Yes, Mr. Chairman. Mr. Chairman, the Student Financial Assistance Act establishes the program for student financial assistance for residents of the Northwest Territories who wish to pursue post-secondary education. The program consists of various grants and loans which are available to the residents, depending on their eligibility.

The revolving student loan fund was established in 1982. The numbers of students requesting loans have increased steadily with one of the larger increases occurring from 1992-1993 to 1993-94. The numbers increased from 707 students in 1992-93 to 1,018 students in 1993-94. These increases occurred in all loans: primary loans, secondary loans, needs-assessed loans, and particularly post-secondary incentive loans.

Over the years, the working capital required in the revolving fund had to continue to be increased because the number of students receiving loans, and thus the value of loans issued each year, continued to exceed the value of loans repaid, remitted and written off every year.

If the number of students receiving loans had remained constant, the revolving fund would have matured in about 15 and a half years, and no further ceiling increases would have been necessary. However, as long as the number of students increases, the ceiling will have to be raised. The rate increase in student loans issued will determine how soon the ceiling will have to be raised again. With the current rate of student loan increases, the loan fund ceiling will have to be raised again in about two or three years. The cost to government in operating a student loan fund is the cost of remitting loans and writing off loans.

Over 230 more students, compared to the same time period in 1993-94, are expected to access remissible loans in 1994-95. An increase in the statutory loan limit, set out in the schedule to the Student Financial Assistance Act, is necessary to allow us to make loans available to eligible students this year and in the future.

However, Mr. Chairman, I recognize that increasing demands on our resources are a problem. Increases in the demand for student loans and student grants, the changes anticipated across Canada in student financial assistance, and federal restraint require that we carry out a comprehensive review of our student financial assistance program by March 1995.

Mr. Chairman, I am now ready to proceed with the review of Bill 20.