Yes, thank you Mr. Chairman. I believe yesterday, when we concluded, that a number of Members spoke on the division issue, and that we would hold our comments, both myself as chair of the division committee, and Mr. Antoine as chair of the Western Constitution process, until now. Mr. Chairman, we listened very carefully, not only yesterday, but in caucus earlier this week. Let me start by saying that it is our belief that division should be seen as an opportunity, not a problem. I think that is an important way in which to view it.
I would also like to start out by saying that our position as a cabinet on Footprints 2 has not been finalized. It is important for ordinary members or the public at large to recognize and to understand we have a clear process in place that will provide all members with an opportunity to comment on Footprints in the Snow 2, either through the ordinary members caucus, through the Government Ops Committee, and especially the Division Committee, and of course, as individual members. So there is a considerable amount of opportunity, to filter, if you want, your participation in the final response to the report. Once we finalize that response, hopefully by the end of December, if not before, then the Premier will advise both Mr. Kusagak and Mr. Irwin of the government's position on it, and the NIC.
I think it would be fair to say that, as a government and a division secretariat, we are pleased with their report, at least in our initial review. I think that the strong working relationship, at the staff level, has provided us with a more enhanced relationship as the process of this second report unfolded. I think that is an important point to make, Mr. Chairman. Yesterday I believe a number of the members indicated that this report contradicts, to some extent, what the GNWT is doing. I would suggest to you that this government will probably take the position, subject to your approval and, of course, the Premier's, that most of the report we will agree with. But, in any situation, there are a number of areas of disagreement. That is exactly what they are, disagreements, not contradictions.
Other members indicated that we must prepare for division, and we need to ensure that our plans reflect it. I think what is important in this report that we have, and what was not in the previous report, is the clarity as it relates to how the structure of the government would come in to being. Clearly that was needed and clearly we now have that. We will be able to move reasonably quickly to incorporate some of the recommendations that the report implies.
It is important again, if I may, to repeat to everyone the position of the government, and that is we have to establish the implementation of two new governments, and it must be done sooner, rather than later. A number of members talked about their concern for staff, which is a legitimate concern. I think it is important to point out, again, the position of this government. We need to conclude a comprehensive staff transition plan that will lessen the economic impact of division. We need to encourage our people to relocate, allow for on-site training and the preparation that needs to occur.
We are very much aware, as are ordinary members, of our obligations and responsibilities to our staff, but the reality is, that on April 1, 1999, that there will be two governments in this part of the country. There will be two new bureaucracies in this part of the country. The transition of these two new governments, is absolutely essential if it is going to be done in an orderly and timely manner. Staff will be treated with respect, and appropriate steps will be taken to find alternative employment, perhaps, early retirement if it is required, and certainly, my understanding is, and our position is, the option to participate for those staff in the west that are not related to the new Nunavut government. We have made that clear on a number of occasions.
So, if I may, because it was a major concern to certain members of the House, I want to say again, it is our position to conclude a comprehensive staff transitional plan that will ensure two new governments are up and running, and it will require staff to move from west to the east. We must deal now, not just with the theory of division, but with the hard reality of establishing two governments. We all know how many days are left. We cannot deal with the theory of it. We have to get it on paper and, at some point, we have to reach some compromise, or some decision, to implement it. To say otherwise, is foolish. Costs are a critical factor, and in my role as the Finance Minister and as chair of the Division Committee, nobody recognizes it more than I do.
Many members have raised, both in caucus and in the House, their concern with respect to transitional, incremental and the two new gross expenditure bases. There is a process in place now, to ensure an east/west participation, and we are working towards, particularly the western participation, and I would encourage all of us to come to a quick conclusion to whom should represent the west as we move towards the negotiating table with Mr. Martin. I have said numerous times that I will be discussing this matter with Mr. Martin, hopefully, sometime this month, where we will be able to determine, hopefully, timing, terms of reference, the participation and the process to move forward to conclude two new formula financing agreements. Also, to try to identify, as it states in the Nunavut Act, reasonable incremental costs. We must move quickly on the issue of costs, because at the end of the day, no matter what structures do unfold there will be a requirement for incremental costs both, and let me say it now, clear, east and west and it will be my job, and my role, to impart that to Mr. Martin in my future meetings.
Some members have expressed concern, I believe, Mr. Erasmus, about the CCON table, that is the co-ordinating committee of officials, and I agree with him. Mr. Antoine and myself have met on this issue, and we intend to correct that to move some other officials who are directly involved in the western constitutional process to the table with respect to the east and vice versa.
I will use these words deliberately, because I think it is important. It is an issue that I have been raising on a consistent basis, some member, I believe used the term, and I do not use this to dramatize, but just to demonstrate, there could be a bloodbath. I think what is essential as we move forward in the division of the territories, that we find some third party dispute mechanism that we are all comfortable with for division and the divorce, if you wish to put it that way, is an amicable one. I am a strong advocate of third party dispute mechanisms because, no matter what our best intentions are, there undoubtedly will be areas in which gridlock occurs.
I think as we look at division, and we have discussed at some length, as I hear everybody talking about it in the responses we have, and that is, I believe Mr, Roland stated yesterday, it is vitally important we remember why we are doing this and that is for the betterment of territorial residents. I would hope, at the end of the day, that we would all remind ourselves of that on a consistent basis, so that we avoid getting into public or private squabbles as it relates to the assets and liabilities. This should be, in my opinion, a technical exercise which requires some political direction.
So, Mr. Chairman, if I may, our initial response, if I could summarize, to the Footprints in the Snow is a positive one. There will be the ability for each and every one of you to provide us with, through the different mechanisms I earlier outlined, your contribution to and response to the report. it is the desire of this government and the Premier to respond in a timely manner, and that time is the end of December, that is what we have committed to, and, hopefully, our response will be reflective of many of your concerns.
I would like to end it by reminding everybody of Mr. Morin's comments, he has said on a number of occasions and must take full credit for it, that April 1, 1999 should be a reason to celebrate for both territories, with your support and, more importantly, cooperation, we will. Thank you.