Mr. Speaker, earlier today I introduced a bill to amend the Public Service Act.

As I have stated previously, the government is facing a $150 million deficit in 1996-97 if no action is taken to bring expenditures in line with revenues. All areas of expenditure, including wages and benefits for our employees, must be considered for reductions to accomplish this. This has to be done in a manner that is fair and responsible to the people affected.

Mr. Speaker, the government, its public service and the public they serve are facing tough challenges to ensure that we live within our means. While the choices we face are difficult, I am confident that the situation can be managed if we all work together to meet these challenges. I am also confident, Mr. Speaker, that within the right framework we can work with our employees to find solutions that reflect our common interests.

Mr. Speaker, the proposed amendments to the Public Service Act are required to set a more positive framework for negotiations with representatives of unionized employees on changes that will affect them. The current framework for collective bargaining requires that disagreements arising during the negotiation of a collective agreement be referred to a southern arbitrator. Under this framework, tough decisions are not being taken but are simply being referred to arbitration for decision.

Therefore, Mr. Speaker, the bill I introduced today would remove the ability of the parties to rely on an outside arbitrator to solve our disagreements. Instead, the proposed new framework requires the parties to work together to find a common solution. If negotiations do not achieve a new collective agreement within a reasonable time after the old agreement expires, the government will have the ability to change the terms and conditions of employment. The union and employees, in turn, will have the right to withdraw their services if these changes are unacceptable to them.

Mr. Speaker, the proposed framework for collective bargaining for government public sector employees is the same as the framework for all other unionized employees in the Northwest Territories. It places the full responsibility for resolving issues of common interest on the parties.

Mr. Speaker, the government values its employees and remains hopeful that all employee groups, including our unionized employees, will work with the government on finding solutions to our common problems. Thank you, Mr. Speaker.

---Applause