Thank you, Mr. Chairman. I believe that the two specific objectives that were laid out for this particular program have been met. I would like to indicate that I will make every effort to maintain the level at which the program is being run. Thank you, Mr. Chairman.

Well, I have a few comments and I would like to hear what the Minister has to say. This government has strongly supported home ownership now for many years and of late we've heard a lot about home ownership. We hear a lot about home ownership when we are talking about staff housing, the Housing Corporation rental review, building the economy of the Northwest Territories, encouraging less dependency in the Northwest Territories, and the whole taxation issue. I think the Minister is committed to looking at taxation in the general taxation area which is a real problem. This particular program could help encourage people in the general taxation area to perhaps accept some increases to bring that tax level up to some sort of norm.

From everything the government has said, I see this as an important initiative. At the time when this program was cut, the financial prognosis of the accumulated surplus was very bad. Although the long-term prognosis right now shows that we're quite vulnerable, the reality is the situation is not a situation that I think $350,000 is going to make a big difference to, either way. If you look at all the other good things that MACA does, this program provided some balance to all those other things and it really demonstrated to home owners that the department is behind them.

I would like to again ask, and I would like an unqualified answer, that the Minister look at the programs that MACA has to offer. And, that they look fairly and objectively at this program to see if, for $350,000, the objectives that are contained within this program might be objectives that aren't only good for the department but good for the government as a whole, to demonstrate some real commitment to the oft-stated government policy of encouraging home ownership.

Thank you, Mr. Chairman. One of the indications I see has been the sale of staff houses in the NWT. What I see is that the larger municipalities which have many civil servants are able to buy their staff housing units. But, I don't believe they are basing their decisions on buying these staff units on a $300 home ownership tax rebate. I don't think any person that is going to buy a house here in Yellowknife for $150,000 to $300,000 is going to base their decision to buy that particular house on a tax rebate of $300 to $400.

I have indicated to the Member that I will give this due consideration, as has been recommended by the Standing Committee on Finance. I have been asked to look at it and I will give it serious consideration. However, I still believe that a person who is going to buy a home will not be doing so based on a tax rebate. Thank you, Mr. Chairman.

Well, the two facts that the Minister put forward are interesting. I agree the sale of staff housing probably depends a lot on the fact that they were fairly reasonably priced. Now there is another important element that we have to talk about here. In many municipalities, including Yellowknife, people feel that they've reached the highest threshold of taxation. When we're talking about attracting, for instance, the mining industry into setting up shop and people to buy houses in our communities, often times you hear about what sort of incentive package we can offer to bring in those industries that create jobs. To me, what this program does -- though $300 or $400 may not seem like a lot -- if you have a $2,500 tax bill, $400 can cut it down by 20 per cent. If you are deciding on whether you want to live here or in Edmonton, the fact that the government is showing that kind of consideration will make you say here is a government that actually cares somewhat about whether I build a house. I appreciate that the Minister says he is going to look at it, but I really hope that the Minister looks at it with an open mind. There are many good arguments as to why this was one of the most successful programs the department has ever had. My point is the arguments the Minister is making would be a lot more valid if we were talking about $10 million, but we are talking about $350,000.

The symbolic value as well as the monetary value is an important element. For a Minister of MACA, this is a very popular program. It is a program that shows the Minister does care about the width and breadth of the Northwest Territories. I ask the Minister to look at this objectively and make a decision based on a rational, objective analysis of the facts. Thank you, Mr. Chairman.

Thank you, Mr. Chairman. I agree with the honourable Member. If there is information the Member is able to give to me to make my view more objective, I would very much appreciate that. I believe that he has given some of that information to me at this point.

I would also like to point out that the popularity of the program has not reduced, even though it's been reduced by $100. As the Member has indicated, the home ownership rebate was a very popular program and it still is, even the $300 rebate. I think, Mr. Chairman, that at this point I think I'm looking at it objectively, but if the Member feels otherwise then I would like further advice from the Member. Thank you, Mr. Chairman.

Thank you. Well, I feel quite strongly about this particular program and I would be more than pleased to cooperate with the Minister to give whatever ideas I have to help support my position that the program should be restored. I mean I feel it could even be increased, I think it's that good a program. What I hear from the Minister is that the Minister will look at this objectively, with an open mind, consult with MLAs who have an interest and will make a decision based on the facts and that consultation. Thank you, Mr. Chairman.

Thank you, Mr. Chairman. Yes, I will.

Agreed.

---Agreed

I asked the Minister a question during oral question period and it was to do with the block funding transfer agreement. First of all, I want to state for the record

that the city of Yellowknife is very pleased with the agreement and very pleased with the cooperation they've received from the department. That cooperation is ongoing and I feel that there is a very good relationship between the city and MACA. I would like to commend the department for that cooperation.

The question I had asked the Minister was to do with some outstanding issues that were really outside of this particular block funding transfer agreement. As the Minister is probably aware, Yellowknife has an old deteriorating sewer and water system. There have been very, very serious problems over the years and the government has been very generous over the years, paying 80 per cent of the costs of replacing the sewer and water system.

That actual job is not yet complete and my understanding is there are ongoing discussions between the city and the government for coming up with a formula and a process to complete that job. The question I had asked the Minister during oral question period is whether he could give me an update as to exactly what is happening with those negotiations because they are very important to the city of Yellowknife. The deputy minister knows that the sewer and water system in Yellowknife, at least parts of it, are in pretty bad shape.

Thank you, Mr. Chairman. I indicated at the time the Member asked me this question that I did not know the details of the particular issue. I would like to ask Mr. Menard to answer to the question.

I am quite interested in getting that response when the Minister can give it to me because it is quite important for the city. I have a question about...

(Microphone turned off)

Did I miss something? Perhaps could I ask if the Minister could repeat what he said? I thought I was going to have to wait for the answer.