Thank you, Mr. Chairman. The Standing Committee on Finance review of Bill 19, An Act to Amend The Tobacco Tax Act, had its meetings in Yellowknife on March 29 and 30, 1994. The committee discussed this bill with the Minister of Finance and his staff. The standing committee has reviewed the financial aspects of this bill. The committee Members support the government's initiative to increase tobacco taxes. This will prevent a loss of revenues to the government after the federal tobacco tax cut by restoring the price of cigarettes in the NWT to where it was before the federal tax cut. This measure will also discourage our youth from beginning to smoke.

However, Members of the standing committee and of the Ordinary Members' Caucus noted various concerns regarding other aspects of the bill. One concern is the change to the amount of tobacco which justifies search and seizure by an enforcement officer. Another issue that concerns Members is increased penalties for offences under the act, and especially the minimum sentence for certain offences. Many Members of this Assembly feel strongly that these enforcement and administration measures must be subject to public consultation before passage in this House. Individual Members of the standing committee will take this opportunity in committee of the whole to address concerns and seek further information from the Minister. Mahsi, Mr. Chairman.