Thank you, Mr. Chairman. First of all, let me tell the Member we have been working with two of his communities in the last year, through the superintendents office, to try to do some debt recovery plans. I am advised that for Sanikiluaq and Lake Harbour the debt recovery is coming along very well and the communities should be back in the black come April 1.
There has been no cut from the department for the unconditional funding communities get. The funding they get is the same every year. We add on any forced growth items that come along through the capital plan and any inflationary increases that we get from the government. The money is in a pot and is distributed to the communities through a formula. The communities always get the same level from year to year.
So we think the formula is fair and equitable. The communities across the north get a fair share of the pot. Funding levels are good to allow the communities to meet some of their priorities in the municipal affairs areas. The formula does not address all the new initiatives that communities may want to take by other departments or other areas.