Item 2, Ministers' statements. The honourable Member for Sahtu, Mr. Kakfwi.

Thank you. Item 2, Ministers' statements. Item 3, Members' statements. The honourable Member for Amittuq, Mr. Allooloo.

(Translation) Thank you, Madam Speaker. During the last session, I informed this House that local Inuit were in the process of forming an Inuit association here in Yellowknife. At that time, I talked about the importance of unity to the Inuit people, and the need for networking amongst Inuit living in Yellowknife. Since then, a dedicated group of volunteers has been working hard behind the scenes to make this new association a reality. (Translation ends)

Madam Speaker, there is a general consensus that the Yellowknife Inuit Association should provide moral support and be the vehicle for social gatherings. The Yellowknife Inuit Association will also, on occasion, contribute to the political process for Nunavut and the NWT in the important years to come.

There is also an agreement that it should not be a strictly ethnic organization, but open to non-Inuit family members on an associate membership basis.

(Translation) Madam Speaker, I would also like to say that I'm very happy to announce that next Tuesday, February 15, 1994, at 7:00 pm, the Inuit of Yellowknife will gather in the great hall of this building to launch the new association. This will be an opportunity for Inuit to register themselves and their families with the association, as well as to kick up their heels at the square dance. In addition, real food such as char, caribou, bannock and tea will be served.

Madam Speaker, I invite all Inuit living in Yellowknife, whether they are Inuvialuit or Inuinnait or if you are just here for that day, along with your families and friends, to attend the joyous occasion and help celebrate the birth of the Yellowknife Inuit Association. Thank you.

---Applause

Thank you. Item 3, Members' statements. The honourable Member for Yellowknife Centre, Mr. Lewis.

Thank you, Madam Speaker. Last night, Members had the distinct pleasure of listening to Treaty 8 chiefs in our Caucus room. It was a historic occasion to have native leaders visiting with us in this place of Assembly. However, Madam Speaker, because of the difficult times we are now going through in terms of constitutional development, many problems have been posed in recent weeks because of the position of Treaty 8 chiefs not to participate in further constitutional discussion for the creation of a new Northwest Territories Act or a replacement act to deal with the requirements of the people left over when Nunavut is created in 1999.

I promised my colleagues this morning that I would not make a statement of great substance on this issue today until we've had further discussion among ourselves and also with the people we represent. But it does pose very grave problems for further constitutional debate in the west if some players have decided that they don't want to take part in the process. It seems to me that we could be heading towards the same kind of difficulty that Canada has headed in the past, when it has decided to proceed with constitutional development with the exclusion of Quebec.

For that reason, Madam Speaker, it seems to me we have to take a good look at this process to make sure that whatever steps we take over the next few months are done in the best interests of all the people in the western Arctic. Thank you, very much.

Thank you. Item 3, Members' statements. The honourable Member for Deh Cho, Mr. Gargan.

Thank you, Madam Speaker. I rise today, before we begin consideration of the budget on Monday, to bring to the Members' and Ministers' attention a number of concerns I have on the subject of a balanced budget. All of us, as Members of this Legislative Assembly, are aware of the serious shortage of social housing in some of our communities. As all of you also know, this shortage, by the very nature of the problems encountered by the individuals and families affected, contributes to the high costs of social and medical programs. This is an old problem. It is not going to go away. We have to deal with it.

Madam Speaker, the need for adequate housing is not the only priority this government faces in allocating its funding. Along with the age-old problems, which I will not repeat here, we face other new demands upon our finances. Issues that will have to be dealt with in the coming years include shelters for abused women and children, possible restitution for children abused in residential schools, salaries for care givers, gender equality and job equity for government employees.

Madam Speaker, some of these issues, such as pay equity, cannot be avoided. Sooner or later, this government is going to have to pay the piper. Where will this money come from? What programs or services are going to suffer? Sometimes, Madam Speaker, spending money on specific problems is the only way to deal with the larger picture. If we spend, for example, money now on women's shelters and public housing, we would be saving money on social programs in the long run. By helping the victims of abuse now, we prevent their children from becoming abusers themselves.

The business incentive policy and the negotiated contracts are like this. We may pay a little extra to get the job done, but we are helping the unemployed pay their own way.

Hear, hear.

Which, in turn, saves the government money on social programs. We have difficult choices to make. There are too many programs and services we can no longer put off. For the sake of the next generation, we must take action.

Madam Speaker, the Standing Committee on Finance has given the government little alternative but to present a balanced budget. But, this is part of the latest trend in Canadian politics, which is placing a burden on the subsequent generation. Madam Speaker, right now, I'm more concerned about whether there will be a subsequent generation. I will be tabling a report prepared for me by the research division, outlining budget initiatives in other Canadian jurisdictions. Deficit financing may be the only option. I ask that Members not dismiss this option out of hand. Thank you.

Thank you. Item 3, Members' statements. The honourable Member for Iqaluit, Mr. Patterson.

Thank you, Madam Speaker. Madam Speaker, I rise to talk about a current national issue and also, unfortunately, an issue that is going to impact the territories

and has already impacted my constituency of Iqaluit. That has to do with the question of tobacco taxes. I would like to make a few comments. Firstly, I'm appalled at the way the federal government has politicized this problem and reacted to political pressures on a very delicate public policy issue.

Secondly, I'm surprised that so far our government hasn't fully indicated where it stands. There was indication -- although the Premier indicated she was not fully briefed on the matter -- the other day that prices wouldn't change. That same day prices did change. They were lowered in my constituency and, I believe, in Yellowknife. I think we have to face reality that wholesalers are advising their customers in Iqaluit that they can and should reduce the price of cigarettes by the amount of the lowered federal tax.

There is some confusion now about just what our government's position is on this issue. In Iqaluit, I'm told by one retailer, whose letter I tabled in the House yesterday, that French cab drivers will be depriving the GNWT of tax revenue in Iqaluit by selling cigarettes and perhaps selling them indiscriminately to minors. I'm advised that cigarettes will be smuggled in, in food orders, and that people will stop or reduce their purchases in my constituency.

Yet, there are other considerations. We have a smoking and lung cancer epidemic in the Northwest Territories. We know that high prices are a deterrent to smoking and have, up to now, in Canada, resulted in a reduction by 40 per cent of the consumption of cigarettes over the last ten years. This is an important issue that should be debated as a matter of public policy and probably in this Legislature. Thank you, Madam Speaker.

Thank you. Item 3, Members' statements. The honourable Member for Nahendeh, Mr. Antoine.

Mahsi, Madam Speaker. Last week, I had the opportunity to visit the communities in my constituency. The visits were not as long as I would have liked them to be, however, I felt the meetings and visits were very useful. Each community, like every place else in the north, is different from each other, each with its own unique characteristics. However, there are outstanding issues in each of these communities that I feel this government could and must help with.

My concern is with the development of small communities, especially small communities such as Jean Marie River, Trout Lake, Nahanni Butte and Wrigley. There are other communities in the north as well, such as Kakisa Lake, Bay Chimo, Bathurst Inlet and other communities I may have missed.

The government must assist these communities with more funding and technical assistance. There must be a concerted effort by all the departments in that region to help people develop their communities into strong communities. The goal, Madam Speaker, is to have strong communities.

At the present time, this government assists these communities minimally. The funding we get from Ottawa is the funding formula for all citizens of the Northwest Territories. However, the type of funding these communities are assisted with is not the same as other communities because they do not comply with MACA's definition, which I think is very wrong.

The mandate of government departments specifically states that the government will help communities develop into strong communities. There must be equity and fairness in the allocation of funding. Because these communities have band councils as community governments, they do not receive the same treatment as other more developed communities, which is wrong. They must be assisted in their efforts to become strong, economically sound communities. Mahsi, Madam Speaker.

---Applause

Thank you. Item 3, Members' statements. The honourable Member for Yellowknife South, Mr. Whitford.

The honourable Member is seeking unanimous consent to continue with his Member's statement. Are there any nays? There are no nays. Please proceed.

Thank you. Item 3, Members' statements. The honourable Member for Yellowknife Frame Lake.

Thank you. The honourable Member is seeking unanimous consent to waive rule 34(5). Are there any nays? There are no nays. Proceed, Mr. Dent.

There is a motion on the floor. All those in favour? All those opposed? The motion is carried.

---Carried

Item 3, Members' Statements. I want to advise Members that I have been very lenient in allowing Members to go beyond their allotted time for Members' statements. However, I would respectfully ask Members to attempt to adhere to our rules for the two and a half minutes allotted for Members' statements. In the event you feel the need to go beyond two and a half minutes, I would ask that you be conscientious of the time and ask for unanimous consent to proceed, without me having to cut you off from your statements. So for next week, I would like you to be conscientious of the comments I am making to you today. Thank you.

Item 4, returns to oral questions. Minister for Housing and Public Works, Mr. Morin.

Thank you, Madam Speaker. I have a return to a question asked by Mr. Allooloo on February 9, report on sale of staff housing.

To date, the GNWT has sold a total of 123 staff houses and sales of 70 other units are pending. The breakdown, by region, is as follows:

1. In the Yellowknife region, 35 houses have been sold and nine sales are still pending;

2. In the Fort Smith region, 25 units have been sold and another 16 sales are pending;

3. In the Inuvik region, 26 units have been sold and nine sales are pending;

4. In the Baffin region, ten units have been sold and 18 sales are pending;

5. In the Kitikmeot region, three houses have been sold and no sales are pending;

6. In the Keewatin region, 24 houses have been sold and another 18 sales are pending.

The GNWT has received $6,240,456 in revenue from the sales of staff houses. I will distribute a report to MLAs which includes a community-by-community breakdown of sales. Thank you, Madam Speaker.

Item 4, returns to oral questions. The honourable Member for Sahtu, Mr. Kakfwi.

Thank you. Item 4, returns to oral questions. Item 5, oral questions. The honourable Member for Natilikmiot, Mr. Ningark.

(Translation) Thank you, Madam Speaker. My question is directed to the Minister of MACA. The small communities have a by-law officer responsible for the community. We realize that a by-law officer's job is a difficult job because they have to follow the by-laws. Many times the by-law officers are not trained to become by-law officers. I will ask the Minister this question, is he aware of a training program that is responsible for training by-law officers? Thank you.

Thank you. Minister of MACA, Mr. Arngna'naaq.

(Translation) Thank you, Madam Speaker. I am not able to come up with your answer at the moment. I will look into this and get back to you. Thank you.

Thank you. Item 5, oral questions. The honourable Member for Natilikmiot, supplementary.

(Translation) Thank you, Madam Speaker. Supplementary to my question to the Minister of MACA. After he looks into the possibility of a training program that exists for the by-law officers, and if he finds out there is not one available, is he going to try to establish a training program for the by-law officers in the communities? Thank you.

Thank you. Minister of MACA, Mr. Arngna'naaq.

(Translation) Thank you, Madam Speaker. If there is no training program for the by-law officers, I will try to find out what we can do about establishing some type of program for the all of the NWT communities.

After I look into this program, I will get back to you. Thank you.

Thank you. Item 5, oral questions. The honourable Member for Baffin South, Mr. Pudlat.

(Translation) Thank you, Madam Speaker. I have a question I will be directing to the Minister of Transportation. I will be directing two questions to the Minister. Madam Speaker, the Cape Dorset airport construction is going to take place in 1994. I just wonder if this is true. I want to find out if the construction of the airport is deferred to 1995. I wonder if I can get an answer to this. Thank you, Madam Speaker.

Thank you. The honourable Member for Keewatin Central.

Thank you, Madam Speaker. There are actually two developments taking place in Cape Dorset. One is a requirement for the upgrading of the airstrip, some of the lighting and some of the runway improvements. It's my understanding that that will take place this coming summer. There is also, in the capital budget, I think about $1.3 million or $1.4 million for a new air terminal building. I want to assure the honourable Member that some of the technological work will be done this year. Subject to approval by the Legislative Assembly, the new air terminal building will be built in 1995. So in 1994, there is going to be work on the airstrip, and in 1995, a new terminal building. Thank you.

Thank you. Supplementary, Mr. Pudlat.

(Translation) Thank you, Madam Speaker, and thank you for the answer to my question. I wonder if the Minister of Transportation can provide this answer, in writing, to the community of Cape Dorset. Thank you.

The honourable Member for Keewatin Central, Mr. Todd.

I would only be too happy to provide the correspondence directly to the municipality, advising them of this and advising them that Mr. Pudlat has supported the position. Thank you.

Thank you. Item 5, oral questions. The honourable Member for Deh Cho, Mr. Gargan.

Thank you, Madam Speaker. My question is directed to the Minister of Social Services, and it's with regard to a response to a question I asked about the benefits only being designated to Inuvik and Iqaluit. In the Minister's response, she said that Inuvik and Iqaluit are off the highway systems so their benefits are different. The benefits that are a package for Hay River are different from those communities. I would like to ask whether Inuvik is off the highway system.

Thank you. Mr. Gargan, I know you asked your question to the Minister of Social Services, but I understood that you asked if Inuvik was off the highway system. The highway systems are the responsibility of the Minister of Transportation, Mr. Todd. So, I would ask you to either rephrase your question or ask that it be directed to Mr. Todd, the Minister of Transportation. Thank you. Mr. Gargan.

Madam Speaker, the Minister of Social Services made a statement with regard to benefits. The justification for those benefits is that those communities are off the highway system. That is what she said. I always thought Inuvik was part of the highway system. If it isn't, then I would like to hear from the Minister that it isn't.

Thank you. The Minister of Social Services, I believe the Member wishes clarification on the statement you made with respect to determining what is on or off the highway system. Just looking at the Hansard, I will allow the Minister of Social Services to reply to Mr. Gargan's question. The Minister of Social Services, go ahead.

Thank you, Madam Speaker. Inuvik is considered off the highway system when it comes to benefits. Thank you.

Thank you. Item 5, oral questions. The honourable Member for Iqaluit, Mr. Patterson.

Thank you, Madam Speaker. Following up on my Member's statement today, I would like to ask the Minister of Finance, the Honourable John Pollard, if the Government of the Northwest Territories has determined yet what position it will take in the NWT in response to the action taken by the Government of Canada this past week to lower cigarette taxes by reducing the federal tax by $5 a carton? Has the GNWT determined its position? Thank you.

Thank you. The Minister of Finance, Mr. Pollard.

Thank you, Madam Speaker. Madam Speaker, no, we have not decided what to do, other than I will not propose decreasing our taxes. Beyond that, I should inform the House that I met yesterday with the RCMP. I talked with the RCMP in Iqaluit yesterday and I will be talking either today, this weekend or Monday morning in a conference call with all the health board chairs. I will be talking to the chief on the Dene reserve in Hay River on Monday. Any decision we make -- and I say we, Madam Speaker, because if I wanted to change the price of tobacco in the NWT, it has to come before the House, it is in legislation -- will be a decision of this House.

Before I propose what to do to Cabinet and to this House, we have to sit back and watch what is going to happen across Canada. The Department of Finance is discussing this issue with the western provinces. We already know what Quebec is going to do. The Department of Health is discussing the packaging issue with the Departments of Health across Canada. We haven't made a decision yet. When we make a decision on what to propose, it will be a steady decision and hopefully, the right decision. Thank you, Madam Speaker.

Thank you. Supplementary, Mr. Patterson.

Thank you, Madam Speaker. Madam Speaker, my supplementary question to the Minister of Finance is that since he has stated he will not be, at least immediately, proposing a decrease in taxes in the Northwest Territories, in taking this position, what account has the Minister of Finance taken of the well-established link between cigarette prices and the rates of smoking? Is that a factor in the position for not decreasing taxes? Thank you.

Thank you. Minister of Finance, Mr. Pollard.

Thank you, Madam Speaker. Madam Speaker, that is the prime reason, although I would be less than honest if I didn't say we're worried about erosion of tax dollars as well. But, primarily, it's related to health. As most of you know, I was at a Health Ministers' conference on Monday, Tuesday and Wednesday. Everybody knows that when you increase the price of tobacco, consumption goes down. Ministers of Health were saying to the federal Minister of Health that by this action of the federal government, you are going to incur large health costs down the road for those people who start up smoking because it's cheaper.

Thank you. Supplementary, Mr. Patterson.

Thank you, Madam Speaker. Madam Speaker, looking at the situation in Ontario and Quebec, where people are smuggling cigarettes already into Ontario from Quebec and comparing that situation to the territories, it seems that with direct air links to Montreal, the Baffin region -- and particularly Iqaluit -- may be vulnerable to widespread smuggling. This is predicted by at least one of my constituents who is in the retail business.

I would like to ask the Minister of Finance -- and he's had some conversations with the RCMP in Iqaluit, he said -- is the intention that the Department of Finance and the government, through the RCMP, will be closely monitoring and taking steps to control the incidence of cigarette smuggling in the Baffin and particularly in Iqaluit? Is that the idea behind these consultations with the police? Thank you.

Thank you. Minister of Finance, Mr. Pollard.

Thank you, Madam Speaker. This is indeed a complex issue, Madam Speaker. It is not just a question of whether we lower our taxes, maintain our taxes or move into the federal tax room. We have to look at the packaging and we have to look at the age. The federal government shows 18, which I think is wrong. It should have been 19. It is much easier to identify a 19 year old because that is the age they can get into bars, et cetera. So, I think they have made an error and they may revisit that area.

Right now, any one of us could bring in 50 cartons of cigarettes from a southern province and we wouldn't have broken the law, as long as we say we are going to write to John and send him the tax dollars he should have received on it. That puts the RCMP in a difficult position because they could never say to someone you have too many packages of cigarettes, and we suspect you are going to sell them as contraband. A person would say I am going to remit the taxes to the Department of Finance.

Then it goes back to where these people who order shipments from -- I know about the barge situation -- those people from Iqaluit. We are checking to see if those companies, that were mentioned in Mr. Harper's letter, do have tobacco licences issued by this government. We are looking at packaging and possession. We are looking at what other jurisdictions are doing. The whole thing is being taken into consideration before we make a move. I don't want to make a knee-jerk reaction that doesn't encompass the whole situation.

I recognize the suppliers of the retail outlets of the Northwest Territories are going to be under some business pressure. I want to do what I can to protect their business as well. I mentioned the Dene reserve in Hay River, Madam Speaker, simply because if we keep our taxes up or if we move into the federal tax room, there is going to be a lot of pressure put upon the people on the reserve. I want to discuss that with the

chief down there before we make a decision. Thank you, Madam Speaker.

Thank you. Final supplementary, Mr. Patterson.

Thank you, Madam Speaker. My final supplementary has to do with the prices of cigarettes today in the Northwest Territories. I take it from the Minister's response to my opening question that it is presently GNWT policy not to decrease taxes and, therefore, not to lower the price of cigarettes because it will be an inducement to increase levels of smoking.

However, Madam Speaker, I am informed by retailers in my riding that they have been advised by wholesalers in Quebec that because wholesalers in Quebec are no longer paying federal taxes, the retailers in the Northwest Territories can and should pass on the savings and lower the price of cigarettes sold in the Northwest Territories by the amount of that lowered federal tax. I would like to ask the Minister of Finance if he is aware that, despite the present policy of the Government of the Northwest Territories not to change taxes and, therefore, not to lower prices, prices have already been lowered by the action of the federal government and by instructions given by wholesalers to retailers in the Northwest Territories? Those retailers were urged to call their wholesalers by the officials in the Minister's Department of Finance, who gave them that advice. Is the Minister aware of that situation?

Thank you. Minister of Finance, Mr. Pollard.

Thank you, Madam Speaker. Yes, I am, Madam Speaker. What is happening is we have no control over the federal tax. The Prime Minister stated that he would cover people's inventories. So the federal government advised wholesalers that on a particular day, I think it was the night of the 9th, they would do inventory and be able to recoup those federal taxes from their wholesalers. They were able to drop the price as soon as they wanted on the federal side of the tax.

As far as our side of the taxation is concerned, I could not change this tax until the 1st of April so we are not losing any money at the present time because that is the way the legislation is set up. Each quarter, I review the tax and we look at the retail price of cigarettes in the Northwest Territories, less the federal tax. So, yes, I am aware that the federal tax has already dropped the price of cigarettes across the Northwest Territories. Yes, I am aware that it was on the inventory that was on storekeepers' shelves on that particular day. I have no jurisdiction over that issue, but we have not dropped our territorial tax, Madam Speaker. Thank you.

Thank you. The honourable Member for Deh Cho, Mr. Gargan.

Thank you, Madam Speaker. I would like to direct my question to the Minister of Social Services. In her last response to me with regard to the benefits for treatment workers, she indicated that Inuvik is considered off the highway system for benefits purposes only. I am sure the Minister is aware of what the differences are in benefits between treatment centres that are on the highway systems and off the highway systems. What is the difference between the benefits for people who work on the highway system and off the highway system?

Thank you. Minister of Social Services.

Thank you, Madam Speaker. The benefits I was talking about, off the highway system, are settlement allowances. Thank you.

Thank you. The honourable Member for Kitikmeot, Mr. Ng.

Thank you, Madam Speaker. My question is to the Minister of Economic Development and Tourism. It relates to the development of a policy for maximization of renewable resources, the commercial quotas. Has the Minister ascertained if there is a policy in place, at this time?

Thank you. Minister of Economic Development, Mr. Todd.

Could he ask the question again? Could I get clarification? Was it commercial quotas or was it utilization of renewable resources?

Mr. Ng.

It is a combination of both, the utilization of the commercial quotas and renewable resources that we have.

Thank you. Mr. Todd.

Mr. Ng asked this question in the last session. We are working at trying to fast-track a policy, through the policy committee of Economic Development, as to how we can encourage and insist that commercial institutions that this government runs, as well as others, make greater utilization of our natural resources when it comes to fish, wild game, et cetera. I am hoping that that policy will be complete fairly soon and then I will be able to provide it to Mr. Ng so we can seek his comments. Thank you.

Thank you. Item 5, oral questions. The honourable Member for North Slave, Mr. Zoe.

Thank you. Mr. Zoe, we're not in committee of the whole, so I'm not Madam Chair. Minister of Social Services, Ms. Mike.

Thank you, Madam Speaker. One of the first steps we tried to address are the alcohol and drug treatment centre counsellors, to increase their wage levels to the equivalent of a government worker. The second step, is we are looking into the community projects, not only alcohol and drug workers, but also other non-government organizations that we fund. The department is the phase of planning, so I would say the plans would be completed by September of 1994. Thank you.

Thank you. Supplementary, Mr. Zoe.

Thank you. Minister of Social Services, Ms. Mike.

Thank you, Madam Speaker. These are the kinds of things that the department will consider. Thank you.

Thank you. Item 5, oral questions. The honourable Member for Yellowknife Centre, Mr. Lewis.

Thank you, Madam Speaker. My question is to Mr. Kakfwi. Madam Speaker, yesterday, I talked to one of the elders here who I've known for a long time. About a year ago, I began discussing with him the possibility of building a house out at Prelude Lake where I have title to a lot. I've had it for a long time, but only squirrels and other little animals live in the shack I have there right now because it wasn't very well built. So, I want to build a decent one that my wife and I can stay in.

In light of the new developments in relation to land claims in the Yellowknife area, whereby instead of a negotiated land claim agreement, the Treaty 8 people want to have a clarification of what Treaty 8 really meant, and the fact that they claim they have not seeded the land, I would like to ask the Minister of Aboriginal Affairs -- and I'm using this personal example because it applies to lots of other people who own land outside of Yellowknife, what form of protection I have. I have to decide whether I'm going to build a good, decent sized house that will cost money, or just a little one that I won't worry about. What form of protection will I have, or other people like me, to build on titled lots outside of municipal boundaries?

Thank you. Minister of Intergovernmental and Aboriginal Affairs, Mr. Kakfwi.

Supplementary, Mr. Lewis.

I would like to ask the Minister, since the negotiations that would take place between the Treaty 8 chiefs and the federal government would not be to get a new treaty, a new agreement or a new deal, but on the basis of a treaty that already exists, does that change the nature of negotiations from the one that the Minister is familiar with, whereby the federal government always honours such things as current ownership of title?

Thank you. Minister of Aboriginal Affairs, Mr. Kakfwi.

Thank you. Item 5, oral questions. The honourable Member for Nahendeh, Mr. Antoine.

Mahsi, Madam Speaker. My question is for the Minister who is responsible for the buy north policy. With regard to the community of Fort Liard, this policy is not very flexible and not very reasonable. It doesn't use common sense when you live in Fort Liard, because 20 miles away is the BC border and with a two-hour drive by highway, you're in the community of Fort Nelson where the prices are a lot cheaper. That's where the community of Fort Liard has been buying all their goods in the past. Since this buy north policy came into effect, they have been in a dilemma about where they're going to get their goods. It's causing a lot of problems for them. It was brought to my attention and I would like to ask the Minister if this policy could be flexible enough to allow the community of Fort Liard to continue to buy their goods and supplies in Fort Nelson. Thank you.

Thank you. Minister of Public Works and Services, Mr. Morin.

Thank you, Madam Speaker. People can buy their goods or food wherever they want, but if they're spending GNWT money on projects or business, then our policy will apply. There will be a percentage applied to their tenders. Thank you.

Thank you. Supplementary, Mr. Antoine.

Specifically, the problem is that government-funded operations like the school and the different government departments were buying supplies from Fort Nelson in the past. However, with this new buy north policy, it's costing them extra money to buy things from other places. The next

biggest centre is Fort Simpson, which is about a four-hour drive. In comparison, you have a four-hour drive and more expensive material, and a two-hour drive where you can buy things a lot cheaper. One of the purposes of the government is to try to save money and you balance that by trying to buy in the north. It doesn't make sense for citizens in Fort Liard. That is the problem we have. Is the Minister willing to look at this situation and see if we can be flexible and reasonable in some of the policies that we have been passing? Thank you.

Thank you. Minister of Public Works and Government Services, Mr. Morin.

Thank you, Madam Speaker. The business incentive policy was put in place to encourage businesses to do business in the north. It has created a lot of jobs in the Northwest Territories. If there is a funding problem with the school boards, that should be taken up with the Minister of Education. As far as I understand it, they are funded adequately, in order for them to buy in the Northwest Territories. School boards, health boards, nursing stations or DPW, buy in the north. Thank you.

Thank you. Supplementary, Mr. Antoine.

Thank you, Madam Speaker. I would like to ask the Minister if he is willing to look at the unique situation in Fort Liard and see if there is a possibility of being flexible with this policy. Thank you.

Thank you. The honourable Member for Tu Nedhe, Mr. Morin.

Thank you, Madam Speaker. I'll be happy to look at this unique situation to try to see if we can help them out to make it easier for them to buy in the north. Thank you.

Thank you. Item 5, oral questions. The honourable Member for Natilikmiot, Mr. Ningark.

Thank you, Madam Speaker. Madam Speaker, my question is directed to the honourable Minister of Finance. Madam Speaker, I'm glad the Minister is taking the issue of tobacco taxation as a health issue. I agree with the Minister 100 per cent. I'm wondering if the honourable Minister would consider giving increased funding to the health boards so the health boards in different regions can try to fight against the dangers of smoking? Thank you.

Thank you. Minister of Finance, Mr. Pollard.

Thank you, Madam Speaker. Madam Speaker, the whole issue of education in the health field is up for grabs right now. The federal government is going to have over $168 million over two years to spend in the provinces and territories, to teach people and get the message across about the dangers of smoking. The provinces and territories, right now, are discussing that issue with the federal government. I think, around the table last week, we were fairly convinced that the money should flow through us right to communities, boards and to the people actually doing work in the communities, depending on the jurisdictions across Canada.

The answer is, there is money forthcoming and it will go to the boards, yes, Madam Speaker.

Thank you. Item 5, oral questions. The honourable Member for Kitikmeot, Mr. Ng.

Thank you, Madam Speaker. My question is for the Minister of Finance. Yesterday, I pointed out the concern with the exclusive debit card agreement between the CIBC and the Northwest Company. Although I recognize that the government wasn't directly involved with that agreement, they are indirectly involved, in that it came about as a result of the GNWT's proposal call to supply banking services to our communities. I would like to ask the Minister if he recognizes that problem and if he does, how he plans to address it?

Thank you. Minister of Finance, Mr. Pollard.

Madam Speaker, I do recognize the problem, although I would advise the House that what the CIBC is doing in the Northwest Territories, they have been doing in northern Manitoba for some time. They were well down the road to negotiating this arrangement with the Northern stores six or eight months ago. I think all we've done is moved ahead their time schedule.

I would point out to the Member, through you, Madam Speaker, that there are other banks dealing in the Northwest Territories, at the present time, which are looking at other communities. I'm aware that those talks are ongoing. There may be other banks who are going to move into other communities with some services. Certainly, I don't want to give anybody the impression that there's a bank talking about a standard bricks and mortar bank, but they're certainly looking at things like debit cards and money machines.

I want to be very frank with the house that I'm somewhat alarmed at a letter I've received from Northern stores that indicated to me that they don't feel the CIBC has an exclusive agreement with Northern stores. I checked with our people who were in the room when the CIBC made a presentation to them and they said they felt that the CIBC indicated a sole vendors agreement, an exclusive agreement. I'm having that checked out at the present time, Madam Speaker. If, in fact, the Northern stores are correct in what they say, it does not preclude other banks from going to other branches of Northern stores and co-operatives and saying they will put in debit card systems. Thank you, Madam Speaker.

Thank you. Item 5, oral questions. The honourable Member for Yellowknife South, Mr. Whitford.