Mr. Chairman, thank you. I am not sure I can answer that question well enough, as I have never seen any cross-benefit analysis on it that way. At the present time, it has been contingent on diamond mines going ahead; tying it together with a diamond project. One of the reasons for that is there is so much added to the cost because of the transmission distance.

Thank you. Mr. Ballantyne.

I know it is difficult to give definitive responses to my questions, but I am just trying to get an idea of some of the potentials, possibilities and variables that are involved in this. It is a pretty complex area. I guess my fast question to the Minister, or through the Minister, to Mr. Guthrie is, is the Minister satisfied that we are doing everything that we can as quickly as we can to prepare ourselves for these eventualities. The Minister, more than most people, understands the number of hoops that one has to go through to get one of these projects... (Recording difficulties)...I guess my concern is that we might not only have one, we might have two. We don't know. A whole bunch of things may start cooking really fast. What I wouldn't like to see is the Power Corporation be ill-prepared to take advantage of some opportunities. Are we doing everything we can do to make sure we are prepared to deal with however this whole mining play may actually unfold over the next few years?

Thank you. This is a question for the Premier.

Mr. Chairman, I believe that the Power Corporation is doing as much as it possibly can to seek out the potentials for hydro development in light of new customers, particularly in mining. I believe that the working relationship between the Power Corporation and the Dogrib will bode well to moving things more quickly. The Dogrib are already thinking out how they will finance the second phase of the Dogrib power project.

So right now, there is a lot of activity going on, and reaching a working relationship with the Dogrib is probably a very positive sign that something could be worked out. That second phase is being pursued very aggressively by the Dogrib. We aren't in a situation where we are fighting to resolve the subject matter. it is something that is financially good for the Dogrib and is environmentally a better way of delivering power generation. So both the corporation and the Dogrib are in tune to moving ahead with the second phase.

The other areas that can be developed are being explored. There have been some studies, a number of years ago, we tabled a number of studies that were done already on the various potential areas. We try to stay out of the areas which we are told very clearly are not to be developed in any way, shape or form. I think the working relationship with the aboriginal groups that would be more closely affected are our partners. So that takes away a lot of the "us and them," the suspicion and the idea that the community is being overridden. Those areas are progressing well and that takes away a lot of the problems we might have.

Thank you, Madam Premier. Mr. Dent.

Thank you. I know that we had a record forest fire season over the past summer. I didn't realize that we were using up that much water to extinguish the fires.

---Laughter

Madam Premier.

I believe, Mr. Chairman, that we didn't use up that water to extinguish the fire. It was just a dry out. I'll refer the question on initiatives on alternate energy to Mr. Guthrie.

Mr. Guthrie.

Thank you, Mr. Chairman. The last time I was here we touched on this subject, also, so I think everybody's aware that there's a company that has some wind turbines in Cambridge Bay. Those wind turbines have been working for quite a period of time now and although they did have some of the technical problems that you might expect at first --icing conditions on the blades and some bearings or metal pieces that wore out or broke --they seem to have a lot of that overcome now with better products and a better understanding of the climate they are working in. They have now come back to the Power Corporation and they would like to install more wind turbines. What they need from us is a guarantee of what price we will buy power from them. We're in the process of writing them that letter so that they can be assured of what price they will get to install more wind turbines and continue to work on this project.

I think it offers lots of potential in the north and especially in the eastern Arctic. Of course, with the small populations in almost every place we supply power in the Northwest Territories, nuclear power has never seemed like much of an option. So the Power Corporation, at this time, has not pursued that to any length, although I think it's probably timely that we had somebody from Arctic Energy come up and give us a talk on that someday so we can stay current with the technology. I Also know there's a concern in the Northwest Territories about it being a nuclear free zone so perhaps that's not an alternative at all. said it before -- to hear the Premier say that the privatization One other technology that seems to be advancing quite rapidly, and I think has a lot of potential for our smaller plants and smaller communities, is what's called fuel cell technology. Fuel cell is really referring to batteries. That technology is changing so fast; there are batteries coming on the market where you would run your engines for a period of time, the engines charge the fuel cell and then you can shut the engines off and run off the fuel cell. Certainly, smaller users of power like NorthwesTel probably use some of that already. I think we can see, as this technology improves, that being a great benefit to us, especially at night in communities where they don't need much power and there are no big spikes in the power.

Other than those two and all our pursuits in hydro, those are the three main areas we are working on and looking at.

Thank you. General comments. Mr. Whitford.

Thank you, Mr. Whitford. Mr. Whitford, any time you need an extra gallon of water, you can call upon the eastern Arctic, they have lots of it. General comments. Any future general comments? Mrs. Marie-Jewell.

Thank you, Mr. Chairman. Mr. Chairman, there are just a few things I would like to comment on. No doubt, as I had stated in the House earlier, we were concerned as a community with regards to the impact of the low-water surcharge that was placed on our utility bills. Mainly because in Fort Smith we do know that we have an excess amount of power. The current capacity of the Taltson dam, I believe, is 18 megawatts. I think we are only using eight megawatts, we used to use 18 when Pine Point was operating. So there is a fair amount of excess power in Fort Smith. And when people received this low-water rate rider charge on their utility bill, there was a fair amount of concern expressed to me on that.

I did try to advise them that it was the Public Utilities Board's decision and it was only for a short period of time. It was something that the total territories had to absorb. So, therefore, I am pleased to hear that they are going to consider some type of fund to address this.

However, I noted in the chairman's comments --not so much the Minister's, but the corporation's --comments of, possibly, if the Yellowknife system is below average, or if the hydro production in the Snare/Yellowknife system is below average as budgeted, a general rate application may be filed with the PUB to increase rates. I am wondering whether or not this would be because of, possibly, low water. We have had a fairly dry winter overall. I am wondering whether or not, as soon as this low-water rate rider is finished, possibly, there could be another rate increase requested. So, I would like to ask the Minister that.

But I also wanted to make a couple of other general comments with regard to the Power Corporation. Currently, as I have heard the Minister state earlier, Yellowknife uses approximately 35 megawatts -- I thought they used 48 --five through turbine and 30 through diesel. I know that in Fort Smith, as I said, there is 18 megawatts with the current capacity and they do have extra turbine capabilities for an additional 10 megawatts which would bring it to 28 and only eight is being used. I wonder if the Power Corporation has ever considered any concepts something like submarine cable, which is something similar to what Vancouver Island is using. It is fed by submarine cable for their electricity needs.

Just overall, Mr. Chairman, there are a couple of comments that I want to make. I want to first of all express my appreciation to the Power Corporation for placing in an electricity line to the Salt River Reserve. I am certainly aware of the band being fully appreciative of that. However, I don't think the switch has been turned on as of yet and I don't know when the power will be given to the Salt River Reserve. But I know the Salt River First Nations has appreciated all the efforts they have received from the Power Corporation.

There have been some concerns from constituents, and I have noted that the Minister has made those remarks with respect to Treaty 8 and certain Treaty 8 individuals, with regard to some type of claim compensation for trap lines that have been, basically, affected by the Taltson dam years ago. I have noted that in the Minister's remarks she did indicate that they would be hoping to address them and resolve the impacts during the term of their licence. So I look forward to some of those concerns with regard to compensation issues for some of my constituents that have been affected by the ...(Microphone turned off)

Mr. Chairman, I did want to state one concern that I continually hear in my constituency, and I have expressed this to the Minister a number of times. There has been a fair amount of concern about the tack of affirmative action candidates which are being hired by our local NWTPC office. I certainly hope that the Minister and the corporation can find a method to increase the number of affirmative action candidates that are being hired by that local office. I certainly believe that it is not that people are not capable, we do have many electricians, we have many capable educated people in Fort Smith, but I believe that it is the attitude that is prevalent in some of the personnel; not some of the personnel, but the management of the NWT Power Corporation in the Fort Smith office, that prevent affirmative action candidates from being hired. So, I certainly hope we can see an increase of affirmative action candidates to be hired within the NWT Power Corporation in Fort Smith. With that, I thank you, Mr. Chairman, for the opportunity for making these remarks.

Thank you. I didn't hear any questions, but there was some implication that you would like to respond, Madam Premier.

Yes, Mr. Chairman. With regard to Treaty 8, from the Water Board hearings, we were instructed to try to overcome some of the difficulties in trying to reconcile a compensation package for a number of people. We had some difficulty in just getting connected and communicating so that we could do that. Just recently, two of the three individuals who were in question, have given notice that Salt River First Nations will be acting on their behalf. We are still trying to track down one individual. So we will still continue to work with that.

We still have some difficulty in trying to reconcile with the complainants. We took the Power Corporation over in 1988 and the end of our old licence was in 1994. So we are trying to do a reconciliation on just when the NWT Power Corporation should be liable for compensation, but that is a separate issue from the individuals. I believe that in a recent meeting that was held just a few days ago, it looks like the Treaty 8 people are willing to begin to try to resolve the issue overall. So I am pleased with that because we had some difficulty earlier, but that may have been because they were very busy with trying to get the government involved with the overall global negotiations on Treaty 8. I feel pleased that they are willing to sit down and start talking.

I can let Mr. Guthrie give a response to some of the other issues that were brought up that seem to be left open, particularly on the affirmative action and the alternative of trying to bring Taltson power around. We did a number of studies, including submerging a cable across the lake. I think Mr. Guthrie can give you more detail on that.

Thank you, Mr. Chairman. With regard to power from Taltson to Yellowknife, there have been very extensive studies done on that. The first one that was looked at was a power line around the lake. With the amount of miles involved, it was completely uneconomical. They followed that up with a study about a submerged cable and that also, at today's economic conditions, is not viable. Those are things we continue to look at almost on a yearly basis, especially the submerged cable. As they keep making great technological improvements in cables and the ability for cables to carry electricity for long distances, I think that could change. Certainly, if fuel continues to go up, that will affect it.

Of course, one of the problems for us is being in a catch-22 situation of wanting to be ahead of increased fuel prices, while on the other hand, these projects require tens of millions of dollars and there is the concern about how to pass those costs on when it can be done cheaper at this point in time by diesel. We'll continue to work on that.

I share your concerns about affirmative action and I just want to assure you that for the hiring of any staff in Fort Smith, or anywhere else for that matter, our affirmative action program is there. It cannot be circumvented and if the human resource department or I think it has been, we would certainly correct that immediately. I'm aware of your concern and I'll make a personal commitment to assure you that I'm working on that. Thank you.

Thank you, Mr. Chairman, and I thank you for that commitment. I would like to ask, do you know when the switch will be turned on for power to the Salt River Reserve? Thank you.

The poles were completed in March and I'm really pleased with how that went because, of course, it was with the help of the people of the Salt River reserve. The poles are all in and I think they'll be stringing the line this month. The next part of the process, as I understand it, is people have to make applications to be hooked up. I must admit, I don't know if we're waiting for applications. I don't believe we are but we can check that when we get back to Hay River. Once the line is strung and people have an application in, we'll hook them up. In the early part of the summer, everyone should have power who applies for it.

As far as the switch being turned on, when the wire is in place, we can turn the switch on at any time. But people still have to make an application to get the power from the transformer to their house. We can't hook them up without that. As far as I understand, it will be in May. Thank you.