Thank you, Mr. Chairman. Mr. Chairman, the department is proposing capital estimates of $39.744 million for 1995-96. As in previous years, the department identified the proposed municipal infrastructure priorities through a broad consultation process with mayors, chiefs, council chairpersons, councils and their administrations. The department's consultation process continues to improve the opportunities for community governments to express their needs during the various stages of capital planning each year.

The department made every attempt to address the demands of community governments. Constructing new water and sanitation infrastructure and improvements to existing infrastructure are the highest priority in the pursuit of maintaining a safe water supply and good public and environmental health. About 29 per cent of $11.5 million of our proposed capital estimates is planned for water and sanitation infrastructure.

Another 21 per cent of $8.1 million is planned for the construction of community recreation facilities. Arenas, community halls and gymnasiums represent the infrastructure proposed for construction in the 1995-96 period. Sport and recreational activities are important to the social fabric of our communities and the quality of life for the residents by encouraging wide participation in local, territorial, provincial and international events. This participation fosters a strong sense of identity and development of personal discipline and accomplishment.

A further 17 per cent or $6.8 million of our proposed capital estimates are identified for land development. About 329 serviced lots are intended to be constructed during the 1995-96 fiscal period. Also included in the department's capital estimates is a transfer of responsibility and $978,000 for the dust control program from the Department of Public Works and Services. The department will be completing a number of projects across the NWT in the planning, design and upgrading of community roads and site development. To this end, a further eight per cent or $3.3 million is proposed.

Funding of $4.1 million or about 10 per cent of the proposed capital estimates is planned for the construction of new firehalls, community offices, municipal parking and maintenance garages and warehouses. These facilities assist the community governments in the delivery of effective and efficient municipal programs. In particular, the parking and maintenance garages help to ensure the reliable operation and extend the useful life of community-owned mobile equipment.

A further seven per cent or $2.7 million is planned for the provision of mobile equipment to be used for road maintenance, public health, fire protection and general municipal purposes. We continue to provide funding for retrofits of mobile equipment to prolong its useful life. This practice is cost-effective and provides an opportunity for municipal works staff to gain hands-on training in repairing the mobile equipment.

For community planning, mapping and legal surveys programs. funding of $1.8 million or 4.4 per cent of the proposed capital estimates is planned in 1995-96.

For Members' information, I would like to remind you that capital funding provided by this department to the city of Yellowknife for ongoing municipal programs under the municipal capital assistance policy is through a GNWT/city block funding agreement that has been in effect since April 1, 1993 and is planned to be in place until March 31, 1996. The block funding under this agreement is voted in the O and M estimates. Total funding proposed for 1995-96 under this agreement remains, as in past years, is $4.1 million.

I must point out to the Members that the demands on the department's capital resources in 1995-96 exceed its ability to respond to all identified infrastructure needs. We strive to respond to an increasing population and to the community governments' need to replace aging capital infrastructure when necessary and possible.

During 1994-95, eligible communities are being required to make contributions to the Department of Municipal and Community Affairs for capital projects implemented under the municipal capital assistance policy. One of the principles of this policy is that communities should contribute to the capital costs of their municipal infrastructure based upon their ability to pay. Payment of part of the required contribution under this policy may be made by way of in-kind goods or services. This flexibility allows a community to meet their contribution by using the skills and abilities found in the community and to employ them in a project for the benefit of all residents of the community.

We continue to devolve more responsibility to community governments for the management and delivery of municipal capital projects. The level of authority is based on the willingness and ability of community governments to accept full or partial authority for their capital projects. Our support involves technical advice and direct capital contributions to community governments. In 1994-95, about $10.5 million was transferred to community governments through municipal capital contributions. These contributions stimulate local employment and active involvement in capital projects essential to the community.

In response to last year's SCOF recommendations, I have made a priority of providing assistance to the smaller communities in attaining a basic level of municipal infrastructure. My department has focused its efforts to correct the most urgent needs of the smaller communities in consultation with the local councils. I believe the department's comprehensive capital planning process has effectively responded and will continue to do so in the future.

Mr. Chairman, I will now be pleased to respond to your questions. Qujannamiik.