Mahsi, Mr. Speaker. I have a question for the Premier who made a statement on behalf of the Minister of Government Services and Public Works regarding the eastern Arctic bulk fuel contract. The statement says the department has changed its procedure for eastern Arctic re-supply and entered into a three year contract with the supplier. However, the statement fails to name the supplier. I would like to ask the Premier, who has the contract to supply fuels and what route are they using?

Two questions, Mr. Koe. Madam Premier.

Mr. Speaker, the product will be Esso's product. The shipping will be organized by the Canadian Coast Guard in collaboration with the Government of the Northwest Territories. The saving is mainly on the routing where previously the products were taken to Churchill, stored there and then re-shipped, they now come directly from Montreal to the communities.

Item 5, oral questions. Mr. Patterson.

Thank you, Mr. Speaker. To the Premier. Mr. Speaker, we understand that the Minister of Housing is out of the Assembly seeking an urgent meeting with his federal counterpart about housing allocations for the Northwest Territories in the coming year. Could I ask the Premier whether she could tell us if the Minister of Housing has been successful in meeting with his federal counterpart, Mr. McKay?

Madam Premier.

Thank you, Mr. Speaker. I thought the honourable Member over there was having a bit of a snooze so I am surprised by the sound of his voice.

---Laughter

No, he was sleeping.

---Laughter

I caution Members. After 500 years of parliamentary traditions, Members have not normally pointed out other Members who have been sleeping. Point of privilege, Mr. Patterson.

Mr. Speaker, I respectfully suggest to the honourable Premier that she may have been mistaken. I was in a state of deep concentration. Thank you.

---Laughter

That was not a point of privilege, but I am sure the Premier will take it under due consideration. Madam Premier.

Mr. Speaker, my apologies. I should have known better. Yes, Mr. Morin was able to secure a meeting with the Honourable Elmer McKay. From reports, the comment he made was that he was hopefully optimistic. He is still trying to see a number of other people and should be on his way back today. Thank you.

Item 5, oral questions. Mrs. Marie-Jewell.

Mr. Speaker, I have a question for the Minister of Finance. We are all aware that the Minister of Finance is going to attempt to address his payroll tax today in the House. I would like to ask the Minister of Finance, has he developed any other options to raising revenue besides the payroll tax? Thank you.

Mr. Pollard.

Mr. Speaker, to raise funds of that particular nature in some form or another would require the consent of this House. I do not have any flexibility or very little outside of the powers that this House gives me by way of legislation to raise taxes or funds in the Northwest Territories. I do not have any secret plans to raise money from other sources. Thank you, Mr. Speaker.

Supplementary, Mrs. Marie-Jewell.

Thank you, Mr. Speaker. With regard to process of the payroll tax, I would like to ask the Minister of Finance why has he waited so long before introducing the payroll tax into the House where he would have to request for the rules to be waived? Thank you.

Mr. Pollard.

Item 5, oral questions. Mr. Patterson.

Thank you, Mr. Speaker. I have a question for the Minister of Transportation. I noted with great interest the announcement today about a new method of delivering bulk fuel for eastern Arctic re-supply which will save money. I would like to ask a question to the Minister of Transportation because I understand, previously, petroleum products for the Keewatin region were delivered by rail to Churchill. Now that this significant cargo will not longer be delivered by rail, has the possible impact on the viability of the Churchill rail line been assessed by the government in making these new arrangements? Thank you.

Mr. Todd.

Thank you, Mr. Speaker. Perhaps, I can elaborate a little more. What we are currently doing in the Department of Transportation is looking at alternate routes out of Churchill into the Keewatin communities. There is some fear out there that the CN railhead requires somewhere around $60 million to $80 million to upgrade. There has been a decline in that traffic over the past five or ten years and I have instructed the department, in consultation with the regional groups, to work towards looking at possible alternatives should the railhead in Churchill not be upgraded and, in fact, be closed down. The specific issue of what the economic impact on the railhead is has been looked at. CN rail is not a viable entity. It is a subsidized entity into Churchill, it has been for a number of years. The difference between moving the fuel from Edmonton to Winnipeg to Churchill to Rankin to Whale Cove et cetera, versus a direct route from Montreal is significant with regard to savings for this government. We intend to pursue that more aggressively. I think the financial impact on the railhead really is not an issue because it is not viable now. It requires significant subsidies. I have spoken to my provincial counterparts in Manitoba and they seem to be unwilling to foot the kind of dollars that are required to bring that railhead up to standard.

Supplementary, Mr. Patterson.