Thank you, Mr. Speaker. Earlier today I spoke about the increase in tax royalties for mining. I stated that this does not benefit the Northwest Territories, in my opinion, certainly not until we control northern resources. I feel that the proposed negatives certainly outweigh the positives. The three year royalty-free period is eliminated. The royalty rate has increased from 12 percent to 14 percent.

This tax increase adds to the cost of mining in the north which is already tremendously high, and there is a complicated approval process and impact benefits to consider. I feel that the royalties need to be kept low to stimulate employment returns to the communities through impact benefit agreements.

There is an interdepartmental committee consisting of the Department of Indian Affairs, Finance Canada, Natural Resources Canada, and National Revenue, as well as, representatives from the Government of the Northwest Territories that has proposed these royalty changes.

I wonder if the Minister could tell me if the Government of the Northwest Territories supports these increases in the royalty rates and the elimination of the three year royalty-free period. Thank you, Mr. Speaker.