Mahsi, Mr. Speaker. Like many Canadians, I listened carefully on Monday when the Honourable Paul Martin delivered his Budget Address in the House of Commons. For a long time, many people have been calling on the federal government to reduce the amount of money it is spending. Our national deficit has grown to the point where there is a risk that international financial institutions may stop investing in this country. This has weakened the federal government and Canada's financial status in the world.

With Mr. Martin's budget, Ottawa has cut spending drastically and will be privatizing many services like the railroads and Petro Canada, in an attempt to reduce the federal deficit. Some of these actions may be quite positive, but the federal budget has also raised many questions about how these spending cuts will affect the people of the Northwest Territories. It will be important for the Government of the Northwest Territories to make decisions about how to respond and it will be important to ensure that all northerners have input in those decisions.

Mr. Speaker, the budget announcement made in Ottawa on Monday carried significant implications for the Northwest Territories. The earliest projections suggest that we may lose about $58 million from next year's transfer payments and some federal positions will be lost, with the possible downgrading in government services and implications for community economies. The cost of transportation, already the highest in Canada, will be increased even more by new taxes on certain petroleum products, airport fees and possibly, eventual user fees for airports. Reductions in Canada assistance program funding and the so-called social transfer will undoubtedly impact on the most needy members of our society.

Mr. Speaker, these changes are here. I agree with our Minister of Finance, the Honourable John Pollard, that there is little to be gained in moaning about the tougher, tighter times that face our governments. However, it will be important that the Government of the Northwest Territories carefully plan out the specific measures we need to take in the face of this new budget. We must evaluate the impact of the federal downsizing and project reductions in the funding we receive from Ottawa. We will need to explore new and innovative approaches to delivering government programs and services and to identify areas where our own administrations can be made leaner and more productive.

Mr. Speaker, I seek unanimous consent to conclude my statement.