Thank you, Mr. Chairman. Mr. Chairman, much of what I would say in general comments has already been expressed by my colleague for Yellowknife North, but I think it is important that some of them be restated by other Members.
One of the things that I think is really important --and I know there has been a fair bit of concern expressed about this across the territories --is that the corporation move to rate zones that reflect the cost of providing power in those rate zones. If we don't do that, we will have a situation of cross- subsidization between areas serviced by the NWT Power Corporation. That may not necessarily reflect fairness and equity if subsidization is done just on power rates.
If it is found to be important that some areas receive subsidization so that the cost of power is maintained at a reasonable level, it is then the responsibility of government to step in and provide those subsidies. The government presently has one subsidization policy in place and perhaps as we move to rate zones where the rates are actually set closer to the cost of service, there may be other subsidy programs which have to be established by the government. Any time a subsidy is being offered, it should be offered obviously. It shouldn't be done through the back door, which is what happens with cross-subsidization through power rates. I would like to add my encouragement to the process of moving towards rate zones which reflect the true cost of providing power, and, I guess, warn or ask the Power Corporation, perhaps, to warn the government if they see areas where the government might want to start considering a subsidy program so at least there is some thought given to the process before the rates are sprung.
I would also like to say that I'm glad to hear that the Power Corporation is working on a rate stabilization fund. I think this is something that is obviously needed, especially in an area like Yellowknife where some years you may have high water rates and other years you may have. low ones. I notice in the Minister's opening comments that she points out that in order to pay a dividend to the GNWT to fund the subsidy program! it is essential that the Power Corporation earn its full return on equity, and this necessitates rate increases from time to time and there will be a rate increase of approximately three per cent in 1995-96. I would submit that in the past we should have been looking at that kind of increase if that's what it took to ensure that a rate stabilization fund could have been set up rather than having a situation like the one which was allowed to develop. I think that the consumer would understand along the way if there has to be a minor increase, say in the order of three per cent, in order to ensure that a rate stabilization fund could be set up. I think they would have understood that years ago if that had been started. I guess it's better late than never and it is an important fund to get in operation to try and smooth out the bumps that you're bound to find when you're dealing with mother nature.
I, too, would like to offer my congratulations to the Power Corporation for their joint venture. Perhaps it's not a joint venture, but for their work with the Dogrib Power Corporation. I think that this is an important step in seeing companies of this sort get involved in business opportunities with benefit their shareholders and beneficiaries and benefit all northerners through the provision of a required service. I am pleased to see in your goals and objectives for this year that the corporation intends to pursue more undertakings with the Dogrib Power Corporation as well as a willingness to examine other organizations that may approach the Power Corporation with ideas for the future.
I must say that I was very pleased, again -- although she has said it before -- to hear the Premier say that the privatization initiative is no longer on the government's agenda. I think there are an awful lot of concerns which would have to be addressed and the proper time to consider that sort of initiative is definitely in the next Legislature.
One thing I would like to mention and then ask a question of the Minister, in the goals and objectives I noticed that the Power Corporation talks about the need to investigate and introduce cost-effective alternate energy sources. I think that, too, is something that needs to have some more attention paid to it and would particularly like to encourage the Power Corporation to work with people across the north to find alternate energy sources. I note that the Premier, in her opening comments, did not specifically mention any initiatives. I was wondering if this committee could get an update from the Premier, Mr. Chairman, as to what some of the initiatives might be in the course of the next year in the alternate energy field. Thank you, Mr. Chairman.