Yes, I do, Mr. Chairman, if I may. For the 1995-96 year, the department's proposed budget is $910,000 higher than the current year. This proposed increase responds to the increased importance of mineral development to the GNWT. It will help ensure that this government and our communities are prepared to take advantage of the opportunities created by mineral activity.

Part of the proposed new funding will be used to support a small community geology program, under which information and expert advice will be provided to communities about mineral development activities and potential, to provide technical assistance for prospectors, and to advise local mineral development opportunities. Additional funds are also being allocated to devolution activities.

The department is actively pursuing the northern accord, and with the assistance of the Department of Economic Development and Tourism, it is working with aboriginal organizations to redraft our northern accord proposal to the federal government. We hope to begin formal negotiations with the federal government in June of this year.

Despite last summer's poor results from one of the underground bulk sampling projects for diamonds, investor confidence remains strong. Mineral exploration activity is expected to continue at high levels for the foreseeable future. It is anticipated that at least three companies will be bulk sampling for diamonds in 1995. One of these projects is under way and two are in the permitting stage. An exciting new diamond discovery in the Keewatin was recently announced. BHP is undergoing a full public review of its NWT diamonds project and is now proposing to mine five kimberlite pipes over a 25-year time period, starting as early as 1997.

The NWT is about to become a major producer of diamonds. This is a tremendous opportunity for our small jurisdiction and I am committed to ensuring that this government and the residents of the NWT obtain maximum long-term benefits from this new industry. Another new mine, Athabasca Resources' Nicholas Lake project, is scheduled to be brought into production this year.

San Andreas Resources Corporation is working on a feasibility study on the development of the Prairie Creek base metals project. If the study is positive, the company hopes to bring the property into production during the latter part of 1996. The minerals initiatives program represents a large portion of the department's budget. This is a five-year program which is funded under the Canada-NWT economic development agreement. A total of 70 per cent of the expenditures from the minerals initiative program are recovered from the federal government. So, 1995-96 is the last year of the current minerals agreement.

Oil and gas activity will resume in the NWT this year. In addition to the long-awaited approval of the Norman Wells expansion project, the federal government has initiated oil and gas exploration rights issuances in the Fort Liard area and in the Sahtu region. These rights issuances have been well received by the industry and will provide important economic benefits to the local communities. With devolution, the GNWT would be able to manage and promote environmentally responsible oil and gas activity. In the meantime, however, Mr. Chairman, these responsibilities will continue to be delivered by federal agencies.