Thank you, Mr. Speaker. Mr. Speaker, I have the pleasure of advising Members that new policies for operating and capital assistance for settlements and other small communities have been approved for implementation April 1, 1995.

The capital and operating assistance provided by the department to settlement corporations, settlements and unincorporated communities has evolved over the last 20 years, without a framework to ensure the necessary level of funding and the consistent and equitable distribution of this funding.

The settlement operating assistance policy and the settlement capital assistance policy, known commonly as SOAP and SCAP, will ensure fair and equitable distribution of funding to smaller settlements and communities. With the introduction of SOAP, operations funding to eligible communities will be based on a formula that accounts for the basic services and programs which a community government is expected to provide. The formula is similar to that used to distribute funds to hamlets, with appropriate modifications to fit the generally smaller communities.

Mr. Speaker, SOAP and SCAP will not only eliminate any real or apparent discrepancies between communities eligible for assistance, but it will harmonize the funding approach for settlements with that of hamlets. These discrepancies have long been a concern for MLAs with small communities and, in particular, in the Fort Smith region where the majority of settlement corporations, settlements and unincorporated communities are located.

It is generally acknowledged that the communities eligible under the new policies, that are generally characterized as small and relatively undeveloped, have previously lacked the resources to fully maximize their potential. It is with pleasure therefore, Mr. Speaker, that I can confirm SOAP will result in just over $700,000 in extra funds to these communities, allowing them to provide the essential levels of municipal services and good government that residents expect. These funds have been reallocated from within the department's budget, reflecting the commitment we have to this priority need.

Capital assistance under SCAP, Mr. Speaker, will harmonize the department's approach to the communities under SCAP with our approach to hamlets, charter communities and tax-based municipalities under the municipal capital assistance policy. The standards and criteria for capital are now generally based on the size and ability of communities to contribute, rather than the incorporated status of communities.

In the next few weeks, department staff will be contacting each of the eligible communities to explain the policy provisions, review the funding details and work with the community on an agreement for funding and accountability. This preparation work will be completed prior to implementation of the policies on April 1, 1995.

I am particularly pleased that, even with the difficult financial conditions we face, we have been able to address one of the priorities identified by many Members of this House. That is, we have established policies aimed at providing adequate funding to our settlements and small communities. Thank you, Mr. Speaker.