Mr. Chairman, I realize there were two individuals that the Member did write to me about, but the statement was a little bit more global. Thank you.

Thank you, Mr. Chairman. The Power Corporation that I am aware of in my constituency, they use a great deal of diesel to drive their generators to produce energy and power to supply the electricity. Every year, I notice that there are a number of large trucks that come into the area to fill up their storage tanks and so forth in all of the communities. Why can't local companies provide that service? This diesel comes from a refinery in the south. Whether it is stored once or twice before it is used in the north -- so that it qualifies for buy north -- why can't a local company bid on it and move the fuel once from the refinery right to the storage facilities? That way, it will give opportunities for the smaller operators in the smaller communities to get involved in the delivery of fuel. We have small companies that are set up in the small communities that work with the fuel, just heating fuel and so forth. Small businesses are always looking to try to find different ways of improving their size and operations. Is this a possibility with the Power Corporation? I know that we have a buy north policy, but the product I am talking about originates in a refinery down south some place. This would give an opportunity for the companies to bid on this. I am saying this on behalf of the small businesses that want to get into this area.

Mr. Chairman, to my knowledge, all of the requirements for diesel fuel are put out to tender. I don't see that there would be a discrimination against anyone putting in a bid on the tender. Thank you.

Mr. Chairman, I am assuming that the NWT Power Corporation is an agency of the GNWT, so it has to adhere to the buy north policy. Does the fuel for the generators have to be in the north already before the corporation buys it, or can they bid on the fuel and truck it directly from the refineries? Thank you.

Mr. Chairman, my understanding is that everything is put out to tender. What the corporation's responsibility is to the consumer, the customer, is to provide the most reasonable cost. As a result, the tender process is used to see if someone can come in at a lower price. I think Mr. Courneya can follow up on this, but to my understanding, where they get the product from really isn't in question, it is whether it is delivered at the most reasonable cost at the location it is needed.

Thank you, Mr. Chairman. If a small company from Fort Liard, for example, could provide the same kind of product for a lesser price than anybody else, and put a bid in there, then they would be able to get it even though they get the fuel directly from a refinery? Thank you.

I will ask Mr. Courneya if he can further detail generally what way these tenders are put out so that it will be more clear. Thank you.

We purchase fuel in a number of ways. In the northwestern Arctic, we purchase out of Norman Wells without tendering under the agreement that the government has with the refinery there. We also purchase a great deal of our requirements through petroleum products division. We purchase for the Yellowknife operation and the South Slave operation directly ourselves. We tender that as one amount in order to get the best possible price by having the largest possible quantity.

Thank you, Mr. Chairman. I would like to ask, regarding the current staff housing policy the corporation has, and how that differentiates between the GNWT policy, if I could, Mr. Chairman. Thank you.

Mr. Courneya.

I'm not 100 per cent familiar with the government's staff housing policy, so I will give you the details of the corporations. We have a policy of selling staff housing in on road communities. We have started that and have sold two houses so far. We are in the process of selling three more. We are also in the process of increasing rents and utilities by 15 per cent a year, until the rents reach a market rate that is based on the market in the community if there is one, or on Yellowknife rates. Utilities will continue to be increased until the employee takes the utilities over into their own name. There are certain safeguards in the policy so that the cost of housing does not reach more than 25 per cent of the employee's monthly income.

Thank you, Mr. Chairman. You mentioned on-road communities, is that applicable to off-road as well, or is there a different plan for the off-road communities? Thank you.