Good morning. Item 2, Ministers' statements. Item 3, Members' statements. The honourable Member for Yellowknife Centre, Mr. Lewis.

Thank you, Madam Speaker. I continue to have grave concern, Madam Speaker, about the government's determination to eliminate the Science Institute of the Northwest Territories.

The fears of those who promoted the concept of a science institute, more than 15 years ago, have now been realized, the political process advanced to the stage where science is bought like any other commodity. Governments shuffle around the science that best supports the positions of the government in power.

Eliminating the Science Institute means the legislature would no longer have an arm's length agency that would provide it with the best advice available without fear or favour. The science advisory function would be part of the college system, and would be lost in the workings of the largest department of the government. The focus has completely changed from what was originally envisaged.

The attitude of government seems to be if we can't control it, let's eliminate it. Some of the most memorable events to have occurred in this legislature have occurred when, through the Science Institute, Members have listened to careful, objective analysis of northern scientific problems by scientists with no axe to grind and no positions to promote.

I vividly recall the debate on uranium mining and the deep impression made on William Noah -- and I just use him as an example. He was, at that time, the MLA for Baker Lake. I remember the gratitude he felt towards those scientists who carefully explained the nature of uranium mining in a fair, objective fashion. This, I fear, would be lost and we would be the poorer for it. Thank you, Madam Speaker.

---Applause

Thank you. Item 3, Members' statements. The honourable Member for North Slave, Mr. Zoe. Member's Statement On Rae Lakes Documentation Of Dogrib Traditional Government

Thank you. Item 3, Members' statements. The honourable Member for Baffin South, Mr. Pudlat.

(Translation) Thank you, Madam Speaker. There was a meeting in Iqaluit this month. The conference was with regard to the NWT Council for Disabled Persons. During the meeting they were also planning towards the Nunavut of 1999. The people of Nunavut are concerned with regard to the disabled persons in their communities. There is a council that deals with disabled persons right at the moment that is located in Yellowknife, but in the communities this council does not exist. I am in support of the possibility of establishing a committee or a council for disabled persons for the Nunavut area. This was one of the major concerns brought up while they were dealing with the Council for Disabled Persons in Iqaluit.

The people of Nunavut will want this treated as one of the priorities as we come closer to Nunavut of 1999. Thank you, Madam Speaker.

Thank you. Item 3, Members' statements. The honourable Member for Kivallivik, Mr. Arngna'naaq.

Thank you, Madam Speaker. As the Member representing Kivallivik, a part of the wider Keewatin region, I would like to take this opportunity to express, through this House, my regrets for not being able to attend the Back to the Future panel discussion sponsored by the Keewatin Chamber of Commerce to be held this weekend in Rankin Inlet.

I received an information package from the Chamber of Commerce two days ago which outlined a number of important topics of round table discussion, including a number of issues under government departments, of the departments of Public Works, NWT Housing Corporation, Economic Development and Tourism, Transportation, Workers' Compensation Board and Education. I also learned from this package that I had the honour of being placed on the list as one of the panellists. As much as I would have liked to, given the short notice, I am not able to get out of a prior family commitment in order to attend the meeting.

I would, however, like to send along with my regrets, my sincere wishes for a successful round of discussions. Madam Speaker, as one of the three MLAs for the region I know these are important topics of discussion. I look forward to hearing about the outcome and to participate in future discussions of a similar nature. Thank you, Madam Speaker.

Thank you. Item 3, Members' statements. The honourable Member for Yellowknife North, Mr. Ballantyne.

Thank you, Madam Speaker. Madam Speaker, today is a very significant day. Today we send a happy band of MLA warriors to do battle for the hearts and minds of the public.

We have faced 1,000 years of bad press, Madam Speaker...

---Laughter

...and today our warriors can finally prove...

---Applause

...the truth of our calling. But a small cloud, Madam Speaker, hangs over the head of our team. This morning, coach Maduke announced that Donnie "Teflon" Morin signed a ten year no-cut, no-trade contract.

---Laughter

The problem is, Madam Speaker, it was a negotiated contract.

---Laughter

The rest of the team have one year contracts all selected by the public tendering process.

---Laughter

---Laughter

He is northern-owned and operated, he has a high percentage of aboriginal content, and he obviously spends his money in the north -- except for his boat...

---Laughter

---Laughter

The one bit of good news is that John Todd, well-known captain of the MLA Sharks dart team, who supported negotiated contracts, said I will support negotiated contracts anywhere, anytime, and I will take full responsibility for Mr. Morin's performance. If Morin doesn't score a goal, Mr. Todd has publicly stated he will not speak for one year.

---Laughter

---Applause

Thank you. Item 3, Members' statements. The honourable Member for Yellowknife South, Mr. Whitford.

Thank you. Item 3, Members' statements. The honourable Member for Nahendeh, Mr. Antoine.

Mahsi, Madam Speaker. I'm going to speak in my language. (Translation) Today I would like to say a few things about telephones in smaller communities like Jean Marie River, Trout Lake and Nahanni Butte in my constituency. In these smaller communities, they only have one phone. In Kakisa, they also only have one phone. Like the experience of my colleague here from Bay Chimo, and around that area, these small communities only have one phone.

People from these communities have been asking for telephones for quite some while, especially the band councils. There is only one phone and often times, these phones are tied up. Some people have asked for residential phones. I have received letters from some people from my constituency on these matters. In the letter I received from Don Morin, he said it was NorthwesTel that would be responsible for installing telephones in these communities.

There was a meeting a while ago regarding CRTC and NorthwesTel. As a result of these meetings, June 20 is the deadline for installing telephones in these smaller communities. They are working towards that but what I want to say is right now, there is a real need for telephones in these communities. A lot of people write to me from these communities like teachers and business owners. Thank you.

Thank you. Item 3, Members' statements. Item 4, returns to oral questions. Item 5, oral questions. The honourable Member for High Arctic. Welcome back, Mr. Pudluk.

---Applause

Thank you, Madam Speaker. I have a very, very short question. I don't want to waste your time. I have a class three driver's license. That means I can drive almost anything. I would like to ask the Minister of MACA who owns the roads downtown? Is it the municipal government or taxi drivers? Thank you.

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

Thank you, Madam Speaker. I believe the municipality would own the roads. Thank you, Madam Speaker.

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

Thank you, Madam Speaker. My question is to the Minister of Education, Madam Speaker. With the new direction the Minister is taking in regionally centralizing high school and having our children go to these schools, does the government have some type of policy that would allow children to go home for spring break, Christmas holiday, Easter holiday and, of course, summer holidays? And, are they developing any kind of policy with regard to parents being able to visit their own children at the regional high schools?

As you know, Madam Speaker, we don't have any kind of transportation services for the kids who are going to school in Fort Simpson, as we have bus service and some scheduled air service in Providence. We don't have anything like that. It is only the parents who have vehicles who have the opportunity to visit their children or get their children for the holidays. With the new direction in education, are we looking at developing new policies to allow for parents to visit or for students to visit their homes?

Thank you. Minister of Education, Culture and Employment, Mr. Nerysoo.

Thank you, Madam Speaker. Just to correct the record, Madam Speaker, the direction I'm undertaking in pursuing community high school programming is not a new direction. It has been in place ever since my colleague, Mr. Kakfwi, was the Minister of Education. He began the process of developing community high school programming.

On the matter of support, Madam Speaker, at present we provide for assistance to the students to travel back to their communities during Christmas. However, it is the choice of the

parents, also, to decide the holiday for which they want us to provide assistance.

I will certainly look at the other concern the honourable Member has raised, but again it will be with considerable concern for our financial situation. That is the remark that he made where we provide for assistance to parents and students for additional trips home.

The last point I wanted to make, Madam Speaker, is the matter of where the students attend school rests with the board and they can make the choice in their region as to how they want to provide high school programming. I will review the matter, however, it has to be within the context of the financial resources we have available to us.

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

(Translation) Thank you, Madam Speaker. Last week, under tabled documents, I tabled a few documents. One was the response the Minister of Renewable Resources gave to Joe Ikkidluak. There was a meeting in Iqaluit during the Baffin leaders' summit. At that meeting, the Baffin Regional Hunters' and Trappers' Committee chairman gave a presentation. I believe you have copies of the minutes. During the Baffin regional leaders' summit, there was a motion, motion 15, with regard to the shortage of funds they get. They have estimated that the Tunngavik will contribute $100,000. Looking at the size of the Baffin region, I wonder, Madam Speaker, if the Minister of Renewable Resources' response was inadequate. I am just wondering if he fully understands the request Joe Ikkidluak made to him. Thank you, Madam Speaker.

Thank you. Minister of Renewable Resources, Mr. Kakfwi.

Thank you. Supplementary, Mr. Pudlat.

(Translation) Thank you, Madam Speaker. In the Baffin region, in answer to the request they made, he indicated that it will be up to the wildlife board. I fully understand that. Even though it might be up to the wildlife board, I wonder if the Baffin regional hunters and trappers can expect more if their proposal is better? Would they then get more adequate funding? Thank you, Madam Speaker.

Thank you. Minister of Renewable Resources, Mr. Kakfwi.

Thank you. Item 5, oral questions. The honourable Member for Yellowknife North, Mr. Ballantyne.

Thank you, Madam Speaker. I have a question for the Minister of Justice. The Minister of Justice has just returned from a federal/provincial/territorial conference. The conference was dealing with changes to the Young Offenders Act. The Minister is very aware of the fact that the Young Offenders Act hasn't worked the way the original designers of the act wanted it to work and there has been a lot of pressure to change it over the years. What is the government's position on changes to the Young Offenders Act?

Thank you. Minister of Justice, Mr. Kakfwi.

Thank you. Supplementary, Mr. Ballantyne.

Thank you. There's been a lot of review and extensive discussions over the last seven years. At one point, the ten provinces and two territories unanimously agreed to an approach and made a presentation to the federal government. They still didn't act on it. The Minister hasn't answered my specific question, what is our government's specific position on various aspects of the changes? If the Minister has a paper, would the Minister make that available to Members?

Thank you. Minister of Justice, Mr. Kakfwi.

Thank you. Supplementary, Mr. Ballantyne.

Thank you, Madam Speaker. I think it is important that the government does get a position, because the Young Offenders Act has some significant impact in the Northwest Territories. It has caused us a lot of problems. Could I ask the Minister if the Minister can get a position paper through Cabinet so that when the Minister goes down to these meetings, he is coming from a position that has been agreed to, by at least the Cabinet?

Thank you. Minister of Justice, Mr. Kakfwi.

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

Thank you, Madam Speaker. My question is directed to Madam Premier. Yesterday, I spoke on the need for the government to refocus on privatization to reduce costs and to provide private sector business opportunities. I would like to ask Madam Premier if it is still an initiative of this government to pursue privatization initiatives? Thank you.

Thank you. Madam Premier.

Madam Speaker, yes.

Supplementary, Mr. Ng.

Thank you. Does the government have a privatization plan which identified privatization initiatives they can pursue? Thank you.

Thank you. Madam Premier.

Madam Speaker, when the Government of the Northwest Territories decided to move towards consolidation and some decentralization, there were a certain number of privatization initiatives outlined that we wanted to move towards. However, wherever reasonable, if there are specific areas where private people, local agencies and organizations, and development corporations see an opportunity, we deal with those requests as they occur.

Certainly, we believe -- and I think it's a well-established fact across Canada -- that business is better operated by private enterprise that can deal with it on a business approach.

Businesses are generally more equipped to focus on a business operation. Governments have taken that initiative all across Canada and we still feel there are areas that could be privatized.

In the beginning, we outlined a number of areas that we would like to see privatized, and if there are other areas that should be explored, we are open to those discussions, on a case by case basis. Thank you.

Thank you. Supplementary, Mr. Ng.

Thank you, Madam Speaker. I would like to ask Madam Premier, then, if there are any privatization initiatives planned for the upcoming fiscal year?

Thank you. Madam Premier.

Madam Speaker, I don't think there is anything on the table right now. But, this is an ongoing process and we're still looking. Thank you.

Thank you. Final supplementary, Mr. Ng.

Thank you, Madam Speaker. I would like to ask Madam Premier, do all government departments have plans that outline services that they can possibly privatize?

Thank you. Madam Premier.

Madam Speaker, at the very beginning of the question on how we can provide programs and services more effectively to the residents of the Northwest Territories and the discussion on how best those programs and services can be developed, we asked all departments to determine areas where they thought there could be possible privatization. So, initially, we had a master list, which we are presently working from. These are areas where departments felt those opportunities might exist. We have a master list and we gradually work on that master list. Thank you.

Thank you. Item 5, oral questions. The honourable Member for Yellowknife South, Mr. Whitford.

Thank you. Minister of Social Services, Ms. Mike.

Thank you, Madam Speaker. I would like to thank the Member for Yellowknife South for bringing this to my attention. Because English is not my mother tongue, sometimes I make errors and use a bad choice of vocabulary. What I meant in that statement was qualified employees. Thank you.

Thank you. Item 5, oral questions. The honourable Member for Nahendeh, Mr. Antoine.

Mahsi, Madam Speaker. Today I spoke on my Member's statement about telephones, in my language. I represent the three communities of Jean Marie River, Trout Lake and Nahanni Butte. For a number of years now they have one pay phone type of system that NorthwesTel installed. I understand that it's the same situation in Kakisa Lake. I also mentioned Bay Chimo and Bathurst Inlet. My honourable colleague's, Mr. Ng's, riding doesn't have any telephone services.

But in my communities, for many years we've been asking for more services. People have been asking for their own private lines in their houses. The band office, the community government want faxes. These communities don't have any regular airline services, so whenever your government writes to them, it may take a week or two before they get their letter and things get pretty slowed down then. I've also received letters from teachers and CECs and the divisional board of education to improve the telephone services. We're told that there's a new communication system for all NWT schools to be able to use computers to send messages to each other, and that's impossible in these small communities.

The CRTC decision in December said there was supposed to be a plan by June 20 to provide services to all these communities. I just wanted to ask the Minister if he's aware of that. Is the plan to provide full services to these communities by June 20, or is it a plan that they're going to provide to CRTC by June 20 with a plan for the future years?

I understand that the communities have been asking for an immediate increase in the telephone service. I would just like to know from the Minister if that's the case. Thank you.

Thank you. Minister of Public Works and Services, Mr. Morin.

Thank you, Madam Speaker. My understanding of it is that CRTC directed NorthwesTel to develop a plan on how they would provide full services to the non-serviced communities, by June. Thank you.

Thank you. Supplementary, Mr. Antoine.

Thank you. I would like to ask the Minister what type of involvement his department has with NorthwesTel to help develop a plan. Last summer I wrote to the Minister and told him that I was planning to go to Whitehorse and meet with the president myself, along with some of the MLAs who have similar concerns. I was told by the Minister not to do that because he was dealing with it. I was wondering if the Minister has been involved with the president of NorthwesTel to see how this government could be involved in the plan that is supposed to be developed by June 20. Thank you.

Minister of Public Works and Services, Mr. Morin.

Thank you, Madam Speaker. I know that my department has met with NorthwesTel in the past to work on a plan for how to ensure that these non-serviced communities are going to get service in the near future. If they've met with them recently, I don't know about it. I could check into that for the Member and fully inform him on Monday. Thank you.

Thank you. Supplementary, Mr. Antoine.

Thank you again, Madam Speaker. I would like to ask the Minister if he has contact with NorthwesTel, if he could arrange a meeting between the representative of

NorthwesTel and Members of the Legislative Assembly who have similar concerns as I have, so that we can sit down face to face with them and tell them our concerns on behalf of the communities. Thank you.

Thank you. Minister of Public Works and Services, Mr. Morin.

Thank you, Madam Speaker. I'd be pleased to do that. Thank you.

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

Thank you, Madam Speaker. About a year and a half ago, I wrote to the Premier with regard to clearing a right-of-way between Taltson and Pine Point. I understand that there is $80,000, but I can't confirm that, that is set aside to make sure that from Taltson to Pine Point, the trees underneath the power lines are cut so that they don't touch the lines. I would like to ask the Premier whether, in fact, there is money set aside for that, and who is the person who does that? Is this an internal thing, or do you advertise the clearing of the right-of-way?

Thank you. Minister responsible for the Power Corporation, Madam Premier.

Madam Speaker, since the power line is a power line with the Power Corporation, any work that would have to be done would be contracted by the Power Corporation. I've had discussions with the Power Corporation on the desire of aboriginal groups that they want to be considered if there were expenditures on clearing the rights-of-way of keeping the rights-of-way cleared. I know that the Power Corporation is supportive of making sure that any job is possible to be done by the residents of the particular area, that this is to be considered.

However, on the issue of whether there is a particular amount that is set aside to do this, I will have to take that as notice and I will try to get that information over the weekend for the Member. Thank you.

Supplementary...I'm sorry, she took it as notice. Item 5, oral questions. Item 6, written questions. The honourable Member for Nahendeh, Mr. Antoine.

Thank you, Madam Speaker. I tried to catch the oral question part of it. I seek unanimous consent to go back to oral questions, please, Madam Speaker.

The honourable Member is seeking unanimous consent to return to oral questions. Are there any nays? There are no nays. Proceed, Mr. Antoine.

Thank you, Madam Speaker. My honourable colleague, the Minister of Renewable Resources, just returned from a trip. I just wanted to acknowledge that and I would like to ask him a simple question of what the purpose of his trip was, wherever he went. I'll follow up with a supplementary. Thank you.

Thank you. Minister of Renewable Resources, Mr. Kakfwi.

Thank you. Supplementary, Mr. Antoine.

Thank you, Madam Speaker. I would like to thank the Minister for his answer. There is only one outstanding problem that we all have and that is the new federal law on firearms that is going to be made law and activated by April 1. I know the Minister indicated that the federal Minister is receptive to his arguments on all our behalf in the north and that there might be an extension. If the regulation is to be enforced as of the regulation date, how soon can we know for sure if we have an extension on that? What will happen is with this new regulation, you have to do a number of things to store your firearms, which many aboriginal people I know have never done in their lives. So we will have to buy steel cases and that will be difficult to do by April 1. How soon will we know for sure whether we are going to have an extension? Thank you.

Thank you. Minister of Renewable Resources, Mr. Kakfwi.

Thank you. Item 5, oral questions. Item 6, written questions. Item 7, returns to written questions. Item 8, replies to opening address. Item 9, petitions. Item 10, reports of standing and special committees. Item 11, reports of committees on the review of bills. Item 12, tabling of documents. The honourable Member for Yellowknife Centre, Mr. Lewis.

Thank you, Madam Speaker. I wish to table, Tabled Document 51-12(5), called Recall of MLAs. It reflects what I have heard going on around me over the last year. It seems to support many of the initiatives of this government. I would like to have it discussed in Fort Smith.

Thank you. Item 12, tabling of documents. The honourable Member for North Slave, Mr. Zoe.

Thank you. Item 12, tabling of documents. Item 13, notices of motion. Item 14, notices of motions for first reading of bills. Item 15, motions. Item 16, first reading of bills. The honourable Member for Hay River, Mr. Pollard.

Thank you, Madam Speaker. Good morning. Madam Speaker, I move, seconded by the honourable Member for Baffin Central, that Bill 20, An Act to Amend the Income Tax Act, No. 2, be read for the first time. Thank you, Madam Speaker.

Thank you. The motion is in order. To the motion.

Question.

Question has been called. All those in favour? All those opposed? Motion is carried.

---Carried

Bill 20 has had first reading. Item 16, first reading of bills. Item 17, second reading of bills. Item 18, consideration in committee of the whole of bills and other matters: Bill 1, Appropriation Act, No. 2, 1994-95; Bill 12, An Act to Amend the Wildlife Act; Bill 15, An Act to Amend the Income Tax Act; Bill 17, Loan Authorization Act, 1994-95; Committee Report 2-12(5), Review of the 1994-95 Main Estimates; Minister's Statement 5-12(5), Session Business; Tabled Document 1-12(5), Towards an NWT Mineral Strategy; Tabled Document 2-12(5), Building and Learning Strategy; and, Tabled Document 34-12(5), Tradition and Change, A Strategy for Renewable Resource Development in the NWT, February 1994, with Mr. Lewis in the chair.

I would like to call the committee to order. What is the wish of the committee? Mr. Ng.

Thank you, Mr. Chairman. We would like to consider dealing with Bill 15, An Act to Amend the Income Tax Act and Bill 17, Loan Authorization Act, 1994-95, after a short break.

There is a suggestion that we take a short break. We have just two bills to deal with. It is up to Members. What would you like to do?

Proceed.

The choice is to keep on going or have a quick break. What do you want to do? We'll keep on going. Bill 15, is that what you want to deal with?

Agreed.

---Agreed

The Minister sponsoring this bill, do you have any comments please? Mr. Pollard.

Introductory Remarks

Thank you, Mr. Chairman. Mr. Chairman, the purpose of the Act to Amend the Income Tax Act is to increase the corporate income tax rate from 12 per cent to 14 per cent of taxable income, effective January 1, 1994.

Mr. Chairman, the five per cent corporate income tax rate for the first $200,000 of active business income of Canadian-controlled private corporations has not been changed. In the February 14, 1994 budget address, I announced an increase in the Northwest Territories corporate income tax rate from 12 to 14 per cent, to be effective January 1, 1994. This is the first increase, Mr. Chairman, in the corporate rate in four years.

After this increase, the Northwest Territories tax rate will still be lower than that in the Yukon and nine of the ten provinces. It is not anticipated that this increase will have any significant impact on corporate relocation or investment decisions. Mr. Chairman, this change in our corporate income tax rate is expected to raise some $5 million in the calendar year 1994-95. Mr. Chairman, I'm prepared to attempt to answer any questions the committee may have. Thank you.

Thank you, Mr. Pollard. Chairman of the standing committee, Mr. Antoine.

Standing Committee On Finance Comments

Thank you, Madam Speaker. The Standing Committee on Finance reviewed Bill 15, An Act to Amend the Income Tax Act, on March 21, 1994. Members discussed the proposed changes in the act and agreed it should be moved into committee of the whole for discussion. Thank you, Madam Speaker.

Thank you, very much. Mr. Pollard, are you prepared to answer questions? You may take the table, please.

May I move to the witness table and bring in the witnesses, Mr. Chairman?

The Minister is asking authority to move to the table and bring in his witnesses.

Agreed.

---Agreed

Mr. Pollard, you may move to the table and bring in your witnesses. Then I'll ask for general comments. Mr. Pollard, for the record, would you identify your witness for us, please.

Mr. Chairman, the gentleman I have with me is Mr. Eric Nielsen, deputy minister of the Department of Finance, GNWT. Thank you, Mr. Chairman.