Thank you, Mr. Speaker. Good afternoon. I would like to recognize His Worship, the Mayor of Taloyoak, Mr. Dennis Lyall up in the gallery.

-- Applause

Further, Mr. Speaker, I would like to recognize Wilfred Wilcox, the mayor of Cambridge Bay. Thank you.

-- Applause

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery. Mr. Dent.

Thank you. Welcome to the Assembly. Recognition of visitors to the gallery. Mr. O'Brien.

Thank you, Mr. Speaker. I would like to recognize my constituents from Arviat and Baker Lake. From Arviat, Mr. Simeonie Mamgark of the Prospectors' Association and from Baker Lake, a good friend of mine, Mr. Andy also with the Prospectors' Association, and with the Keewatin Inuit Association, Mr. Kono Tattweene and, also, Joe Karetak representing Eskimo Point Lumber and Expediting. Thank you.

-- Applause

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery, Mr. Todd.

Mr. Speaker, I would like to recognize in the gallery, Mr. Richard Connelly, Mr. Graham Dargo and, of course, the president of the Sakku Development Corporation Mr. Joe Kaloojak. Thank you.

Welcome to the Assembly. Recognition of visitors in the gallery, Mr. Miltenberger.

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery, Mr. Henry.

Thank you, Mr. Speaker. I would like to recognize two missionaries from the Church of Jesus Christ of Latter Day Saints and our pastor Raymond Bilodeau from Yellowknife. Elder Peterson is from Tennessee and Elder Brown is from Utah. These missionaries are stationed in Yellowknife for the next six months, with the mission of bringing happiness to family lives. They are doing community service in areas such as the hospital and schools in Dettah and are involved with sports and recreational programs. Thank you, Mr. Speaker.

-- Applause

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery, Mr. Morin.

Thank you, Mr. Speaker. I would like to recognize Sharleen Bourque, Edwin Bourque and Arthur Bourque, all of Yellowknife. Thank you.

-- Applause

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery, Mr. Krutko.

Thank you. Are there any further recognitions of visitors in the gallery? Item 6: Oral questions. Mr. Picco.

Thank you, Mr. Speaker. My question is for the Minister of Finance. Mr. Speaker, the recently announced Footsteps in the New Snow 2 goes a long way in the development process for division before and after. There is some concern being raised about the financing of both territories, east and west. Can the minister explain the process for incremental, transitional and gross expenditure based funding and financing for both the western and Nunavut territories?

Thank you. The Minister of Finance, Mr. Todd.

Thank you, Mr. Speaker. Mr. Speaker, discussions are currently under way with the Minister of Finance for Canada, the Hon. Paul Martin and we are optimistic that in the coming weeks that we will be able to work with the Department of Finance to determine, firstly, the terms of reference as to how we would proceed with two new forms of financing arrangements.

Secondly, to get some degree of comfort as to the extent of the incremental costs that will be necessary to fund both the east and the west and, thirdly, to get some time lines as to when we can conclude a new fiscal arrangement to the satisfaction of both east and the west. Thank you, Mr. Chairman.

Thank you. Oral questions. Mr. Enuaraq.

The Minister of Transportation, Mr. Antoine.

Mahsi, Mr. Speaker. Mr. Speaker, we are aware of the Pangnirtung airport, there are two major concerns that we have with this airport, and one of the first faults is the location, as the honourable member has stated, and the second is the length of this airport, as well, it is a problem.

For the information of the honourable member, in 1993, the Department of Transportation studied this issue looking at the relocation and upgrading of the airport. A study was done that identified alternative sites and we did a cost comparison.

The end result was that the cost was very, very high. I think the lengthening of the present airstrip is going to cost the same as relocating the airport to another location. The cost was something like $11 million. In this time of budget restraint, it was difficult. In 1993 the department concluded that the cost to relocate and upgrade the airport could not be justified at that time, and the financial situation has become even drearier this time around, so it is difficult to accommodate the requests of the citizens of Pangnirtung. Thank you.