Thank you. Minister of Municipal and Community Affairs, Mr. Arngna'naaq.

Thank you, Madam Speaker. I believe the rates should be effective May 1, but I would have to check the decision paper again, Madam Speaker. Thank you.

Thank you. Item 5, oral questions. The honourable Member for Kitikmeot, Mr. Ng.

Thank you, Madam Speaker. My question is again to the Minister of Municipal and Community Affairs in dealing with the water and sewage rates. The Cabinet has previously made commitments to consult with Members on the major issues which will affect their communities, and I certainly believe that this is one issue that falls under that category. I would like to ask the Minister what consultation he undertook with Members of this House before recommending this change to Cabinet.

Thank you. Minister of Municipal and Community Affairs, Mr. Arngna'naaq.

Thank you, Madam Speaker. I believe the consultation with regard to the water and sewer subsidy has been raised by a number of Members, and I believe the first time that the subsidy was mentioned was in the fall session, in October or November. Thank you, Madam Speaker.

Thank you. Item 5, oral questions. Supplementary, Mr. Ng.

Supplementary, Madam Speaker. I don't believe the Minister has answered the question. The question was, what consultation did he undertake with Members of this House prior to bringing this change of rates forward to Cabinet?

Thank you. Minister of Municipal and Community Affairs, Mr. Arngna'naaq.

Thank you, Madam Speaker. With regard to this particular policy, when I became a Member of the Cabinet, I did not make any consultation but I understood consultation had been made by previous Members of this particular department. Thank you, Madam Speaker.

Thank you. Item 5, oral questions. Supplementary, Mr. Ng.

Supplementary, Madam Speaker. I would like to ask the Minister if he undertook any consultation with municipalities that will be affected by this rate change, prior to him bringing this forward to Cabinet. Thank you.

Thank you. Minister of Municipal and Community Affairs, Mr. Arngna'naaq.

Thank you, Madam Speaker. I, again, as a Minister, did not make consultation with the municipalities. Again, I would have to say that the way I understood it, previous Ministers had made consultation with municipalities in the Northwest Territories. Thank you, Madam Speaker.

Thank you. Item 5, oral questions. The honourable Member for Aivilik, Mr. Arvaluk.

Thank you, Madam Speaker. The decision that the Minister indicated will potentially have serious negative impact in the current initiative to promote home ownership. By the way, Madam Speaker, my question is to the same Minister, Municipal and Community Affairs. The cost to own and maintain a home in the Northwest Territories is already very high, particularly in the smaller communities that I represent. The higher cost for water and sewer charges may be just enough to make home ownership out of reach for some individuals. Why did the Minister propose a change in the water and sewer rates knowing the negative effect it would have on encouraging the development of housing markets in smaller communities?

Thank you. Minister of Municipal and Community Affairs, Mr. Arngna'naaq.

Thank you, Madam Speaker. I would like to set the record straight, Madam Speaker. The changes that were made by Cabinet do not affect residents. They don't affect residential units or home owners in small communities. There are a couple of things that were done with this particular decision. With questions and discussions held by a number of Members in this House who represent cities, towns or villages, the department was asked to equalize the subsidy rate in cities, towns and villages, which, in effect, this decision did. However, the decision did not affect any residential units in any community. The only effect that this decision that was made by Cabinet earlier this month had, was a slight increase to commercial users in the communities. Thank you, Madam Speaker.

Thank you. Item 5, oral questions. The honourable Member for Baffin South, Mr. Pudlat.

Thank you. Minister of Finance, Mr. Pollard.

Thank you, Madam Speaker. Madam Speaker, one of the things that the federal Minister and I have been trying to do is get the tax people into the smaller communities in the Northwest Territories so that they can explain how the tax system works, why the rates are the way they are, what the deductibles are and so on. I'm hoping that as we progress through these community visits, the kind of question that I'm being asked right now will be answered directly to the community residents themselves. I'm only guessing, Madam Speaker, that they probably have to pay large, lump sum amounts simply because they may not have contributed throughout the year. I think that's one of the things that we'll be suggesting, is that there be some kind of arrangement made whereby they can pay throughout the year.

Why do they pay Revenue Canada, Madam Speaker? They pay Revenue Canada because under the Canadian tax system, everybody except Quebec works along with the Canadian government. We usually set our taxes in the Northwest Territories, Yukon or in the provinces, except Quebec, as a percentage of the federal tax. So the federal government levies an income tax on people. We levy an income tax as a percentage of the federal amount and the federal government collects it and remits it back to the provinces and the territories, Madam Speaker. Thank you.

Thank you. Item 5, oral questions. Supplementary, Mr. Pudlat.