Thank you, Mr. Speaker. With regard to Canarctic Shipping, I may have to go into some background so everyone understands where I am coming from. Canarctic Shipping was created in 1975 by the federal government in partnership with Northwater Navigation. It was a consortium of three companies. The federal government owns 51 per cent of Canarctic, while Northwater Navigation had owned 49 per cent.

Canarctic is based in Ottawa with a seven-member board of directors; four of them who are appointed by the federal Transport Minister. All have been federal civil servants. The remaining three directors are appointed by FedNav.

Canarctic was created as a vehicle to build and operate the MV Arctic. It is an ice-breaking bulk oil carrier built in 1978. The Arctic was converted to an ore ship in 1986. It can carry about 25,000 tons of ore or petroleum products. It is 17 years old. However, it was surveyed by Lloyd's and it is deemed to be equivalent to five years old. The original purpose of Canarctic was to develop and demonstrate Canadian expertise in the Arctic shipping of mineral resources. As a ship built in Canada and operating under the Canadian flag, Canarctic was not expected to be a profitable company. By 1993, the federal government had invested approximately $80 million in Canarctic and any future profits were to go to reimburse Canada for this investment.

Mr. Speaker, Canarctic had succeeded in its mission of demonstrating Canadian expertise, providing shipping services to Nanisivik and Polaris mines and carried crude oil from Panarctic's Bent Horn Well in Baffin. In doing so, Canarctic has also developed world leading expertise in ice-navigation systems, utilizing satellite and radar systems and has been doing an increasing consulting business with industry, government and Arctic shipping.

Canada now considers the experiment complete and wants to move Canarctic towards commercial viability and away from federal ownership. The 49 per cent ownership is by FedNav. It is a Montreal-based privately-held Canadian shipping company with revenues that range in millions per year.

The proposal from FedNav was proposed by Canarctic management. The option was that the shareholders' agreement gives FedNav right of first refusal of the shares. As early as January of 1992, the Minister of Transportation of the day was Titus Allooloo, who wrote to the federal Minister advising him of the GNWT's interest in Canarctic. Subsequently, the Minister of Transportation and Mr. Todd, did intervene with the federal Minister of Transportation and DIAND and there were a lot of discussions. The idea behind these discussions, Mr. Speaker, was that if FedNav had the right of first refusal and if the government was wanting to get out of this Canarctic experiment, we would have lost the northern expertise in shipping.

With no aboriginal groups at that time interested in taking over the Canarctic interest, the GNWT had discussions to see if Canarctic could be turned over to northern management, through the GNWT first and then turn it over to the private sector at a later time. However, this whole exercise has stopped as of last fall and there is no more development between the government and Canarctic at this point. Thank you, Mr. Speaker.