Thank you, Madam Speaker. The decision of Cabinet and myself was that we were not going to touch any of the rates for residential units in any community. The only thing we were trying to do in the department was to equalize the subsidy that is transferred to the hamlets, and make it so that it's equal for tax-based municipalities, for example, Fort Smith. That's basically what this policy was trying to do, to equalize the subsidy for water and sewer in tax-based municipalities.

The reduction of subsidy to hamlets and municipalities was for commercial users only, not residential users. Thank you, Madam Speaker.

Supplementary, Mr. Ningark.

Thank you, Madam Speaker. Supplementary to the same Minister. The Minister is saying that there will not be increases in residential units in the system. Is that the answer? Thank you.

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

Thank you, Madam Speaker. That is correct.

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

(Translation) Thank you, Madam Speaker. I have a question for the Minister of Social Services. Yesterday, during committee of the whole, while we were discussing her department's budget, I had asked the question whether deductions from welfare payments for previous month's income was according to the departmental guidelines or policies. She replied in the affirmative, then added that it is also in the policy that those who wish to apply for welfare have to try to sell their belongings first, before applying for assistance, although the policy was not enforced. This answer was not clear from unedited Hansard, but I have reviewed the tapes made yesterday and she said it. So I would like to ask the Minister if it is true that according to their policy, the clients on welfare have to try to sell their belongings before applying for

assistance. Is this according to their policy? Thank you, Madam Speaker.

Minister of Social Services, Ms. Mike.

(Translation) Thank you, Madam Speaker. I will be replying in English, as it was not clear in the unedited Hansard. If it's okay to the Member, that I can repeat this in English. (End of translation)

...committee of the whole in dealing with my department's budget, Madam Speaker, when Mr. Pudlat asked whether it was in fact true that we have a regulation stating that the amount earned has to be deducted when the recipient applies for social assistance. My reply was, in Inuktitut -- and this is my translation -- is that we do have a policy that is mandatory, and that it is applied whenever the social assistance recipients apply for assistance. The earned income is deducted according to our regulation and legislation.

I further added that we also have a regulation that states the recipient should try to sell any capital item they have before seeking social assistance. In recognizing the situations that we have in the north, it's unique and we have not been applying that because it doesn't make sense to be selling your capital assets that you use to supplement your daily food. 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. He stated that the subsidy decrease, versus rate increase, I gather, is stated for commercial users, primarily, and not residential. I would like to clarify that. I would like to ask the Minister if it affects residential units that are owned by commercial businesses. Thank you.

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

I am not certain whether this would affect residences of small businesses. I don't believe so, but I would have to check on that and take his question as notice. Thank you.

Thank you. Item 5, oral questions. The honourable Member for Deh Cho, Mr. Gargan.

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

Thank you, Madam Speaker. The policy, as it stood before, was that municipalities were subsidized for the delivery and the services of the water and sewage programs to hamlets and not necessarily to tax-based municipalities. What the amendment to this policy will do is to subsidize municipalities which are tax-based, which means that tax-based municipalities will now be able to receive a subsidy for the delivery of their water and sewage programs, and it will be calculated by a formula. Thank you, Madam Speaker.

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

For clarification, then, we do have a formula that is used in order to determine that subsidy in the different regions, as opposed to one subsidy across the board, right across the north, then?

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

Thank you, Madam Speaker. The formula which is used for the water and sewage program is part of the operations assistance policy, the formula which is used to calculate the operations assistance that each community will get. So the water and sewage formula would be only a small portion of a larger formula which is used to subsidize communities. I would be willing to provide the formula. Thank you, Madam Speaker.

Thank you. Item 5, oral questions. The honourable Member for North Slave, Mr. Zoe.

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