Thank you, Mr. Speaker. Mr. Speaker, on April 10, 1990, I made a motion in the House regarding a reduction in person years of 2.5 per cent in 1990-91 and 2.5 per cent in 1991-92. The motion was passed and since that time, Mr. Speaker, this would have been accomplished with attrition and distribution of job responsibilities and there would be no lay-offs.

In the standing committee's motion on mission statement, it does say something on behalf of the public in all areas related to financial management and the proposed expenditure of funds; and to hold government accountable for all the spending. They also have some principles; that government spending and financial management must respond first to the fundamental human needs; it must be guided by the strategic framework and be based on sound financial policies; it must ensure equity, fairness and universality of benefit to all residents of the Northwest Territories; and, it must be effective, efficient and economical. This was made back in October, 1993.

Mr. Speaker, my budget address is with this statement in mind. While I applaud some of the efforts this government has made to decentralize its operations and give the communities an opportunity to look after their own programs and concerns, I am nonetheless dismayed, Mr. Speaker, that the bureaucracy of the territorial government continues to increase in size and scope.

As I have mentioned earlier, the government has made some efforts to decentralize, to share the wealth amongst all residents of the Northwest Territories, but they have not gone far enough. Decentralization, while I admit it is a good concept, in my opinion, it has only benefitted taxed-based communities in the west and the larger communities in Nunavut.

I have not seen any positions put into the smaller communities such as my home town of Fort Providence. These are the communities that really need the jobs. In addition, Mr. Speaker, in this rush to decentralize, I believe this government has lost sight of the economy of scale. For example, Mr. Speaker, sending children from Fort Providence and Kakisa to Fort Simpson for high school, in addition to being a further distance for the children to travel and also for the parents to visit, is quite simply expensive for all those concerned.

An example, Mr. Speaker, is that we have a scheduled air service from Fort Providence to Hay River. We also have a road service, scheduled bus service and the river system, but we don't have those types of services when we send our children to Fort Simpson. I think, when I speak, I have the general support of the town of Hay River with regard to having our children going to school in Hay River.

The people of the Northwest Territories are ready, at the community and band council level, to take the responsibility of many of the territorial programs within their jurisdictions. All they need is a chance and less interference from the government hierarchy.

Mr. Speaker, other than providing jobs at a local level and ensuring that as much of the program money as possible stays in the community, what does the initiative program accomplish? Slowly down the road, there have to be lay-offs in the government. Otherwise, there is nothing more than a duplication of services or in the worst-case scenario, a governmental apparatus larger than the community transfer initiative they are supposed to oversee.

Mr. Speaker, the best example of continued government interference in what is considered to be a local issue is in the area of aboriginal languages. I have said before, Mr. Speaker, you cannot institutionalize culture. The community itself should be responsible for teaching of the local language and culture. Not the schools, as a small part of a larger program.

We have heard and talked a lot, over the last two weeks, Mr. Speaker, about the possible loss of funding from the federal government for our aboriginal language programs. It is an area of major concern to this government. I have not, however, heard any feedback from aboriginal organizations or communities. I wonder, Mr. Speaker, if this lack of concern on the part of the aboriginal organizations has anything to do with the fact that these organizations -- the very organizations that should be at the forefront of language issues in the Northwest Territories -- receive little or no funding from the Government of the Northwest Territories for language programs.

Mr. Speaker, the whole area of pay equity between the highly-paid territorial employees and local public sector employees is one that needs to be addressed also. I appreciate that the Minister is taking steps to deal with this inequity.

Also, Mr. Speaker, the issue of gender equality will have to be dealt with sooner or later at, I believe, a significant cost to this government.

Mr. Speaker, I have stated in the House before that I do not necessarily believe in a balanced budget. This may fly in the face of public approval and even perhaps political correctness. I strongly believe the government and our own Standing Committee on Finance has to take a holistic approach towards financing programs in the territories.

Mr. Speaker, I appreciate all the hard work both the Minister of Finance and the Minister responsible for the Housing Corporation have done in an effort to have the federal financing for social housing in the Northwest Territories reinstated. As the Minister of Finance stated in his address, we have managed to find some money to fund some social housing in the Northwest Territories. However, Mr. Speaker, I do strongly feel that we, as a government, are not doing enough.

My own observation, Mr. Speaker, is that the allocation of social housing funds continue to benefit tax-based communities at the expense of smaller communities.

The South Slave district, for example, Mr. Speaker, for the 1995-96 unit allocation; Fort Simpson has seven units; Fort Smith has nine units; and, Hay River has 14 units. That was revised in August to six, seven and 13 units, respectively. None of the other communities in the district have more than four units being allocated. Five of the communities are not being allocated any housing in the upcoming years.

With regard to the most recent revised version, Mr. Speaker, again, in the south Slave; Fort Smith's allocation has been increased to 11; Hay River's has gone down to eight; and, Fort Simpson has remained the same. Fort Providence has been reduced by one and Kakisa doesn't get one, except for the one that was transferred from last year. Mr. Speaker, each of the tax-based communities has a housing market.

The other observations I have made is that in the eastern Arctic, most of the allocations are pretty well consistent, even between the largest community, which is Iqaluit, and the smallest communities. However, in the western Arctic, the allocation stands out. I think that should be looked at.

I strongly believe that the Housing Corporation should be looking at housing on a needs-based basis, as opposed to the largest communities getting the bulk of social housing money, simply because of their population.

---Applause

I will be following this matter up with the Advisory Committee on Social Housing.

As I mentioned before, I believe we should take a holistic approach to financing. If we invest money in programs such as housing and alcohol and drug counselling now, we, as a government, are making an investment in the future -- as Mr. Ballantyne has stated -- thereby reducing the costs of providing health and social programs to future governments.

Mr. Speaker, in the Minister's address, he raised some good points. I certainly hope he follows through with them. Community consultation on which forest fires to fight was one positive step.

Mr. Speaker, I would also like to thank the government, the Department of Renewable Resources, for the five-year agreement that was signed last year between Evergreen Forestry and the communities of Fort Providence, Kakisa and the Hay River reserve. The methods of firefighting are one area I like to touch on a bit, since most of the firefighting that is done now is based on the working hours of the day, rather than looking at the most convenient time to fight fires.

I believe that most of the fires that were started this year were not from natural causes. I would like to say that a lot could have been caused by human error. More and more in my travels this summer, I saw aircraft, water bombers and choppers, that go back and forth along the rivers, using a lot of money to fight fires. In my time as a firefighter, most of the fires we fought were during the evenings and in the early mornings. We rested during the day and continued at night. We did a more effective job doing this than having people going to work at 8:00 in the morning to fight fires and then going home in the evenings. The fires are worse in the day time and you can't fight them. But, still that's the way they are doing it.

If it is going to be economical, the only way to fight fires is during the evenings. During my travels to Lutsel K'e this summer, talking to residents there, I understand that a fire that was within distance of Lutsel K'e, which could be seen burning at night, was not fought. The local people said it was not their fire, it was Yellowknife's fire. This kind of communication has caused the delay in fighting fires. There was a squabble between two government agencies trying to determine who should be fighting fires. While the argument was going on, the fires were getting away.

Mr. Speaker, as territorial politicians, we have a responsibility to all the residents of the Northwest Territories. We have to look after their physical, mental and spiritual needs. The housing and recreational program needs in the small communities are not being addressed by this government. For example, my honourable colleague from the Kitikmeot recently made a statement about the plight of the people in Bathurst Inlet, as it was formerly known. Just because it is a small community, their needs should not be ignored by the government. Out of sight should not mean out of mind.

Mr. Speaker, we must tailor our programs and devote what limited resources we have to the next generation of northerners. For this reason, Mr. Speaker, I strongly believe this government should seriously consider the creation of a child advocacy worker's position. Too often, Mr. Speaker, I have seen social workers, with the support of RCMP officers, run roughshod over the rights of a child, should the child come to be placed in the care of the superintendent of child welfare.

Although these people all mean well, they are forced, by the very nature of the bureaucracy, to operate within the confines of a rigid set of rules. It is because of these rules, and the department's interpretation of them, that children need an advocate. In some cases, Mr. Speaker, the child is estranged from his or her parents. Who makes sure the child's rights are not violated? This is an area that I think we should be taking bold steps to address.

Finally, Mr. Speaker, I would like to thank the Minister for his noble efforts on behalf of all the residents of the Northwest Territories. In these trying economic times and with the uncertainty of financing from the federal government, I do not envy his task. I would ask, Mr. Speaker, that the Minister keep in mind the whole of the Northwest Territories and its people in his future deliberations and treats everybody fairly.

I strongly believe that if we spend money on social infrastructure now, we will save future governments money and hundreds of residents undue pain and suffering, especially children. Thank you, Mr. Speaker.

---Applause

Thank you. Before I recognize the next speaker, I would like to recognize Mr. Joe Kunuk, the mayor of Iqaluit, in the public gallery.

---Applause

Item 10, replies to budget address. The honourable Member for Kitikmeot, Mr. Ng.

Mr. Ng's Reply

Thank you, Mr. Speaker. In the Minister of Finance's budget address, the Honourable Mr. Pollard outlines some of the impediments to the continued fiscal health of our government's financing, the virtual elimination of federal funding for social housing and the continued overspending on forest firefighting and the recognition of additional employee ultimate renewal benefits.

There are also many other unresolved financial issues; the health billings dispute with the Government of Canada; the wage parity dispute with the union; and, most significantly, the negotiation of a new formula financing agreement with the Government of Canada.

I believe the new formula financing agreement will not be as beneficial as the existing one, as the Government of Canada is demonstrating fiscal restraint and cutbacks in almost all of their policies. You only have to look at Transport Canada's plans to downsize their operations and most recently, with the renewal of the official language agreement funding in which the amount of reduced funding is still under negotiation.

Too many times, we have seen companies awarded GNWT contracts bring in their total workforce, not utilize local services, bypass the commercial accommodation policy and minimize their contribution to the local economy. These issues are what a new redefined and enforceable BIP should specifically address. Mr. Speaker, if the capital budget remains at around the $200 million mark for the next few years, with all the pressure to meet currently planned needs and the unforseen need for new program dollars, the capital budget will begin to address a smaller and smaller percentage of yearly capital requirements.

A rapidly expanding population will also continue to increase pressure on our infrastructure needs. The budget has continued to place a high priority on education and housing needs, and rightly so, as basic housing is critical to the social well-being of our residents. We all concur that education and training of our youth and adult population is critical, not only now, but to the future of the two new territories after 1999.

Mr. Speaker, the major concern I have with the 1995-96 capital budget is with respect to the Department of Health and Social Services and the Department of Justice. The capital spending of these departments represents only 5.3 per cent of the total capital budget. I find this unacceptable, given the fact that in my constituency -- which I am sure is no different than many others -- there are numerous requests and demands put forward to the department for facilities and program support to address health and social needs.

Recent ones that I am aware of, since my election, are elders' residences and family violence shelters. More recent ones that have come to light from recent constituency meetings are alcohol and drug rehabilitation facilities and, what I feel should become one of the future priorities of the department and the government, youth centres.

Mr. Speaker, I raise the issue of youth centres and support programming for youth as a result of youth throughout the NWT requesting government assistance to establish these facilities and support programming to address their needs. We, as leaders, have recognized the importance of youth to our future, yet have failed, besides providing what we feel they need, to provide services to youth based on what they feel is needed.

During my constituency visit to Coppermine last week, I met with four classes at the high school, the teacher education program class, the adult education class and I held a public constituency meeting, which was attended by approximately 75 people.

A common concern and request from all of the meetings was the need for additional support for youth. It was pointed out that whether it be drop-in centres, counselling services, expanded recreational programs, or cultural experience activities, we must begin to recognize and address the needs of our youth, as they won't simply disappear if we choose to ignore them.

Mr. Speaker, the government must also address how they provide capital and services to unorganized, smaller communities. Many times, these communities are overlooked, or left to the end of the list in recognizing their infrastructure needs. Even though these communities have very small population bases, our government must still address their needs, along with all others, in a fair, equitable manner.

With the exception of the Health and Social Services budget, which I feel is underfunded, I commend the government in their preparation of the 1995-96 capital budget. They have addressed as many needs as possible, given financial realities they have to work under of never having enough resources to adequately address all our needs.

Mr. Speaker, although we are addressing the capital budget, it cannot be done in isolation of the main estimates as they are directly related. I've never understood the reasoning of carrying out two budget processes. The SCOF review and the Legislative Assembly review of two different budgets, doubles the amount of time required to approve proposed government expenditures. It's an unnecessary waste of our valuable human resources. It's my understanding that the reason for bringing forward the capital budget earlier was to allow more time and efficiency for earlier planning and tendering of projects. I'm still to be convinced that this is the case as I don't see it happening in my constituency.

Mr. Speaker, in closing, although the government must continue to address the current unresolved and ongoing disputed issues which will affect their financing, I believe that this government and the next government have to focus on three major financial initiatives with the federal government:

1. Ensuring a reasonable formula financing agreement is reached in order not to significantly erode our existing baseline funding;

2. Ensuring that sufficient incremental financial resources are provided in order to meet the additional infrastructure and program delivery requirements of establishing two new territories leading up to and after 1999; and,

I do not envy the position this and the next government finds itself in, of having to deliver more with less financial resources at their disposal. We must assess the way we deliver our capital programs to ensure that we are doing it effectively and efficiently.

And finally, Mr. Speaker, I wish to thank the Minister of Finance and the Cabinet Members for their support and assistance to me in addressing the needs of my constituents since I became the Member for Kitikmeot. I also wish to thank my honourable colleagues who have, on many occasions, provided me words of wisdom even though I've never asked for them. Thank you very much.

---Applause

Thank you. Item 10, replies to budget address. The honourable Member for Yellowknife Frame Lake, Mr. Dent.

Mr. Dent's Reply

Hear, hear.

Hear, hear.

Hear, hear.

---Applause

Take away Todd's instrument.

---Laughter

Ohh.

Thank you. Item 10, replies to budget address. Mr. Patterson.

Mr. Patterson's Reply

Thank you, Mr. Speaker. It is nice to see you in the chair today, Mr. Speaker. Inspired by the eloquence of my colleagues, I am motivated to make a few comments about the budget address.

I would like to first of all say that one of the things that leapt out at me was the clear commitment to building new regional hospitals in Iqaluit and Inuvik.

---Applause

Mr. Speaker, this long-awaited project -- and I dare not speak for Inuvik, but I think I can say it is a long-awaited project -- in my constituency was promised in the transfer of Health by the federal government many years ago now. The facilities are old, out-moded, over-crowded and inadequate for the rapidly growing population of the region. I'm pleased to see there is a clear commitment reflected in the capital plan to get moving on this long-awaited project.

I would also like to say, Mr. Speaker, that I won't have a lot to say today because I have been privileged to participate in the Standing Committee on Finance deliberations on the capital budget and totally endorse the SCOF report. I would like to think it is a responsible, thoughtful and constructive document that wasn't presented in a spirit of confrontation or criticism, but rather intended to compliment the good work of the Minister of Finance and the other Ministers in the difficult task of putting together a capital budget during a time of diminishing resources.

I want to say one thing about the SCOF report now, and that is that I am very grateful that all the Members of that committee accepted the invitation of myself and Mr. Pudlat to meet in our constituencies and visit the newest and largest territorial park at Katannalik. I would like to thank the Members for taking the time and trouble to travel to Baffin to see first hand the investment that our government has in that park and the sense of ownership that the community of Lake Harbour and Iqaluit have in that park.

I want to thank the Members for their positive comments about the benefits of an investment of this kind for jobs, tourism and economic activity. I would like to think that issue has now been clarified, after some questions and doubts were raised in this Legislature. It is now clear that, where it is a priority in a community and in a region -- and it may not be the first priority in other communities and other regions, which I respect -- as it clearly is in the Baffin, tourism and parks can be a worthwhile investment and can generate real economic benefits.

Mr. Speaker, I would like to simply echo the comments of my colleagues previously in their replies to the budget address that education must be the first and most important priority of the government. I think it's clear, Mr. Speaker, that economic development, constitutional development, political development and social development will only be accomplished with an educated population, and so education becomes the most important of all priorities. In that regard, Mr. Speaker, I would like to make some comments about education, and I guess I would like to specifically express some concerns related to education in Nunavut and in my constituency.

The first one has to do with the split of Arctic College, and I want to say that I think this is the right thing to do. Education will be critical to the success of Nunavut. We have not struggled and fought for Nunavut for over 15 years so that the new government will employ southerners. We want the Nunavut government to have Inuktitut as its working language. This means northern people must be predominant in the Nunavut public service. I am pleased that the Government of the Northwest Territories has taken the step of preparing for Nunavut by proposing to divide Arctic College, and I am pleased that legislation is now before this House. But today, what I would like to address, Mr. Speaker, is the financial underpinnings and financial support for that college. It's not enough to divide the college into two colleges, east and west. I think we have to be sure that there's a fair allocation of resources. So, while I wish to congratulate the Minister of Education, Culture and Employment for moving ahead with the establishment of the Nunavut Arctic College and western Arctic College, I also want to express my concern that as we prepare for the establishment of new colleges in Nunavut and the western NWT, we ensure that there's equity and fairness in the allocation of resources within the present Arctic College systems.

It is clear that the people of Nunavut will rely heavily on the Nunavut Arctic College to meet the bulk of our training requirements. It is also clear there will be enormous positive economic benefits and cost-savings if northern residents can be trained to qualify for the jobs in the Nunavut government or an organization implementing the land claims. However, Mr. Speaker, in examining the current allocation of financial and human resources for programs in various campuses of Arctic College, it seems that there are sometimes wide disparities in funding and staffing levels. Some areas that I have looked at -- not necessarily, by any means, exhaustive -- are environmental technology, trades, student services and driver education and heavy equipment operator programs. Furthermore, as new health and hospital facilities are actively being planned in Nunavut, there are also rising expectations about the establishment of a nursing program and other health training in Nunavut. There is also a tremendous amount of interest in this area of political and constitutional development in a native studies program. We don't have a native studies program in any of the Nunavut Arctic College campuses.

So, Mr. Speaker, I want to express my earnest hope that the establishment of two new colleges from one will be seen by the Minister of Education, Culture and Employment and his Cabinet colleagues as an opportunity to rectify present inequities so as to ensure that the Nunavut Arctic College begins operations with its fair share of the existing resources and is given the capacity to deliver programs and training already in high demand and to respond quickly to the anticipated demands for new programming. May I say that I think this will be especially pressing in the area of trades training. All I am asking for, Mr. Speaker, is fairness and equity, nothing more. So I am hoping, Mr. Speaker, that as we implement the division of Arctic College following the passage of this legislation, there will be a fair process to carefully and objectively review the adequacy of base funding provided for all programs and services within the financial arrangements for the new colleges.

Now, Mr. Speaker, I know that there is a college funding allocation system that has been developed by the ministry following work done by a consultant from the firm of Price Waterhouse, and I know that this college funding allocation system is designed to implement the new financial arrangements in a fair manner. I want to serve notice that I will want to be assured, as we move forward with the financial arrangements -- some of which will be discussed in the forthcoming O and M budget session -- that there is an equitable and fair distribution of existing resources.

Mr. Speaker, I want to say that I think the job of the Minister of Finance is undoubtedly the toughest one in Cabinet. I know I can recall, when I had the onerous task of assigning portfolio responsibilities in the distant past, I never found any great competition for the job of the Finance portfolio. It's a difficult job and it becomes increasingly difficult in our increasingly difficult financial times, and I do want to say that I admire the discipline that Mr. Pollard is putting into the job and the personal commitment he's putting into the job, and I know that if he listened to all the requests to preserve programs, we'd be getting nowhere with our restraint, and our government wouldn't be in the strong financial position that it now is, relative to other jurisdictions in Canada, including the federal government. However, Mr. Speaker, I have another concern that I want to express about education, because I think that if we have to make cuts, we have to avoid making cuts that diminish our human resources and the capital that we have invested in the people of the Northwest Territories.

One other point I wanted to make about the challenging job of the Minister of Finance before I turn to another educational issue, Mr. Speaker, is that I am just delighted today to learn that his financial burden has been somewhat relieved by the announcement made by Mr. Morin about the recovery of the $9 million. Now, I suspect there will be some interesting debate within the Financial Management Board about just how much of that $9 million Mr. Morin gets to keep and how much Mr. Pollard takes into general revenues. I would love to observe that debate, Mr. Speaker, but the bottom line is that whether the whole sum is put into housing or whether some of it is put into deficit reduction, we have been relieved somewhat today by this accomplishment, and I don't want to underestimate the difficult challenge that Mr. Morin has had in getting this money. I frankly was increasingly pessimistic that we would recover anything from the social housing shortfall, and I think it's a tribute to his doggedness and determination and undoubtedly that of his Cabinet colleagues that we have this positive news today as we debate the budget. So I want to say that I am happy for Mr. Pollard that after a dry season of forest fires and the increased cost of fighting forest fires, and after the challenges he's had with the health billings dispute and with the social housing shortfall, I'm delighted that some good news has come on us today, and that his job might be made just a trifle easier by this good news we have today.

Mr. Speaker, I was talking about the importance of education. I want to note another concern. I've recently had occasion to take a look at the terms of reference for a consultant proposal call issued by the Department of Education, Culture and Employment to evaluate future direction for existing student residences located in Inuvik, Rankin Inlet and Iqaluit. Mr. Speaker, not surprisingly in our present difficult climate, one of the main purposes of this study -- and it's listed upfront in the terms of reference -- is to realize cost savings. This goal I understand. However, the terms of reference seem to anticipate the closure of some or all of these residences. The terms of reference called for a "phase-out plan for residences that are recommended for closure," "explore optional uses" and, "recommend future direction for residences that will be phased out."

Mr. Speaker, I recently had the pleasure of visiting the Ukiivik Residence in Iqaluit with the Minister of Education, and I was surprised to find that the complexion of that residence had changed. There were some students from smaller communities in the Baffin where high school programs were still not yet available as has been in the past, but I was surprised to learn that the majority of students who were there were in Iqaluit to take the advanced diploma or matriculation program, either because there was no advanced diploma offered in the high school program in their community, or there was no demand in their home community for such a program at all.

So, Mr. Speaker, we have now the pleasant situation of having students from communities who are making the difficult journey to a regional residence because they want to go to university, and they want to take professional training to prepare them for Nunavut. So I want to say, Mr. Speaker, that even though I know we have increasing fiscal problems and even though I know that these residences are very costly institutions to run and that there might be a great temptation on the Department of Education to close those residences because community high school programs have been established, it may just not be that simple. In fact, what we may be doing is imposing a barrier if we close those residences, imposing an obstacle to students who want to gain the advanced diploma and go on to university who do not today have that opportunity in their home community.

So I want to say, let us take great care as we establish the Nunavut Arctic College, and as we review the high school residences in Inuvik, Rankin Inlet and Iqaluit, that we do not jeopardize the progress we've worked hard to make in the Northwest Territories...more students going to college closer to home, more students finally taking the advanced diploma and taking matriculation and even being willing to leave their home community to do so.

So, Mr. Speaker, I appreciate the opportunity to express these two concerns of many about education. I want to endorse the report of the Standing Committee on Finance, their emphasis on early intervention, their emphasis on special needs, and, of course, the challenges that we've thrown to the government to have a response on family violence, to have plans for justice programs developed in the coming year. Thank you, Mr. Speaker.

Thank you. Item 10, replies to budget address. Item 11, petitions. Mr. Kenoayoak Pudlat.

(Translation) Thank you, Mr. Speaker. Even though we heard that we're getting some money for housing, my people are not very happy about the proposed rates that will be imposed. Petition No. 3-12(6) is with regard to that. There are over 30 signatures. Therefore, for us who live in the Northwest Territories, it's getting more difficult to get funding

for social housing. The people in my constituency are not too happy about the proposed rates so I'm tabling this petition. Thank you, Mr. Speaker.

Qujannamiik. Item 12, reports of standing and special committees. Item 13, reports of committees on the review of bills. Item 14, tabling of documents. Member for Aivilik, Mr. James Arvaluk.

(Translation) Thank you, Mr. Speaker. I would like to table the following document: Tabled Document 32-12(6), transcript of a statement by Richard Nerysoo, Minister of Education, Culture and Employment, to the Keewatin Divisional Health Board, in Rankin Inlet, September 27 to 29, 1994, regarding language agreement funding cuts. Thank you.

Qujannamiik. Item 14, tabling of documents. Item 15, notices of motion. Item 16, notices of motions for first reading of bills. Item 17, motions. Item 18, first reading of bills. Mr. Pollard.

Thank you. Your motion is in order. To the motion.

Question.