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.