Thank you. Mr. Chairman, in my view, there hasn't been ongoing consultation pertaining to this particular policy. It is my understanding that the whole issue surrounding this policy was raised, as you indicated, at the annual general meeting of the Association of Municipalities. They agreed that there should be some changes to incorporate tax-based municipalities in this policy to help out municipalities such as Fort Simpson, et cetera. I know it was communicated in recommendation form to MACA. I know MACA has been working on these changes for the last few years. I am saying there was no ongoing consultation, particularly with the Association of Municipalities, as to the status of where this policy was at. If there had been proper consultation, then we wouldn't be here discussing your Minister's statement regarding this policy. That is where the policy comes in.

It is my understanding if there was ongoing consultation, we wouldn't have this problem. Unfortunately, that wasn't the case. It is my understanding that even the draft recommended policy that went to Cabinet was never discussed with the Association of Municipalities to get their views. Nobody said here is what we are planning to recommend to Cabinet, can we get your views on this before it goes to Cabinet. Then the association would have done their homework and I am sure they would have agreed with it because they initiated this move to make changes in this policy. So I would assume the association would have agreed with the department. Unfortunately, that didn't happen.

That is where I see the problem. It was a breakdown in communication. Even after the decision was made, the policy changes were not communicated to the Association of Municipalities. I brought it to their attention a week ago. I said, are you guys aware of these changes? They weren't aware of them. I was fortunate enough that they just happened to have their executive meeting in Yellowknife last week. I asked them to discuss these changes and they raised many concerns about them, as I indicated in my Member's statement. They said there was no ongoing consultation, although they began this whole initiative.

Secondly, they said, why are they doing this to us after we set our budget and went through that whole process? Of all departments, MACA knows the process that municipalities have to go through. There are some questions now with the municipalities that are in a deficit situation. I recall about ten municipalities that are in a deficit position in their water and sewer program. They have a recovery plan. If we go ahead with these changes, we are no longer giving them a 100 per cent subsidy, we will only be giving them a 90 per cent subsidy. That is going to affect their recovery plan. That is another additional concern they have raised.

I am just saying, Mr. Chairman, that overall I agree with these changes. I am sure the Association of Municipalities and their membership would agree with these changes the Minister is bringing forward. But it is the lack of consultation by the department that is the problem. Now they are saying we want to implement this by June 1. I am trying to suggest, by raising these concerns, that June 1 is not the right date. I would suggest strongly to move the implementation date to August 1 or September 1, so municipalities can assess the impact on their own communities and how they are going to consult with the users in their communities. The rates in these municipalities are all going to vary, as my colleague from Inuvik pointed out, from $55 to $123. That's over a 50 per cent increase. I'm sure the users aren't going to be too happy in Inuvik. The municipalities, themselves, have to determine the best method to communicate to their community members. That's where the problem is. I'm strongly suggesting to the Minister, and his colleagues on the other side of the House, that they reconsider the implementation date of this policy.

Mr. Chairman, those are the concerns I have about this policy. From my understanding, this lack of consultation is what is causing the problem, it is not the meat of the policy. As the Minister said, now it is going to be equitably distributed across the territories. I'm sure everyone agrees with it, even the Association of Municipalities agrees with it. But, because we didn't have ongoing consultation, that is where the problem lies. To satisfy the municipalities, Mr. Chairman, I'm suggesting that the Minister and the Cabinet reconsider the implementation date and to move back and give them some breathing room. All the communities are going to be affected. I wonder if the Minister can comment on the suggestion I'm making? Thank you.