Mr. Gamble.

Thank you, Mr. Chairman. In previous years, the Coast Guard had a capital allocation, but they were working through the federal Public Works and really weren't spending any of it. In our developing relationship with Coast Guard in that region, we initially offered to do some work at Taloyoak. Since that time, they have allocated their capital funding which runs between $200,000 and $300,000 a year. Each year, we nominate projects in that region for improvement and generally they have simply been approving that and providing the contribution through us to manage the work. It is largely done in support of the resupply.

Thank you. Total region, $350,000. Mr. Patterson.

Thank you, Mr. Chairman. I just had one question about resupply particularly in the Keewatin, but in the eastern Arctic generally. As I understand it, Mr. Chairman, the department is examining the option of supplying petroleum products through Rankin Inlet while supplying dry cargo through Churchill. The standing committee will recommend that it makes sense to have the POL supply in the Baffin and the transportation of cargo in the Baffin, but particularly the POL which is now under review because of transfers from MOT brought under one department so as to achieve the maximum economies of scale.

I also understand that the department is even looking beyond eastern Arctic requirements, and is considering whether we might possibly profitably collaborate with Greenland on resupply in some of these items, which would make an even bigger potential economy of scale. I'm all in favour of this, Mr. Chairman.

We also know that the department has done analysis which shows that putting aside the issue of local benefits -- and I don't mean that they're not important -- but looking solely at the issue of cost, the direct resupply of fuel and cargo from Montreal would be the cheapest option for resupplying Keewatin, and that's of course the way it's done in Baffin now. I guess I would like to ask the Minister, Mr. Chairman, assuming that the government will decide to act on the SCOF's recommendation and roll the Baffin POL requirements and the whole resupply issue in Baffin under the authority of the Minister of Transportation so that there can be perhaps better links between Baffin and Keewatin, would this change mean that the Department of Transportation would be looking at new and larger options for resupply in Keewatin? I guess, Mr. Chairman, I'm wanting to know how final this conclusion is about using Rankin to supply petroleum products for the Keewatin and using Churchill to supply dry cargo, in light of other options that may emerge with Baffin and/or with Greenland. So I'm just wondering, is there still analysis yet to be undertaken before the final plan is concluded? Thank you.

Perhaps a very broad and very general question, but we're back in Keewatin to do a resupply. Mr. Todd, it's up to you.

Mr. Chairman, the recommendation of the standing committee hasn't been discussed at Cabinet, with respect to transferring responsibility over to the Department of Transportation.

You're always under review, you're constantly in a review mode. We believe that this thing has to be staged, and I did illustrate that, hopefully, to the Standing Committee on Finance. We know there will be some significant savings based upon this capital budget, once we get it all in place. Mr. Gamble and Mr. Clegg from Public Works are working together in trying to look at other ways in which we can save this government money so that we can do the kinds of things that are asked of us to do.

So nothing is final until it's final, I guess. But we're certainly moving on this initiative because we know there are significant savings.

The honourable Member is correct about the Greenland experience right now. Mr. Gamble and Mr. Clegg recently came back from discussions with the people over there to see if there is a possible linkage there where there would be some more savings. So it's kind of a moving policy. Thank you, Mr. Chairman.

Mr. Patterson.

Mr. Chairman, as I recall, the discussions in SCOF about this issue...The committee had asked for more details about the option of direct resupply of fuel and cargo from Montreal. I don't believe the committee has yet received this analysis, and I'm just wondering if the committee is going to have the opportunity to review the Minister's complete data on this issue and review the options before any final decisions are taken, given that there's quite a sizeable capital expenditure that would be involved. Thank you.

Mr. Todd.

(Microphone turned off)...be approved. I didn't get all the information necessary to SCOF, but I met with SCOF twice on this issue. I'm not asking for any further delays, I want approvals today based upon the fact that we can save $1.6 million to this government.

Thank you, Mr. Todd. Mr. Patterson.

Just so I understand it clearly, Mr. Chairman, is the Minister saying that the government will go ahead and supply petroleum products through Rankin Inlet and dry cargo through Churchill, and that's a final decision, and approval of this budget will mean that no other short-term options will be considered? Thank you.

Mr. Todd.

(Microphone turned off)...because I explained very clearly that this one had to be phased, that it's our intention to move ahead with this marine terminal to enhance the ability to deliver fuel oil into Rankin Inlet. Forty three per cent of the fuel oil stays in Rankin Inlet. We move it twice. It costs us money to move it twice. We merely want to move it once. We need to enhance the marine terminal facilities to do that. We will then look at other options, as everybody does in government, in looking at other areas where we can save, whether it's Greenland, whether it's the dry cargo, et cetera. But at this time, that's the phase that we're proceeding with.

Thank you, Mr. Todd. I would like to remind Members that we've had a lot of opportunity for general questions, and we should be on the detail now, and we've already gone through the Keewatin. We're into the Kitikmeot and we were dealing with the total region, $350,000. Agreed?

Agreed.

---Agreed

Total buildings and works, $22.966 million.

Agreed.

---Agreed

Contributions, Baffin, total region, $40,000.

Agreed.

---Agreed

Keewatin, total region, $150,000.

Agreed.

---Agreed

Kitikmeot, total region, $80,000.

Agreed.

---Agreed