Mahsi, Madam Speaker. The Government of the Northwest Territories has faced extraordinary financial pressures over the last two years. This summer, for example, was another bad year for forest fires. The work done to manage these fires is going to cost more than $20 million, over and above what was estimated. In addition to that, Madam Speaker, the federal government continues to reduce funding support to the Northwest Territories in a number of areas. One of the most important areas of funding cuts is support for housing. These are just a few of the many financial pressures that we face.

However, even though I recognize these pressures, I feel strongly that our government cannot afford to accumulate a deficit. Most of the funding required to meet the needs of our citizens comes from the federal government. The revenue that we raise on our own, given the present financial arrangements with the federal government, is quite small. We have little room to move. If we do get into a deficit position, it will be very hard to recover. We will be caught in a trap. On the one hand, we will have to use our scarce resources to pay off the debt and, on the other hand, we will not be able to respond to the basic needs of our people.

I recognize, Madam Speaker, that it is a delicate balance, but it is a balance that we must find. We need to consider, very seriously, what our priorities are, what is most important to our people. We need to find ways to meet these needs in new and innovative ways. Our current means of providing public services are very expensive. We can no longer afford to provide services in the same way. Mahsi, Madam Speaker.

---Applause