the announced moves is proceeding on time and communities are starting to see evidence of this. Contracts for office space and housing are being entered into, community training programs are being advertised, and communication and computer facilities are being upgraded. In 1993-94, the bulk of the one-time implementation costs will be realized and in recognition of this the supplementary reserve for 1993-94 has been increased by $5 million. Detailed requirements will be identified and presented in the 1993-94 Supplementary Appropriation, No. 1.

Taxes And Revenue

The September, 1992 budget address outlined the first phase of a two-year plan to balance the budget. Mr. Speaker, this first phase included tax increases, some of which are going to come into force this year. There are no further tax increases in this budget.

Mr. Speaker, it was, however, impossible to achieve a balanced budget for 1993-94 without some revenue measures. A number of government charges for services have been increased to more accurately reflect the costs of providing the services.

Changes To Fees And Charges

Many government fees have not been increased for some time. Ministers, therefore, reviewed the fees, licences and charges that are levied by their departments. Cabinet approved a number of changes that better reflect both the cost to the government of providing the services and the benefit received by the user. These include fees for examinations, tender documents, sale of publications, sales of maps and for other government services.

In addition, effective 1993-94, the government will recover 50 per cent of the cost of Public Utilities Board operations from utility companies. The liquor commission will also apply a surcharge to reflect the full cost of freight to the point of sale for beer, wine and spirits.

The Minister of Personnel recently announced a new staff housing strategy, designed both to ensure that staff housing is provided more equitably and to encourage home ownership and the development of private housing markets. When fully implemented, rents for staff housing will increase to the lesser of Yellowknife or local market rates and tenants will be paying for all of their utilities. A number of programs will also be made available to employees to encourage them to become home owners. The implementation of the strategy is reflected in this budget. The Minister of Personnel will be providing more details during the session.

Tax Initiatives

Mr. Speaker, several tax changes were announced in the September, 1992 Budget Address for implementation this year. The proposed one per cent payroll tax is scheduled to come into effect on July 1, 1993. The tax credit also announced in September's budget would apply to the current year.

The government chose a payroll tax over other taxes which could have raised similar amounts of revenue, in order to spread the tax burden fairly among all those who benefit from the economy. All those who work here will pay the tax regardless of their province of residence.

At present, there is a large group of individuals who earn income in the Northwest Territories, but who do not pay Northwest Territories income tax. It is estimated that there are at least 3,000 people, who earn in total about $200 million annually in the Northwest Territories, but who, for various reasons, pay income tax to another province, not to the Northwest Territories.

Because of the structure of our economy, this problem is unique to the Northwest Territories. The proposed payroll tax is specifically designed to address these special circumstances and to help ensure that all participants in the economy share in the tax burden. The employers' contribution will be to collect the tax on behalf of the government.

Another reason for the payroll tax, as with any tax, is to raise money for government programs. We estimate that in it its first full year the payroll tax would raise about $12 million.

The government will introduce an income tax credit to provide relief to Northwest Territories residents from the high cost of living. Combined with the cost of the tax credit, the payroll tax should result, on average, in a taxpayer earning $40,000 per year benefitting by a net $32, a taxpayer earning $55,000 per year approximately breaking even and a taxpayer earning $100,000 per year paying $283 more.

The Economy

Mr. Speaker, I will now speak with regard to the economy.

Non-Renewable Resources

Because of recession in most industrialized countries, Northwest Territories mining production and employment weakened in 1992 and this accounted for a soft economy. Latest data indicate that by the third quarter of 1992, lead and zinc production was up by less than one per cent, while gold and silver declined by ten per cent. For the same period, production of oil increased by 2.4 per cent while production of gas fell by 3.6 per cent.

In 1991, there were 1,856 people employed in metal mining. This number is estimated to have dropped to about 1,700 in 1992 as a result of the 1991 closure of the Colomac gold mine and of layoffs at the Lupin, Nerco and Treminco gold mines during 1992. Operations and production in Northwest Territories mining are not stable.

The Northwest Territories is the place to be in Canada for mining exploration. In 1992, it is estimated that between $50 and $60 million dollars were spent on mining exploration and the amount will likely be higher in 1993. The spending, which accompanied this intense exploration, is responsible for significant associated economic activity in industries supplying goods and services for exploration.

The bright spot in mining exploration is diamonds, but gold exploration is also on the rise. In addition to the well-publicized Lac de Gras diamond find north of Yellowknife, the Keewatin, not to be outdone, has been featured in recent announcements of diamond finds. I should tell the Assembly that when I was researching this last night, I found out there are diamonds in the Baffin region as well. The Northwest Territories could well become the first diamond producer in North America. Currently, the Government of the Northwest Territories is looking at ways to ensure that maximum benefits from processing remain in the North.

Interest in oil and gas development is also on the rise. The Inuvialuit Development Corporation, the Hay River reserve and Deh Cho communities have expressed interest in developing the rich oil and gas reserves in the vicinity of Cameron Hills. As well, the Deh Cho Tribal Council has hired consultants to examine the technical feasibility of extending the existing pipeline in order to transport additional gas reserves from Pointed Mountain.

Tentative approval has been given by the Sahtu communities for the investigation of a group seismic shoot next winter. In this instance, industry would work with the communities to gather seismic information on the area and employment and ownership terms would be worked out to ensure that maximum local benefits accrue to the communities. Further, as the Sahtu and Gwich'in land claims reach settlement, there is increased potential for oil and gas rights to be issued in these areas.

Infrastructure

The potential of the resource-rich Northwest Territories is immense. Medium to long-term strategies are being developed to improve access to resources so that they may be developed for the benefit of all residents of the Northwest Territories.

Transportation infrastructure figures heavily in the economic development initiatives of the government.

One of the richest mineral deposits in the Northwest Territories is found at Izok Lake. It is a world class ore body of lead, zinc, copper and silver. To access this wealth, the government is studying the feasibility of constructing an all-weather road from Yellowknife to a new deep-sea port on the Coronation Gulf. Construction would begin at both Coppermine and Yellowknife. The road from Coppermine to Izok Lake would make this rich base metal area south of the Coronation Gulf accessible and would accelerate mining development in that area as economic thresholds are lowered. This infrastructure would be developed in partnership with the private sector. The segment of the road from Yellowknife would pass through the Lac de Gras diamond activity area and in the vicinity of other gold ore deposits and would open up the Kitikmeot to tourism.

Such a major transportation initiative would have benefits not only for the Northwest Territories, but for all of Canada. By creating jobs for northerners and business opportunities for our northern firms, it would also provide stimulus to firms in the rest of Canada which are major suppliers to the Northwest Territories.

A consensus actively supporting this major transportation project has been reached between the federal and territorial governments and the leaders from the Dogrib and Kitikmeot communities. The basis for this consensus is that the project will be structured in such a way that the benefits will flow primarily to Northwest Territories residents and businesses. The Dogrib leaders have expressed an interest in constructing part of the road north from Yellowknife. The next step is to build on this consensus and initiate the planning process. The Premier has mandated the Minister of Transportation to take the lead on this project.

---Applause

Significant aboriginal involvement in the provision of hydro power to the north is currently the topic of negotiations between the Dogrib Treaty 11 Council and the Northwest Territories Power Corporation. These negotiations contemplate a two-phase hydro development, owned and operated by the Dogrib. Phase one would include a dam on the Snare River at Snare cascades and phase two would include a dam on the Lac La Martre River. The Northwest Territories Power Corporation would enter into a lease agreement for the operations of the facilities and use of the power. This initiative, once signed, would give the Dogrib people immediate employment opportunities and a permanent stake in the use of a renewable resource.

The employment and business opportunities created by these economic development initiatives would go far in reducing the economic and fiscal dependence of the Northwest Territories. On a recent visit to Yellowknife the Honourable Tom Siddon, federal Minister of Indian Affairs and Northern Development, made several statements supporting northern development initiatives. Continued support is certain to strengthen the partnership between the two levels of government, Northwest Territories individuals and businesses.

Developments in mining and infrastructure investment promise to create significant employment opportunities for northerners. However, the government is actively working to generate jobs in other sectors of the economy as well. Initiatives in renewable resources, construction, tourism and manufacturing will ensure that all residents of the Northwest Territories obtain the benefits from economic development.

Renewable Resources

Mr. Speaker, things are happening in the Baffin fishery. For the first time, there has been a major winter char fishery. Through funding from the Northwest Territories Development Corporation and the economic development agreement, the government is revitalizing the market for Arctic char. The development corporation is arranging for the purchase and distribution of char from communities in the Kitikmeot, Keewatin and Baffin for sale in North American and Northwest Territories markets. It is also taking steps to stimulate interest in char by wholesalers, restaurants and consumers. Combined with the continuing effort to develop inshore fisheries in Broughton Island, Igloolik, Clyde River and Pangnirtung, these initiatives will contribute to the broadening of the fisheries industry in the region.

Hay River will be the site of a pilot project for the processing of 100,000 pounds of fish in 1993-94. Local fishermen will be supplying the fish and local labour will be involved in the processing.

The muskox and caribou harvests are providing work opportunities in Kitikmeot, Keewatin and Inuvik communities. A first time ever commercial caribou hunt will result in the harvest of 400 animals in the Keewatin. The animals will be both harvested and processed locally and sold back into the Northwest Territories market.

Higher lumber prices and more community involvement bode well for the short and longer term health of the forestry industry.

Activity levels may increase with a test cut planned at Fort Liard and an interest in logging expressed in Fort Resolution and Fort Providence. A review of the Government of the Northwest Territories forest fire fighting program is also under way to identify ways to keep employment and business opportunities in the Northwest Territories.

Construction

This is the first year of the new strategy for training in construction. The Minister of Government Services and Public, in consultation with the Minister of Education, Culture and Employment Programs, and the Minister responsible for the Northwest Territories Housing Corporation, will introduce the strategy for training in construction which will forge a new relationship between communities and government, and increase employment with local construction projects. The Minister will be providing additional information later in the session.

Tourism

The government is receiving a high number of enquiries from potential tourists, which is encouraging. A contributing factor may be the new cooperative marketing program developed by Economic Development and Tourism and Northwest Territories tourism operators.

In the Baffin region, the government is providing support to the growing tourism industry. Sales of package tours bounced from $1.9 million to over $2.2 million in 1992. Interest in the region as an adventure travel destination is leading to inquiries from tour wholesalers and prospective visitors. In 1993, the Department of Economic Development and Tourism will be coordinating tours with adventure travel companies from Japan, the United States and Europe. For example, parks such as Katannilik at Lake Harbour and Kekerten at Pangnirtung are providing employment opportunities for local residents as well as customers for local businesses. Tourism in the Baffin offers excellent long-term economic development opportunities.

Mr. Speaker, planning for the Inuvik Regional Visitors' Centre is well underway. Site selection is complete. This regional centre will provide a focal point for the increasing number of visitors travelling the Dempster Highway. It will encourage visitors to travel onwards to off-highway communities such as Tuktoyaktuk, Sachs Harbour, Aklavik and Paulatuk.

Other Sectors

Manufacturing should see permanent improvement in employment and business potential. For example, northern firms now have an opportunity to get involved in the manufacturing of furniture and fibreglass tanks as a result of a decision by the Minister responsible for the Northwest Territories Housing Corporation to break down housing packages. In addition, the government is currently developing a manufacturing component of the business incentive policy to stimulate the establishment of manufacturing facilities in the Northwest Territories.

The government has increased its effort to market Northwest Territories arts and crafts. A catalogue of Northwest Territories arts and crafts was produced by a local Yellowknife company with the government's assistance. In addition, retailers are showing a greater interest in purchasing our arts and crafts. This bodes well for the individual producer as well as for the production facilities such as those in Holman Island, Baker Lake, Pangnirtung, Fort Liard and Rankin Inlet.

Land Claims

Mr. Speaker, the settlement of land claims will provide significant momentum for economic development. The investment environment in the Northwest Territories is improving as residents of the claims areas show more and more interest in actively pursuing economic development opportunities.

The Gwich'in agreement was finalized in December, 1992, including a detailed implementation plan. As well, an agreement was reached by negotiators on the main elements of the Sahtu claim in January, 1993. It is anticipated that, if ratified by the claimants this spring, this agreement will be formally signed in late summer.

The Dogrib Treaty 11 claim has been accepted by Canada and negotiations will begin soon. The Treaty 8 Dene have undertaken discussions on a framework for the negotiation of treaty land entitlements.

Finally, the ratification of the Nunavut claim has set the stage for division of the Northwest Territories in 1999.

Mr. Speaker, the settlement of these land claims will provide certainty, and certainty is essential to investment. Claimants, in addition to acquiring financial resources to participate in economic development in their claim area, are receiving control over the nature of that development. As for the Government of the Northwest Territories, it should be a facilitator, providing a liaison between corporations and claimant groups. It will also support their efforts to obtain maximum local benefit from development.

Conclusion

Mr. Speaker, before concluding I must repeat that there are risks that the 1993-94 budget targets may not be met. The outcome of the health billings dispute, of the pay equity issue and possible unforeseen and uncontrollable growth in the demand for some essential services could each cause the budget to go into a deficit position.

The balance between revenues and expenditures is fragile. It will require close monitoring. Expenditure initiatives, beyond those that are contained in this budget, should not be contemplated without identifying compensating re-allocations of resources. Departments will have to manage their budgets carefully since any additional savings may be needed to cover non-budgeted expenditures elsewhere.

There is reason to be optimistic about our financial health. However, our optimism should be cautious. Thank you, Mr. Speaker.

---Applause

Thank you, Mr. Pollard. Item 3, Ministers' statements. Item 4, Members' statements. Mr. Patterson.

Thank you, Mr. Speaker. I rise to pay tribute to a great lady who died last weekend in Iqaluit after living 107 years on Baffin Island, Leah Nutaraq.

Nutaraq was born in 1886 at Omanardjuaq, Blacklead Island in Cumberland Sound. She lived at Kekerten, other Inuit camps and in the 1950s in Pangnirtung. She moved to Iqaluit in 1962. She has had five children and five husbands, including Nukiruaq, a well known R.C.M.P. special constable.

Nutaraq lived life to the full. Here is how she was described by writer Matthew Fisher in a front-page article in the Globe & Mail, December 31, 1987, when she was 101. "Her face bore distinctive brown frost-bite scars, her eyes were red and watery, but despite these physical reminders of her age and of the 70 years she lived in snow and sod houses and tents, she was animated and loquacious. During an interview of more than five hours her arms frequently chopped the air. Her salt and pepper hair was pulled back in a jaunty braid. She wore seal skin boots and power blue checked trousers under a silvery green print dress. Ms. Nutaraq spoke insistently and with great passion, stopping only occasionally for a sip of tea or a few mouthfuls of boiled Arctic char head. Once or twice during the afternoon her legs moved smartly to demonstrate the complicated steps the whalers taught her."

Nutaraq vividly recalled the arrival of the first Europeans in whaling ships every summer when she was a toddler. She was always willing to tell these stories of the early days, of seeing the black smoke from the coal-powered whaling ships each summer, and of the stories of the great mounds of bowhead whale carcasses told by her grandmother who raised her. She told Mr. Fisher about a ship's doctor who came with the whalers and she recalled how, for the first time, they were told about God in their own language.

I will need some more time, Mr. Speaker.

Is that a statement of fact, or are you requesting more time?

I am requesting more time, Mr. Speaker.

The honourable Member is requesting unanimous consent. Are there any nays? There are no nays. Please proceed, Mr. Patterson.

This ship's doctor and preacher told Nutaraq about loving her mother and father and learning the ten commandments, she recalled. These were good teachings she said, so we started to like the idea of Christianity and left Shamanism. She recalled being terrified and running away when the first airplane arrived. In 1962 she moved from Pangnirtung to Iqaluit by Twin Otter.

In the fall in 1987, Nutaraq achieved a long-held dream and returned to her birthplace at Omanardjuaq, on the Coast Guard vessel Norman McLeod Rogers. Although she endured a ferocious storm in Davis Strait on the five-day trip from Iqaluit, she was never seasick and she was utterly thrilled by the trip. She had said she could never rest until she set foot on that place again.

What were the secrets of longevity for this much beloved Baffin resident? She advocated always being at peace with yourself and minding your own business. Never hate and never take revenge.

---Applause

I am sure we can all profit from her advice. Her advice to youth was: never lose your language and speak to your elders.

Mr. Speaker, this wonderful lady always encouraged young people to listen to elders and follow their advice. She was always willing to attend public events, such as official openings where she would often dance. Also, she was very willing to go on radio or TV to talk about her life. We are fortunate we have much evidence now of her wisdom preserved on radio and television tapes.

Nutaraq was well-known for helping elders herself when she was young. At her funeral in Iqaluit, earlier this week, a story was told about how as a child she helped a helpless old man at their camp by always bringing him food and water and looking after him. Before he died, the old man told Nutaraq that she would live a long, good life. That she did.

She is survived by one child, 13 grandchildren and 18 great-grandchildren. Mr. Speaker, this great lady is now at peace. She was much loved and we are all very much enriched by her example. Qujannamiik.

Thank you, Mr. Patterson. Item 4, members' statements. Mr. Lewis

Thank you, Mr. Speaker. For at least part of my life I was involved in trying to help people use English in a way that was absolutely clear and well communicated. Many people do not communicate in a way that is understandable and clear.

I refer today, Mr. Speaker, to an advertisement that appeared in the Globe & Mail on February 17. I will read a little bit of it just to give a hint of how bureaucrats miscommunicate. It is called "Request for Information."

"The GNWT requests submissions to address the development implementation on ongoing support of distributed financial systems. This initiative is a high-priority project for the regional hospital health boards and department of health."

This is the sentence that bothers me.

"The deliverable is a suite of financial applications suitable for distributed implementation in health care facilities through the Northwest Territories."

After reading this article, Mr. Speaker, I was confused as to what a "suite" was. I have heard of a suite of music. I have heard of a suite that goes in the living room or the bedroom, but what a suite of financial applications is, I really do not know. It bothers me that our government would allow its bureaucrats to communicate with the rest of the country believing that they were using proper language, because this is a perfect example of the misuse of language. This can do nothing but confuse those people who may be interested in helping us solve some of our problems. Thank you, Mr. Speaker.

---Applause

That was very sweet, Mr. Lewis. Item 4, members' statements. Ms. Mike.

(Translation) Thank you, Mr. Speaker. I also would like to make comments regarding Leah Nutaraq. She passed away last week in Iqaluit at 107 years. (Translation ends)

Nutaraq was known throughout the Inuit community as an elder of great wisdom. She was a source of traditional knowledge which she always used to assist people in their lives.

Nutaraq was born at Blacklet Island in Cumberland Sound at the end of the last century, approximately 1887. She was born into a traditional Inuit life-style and culture of hunting, fishing and self-reliance. In her life she witnessed many significant changes. As a young girl she saw the end of the historic Cumberland Sound whaling industry at Kerkerten. Just as important, Nutaraq experienced the beginning of the Christian religion in the eastern Arctic under Reverend Peck.

Mr. Speaker, people travelled from Pangnirtung and Broughton Island to attend the service in Iqaluit. Many people from outside Iqaluit who could not attend sent beautiful bouquets of flowers to show their respect. The service was broadcast on CBC radio to the Baffin and Keewatin, and I know that people in the Keewatin appreciated the eulogy given by Alacie Joamie.

Mr. Speaker, Nutaraq was a respected elder, a great counsellor and a person who had a very high moral standard. People were always asking for her wisdom and counsel. Her most important advice to all people was that a person should always be serious and honest about his or her life and that nobody should take life for granted.

Mr. Speaker, I have known this lady from as far back as I can remember. She was not the type of woman to just sit around and do nothing. When the Kekerten Park was opened in 1987, she would have been 100 years old.

Ms. Mike, your allotted time has elapsed.

(Translation) I would like to ask for unanimous consent to continue with my Member's statement.

The honourable Member is requesting unanimous consent to continue with her Member's statement. Are there any nays? There are no nays. Please proceed, Ms. Mike.

(Translation) Thank you, Mr. Speaker and my honourable colleagues. (Translation ends) At the ceremony she got up and danced and jigged along with the six and seven year old students who performed. She will be missed by many people because she knew just about everyone in the communities.

Mr. Speaker, I know that the spirit of Nutaraq will be with us for a long time. Thank you.

Thank you, Ms. Mike. Item 4, Members' statements. Mr. Allooloo.

Thank you, Mr. Speaker. I too was saddened to hear of the passing of Leah Nutaraq. When we were opening the elders' centre in Iqaluit, Mr. Patterson and I went over to greet the elders, and she was there. When she met me she said, "You are a Minister?" She was really surprised and then she said, "Are you a real Minister? I have never seen my people at that level." She told me that I should be kind to other people and she also said, "Make sure that our people govern our land." She was well over 100 years old at that time and she told me the land that once belonged to my people does not, under the law, belong to our people. She said, "Make sure we get it back." That was all she said and we had a great time at the opening of the elders' centre. Thank you.

Item 4, Members' statements. Item 5, returns to oral questions. Mr. Whitford.

The honourable Member is seeking unanimous consent. Are there any nays? There are no nays. Please proceed, Mr. Whitford.

Item 4, Members' statements. Mr. Gargan.

Thank you, Mr. Speaker. I will continue from yesterday.

---Laughter

Mr. Speaker, the honourable Members will know that for a long time I have been an advocate of changing the benefits we provide to the government employees to better reflect the economic times and the devolution of territorial public services.

I have also been a strong proponent of eliminating the waste of time and dollars which has been associated with staff housing programs. When I learned that the government was about to bring in some new policies in this area, I was glad. However, I have become increasingly concerned with the type of policies that have been brought in.

Mr. Speaker, right from the start this whole issue has been surrounded by confusion. Many workers simply do not understand the policy. It seems as though every public meeting, press release or Ministerial statement that has been made, has only seemed to add to the confusion. From watching the department's actions, it seems as though some of its own regional management, and even some headquarters personnel, do not understand the policy either. I believe that some of the Minister's own comments have served to make the situation worse.

No matter how much we want the government to stop being a landlord, it is not right to leave employees feeling devalued, abused and uncertain about their future. This government's decision has received national publicity. I wonder whether the hard line position taken by the Minister and his department may have caused to create a situation where it will be more difficult to recruit professionals who are unavailable within our northern work-force.

I would say to the Minister that I fully support the basic principles behind this initiative, but I simply cannot support the wording of the current policy or the unreasonable way it is being presented to the public service in the Northwest Territories. I encourage him not to slow down the process and involve all parties in meaningful communication. That way we will be able to eventually come up with a position that everyone, employees and management alike, can live with. Thank you, Mr. Speaker.

Item 4, Members' statements. Mrs. Marie-Jewell.

Thank you, Mr. Speaker. I rise today to express my disappointment and concern in the actions undertaken by the Minister responsible for the Housing Corporation in dealing with a serious matter, which I brought to his attention. Mr. Speaker, on November 12, I wrote to the Minister to indicate that one of my constituents had approached me in exasperation and frustration with the attitudes of Housing Corporation personnel in the Hay River district office. In doing so, I had faith that the Minister would take the issue seriously and would take responsibility to find an appropriate resolution.

I remember clearly, that on November 13, 1991, in reviewing the edited Hansards, the honourable Member for Tu Nedhe said some things when he was asking Members of this House to select him for a Cabinet position. He stood in this House and said, "I am still committed to working with all 24 Members of this Assembly in the next four years, whether I be a Cabinet Member or an ordinary Member, guaranteed, you are going to hear from me, regardless of what position I am in because I am here to represent my people who are aboriginal from small communities." He also said, "When you vote today, my friends, vote for someone who is here to do a job and not someone who is just here for the job." That is why, Mr. Speaker, I am so disappointed and concerned with the cavalier manner in which he dealt with my constituent's concern.

The constituent who approached me had a serious problem with his housing unit and had waited months for an answer to queries placed with the Housing Corporation. He found corporation personnel unresponsive and negative in their dealings with him. These are the sorts of concerns that, I believe, the Minister should know about. I believed he would take a professional approach and attempt to resolve the matter. However, he did not. Mr. Speaker, I seek unanimous consent to continue with my statement.

The honourable Member is seeking unanimous consent. Are there any nays? There are no nays. Please proceed, Mrs. Marie-Jewell.

Thank you. What did he do, Mr. Speaker? It seems that he delegated and then he forgot about it. He delegated the matter to one of his senior officials in the Housing Corporation. That person delegated it to the district manager. The district manager delegated it to the staff person who had caused the problem in the first place. That person took the matter to his lawyer. Instead of getting help from the Minister and resolving an attitude problem within the corporation, I ended up with a cease and desist letter from an employee's lawyer. Who knows what they might have in store for the constituent who brought the original concerns to me in the first place. What was the Minister thinking about when he responded in this way? I wondered where his management skills were. Where was his commitment to working together, and his concern for constituents, that he told us about on November 13? Perhaps, Mr. Speaker, the teflon is starting to rub off.

---Laughter

---Applause

I recognize the Minister wrote and apologized, Mr. Speaker. However, I want the Minister and the people who he is allowing to do his job for him to know that I will not cease and desist from continuing to express my concerns on behalf of my constituents. The fact that one of his employees tried to hire a local lawyer to intimidate me makes no difference. Should another constituent come to me and raise their honest concerns with respect to the behaviour of a civil servant, I will not hesitate to communicate those concerns to the appropriate people. My privilege to do so, as a Member of this House, is clearly defined and has been protected by court decisions in countries served by parliaments all over the world.

In confirming what type of privilege I have, through legal counsel, I was advised it was called qualified privilege, when it is outside of the House. However, in researching cases in 1972, judgement of a case in England, the court found, and I quote, "It will be a sad day when a Member of Parliament has to look over his shoulder before ventilating to the proper authorities criticisms about the work of a public servant, which he honestly believes to merit investigation." I strongly believe that all Members of this House would do no less in bringing the concerns of their constituents to the appropriate Minister. I trust that their issues will receive a more conscientious treatment than what was displayed toward me by the Minister responsible for the Housing Corporation. Thank you.

---Applause

Item 3, Members' statements. Item 4, returns to oral questions. Item 5, oral questions. Mr. Ningark.

Thank you, Mr. Speaker. My question is to the Minister of Personnel. It deals with his new staff housing policy. In some of the public comments that have been made about this new policy, the Minister has seemed to suggest that this approach will enhance current home ownership initiatives undertaken by this government. In reality, this link is rather weak. Mr. Speaker, could the Minister explain how the proposed removal of the private accommodation allowance will provide an initiative to private home ownership? Thank you.

Mr. Kakfwi.

Item 5, oral questions. Supplementary, Mr. Ningark.

Thank you, Mr. Speaker. In the Kitikmeot region we do not have much choice of buying government staff housing. Mr. Speaker, there is not much of a choice. How would the Minister deal with the situation in the small, isolated communities where we do not have much choice in terms of buying houses or moving to the other houses? The only houses we have in the small communities are the houses that the government employees are currently living in. Aside from that we have public housing, but public housing is over-subscribed. We do not have a choice. How would the Minister deal with that situation? Thank you.

Mr. Kakfwi.

Item 5, oral questions. Supplementary, Mr. Ningark.

Thank you, Mr. Speaker. Is the Minister saying buying the house back is 100 per cent guaranteed by

this government if the employee decides to leave the community? Thank you.

Mr. Kakfwi.

Item 5, oral questions. Mr. Patterson.

Thank you, Mr. Speaker. The Minister of Personnel is well aware that one of the biggest criticisms about this new staff housing strategy is that the people affected are saying that the government has gone ahead with this policy of rental rate increases without consultation. Democracy is not supposed to operate that way. We know, for example, the changes in the housing policy that took place a few years ago in Yellowknife, Hay River and Fort Smith resulted from a tripartite consultation process. Can the Minister tell this House why meetings were not held with government employees who would be affected by this policy in order to listen and make note of their concerns before going ahead with the policy?

Mr. Kakfwi.

Supplementary, Mr. Patterson.

Mr. Speaker, I am just as concerned as the honourable Minister about public funds. However, I believe if this situation is not managed, all of the gains are going to be wiped out by employee morale and staff turnover. It costs $30,000 to remove and replace a teacher in Baffin Island. This is what I am concerned about. The $5 million will be quickly erased by the turnover costs if this is not managed and if something is not done about employee morale, which is now spiralling downwards. Mr. Speaker, recognizing the majority of employees who are affected by this policy are in fact members of legal collective bargaining units, and recognizing that the Minister of Personnel has a responsibility for developing, wherever possible and even with difficult matters, good relations with the legally elected representatives of the employees, can the Minister tell this House whether he bothered to involve the UNW or the NWTTA in any of the planning discussions which eventually led to the establishment of this policy? Thank you.

Mr. Kakfwi.

Supplementary, Mr. Patterson.

Mr. Speaker, I think the honourable Minister is saying he did not consult because it was done before in Yellowknife, Hay River and Fort Smith, and because he would have received a bad reception if he had consulted on something which was going to be unpopular. Mr. Speaker, my final supplementary, is it true that the Department of Personnel did not even consult their own regional staff in the development of this policy? This was a headquarters policy and they did not even consult their own staff in the communities outside of Yellowknife. Is this true?

Mr. Kakfwi.

Item 6, oral questions. Mr. Arngna'naaq.

Thank you, Mr. Speaker. I have a question for the Minister of Personnel. With the attempt of the housing strategy to create housing markets across the Northwest Territories, and with the levels of GNWT housing rents going up to the Yellowknife market levels, does this mean that, in fairness, Yellowknife residents would be eligible for the housing access program? Thank you, Mr. Speaker.

Mr. Kakfwi.

Supplementary, Mr. Arngna'naaq. Mr. Arngna'naaq, please feel free to pose the question to the Minister responsible for the Housing Corporation.

Thank you, Mr. Speaker. I will pose the same question to the Minister of the NWT Housing Corporation. With the attempt of the housing strategy to create housing markets across the Northwest Territories, and with the levels of GNWT housing rents going up to the Yellowknife market levels, does this mean that, in fairness, Yellowknife residents would be eligible for the housing access program?

Mr. Morin.

Thank you, Mr. Speaker. Yes.

Item 6, oral questions. Mr. Whitford.

Madam Premier.

Thank you, Mr. Speaker. Mr. Speaker, my apologies. Mr. Todd was at work at 7:00 a.m. this morning and I am used to him being here, however, he has gone to have more medical tests done. He will be back on Tuesday.

Item 6, oral questions. Mr. Dent.

Ms. Cournoyea.

Yes, Mr. Speaker, I will table it.

Item 6, oral questions. New question, Mr. Dent.

Mr. Pollard.

Mr. Speaker, we still have some inventory. Some of the items were shipped back to Canada. Some of the fixed assets we had in Spain were sold in Spain. The Inuvialuit are helping us sell some of the musk-ox meat. The audit is due to be completed in six weeks and I will certainly table an interim statement, if not the full audit, in the House prior to the House rising, Mr. Speaker.

Item 6, oral questions. Supplementary, Mr. Dent.

Mr. Pollard.

Mr. Speaker, obviously when you have an asset on the ground and it has been used you are going to have to take a reduction on what you get for it. As far as inventory of arts and crafts we anticipate being able to move those items and not lose money on them. Some of those items have been moved into galleries in Spain and other parts of Europe. On those items I certainly do not intend to have large sales. We expect to recover a good portion of the inventory we ended up with at the end of Expo. Thank you, Mr. Speaker.

Supplementary, Mr. Dent.

Mr. Pollard.

Mr. Speaker, as I said, the equipment from the kitchen, and so on and so forth, was sold. I do not have the numbers available, but I will provide as much information as I have, Mr. Speaker. Thank you.

Your last supplementary, Mr. Dent.

Mr. Pollard.

Yes, Mr. Speaker.

Item 6, oral questions. Mr. Koe.

Thank you, Mr. Speaker. I have a question for the Minister of Personnel. In as much as the Minister feels that he should not be bashed by our questions, we are still obligated to raise these issues which were raised to us by our constituents. My question is regarding the housing strategy. Can the Minister explain why Yellowknife market rates are being used as a basis for calculating rental costs for units in outlying communities?

Mr. Kakfwi.

What about Fort Smith?

Supplementary, Mr. Koe.

Thank you, Mr. Speaker. I assume that some kind of formula or calculations are used to determine the rental rates outside in the other communities. Many of my constituents would be interested in knowing what kind of formula or calculations are used and the year used in determining rental rates in the communities.

Mr. Kakfwi.

Item 5, oral questions. Supplementary, Mr. Koe.

Thank you, Mr. Speaker. The concern of some of my constituents, and an assumption that they are making, is that rents were based on the Yellowknife market some time in 1989 or 1990, which I believe was probably at its highest peak. Can the Minister confirm whether or not Yellowknife market rents were based on those years?

Mr. Kakfwi.

Item 5, oral questions. Mr. Whitford.

Mr. Kakfwi.

Item 5, oral questions. Supplementary, Mr. Whitford.

I have allowed a great deal of latitude in the line of questions, but I would ask Members if they would consider the possibility of using the written format for more technical questions. Technical questions and answers take up a great deal of time that other Members might want to utilize for their questions. I will allow the question, but I would ask Members to consider that. Mr. Kakfwi.

Item 5, oral questions. Mr. Antoine.

Thank you, Mr. Speaker. My question is for the Minister of Personnel. I understand that under this new housing policy, employees who are currently in government housing will have a chance to purchase those houses. I also understand that many of those houses are old and in poor condition. Will this government be carrying out a cost benefit analysis to determine the costs required to improve staff housing? Specifically energy efficiency, interior design, plumbing and so forth prior to the purchase? Mahsi.

Mr. Kakfwi.