Mr. Arlooktoo.

Mr. Speaker, there is a complex system of cross-subsidies which takes into account the cost of the product, the cost of shipping and storage. We are looking at all the different aspects of the cost of fuel. As we move towards privatization, the Member's concerns will be looked into and addressed.

Thank you. Item 6, oral questions. Mr. Miltenberger.

Thank you. Mr. Premier.

Thank you, Mr. Speaker. The Member is absolutely correct. The guiding principles in negotiating contracts in the Northwest Territories is political peace where you are negotiating the contract; 100 per cent northern benefits, not to benefit southern people; and, within budget. Thank you.

Thank you. Item 6, oral questions. Are there any further oral questions? item 7, written questions. Item 8, returns to written questions. Item 9, replies to opening address. Item 10, petitions. Item 11, reports of standing and special committees. Item 12, reports of committees on the review of bills. Item 13, tabling of documents. Mr. Dent.

Thank you. Item 13, tabling of documents. Mr. Todd.

Thank you, Mr. Speaker. I have three documents I would like tabled today. I wish to table Tabled Document 6-13(2), the Public Utilities Board of the Northwest Territories 1995 Annual Report; Tabled Document 7-13(2), NWT Workers' Compensation Board, 1996-98 corporate plan; and, Tabled Document 8-13(2), the public accounts of the Government of the Northwest Territories for the year ending March 31, 1995. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. I only have one document to table today. I wish to table Tabled Document 9-13(6), the NWT Housing Corporation annual report, 1994-95.

Item 13, tabling of documents. Item 14, notices of motion. Item 15, notices of motions for first reading of bills. Mr. Todd.

Thank you, Mr. Speaker. I give notice that on Monday, February 19, 1996, I shall move that Bill 1, Supplementary Appropriation Act, No. 2, 1995-96, be read for the first time.

Thank you. Item 15, notices of motions for first reading of bills. Item 16, motions. Item 17, first reading of bills. Mr. Todd.

Thank you, Mr. Speaker. I move, seconded by the honourable Member for Baffin South, that Bill 2, An Act to Amend the Public Service Act, be read for the first time.

Thank you. Your motion is in order. To the motion.

Question.

Question has been called. All those in favour? All those opposed? The motion is carried.

---Carried

Bill 2 has had first reading. Item 17, first reading of bills. Mr. Todd.

Thank you, Mr. Speaker. I seek unanimous consent to go back to Ministers' statements. Thank you.

The Member for Keewatin Central is seeking unanimous consent to go to back to item 2, Ministers' statements. Are there any nays? There are no nays. Proceed, Mr. Todd.

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

Thank you. Item 2, Ministers' statements. Item 18, second reading of bills. Item 19, consideration in Committee of the Whole of bills and other matters. Item 20, report of Committee of the Whole. Item 21, third reading of bills. Before I go onto the orders of the day, I want to invite the Members for lunch in the Members' Lounge after the House is closed. Item 22, orders of the day. Mr. Hamilton.