Thank you. Good afternoon. Item 2, Ministers' statements. The honourable Member for Hay River, Mr. Pollard.

Thank you, Madam Speaker. Good afternoon. Madam Speaker, I am announcing today measures that will hopefully protect government revenues and reinforce our government's commitment to promoting healthy lifestyles in the Northwest Territories.

The federal tobacco tax reduction of $5 per carton of cigarettes and 2.5 cents per gram of loose tobacco, announced last week, has reduced the selling prices of cigarettes and loose tobacco in the Northwest Territories. Since the territorial tobacco tax is based on taxable price, as determined in a quarterly survey of tobacco prices in Yellowknife, tobacco prices would fall again, by about $3 per carton of cigarettes, on April 1, under our existing tobacco tax legislation. That would result in Northwest Territories cigarette prices being more than $8 per carton lower than what they were before the federal tax cut. For our government, this tax reduction of $3 per carton would represent a significant amount of foregone revenues -- an estimated loss of $2 million in 1994-95.

Lower tobacco prices would lead to increased tobacco consumption by Northwest Territories residents. It is well established that tobacco products are a major cause of lung cancer, heart disease, emphysema and many other diseases. In the Northwest Territories, this is a major health concern because our per capita tobacco consumption is generally higher than in the rest of Canada. Nonetheless, over the past few years, progress has been made in reducing tobacco consumption. By imposing relatively high tobacco tax rates together with health awareness programs carried out by the Department of Health, per capita consumption of cigarettes in the Northwest Territories has fallen by over 20 per cent over the past five years. We cannot allow the progress we have made to be reversed.

I am, therefore, proposing to bring forward legislation in this House that will:

-increase the tax on cigarettes; and,

-increase the tax on loose tobacco products by a corresponding amount.

Because this measure will increase the differentials between Northwest Territories tobacco prices and those in Quebec, Ontario and New Brunswick, it is necessary that we take additional actions in the area of enforcement.

Under the existing Northwest Territories Tobacco Tax Act, individuals importing tobacco products into the Northwest Territories from other jurisdictions, whether for personal use or resale, must report to the Department of Finance and pay the territorial tax. I have been meeting with the RCMP to discuss ways of ensuring maximum compliance with this provision of the act.

As a further measure to prevent smuggling, I intend to bring forward legislation to this House to assist in the enforcement of the Tobacco Tax Act. This legislation will include increased penalties for non-compliance with the act.

Madam Speaker, in conjunction with the federal anti-smuggling awareness campaign, the Department of Health will be enhancing its own health awareness programs warning residents of the dangers of smoking. It is a well-known fact that individuals who become smokers usually acquire the habit and become addicted as teenagers or as young adults. Our campaign will therefore be aimed primarily at the youth population of the Northwest Territories.

The federal government has announced certain legislative measures regarding the sale of tobacco to young persons. It has outlawed the sale of small "kiddy" packs of cigarettes and it has raised the minimum age for purchasing tobacco products from 16 to 18 years. Madam Speaker, I am proposing that we go one step further and bring forward legislation to this House that will raise the minimum age for purchasing tobacco products in the Northwest Territories from 18 to 19 years. Five Canadian provinces have already raised the minimum age to 19 years. It would also be the same minimum age at which persons can be served liquor at bars and other licensed premises in the Northwest Territories.

I also wish to consider bringing forward legislation that would enable us to withdraw the tobacco vendor's license of any retailer convicted of selling tobacco to minors. Under current legislation, we can withdraw the licenses of retailers convicted for tax-related offenses under the Tobacco Tax Act.

Madam Speaker, we will also be joining forces with the Yukon and the provinces of Manitoba, Saskatchewan, Alberta and British Columbia in controlling smuggling. We will prepare a coordinated strategy which will include a review of the following options:

- increased investigations and audit activity;

- increased cooperation between provincial/territorial officials, police forces and the RCMP;

- legislation to require tobacco manufacturers to mark tobacco products;

- increased information sharing in areas such as tobacco imports and exports in order to ensure proper accounting to tobacco movements;

- sharing of resources;

- ensuring that the federal government allocate a fair share of incremental federal audit and enforcement resources to the territories and the western provinces; and,

- increased dissemination of information to retailers and consumers on the requirement that they pay tax on their tobacco imports.

Madam Speaker, the measures I have announced today will protect government revenues and discourage contraband in tobacco products. Above all, they represent a significant enhancement of our government's health awareness program. I am confident that residents will be responsive to this program and that the successes we have had in reducing tobacco consumption will continue. Thank you, Madam Speaker.

---Applause

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

Thank you, Madam Speaker. I will finish my Member's statement that I started yesterday. Madam Speaker, Michif is not bad French, as many of the speakers have been made to believe and have felt for many years. It is a real language, rather a group of languages that are spoken by large groups of people in Canada and in the USA. Michif is a truly born Canadian language, actually born before confederation. It is the result of friendly relations between aboriginal people and the French and English.

Michif is taught in some schools and there are some dictionaries and grammar written on it, but it has never been documented in the Northwest Territories before. I would like to thank the resource people who came from Manitoba, especially Guy Lavalee and Audreen Hourie and also those from North Dakota, especially Ida Rose Allard who speaks and teaches Michif Cree.

Madam Speaker, the reason why I am making a Member's statement on this is because I see my language, Inuktitut, evolving everyday, borrowing words from English and French. For example, we borrowed the word "oui," French for "yes." We use the word "Ouibill." And we borrow the word sugar, as "sukaq" and also the word flour "palaugaq." There are so many examples. I believe if I'm speaking to an Inuk mechanic, he would have names for every part of the truck, including pistons, ball bearings and manifolds, in Inuktitut, which have been created since that product has come to our life. We have many examples.

The reason why we are adopting these words is so that our language will survive. It is one of the strongest aboriginal languages in Canada. So many aboriginal languages are endangered and there are only three languages that aren't. One of them is Inuktitut and it will survive because it adapts to all the languages it encounters. Thank you.

---Applause

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

Thank you. Item 3, Members' statements. The honourable Member for Baffin South, Mr. Pudlat.

(Translation) Thank you, Madam Speaker. Madam Speaker, the community of Lake Harbour has been asking the Government of the Northwest Territories, for many years, to construct a wharf in Lake Harbour. The harbour is very heavily used by local hunters during the summer and fall. Each year it seems there is at least one boat that capsizes in the harbour due to high winds.

The harbour is also affected by very strong currents due to some of the highest tides in the world. The community has instructed me to pursue this matter with the government. I will be asking the Minister of Transportation about what specific future plans it has on constructing a wharf for Lake Harbour. Thank you, Madam Speaker.

---Applause

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

Thank you, Madam Speaker. The fact that the Izok Lake deposit is no longer on the agenda to be mined in the near future makes me think that people will now talk about no longer having a need for infrastructure, because one of the dreams of Yellowknifers was to have a road that would eventually go to Izok Lake and then to the coast. Many people in Yellowknife, in the mining community, knew as much as a year ago, Madam Speaker, that there were many deposits in the world that could be mined a lot cheaper than the one at Izok Lake. There was some degree of scepticism that this project would proceed, only to find out that the road to Yellowknife and beyond, along the Ingraham Trail was built at a time when there was a vision of a road to resources. I was very happy this summer when Mr. Todd asked us to contribute to a revision of his transportation strategy. Yellowknife MLAs agreed that one priority that would certainly deserve to be considered and included in this strategy was a continuation of that trail to McKay Lake, which is in the vicinity of many deposits, approximate to the diamond fields and would be an advantage to our economy and to an eventual transportation corridor for the north.

So, Madam Speaker, it remains a priority for Yellowknifers to have a corridor which would make those resources around the Lac de Gras area more accessible so other places in the Northwest Territories could take some economic advantage of that development. Thank you very much.

---Applause

Thank you. Item 3, Members' statements. The honourable Member for Aivilik, Mr. Arvaluk.

Thank you, Madam Speaker. I would like to first congratulate the Coral Harbour senior men's hockey team for coming in second place in the territorial trials.

---Applause

Considering the fact that they have only had an arena for a few years, they have certainly excelled in that short time. I must say, Madam Speaker, I am very proud of them. Unfortunately, not one of these players from the Coral Harbour team were selected for the senior men's hockey team...

Nay, nay.

...to represent the NWT at the Arctic Winter Games at Slave Lake, Alberta, next week. In fact, not one player from the Keewatin region was selected for this team.

Nay, nay.

A lone player from Iqaluit represents the Nunavut area and the territorial team, as indicated in the Arctic Winter Games calendar. The NWT team is made up of six players from the Yellowknife team, which placed first in the trials. I am informed that, according to guidelines for team selection in hockey, there is room for approximately 16 players. Obviously, there is some discretion for the selection of players from these teams which did not place first. It makes me wonder why there was not one player selected from the Coral Harbour team.

Madam Speaker, the Arctic Winter Games were started in the early 1970s as an alternative to national competition for circumpolar athletes, an opportunity to make friends and have fun in the atmosphere of good sportsmanship at somewhat less pressure than that of national competitions. I would like to remind the organizers of the Arctic Winter Games that they have to keep in mind that the spirit and intent of these games -- part of which is to represent all residents of the NWT and, in my view, the spirit and intent of the games -- were not followed when many of the players from the team that came in second place were not selected for the territorial team. I will be pursuing this matter with the Minister responsible...(Microphone turned off)...during question period.

---Applause

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

Thank you, Madam Speaker. Much of the focus in the last few months has been on mineral exploration and development in the Northwest Territories. Everyone is concerned about getting their fair share of the pie. The territorial government is concerned that the mineral royalty money will go to the federal coffers. Everyone is concerned that there will not be economic opportunities for northerners

.

Native organizations are concerned about the environment and how mineral exploration will affect land claims negotiations.

None of us -- aboriginal or white northerners -- can afford to miss these opportunities. But on the other hand, Madam Speaker, we cannot run bluntly into mineral development agreements.

Madam Speaker, in Australia's Northern Territory, there have been some fantastic joint venture agreements between mining companies and aborigines. In return for a percentage of the company and the profits, aborigines work hand in hand with developers to bring new economic opportunities to their regions. Having a percentage of the company gives them some control in the direction that the company takes. This control is essential. It gives the aborigines a say in what happens, a voice that minimizes the environmental impact of projects and ensures that aborigines reap the economic benefits.

Madam Speaker, in my own region over the past few months, we have been in negotiation with oil and gas companies over exploration and development in the Cameron Hills. These companies have taken a step to involve us in the process, and that is appreciated. However, Madam Speaker, I somehow get the impression that the reasons these negotiations haven't progressed is that DIAND has chosen to ignore these companies that have made an attempt to involve the Dene and Metis in the process. We must become owners and partners like the aborigines in northern Australia to make our involvement in non-renewable resources development legitimate, as we, as people, must have the power to make decisions that affect future generations participating in resource development. Madam Speaker, I would like to get unanimous consent to continue my statement.

Thank you. The honourable Member is seeking unanimous consent to continue. Are there any nays? There are no nays. Continue, Mr. Gargan.

Madam Speaker, token payments for the use of Dene lands and a few unskilled labour jobs are no longer enough. These concessions are nothing more than a modern version of glass beads. We must have the opportunity to participate. This participation, Madam Speaker, does not mean that we will forget our first responsibility to the environment. A lot of us have concerns about open-pit mining and its effect upon the land. These minerals are not going to go anywhere. Trading the environment off for short-term economic gains is not acceptable. We must know what is going on for our sake and that of our next generation. Thank you, Madam Speaker.

---Applause

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

Mahsi, Madam Speaker. Today I would like to express my concern with regard to the educational post-secondary incentive, consolidated and emergency loans. This has to do with the amendment to the policy that happened last year. It gives additional funds to students in the north who are attending the teacher education program at Arctic College.

We have some students in the south -- specifically in the University of Saskatchewan -- who are working towards obtaining their Bachelor of Education degrees. This policy does not apply to them. There is a feeling here that they are discriminated against.

The idea for this policy is to try to achieve 50 per cent of all teachers in the north to be northern or aboriginal by the year 2000, which is a good policy, Madam Speaker, and I totally support it. However, the aim of this policy is misdirected by applying it only to students who are attending Arctic College. In Arctic College, if we develop teachers, they receive a certificate, but at a university, there are northern students, specifically aboriginal students, who are trying to obtain Bachelor of Education degrees and the focus should also be placed on them. It is a lot of work to go back to school, in Arctic College, and especially in universities where you have to be able to do exceptionally well in your studies to obtain that degree after four years.

I would like to say that this Department of Education incentive policy should be aimed at the development of teachers, whether they receive a certificate at Arctic College or a Bachelor of Education degree at a university in the south, such as the University of Saskatchewan. Mahsi, Madam Speaker.

---Applause

Thank you. Members' statements. Item 4, returns to oral questions. The honourable Member for Sahtu, Mr. Kakfwi.

(Microphone turned off)

---Laughter

Thank you. May I ask Ministers, when you are replying to more than one return to oral question at one time, to indicate that for the record and to make it easier for Hansard staff to record the question number into the record. Thank you. Item 4, returns to oral questions. The honourable Member for Hay River.

Thank you, Madam Speaker. This is a return to oral questions asked by Mr. Dent and Mr. Ballantyne on February 18, 1994. It concerns tax return forms and payroll tax calculations. Both Members raised questions concerning the wording used on the annual return to be filed by employers under the Payroll Tax Act.

Firstly, Mr. Dent was quite correct in stating that the form asks for the total amount of tax collected from each employee. Although this is a payroll tax form and the information requested was for payroll tax purposes only, it is understandable that this request might be misunderstood. It is also correct that the word "remuneration" is misspelled twice on this form. Madam Speaker, the spelling will be corrected and the wording on the forms will be revised to state, "Total amount of payroll tax collected from each employee."

Mr. Dent also questioned the purpose of asking for the name of each employee who worked in the NWT in the year. As I indicated on Friday, it is necessary to obtain payroll information on each employee to enable the government to cross-reference employee tax information and to report back to this Assembly on the effectiveness of the tax initiatives. The individual payroll tax information requested should be readily available from employer payrolls and is considerably less than employers have to report federally for income tax purposes.

Mr. Ballantyne also quite rightly noted that the payroll tax calculations described on the annual payroll tax return may be confusing. Although the annual return identifies that the "gross annual remuneration" is that remuneration subject to payroll tax, it may not be clear to some employers that this would be the earnings for the period July 1 to December 31, 1993, only. We will clarify this request on any follow-up correspondence and on any new forms issued to employers who have not already reported correctly. Thank you, Madam Speaker.

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

Mahsi, Madam Speaker. I have a question for the Minister of Social Services. The Minister's department is responsible for services to the aged and handicapped. Currently, there is a policy in existence which sets the fees that government-operated or self-standing operated senior citizens' homes can assess their residents. I believe that this fee is currently $380 a month, and that the money collected helps cover some of the operations and costs of residents.

Since this fee is set by policy, it is also my understanding that it hasn't been changed for quite some time. My question to the Minister is, what has been done to review this fee structure to determine whether they're adequate or not?

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

Thank you, Madam Speaker. The government agrees that services, such as those provided by personal care of elders and group homes, should be needs-based. The income security reform initiative will recommend that the fee structure be revised to allow facilities to charge rates based on what clients are able to pay, with reasonable ceilings. This is in line with our restructuring plan and that restructuring plan should be in place by September 1, 1994. Thank you.

Thank you. Supplementary, Mr. Koe.

Mahsi. I'm glad this is under review. Has any work been done to determine whether the contribution and fees which are being received by the self-standing facilities are adequate?

Minister of Social Services, Ms. Mike.

Thank you, Madam Speaker. At the present time, we have an extremely heavy workload in terms of planning other things that have been requested by this Legislative Assembly. We are looking at programs, in a time of restructuring and reorganization of the department. As far as I know, at the present time, the facilities that we contribute grants to are being looked at to streamline the price structures, as well. Thank you.

Thank you. Item 5, oral questions. The honourable Member for Aivilik, Mr. Arvaluk.

Madam Speaker, I informed the House earlier about the situation of the selection process of the players for Arctic Winter Games, the open men's division. The fact that Coral Harbour was the runner up and beat Tuktoyaktuk, Hay River and an all-star team from different regions, and yet do not have one player on the territorial team brings the whole question of selection into question. My question is to the Minister responsible for sports and recreation. I believe he is also the Minister of MACA. Would he inform the House what the process is for selection for team membership to participate in the Arctic Winter Games? Thank you.

Thank you. Minister responsible for Municipal and Community Affairs, Mr. Arngna'naaq.

Thank you, Madam Speaker. The selection criteria for teams to the Arctic Winter Games is set and carried out by independent governing bodies of the particular sport. Thank you, Madam Speaker.

Thank you. Supplementary, Mr. Arvaluk.

Thank you, Madam Speaker. My question is not who selected the membership of the teams. I asked, Madam Speaker, how these players are selected. Thank you, Madam Speaker. Just for clarification. Thank you.

Thank you. Minister of Municipal and Community Affairs, Mr. Arngna'naaq.

Madam Speaker, because selection is made by independent sports bodies, in this case the hockey association, I don't know how the selection would be made. The hockey association would pay the people who make the selection and how they would make the selection is up to them. Thank you.

Thank you. Supplementary, Mr. Arvaluk.

Madam Speaker, is it the practice of the territorial government, being the trustee of the Arctic Winter Games initiatives, to take an interest in the spirit of the selection process of the Arctic Winter Games?

Mr. Arvaluk, I don't believe you had a question. Mr. Arvaluk.

Thank you, Madam Speaker. I was trying to pose a supplementary, but it didn't come out very clearly. I believe the recreation directors, coordinators and other government employees who are connected with the Department of Municipal and Community Affairs and I take it that the territorial government is a trustee. Does the Minister responsible for sports and recreation participate in the guidelines and intent of those guidelines for the Arctic Winter Games?

Thank you. Minister of Municipal and Community Affairs, Mr. Arngna'naaq.

Thank you, Madam Speaker. Madam Speaker, to date I have not been involved in any of the selections nor the guidelines as to which players will be selected for the Arctic Winter Games. Whether that may have been in the past, I don't know. But to date I have not been involved. The governing body of the particular sport would decide the guidelines for a selection of participants in the Arctic Winter Games. The associations, themselves, in this case, the hockey association, would be asked to review the selection process for the final team. Thank you.

Thank you. Final supplementary, Mr. Arvaluk.

Thank you, Madam Speaker. I am sorry this is a final supplementary. Can the Minister at least check into the matter and ensure that fairness and equality is practised in the selection process to avoid discrimination against smaller communities. Thank you.

Thank you. Minister of Municipal and Community Affairs, Mr. Arngna'naaq.

Thank you, Madam Speaker. Yes, I will.

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

Thank you. Minister of Transportation, Mr. Todd.

Thank you, Madam Speaker. Yes, as the honourable Member has indicated, it has been one of the priorities that we have established in our update of the transportation strategy. We are currently working with Mr. Frank Pope in trying to work out a plan to extend the highway in that area. We are on track for the negotiations we are undertaking with the federal government. During the break, when some of you are at the Arctic Winter Games, I will be in Ottawa trying to convince, along with Ms. Blondin-Andrew and Mr. Anawak, the federal government to join us in this venture of roads to resources. Thank you.

---Applause

Thank you. Supplementary, Mr. Zoe.

Thank you. Minister of Transportation, Mr. Todd.

Well, this is a moving document...

---Laughter

...you have to feel the policy.

---Laughter

The reality is that, in principle, we have said we are going to make a priority of roads in the Mackenzie and some other areas, in our negotiations with the federal government. These strategies are well under way. There are discussions taking place with some regional groups. I am hopeful that we will be able to convince our federal counterparts that this is a good initiative. Until we know how much participation we can get from the federal government, it is difficult to say definitively that this is when it is going to happen, here is what we are going to do and this is the time schedule in which we are going to do it.

We have a plan, we just don't have the money. We need to find a way to convince the federal government to join us in this initiative which is important to the people in the area that is affected. Thank you.

Thank you. Supplementary, Mr. Zoe.

Thank you. Minister of Transportation, Mr. Todd.

We have established that there is a requirement, or we see as a priority, the need for these roads in some initiatives that we have laid out. Mr. Lewis spoke to it earlier. I am saying to you the weakness in the proposals is to determine how much involvement we can get from federal government. Once we have that, if we can get it, then we will be able to put it to bed with respect to timing and how we would go about it. In the meantime, there are people like Mr. Pope, for example, who are taking a very aggressive position in his area in trying to come up with some creative ideas on how to expand that highway. I applaud him for it. What we're doing is getting in behind them to say that this is a good idea. I don't know how else to answer the question. We want to build roads, we have a plan, we made a priority and we stake out the money. We have to go out there and find the money from the federal government and that's what I'm trying to do.

Thank you. Final supplementary, Mr. Zoe.

Minister of Transportation, Mr. Todd.

Yes, Mr. Zoe is correct. Thank you.

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

(Translation) Thank you, Madam Speaker. In my Member's statement I mentioned that we need a boat shelter in Lake Harbour. And, in the very strong winds, some boats capsized in the water so we will be looking for a shelter for the boats. Thank you, Madam Speaker.

Minister of Transportation, Mr. Todd.

Thank you, Madam Speaker. I have indicated in my previous budget statements that I felt that marine development, particularly in off-road communities, was important because the water has both recreational and commercial importance. Certainly, we would be prepared to look at the possibility of assessing the dock facilities and wharf facilities that may be required for the people of Lake Harbour. Thank you.

Thank you. Supplementary, Mr. Pudlat.

(Translation) Thank you, Madam Speaker. In the past, there have been communities that have had shelter for their boats. The water in our area is not only used for sport. It is also used for hunting. Like I said, there are very strong winds in Lake Harbour so they need a shelter for their boats, to put their boats away during the strong winds. I wonder if I understand that there will be no funding for a shelter for the boats? Am I correct, Madam Speaker?

Minister of Transportation, Mr. Todd.

I'm a little unclear on the translation, but I think what the honourable Member is talking about is the requirement for some kind of breakwater, wharf-type of protection or shelter for local boats. We have constructed a number of them in other communities, in Gjoa Haven and Cape Dorset. I will give the honourable Member the commitment to look into his request and see if we can build it in the capital budget for future years, assuming that the municipality sees it as a priority. Thank you.

Thank you. Supplementary, Mr. Pudlat.

Thank you, Madam Speaker. There are two of them. The one you're talking about and the one I'm talking about would be a breakwater. What would be your first priority, the dock or the breakwater? Thank you.

Point of order, Mr. Allooloo.

Point Of Order

Thank you, Madam Speaker. I don't think the translation came out as it should have. The Member is not talking about breakwaters or wharves for boats. The Member is talking about a shelter or harbour where the boats could go in the event of a storm, to be protected from the elements. Thank you.

Thank you for that clarification. You don't have a point of order, but thanks for your assistance. Minister of Transportation, Mr. Todd.

We have a new superintendent of Transportation, as part of our decentralization process in the Baffin. So perhaps what may be appropriate, to get a more accurate reflection of what the community desires, is to have the superintendent go into the community of Lake Harbour and work with the Member and the municipality to work out an appropriate course of action to meet the requirements of that community. Thank you.

Thank you. Item 5, oral questions. The honourable Member for Amittuq, Mr. Allooloo.

Thank you, Madam Speaker. I would like to ask the Minister of Finance a question. He made very positive remarks this morning in his Minister's statement. I agree with his position to keep cigarette prices at the same level. Would the Minister know how much more revenue will be generated for our government through this effort? Does he have some sort of number to tell us? Thank you.

Thank you. Minister of Finance, Mr. Pollard.

Madam Speaker, because the federal government tax is part of the price upon which we calculate our taxes, our taxes effective April 1 will drop and we stand to lose around $2 million. So, if we don't raise our prices, we are going to lose the $2 million. If we move into the federal tax room, then we can gain an extra $1.5 or $2 million on top of that again, Madam Speaker. Those are the ranges we are discussing at the present time. Thank you, Madam Speaker.

Supplementary, Mr. Allooloo.

Thank you, Madam Speaker. I understand that in our formula financing agreement there is a perversity factor. If we increase taxes in the NWT, would that apply in this case? Thank you.

Thank you. Minister of Finance, Mr. Pollard.

Thank you, Madam Speaker. Madam Speaker, the perversity factor that affects us is calculated by an average tax rate across Canada, so when Ontario drops its taxes, then there's going to be some effect on us. Quebec and New Brunswick have done the same thing so it will effect us. As I've said in the House before, when Mr. Ballantyne was the Finance Minister he was very aggressive on the tobacco taxes and he really did well in escalating them during the term he was there.

(Microphone turned off)

---Laughter

So we won't gain advantage from all of these increases, but we will certainly close the gap on the average taxes across the Northwest Territories, compared to Canadian provinces. Thank you, Madam Speaker.

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

Thank you, Madam Speaker. I would like to direct my question to the Minister of the Housing Corporation. Last week, I was watching a documentary on Market Place with regard to the kind of stovepipes that we use up here and the Housing Corporation uses a lot of them. Those are the steel stovepipes manufactured in Ontario. A lot of these stovepipes when condensed will collapse. It could pose a hazard for people if they are not aware if their stovepipe has collapsed. Is the Minister aware of this?

Thank you. Minister of the Housing Corporation, Mr. Morin.

Thank you, Madam Speaker. I was not aware of it. I am aware of it now and I will check with my department to see if they have received direction from CMHC. Thank you.

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

Thank you, Madam Speaker. My question is to the Minister of Education. About nine years ago, we began extending grades in the communities. This program has met with quite a bit of success, I believe. When the Minister does

his planning, how does he determine what his needs are going to be in the following year? Is it made on the assumption that all the young people who are in a particular grade in one year are then going to proceed to the following grade the next year?

Thank you. Minister of Education, Culture and Employment Programs, Mr. Nerysoo.

Thank you, Madam Speaker. The basis on which the assessments have been made is the initial student enrolment in October and the final enrolment at the end of the year. That is the basis on which the decisions are made.

Thank you. Supplementary, Mr. Lewis.

Thank you. I know when this was first discussed 12 years ago, there was a concern about costs and how much this new approach was going to cost the government. When the Minister takes his proposal for funding these initiatives at the local level, is this considered by our government as a forced growth item, which is a priority item in terms of funding?

Thank you. Minister of Education, Culture and Employment Programs, Mr. Nerysoo.

Thank you, Madam Speaker. Generally speaking, it is considered, with the exception that we are also proposing changes in the way we make our calculations to include the potential for new registrations of students in that particular year. Our problem has been based on the method by which we are calculating student growth -- and this has been raised by the Standing Committee on Finance -- it is not responding to the population increases occurring within our student population in the communities.

Thank you. Supplementary, Mr. Lewis.

Could the Minister give some indication of what extra costs we need to incur so this program can proceed in the communities where we have already taken this initiative to extend grades?

Thank you. Minister of Education, Culture and Employment Programs, Mr. Nerysoo.

Thank you, Madam Speaker. The potential increases in some situations, and I made mention of this during our capital review in November and December, are to meet the needs for this upcoming year, for instance, which would cost us an additional $16 million. The additional requirements over the next five years would be approximately $30 million. The total amount was approximately $46 million, if Members will recall when I made my presentation. That is based on the calculations that have been used previously. Members are all aware of the tremendous population growths in our communities, particularly in the Nunavut communities where the population of students is almost six times what is normally the national average. So we have to be cognizant of that. The population growth in the north is two to three times the national average.

Thank you. Final supplementary, Mr. Lewis.