Agreed.

---Agreed

Agreed.

---Agreed

Agreed.

---Agreed

Fish boxes.

Thank you very much, Mr. Chairman. I do want to say to the Standing Committee on Finance, I do appreciate the compromise reached on the Piruqsaijit issue. I recognize that it is an important one, and I will work diligently with the presidents of the development corporations in the Keewatin to see if we can reach an early solution.

On my emotional outburst, I apologize. It is just that I thought we had reached an agreement, but I stand down. I apologize. We will reach an agreement on the boxes, I promise.

Yes, Mr. Chairman. I suggest we go with the next one on the list. It is Energy, Mines and Petroleum Resources, with Mr. Todd in the chair.

Department Of Energy, Mines And Petroleum Resources

Thank you, Mr. Chairman. The department's 1994-95 proposed budget is virtually unchanged from 1993-94. There is a net reduction of $84,000 resulting from restraint initiatives.

The department is proposing to increase its emphasis on minerals. This is in response to increased activity. Funds are available because of the general lack of oil and gas activity.

The minerals initiatives program represents a large portion of the department's budget. This is a five year program which is funded under the Canada/NWT economic development agreement. Seventy per cent of the expenditures from the minerals initiative program are recovered from the federal government.

Mineral exploration activity has increased significantly over the past year, and is expected to continue for the foreseeable future.

Two companies have bulk sampling programs under way for diamonds. A determination that there are one or more economic diamond deposits could be made later this year. BHP recently submitted a project description for its NWT diamonds project, which sets out an aggressive schedule for a very large-scale operation.

Although Metall Mining has put its work for the development of the Izok Lake base metals project on hold, a number of other projects are in an advanced exploration stage. A conservative projection would be that five new mines will open up in the NWT over the next ten years.

Oil and gas activity has been declining in recent years due to low prices, lack of exploration success and the lack of exploration rights issuances in the Mackenzie Valley. Exploration rights should, however, be issued in the Gwich'in and Sahtu regions in 1994, now that the land claims have been settled.

As a result of preparatory work conducted over the past several years, the department is in a good position to implement oil and gas and minerals management programs. However, an agreement to transfer these responsibilities from Canada has yet to be finalized.

The devolution of responsibilities for oil and gas and minerals from the Government of Canada to the GNWT is a matter of highest priority. The magnitude of the impacts of impending mineral development on the economic future of the Northwest Territories makes it imperative that these agreements be finalized as soon as possible. Without the tools to manage these industries through provincial-type authorities, this government will continue to have little control over the non-renewable resource industries and will realize no fiscal benefits from mining and oil and gas activity.

Responsibilities for public programs related to energy conservation were transferred from the Department of Government Services and Public Works in August 1992. The department is now responsible for the promotion of energy awareness and for providing energy management advice to all energy users in the NWT, other than those whose energy costs are paid for by the Department of Government Services and Public Works.

As a result of this transfer, the department has integrated energy policy and programs under a single division. These organizational changes have enhanced the GNWT's ability to respond more effectively to increased demands for energy conservation information, advice and services.

Thank you, Mr. Chairman.

Thank you, Mr. Chairman. The Department of Energy, Mines and Petroleum Resources can have a significant role in developing the economy of the north. We encourage the department to work closely with other departments, especially Economic Development and Tourism, Transportation and the NWT Power Corporation. Such cooperation could lead to a number of promising developments which could provide employment and other benefits to northerners.

The committee strongly supports the department's efforts in trying to finalize devolution of responsibility for minerals and oil and gas from the federal government. Members urge the department to recognize the importance of involving aboriginal groups, at various stages of claims, treaty negotiations and settlement, in the finalization of this devolution.

The committee notes that the department has been working on this particular aspect of devolution for about the last seven years. In addition, committee Members have been concerned that federal bureaucrats have not expressed a strong will to complete these negotiations. On the other hand, the committee was encouraged to hear the following comments made by the new Prime Minister in his address to our Legislative Assembly on November 17, 1993.

"I would just like to tell you that we will talk about the problems, one by one. We have to carry on with the job of determining the territorial creation of Nunavut and the development of the constitutions. We will have to work in collaboration with the people who will be developing the constitution. I will talk to you about the need to finish the transfer of responsibilities to the territorial government at a pace determined by you. It will take some time and we don't want to impose anything on you."

Recommendation 17

The committee recommends that the Department of Energy, Mines and Petroleum Resources, involve concerned aboriginal groups and finalize the devolution of responsibility for minerals and oil and gas from the federal government.

Committee Members feel that the "package" approach for negotiation with the federal government may help here, and that this department and concerned aboriginal organizations should be active participants in the continuing development of the "package" and its accompanying short and mid-term negotiating strategy.

As well, the committee encourages the department to continue development of a short-term strategy for maximizing benefits to northerners from...

Thank you. I have two sick children at home, so I am trying to finish this.

As well, the committee encourages the department to continue development of a short-term strategy for maximizing benefits to northerners from upcoming mineral development, until such time as the minerals accord is completed. With promising diamond and zinc finds north of Yellowknife, there could be much economic benefit to the north. By working with other departments and communities, this department could help find ways to encourage new mines to hire northerners, involve more northerners in prospecting, or to trigger and support new infrastructure developments such as hydro development and a transportation corridor to Coppermine.

Mr. Chairman, that concludes the report of the Standing Committee on Finance.

Question.

Agreed.

---Agreed