Madam Premier.

Mr. Speaker, we have made it very clear in the referendum talks and in response to any suggestions of change in the realignment of any boundaries that it would be totally unacceptable to the Northwest Territories. In terms of discussions we have had with other Premiers at the table, there has been a difficult discussion about how to approach the momentum that has been building in Quebec for a referendum. I know that a couple of the Premiers have decided to become a little more aggressive in making statements and being involved. However, in discussions with all the other Premiers and the Prime Minister of Canada, the basic assumption was that the action is in Quebec and we should be careful in taking our particular point of view and perhaps having that point of view turn against us because it could provide a situation where it gives more credence to the issue of sovereignty for Quebec.

The Ottawa office continues to monitor the situation and the government is kept informed on the various initiatives that have been taken by other provincial jurisdictions. As well, the Prime Minister's office is attempting to keep us in tune. We've offered, as a jurisdiction, to be involved but up to this point in time, there hasn't been an indication of what would be most helpful in this situation, Mr. Speaker.

Thank you. Supplementary, Mr. Ballantyne.

I think it's a very important problem for the Northwest Territories. My question to the Premier is has our government looked at what the ramifications would be for the Northwest Territories if, for instance, the people in Quebec decided that they would separate?

Madam Premier.

Mr. Speaker, the work that our Ottawa office is doing is trying to identify some of the areas that would be of major importance to us if and when the referendum takes place. I believe that it is everyone's firm opinion, whether it be British Columbia, Nova Scotia or New Brunswick, that the significant ramifications on how each jurisdiction is treated financially has not been looked at. I know that there is an intergovernmental committee at the Premiers' level looking at some of the effects of taking the provincial jurisdiction of Quebec out of the tax base on the rest of the country.

As the Member knows, and anyone else who is listening to statements being made, it is not quite clear what the intent of the province of Quebec is in terms of their obligations to the overall Canadian debt situation. We know that they have suggested that they would pay the interest, which got some chuckles. Most jurisdictions feel that this should be handled properly without undue excitement. We should not be putting ourselves in a situation where we are further promoting sovereignty. That seems to be the major concern.

The assessments we are making as a Northwest Territories jurisdiction include the implications of the Makivik offshore negotiations or Quebec-federal government negotiations could have on Northwest Territories boundaries arising from Quebec's claim to lands and waters in the Hudson Bay, James Bay, Hudson Strait and Ungava Bay region. This issue is of continued interest to the Northwest Territories, and our people are monitoring this issue as well as the disruptive implications of the Quebec separation movement for the Northwest Territories resupply operations, cost escalations and possible alternative resupply options.

Another issue is the implications which a national unity crisis would have on the division of the territories and the establishment of Nunavut in terms of delay and fiscal pressures. We feel that there will be consequences of Quebec separation for aboriginal people in Quebec and possible issues relating to the efforts by Inuit of northern Quebec to seek inclusion in the Nunavut territory.

Mr. Speaker, as you can see, there are implications to the well-being of the Northwest Territories. We try, as much as possible, to use our offices in Ottawa to keep ahead of the situation so that, if and when the situation becomes more real, we can have a respectable response. Thank you, Mr. Speaker.

Supplementary, Mr. Ballantyne.

Thank you. I take it from that rather long answer that the government doesn't really know what the impact would be on the Northwest Territories. Because 85 per cent of our funding comes from Ottawa, it seems to me that we are the most dependent jurisdiction in the united Canadian federation of any jurisdiction and easily the most vulnerable. The other side of the equation is if the referendum of Quebec turns out so that Quebec stays in and there will be a new round of constitutional discussions. For those people who didn't support Charlottetown or Meech Lake, the end result is that we have absolutely no or very little constitutional protection in the existing constitution of Canada. What will be the government's strategy if, in fact, the result of the referendum is that the people of Quebec decide to stay in confederation? How will we get involved in the next round of constitutional discussions?

Madam Premier.

Mr. Speaker, the Northwest Territories government and the residents of the Northwest Territories have a large, vast constituency that, in itself, provides that it is well managed. A positive look at how we could be more self-sufficient, probably would be a far more positive way of dealing with the situation. Dependency on other jurisdictions or other matters from the provincial jurisdictions, whether there is separation, whether there is not,

whether there may be another constitutional round really are just questions that are looming over the horizon. We can only second-guess what they would be, and we can only second-guess some possible strategy to a theoretical question. But we realize that they are there, we take it seriously, but in the meantime, I believe our situation is one where we have an opportunity to gain much more self-sufficiency in the wise use of our resources that we have here in the Northwest Territories and in managing them well. There have been a number of claim settlements that could be well supported in trying to get some movement for the residents of the Northwest Territories in terms of jobs and business opportunities.

So I guess when such a question has been posed to me, it's difficult to answer in a very simple way because there are a lot of issues in the national, global context that can go either way and I would think that we will be involved in any future constitutional discussions. We've been assured of that, if there should be one.

Certainly, in terms of the financial arrangements that we have with Canada, with the Prime Minister, he realizes the particular situation with us. Once the budget comes down, we will be having another series of meetings on how we can cooperatively make sure that if there are going to be cuts or squeezes, that we play a part on how that is done, whether it's a federal operation in the Northwest Territories or a territorial one.

So, Mr. Speaker, I don't want to be evasive or try to put it off and not answer the question, but I do not believe that we will not be included in whatever there is or whatever situation we find ourselves in. Certainly, self-sufficiency is a most important goal to achieve and, secondly, if all goes according to the best scenario, Canada stays together. Thank you, Mr. Speaker.

Thank you. Item 6, oral questions. Final supplementary, Mr. Ballantyne.

Final supplementary, Mr. Speaker. Mr. Speaker, I was just trying to illustrate the vulnerability of the Northwest Territories and our overdependence on Ottawa. My question to the Premier is, would the Premier acknowledge the fact that we are very, very dependent on Ottawa, we are very, very vulnerable to events nationally and internationally, and that if we don't start to become more self-sufficient and develop our own resources we're going to have major problems here in the Northwest Territories. Thank you, Mr. Speaker.

Was that a question or more of a comment? Madam Premier.

It was a ministerial statement.

Mr. Speaker, I fully agree with the statement...

---Laughter

...made by the Honourable Michael Ballantyne. Thank you.

Thank you. Item 6, oral questions. Mrs. Marie-Jewell.

Thank you, Mr. Speaker. I have a question for the Premier. Mr. Speaker, I would like to ask the Premier with regard to whether or not the government has established certain public policies. Mr. Speaker, we're all aware that the Dene/Metis Holdings is an aboriginal community-based organization in Fort Smith. It is 50 per cent owned by the Salt River First Nations, the Fitz Smith Native Development Corporation and by the Metis Nation, Local 50. The Dene/Metis's objective is basically to unite the Dene/Metis people of Fort Smith in the pursuance of common economic objectives. The opportunity of the maintenance facility was being one of the first of many future projects in the community which they have been pursuing jointly. I would like to ask the Premier, has the government formally established any public policies and related directives in its procurement procedures that recognize the socio-economic benefits of community-based organizations versus individually owned? Thank you.

Madam Premier.

Mr. Speaker, I will take that question as notice.

The question is taken as notice. Item 6, oral questions. Mr. Whitford.

Minister of Finance, Mr. Pollard.

Mr. Speaker, at the end of this fiscal year, I'm projecting that we will owe or we will be in the deficit position of $23.3 million. At the end of 1995-96, the projection is $38.3 million. Mr. Speaker, if people are wondering why there's a $1 million difference between the deficit I announced yesterday and the numbers I've just given it's because $1 million is allocated to loan funds. Thank you, Mr. Speaker.

Thank you. Supplementary, Mr. Whitford.