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

Thank you, Madam Speaker. I think there are some legal interpretations that have to be looked into. I will take the question as notice.

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

Thank you, Madam Speaker. My question is to the Minister of Transportation. The official transportation strategy of the Government of the Northwest Territories, tabled during the 11th Assembly, included a need for a general freight subsidy to lower the costs of living in the remote communities. Is the freight subsidy still a part of the current transportation strategy of this government?

Minister of Transportation, Mr. Todd.

Thank you, Madam Speaker. Yes, we are looking at the implications of a freight subsidy. There is a freight subsidy currently in place for Pelly Bay and two other communities, I believe, for essential services like the honourable Member was mentioning earlier. It is still part of the strategy, however it is all part and parcel of the fiscal condition of this government, and we are looking at it. Thank you.

Thank you. Supplementary, Mr. Arvaluk.

Thank you, Madam Speaker. I hear that these are the specific subsidy programs, but my question was, are there general subsidy proposals in the transportation strategy, especially the small communities, other than Pelly Bay, et cetera?

Minister of Transportation, Mr. Todd.

No, Madam Speaker.

Supplementary, Mr. Arvaluk.

Madam Speaker, I want to know why there is no transportation strategy with the idea of general subsidy for remote communities or small communities for potential staple foods.

Minister of Transportation, Mr. Todd.

Perhaps I should have clarified my response. I apologize, Madam Speaker. There is no strategy in place at the present time. There were specific communities that were designated as having extremely high costs; Lutsel K'e, Colville Lake and Pelly Bay, I believe. However, part of the transportation strategy is to look at what we're doing in these communities, take a look at what we should be doing in other communities, and to see where we could expand this program and what the fiscal costs would be attached to it. That's our intent down the road, Madam Speaker. My apologies. Thank you.

Final supplementary, Mr. Arvaluk.

Thank you, Madam Speaker. Final supplementary so I guess it had better be a good one. During the 11th Assembly, it included a section for general freight subsidy. The Minister indicated that this was taken out and now they are looking at some other form of subsidy, perhaps for specialized or specific items, et cetera. Why was this taken out?

Minister of Transportation, Mr. Todd.

Madam Speaker, I think it was generally agreed that the fiscal cost of this thing may in fact be so enormous that this government, under its present fiscal conditions, wouldn't be able to afford it. One of the ways that we're looking at an indirect subsidy, for example, is the work that we did in Pelly Bay with the Coast Guard and the icebreakers coming in, in trying to find a new way in which to bring dry cargo and POL products into that community in a more cost-effective way. So we're doing more of that. In Mr. Arvaluk's riding, in particular, right now we're taking a hard look at direct POL products, and possibly dry cargo down the road from Montreal, to see what the costs would be there. We've proven and will prove that the POL, for example, out of Montreal direct into Keewatin will provide significant savings to this government, that hopefully we can pass along to other people. So we are looking at more transportation directed policies where we would do things more cost-effectively, rather than a direct subsidy to food products, similar to what we did in the past. Thank you.

Thank you. Time frame for oral questions has lapsed. Item 6, written questions. Item 7, returns to written questions. Item 8, replies to opening address. The honourable Member for Yellowknife North, Mr. Ballantyne.

Thank you, Madam Speaker. This is my first reply in I think six years, and it's not too long.

---Applause

If I can keep Members' attention for ten or fifteen minutes that's all I'll do today.

Today I would like to speak about some of my ideas about constitutional development and economic development in the emerging Northwest Territories. In my 15 years in politics I've always believed in certain strong underlying principles. I just want to publicly state these principles again.

I've always believed that the Northwest Territories must take control of its destiny from Ottawa. I have always believed that aboriginal people must be respected and supported in their different approaches to self-determination. I have always believed that the Northwest Territories must become more economically and fiscally independent and self-reliant. I've always believed that the Government of the Northwest Territories and the Legislative Assembly, in cooperation with aboriginal organizations, must explore and define new relationships between different regions and between different cultural groups, that result in practical form of community, regional and territorial governments.

I've always believed that there has to be a mutually-beneficial relationship between Yellowknife and the regions of the Northwest Territories. It has never made sense to me that some people in Yellowknife have had a narrow approach to the rest of the territories and it has never made sense to me that other people outside of Yellowknife have had a very narrow anti-Yellowknife approach. I think Yellowknife and the regions of the territories are mutually dependant on each other.

I've tried to be consistent to these principles over the years. Because of that, I've been in disfavour with various groups and individuals at different times and in different places.

---Laughter

For example, many of my constituents have had problems with my consistent stand supporting division, and my consistent stand supporting land claims, self-government, treaty negotiations, Metis rights and the Yellowknives Dene Band. I've been criticized by environmentalists because I've supported a balanced approach to economic development in the Northwest Territories. There have been aboriginal groups, at times, who have disagreed with my oft-stated position that public government and self-government have to come together at some point. I feel we need a common territorial public government in the western Arctic that incorporates First Nations and self-government realities.

I've been criticized by mining companies because I haven't agreed with a lot of their approaches over the years. I've been criticized by unions because I haven't agreed with a lot of their approaches over the years. But, I guess the lesson for politicians -- at least in my own view -- is that you have to have certain principles and you have to try to be consistent to those principles. You can't be captured by interest groups who have specific objectives at different times in different circumstances.

I'll go over some of the priorities I've had over the years. I very strongly have believed and still believe that we must take over programs and responsibility from Ottawa. Examples are oil and gas, land and water. I'm convinced that if we don't take them over, and take over these responsibilities soon, two things are going to happen. One, the federal government is going to strip these programs of people and program money so if and when we decide we want them, there'll be nothing there to take over. Second, because of the increasing pressure on the federal treasury, the treasures of the Northwest Territories at some point will be given out to the rest of Canada.

I've said and I'll say again that we can't wait to take over these responsibilities. Though different groups in the territories have different approaches, it is in everyone's interest to get control of these powers in the Northwest Territories and let northerners decide among themselves how we apportion those resources.

I believe it is important that we respect aboriginal organizations as they pursue self-government, treaties and self-determination. I think we have to recognize that different approaches are based on different historical realities, different opportunities, and different values. It is not for the Government of the Northwest Territories or the people of the Northwest Territories to criticize these different approaches. It is my belief that it is the responsibility of the Legislative Assembly and the Government of the Northwest Territories to find commonalities of interests, and common structures which give us strength and unity. I think by putting together our thoughts we can end up with the best of both worlds, the best of public government and the best of self-government.

I think we have to recognize some stark realities in the Northwest Territories. We have the youngest and the fastest-growing population in Canada. The number of jobs we'll have to create in the next ten years will be extraordinary. Those people who are totally against development should be asked to present us with alternatives. I think we all agree that we must maximize opportunities in the non-renewable resource area and I think we have to do that right. I like what I hear from the Minister of Renewable Resources. But, I also think we have to recognize that 15 years from now, if we maximize our non-renewable resources perhaps we could sustain a full-time lifestyle for 20 to 30 per cent of our population. We won't be able to sustain all our population on the land.

That takes me to my next point about education and training. We have to give the children of the Northwest Territories -- the future of the Northwest Territories -- options. If they want to be on the land, they should have that option. If they want to be in the public service, they should have that option. If they want to be in industry, they should have that option. Or, as I'm sure many of them will do, they'll combine various options. I think it is very important to provide the upcoming generation with those options.

Again, I'm happy with the approaches taken by the Minister of Education, Culture and Employment in these areas. He sees the necessity of preparing our children for a new world. The world will be vastly different 15 years from now than it is today.

I've said many times that oil, gas and mining will be critical components of the economy of the Northwest Territories. I've also said many times that of course the environment must be protected. I said the best of modern technology and the best in modern safeguards have to be used. I think the environmental process that we eventually come up with here in the Northwest Territories must be straightforward and effective. We obviously must ensure that job opportunities and business opportunities for northerners will be maximized. We have to ensure full participation by aboriginal groups. We have to ensure that participation is guaranteed.

We can't make the mistakes of the past, but just because companies have not been enlightened and governments haven't been very vigilant in the past, we can't stick our heads in the sand in 1994. We need a pragmatic, balanced approach. I think we have no choice. Time is flying by. We have more people, we have more problems, and we have less money. Even though some people don't want it, even if some people want to stop development, my own evaluation is that right now we don't have the political strength to stop it even if we wanted to.

We don't have control over the environment. We don't have control over our oil and gas. We don't have control over land and water. We don't have control over mining. People can't have it both ways. Either we get a measure of control so we can influence decisions, or we'll be brushed aside by powerful national and international corporations and governments.

In the long run, I think we have to ask some fundamental questions. Who is going to pay for housing? Who is going to pay to solve the social problems? Who is going to pay for education? Presently, 85 per cent of our budget comes from the federal government. Ottawa has no money. That will be a problem in the future. I know there are many people who want to freeze time and maintain life as it is today. That's great. If we could do it, it has all sorts of appeal. But, the reality is the federal debt is getting greater, the pressures from across the country are getting greater. We are finding it harder to hang on to our share of federal transfer payments. We have to find alternatives. I see a danger that the people of the Northwest Territories, the government, and the Legislative Assembly will become paralysed with indecision, and the status quo a defensive posture paralysed by trying to sort out regional interests. I think we have to recognize that our transfer payments are dwindling. Every day, we hear of the battles that our government has with Ottawa trying to protect what we have. I, for one, think they have done an extremely good job. I think the Minister of Finance is doing as competent and as good a job as possible, but there are bigger powers than us out there. There are people in great need out there and it is going to get harder to protect. We can't rest on our laurels. We can't pretend that today will last forever. I think we have to be proactive. We have to be balanced and, most importantly, I think we have to be realistic.

Northerners, collectively, must decide our future path. I believe that we have to build a balanced approach. We have to control our resources, our lands and our waters. I believe that the Western Constitutional Steering Committee can work. I believe that our committee on division can work. I think that, at the end of the day, if we all do our work, we can have a win-win situation. I think we can have the best of public government and the best of aboriginal government. But, more importantly, we can have a government that can most effectively and efficiently serve our population.

The problem with political power and political structures, whether they are aboriginal or non-aboriginal is that, ultimately, they are judged by their effectiveness. All over the world, there have been different governments and promises about what governments can deliver. Eighty per cent of the time, they are failures. At the end of the day, the services aren't there. People don't have more housing, better education opportunities and more jobs. To me, it really, in many senses, becomes irrelevant, the form of government and structure we have if we can't deliver those programs and deliver hope to the people of the Northwest Territories.

I feel strongly that the GNWT and Legislative Assembly must show the leadership, skill and vision that transcends each region, and transcends each interest group. We must provide stability. I believe that we have to develop a pragmatic fiscal and economic base for the two new territories. I think we have to ensure that all northerners will benefit from rapid constitutional change as we approach the new millennium. I want to leave this with you, because sometimes, as politicians, I think we get carried away with political ideas, forums and structures. Sometimes, I think we lose a little bit of perspective. Ultimately, we will be judged on whether all northerners will be able to take advantage of the opportunities and the future that is created by practical and efficient governments presiding over a growing and balanced economy. Thank you very much.

---Applause

Thank you. The House will recess for 15 minutes.

---SHORT RECESS

I will call the House back to order. 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 Inuvik, Mr. Koe.