Mr. Chairman, there are a number of items that have caused this problem. We originally had expected to be in a cash deficit position of some $19 million at this particular stage of the game. Unfortunately, there were some 1992-93 adjustments made by the federal government to our grant payments which totalled some $25 million. There was an adjustment to current year's income tax payments of $10 million. As I mentioned in the opening statement, supplementary appropriations No. 1 and No. 2 were net $25 million, so that hurt our borrowing or increased our deficit position, therefore, increased our need to borrow. So those are a number of things that happened. With regard to the federal issues, income tax and grant payments, these are fairly normal things that move back and forth, depending on prior years, et cetera, and, unfortunately, this year, Mr. Chairman, they have been against us. In other years they have been on the positive side, but today, I have to report to the House that they have been against us this year. Thank you, Mr. Chairman.

Thank you. Mr. Ng. Sorry, Mr. Antoine, were you finished?

Yes.

Okay, Mr. Ng.

Thank you, Mr. Chairman. I would like to ask - the request is going from $65 million to $100 million. What is the limit of $100 million based on, or is it just an arbitrary figure that has been chosen at this time?

Mr. Pollard.

Mr. Chairman, when we take the originally forecast deficit position of $19 million and we adjust it by the amounts that I have just put before you and we look at other outflows and net changes and assets and liabilities, which would probably be another $17 million, then that number comes very close to $96 million, so that is why we are asking to go to $100 million. It may not be necessary for us to borrow all of that money. I have already signed an arrangement with the federal government to get some $50 million or $55 million into our coffers, and that should happen in the next week, but that would mean, if I waited that long, that I would exceed the borrowing authority that this House has given us, and I would be in contravention of an act of this House. So that is the reason we have chosen $100 million as it is a round figure up from $96 million, which, if everything doesn't work as we are hoping it is going to work in the next couple of weeks, would

be the amount that we would be short by. Thank you, Mr. Chairman.

Mr. Ng, do you have any more questions?

(Microphone turned off)

Mr. Dent.

Mr. Pollard.

Mr. Chairman, we knew in January we had a $20 million run on the bank, and we knew that something was wrong in our government spending, but we had anticipated receiving the $55 million from the federal government, certainly by the end of February. Unfortunately, negotiations took longer than expected and, in the end, it required my presence in Ottawa to assist to get the matter taken care of. Even if we had received the money last week, as we were supposed to, we would probably be in good shape right now. So it is that situation that has caused the problem.

There is another problem in that the Government of Canada sent us a bill for $2.5 million this month instead of sending us money. That is an issue that is related to the allocation of the capital costs of a satellite across Canada, which seems a rather silly thing to be talking about when we receive money from Canada, so instead of receiving money, we received a bill.

On the other issues with regard to the grant payments for 1992-93 adjustments and the current year's income tax payments, those things are moving all the time, so they are very difficult to forecast.

So it is a cumulative effect of all those issues, Mr. Chairman, that brought this to a head.

Thank you. Mr. Dent.

Mr. Pollard.

Mr. Chairman, the House knows we are in litigation with the federal government for some $79 million for funding for aboriginal health care payments to this government, and that was up until March 31, 1992. Since then, we have received no money at all from the federal government vis-a-vis health payments that they would have had to pay. In other words, we have received very, very little money from them. So the $55 million is the amount that I think we agree with them that they owe us, and they have at last, last Thursday, agreed with us that they do owe us some $50 million that they would have had to pay anyway. So it is a partial payment on the amount that we have expended for aboriginal health care for the last two years. I guess it is part of the payment that we have demanded from them, and it is the part that they are willing to pay at the present time. So it amounts to some $25 million for the last two fiscal years, and it is a partial payment of the health billings for aboriginal people in the Northwest Territories. Thank you, Mr. Chairman.

Thank you, Mr. Pollard. Are you finished, Mr. Dent? Mr. Patterson.

Thank you, Mr. Chairman. Mr. Chairman, I think it has been explained to us that there are short-term problems that require the increase of the borrowing authorization at this time, as outlined by the Minister. I would like to ask the Minister, over the longer term, what is the rationale for increasing the limit on borrowing authorization? Thank you.

Mr. Pollard.

Mr. Chairman, there is no longer term intent on this particular bill. This is to get us by for the next few weeks, and it may be that I can come back into this House and reduce the amount back down to $65 million for next year. But we will be into a situation of borrowing, as we always are in March at the end of the fiscal year. It is just something that we always do.

What is happening, though, to our cash reserves is whereas we had a surplus of cash before that we could draw down upon and tide ourselves over for that particular time, we are now starting to run deficit budgets. This year we will have a deficit of some $23 million or $25 million, and if we continue to do that, we will continue to have to borrow money. Maybe the next time we are going to be borrowing money in February as opposed to March, and it will gradually creep backwards and backwards until we are borrowing large amounts of money toward the end of the year. I am hopeful that is not going to occur. As you know, the budget before us right now is virtually balanced, and we certainly will need to increase borrowing authority in future years if we continue to run deficit budgets. At the present time, this is merely to get us by into April, and, as I say, I may be able to come back in and reduce this amount back down to $65 million for next year. Thank you, Mr. Chairman.

Thank you, Mr. Pollard. Mr. Patterson.

Thank you, Mr. Chairman. Mr. Chairman, I would like to ask the Minister through you, the reality is, however, that this act will establish a long-term, larger borrowing authorization, unless it is amended in future. It is not a temporary measure, it is a permanent arrangement unless subsequently changed by another amendment. Is that not correct? Thank you.

Mr. Pollard.