Mr. Speaker, I have a statement to be made on behalf of the Minister of Government Services and Public Works regarding the eastern Arctic bulk fuel contract.

Mr. Speaker, historically the GNWT has purchased fuel for the eastern Arctic from producers in Montreal and had it transported on ships contracted on our behalf by the Canadian Coast Guard.

I wish to advise Members that the department has changed its procedure for the eastern Arctic re-supply and has just entered into a three year contract with a supplier for the supply of fuels directly to Repulse Bay and all Baffin communities.

The value of the contract is approximately $8 million annually, and is expected to save the government more than $600,000 over the three years.

This change in POL re-supply to the eastern Arctic was one recommendation from the work of the committees established by the Financial Management Board under the government's expenditure reduction program. Officials of the Departments of Transportation, Energy Mines and Petroleum Resources, and Economic Development and Tourism worked with Government Services and Public Works to develop the concept and tenders.