Thank you, Mr. Ningark. Good afternoon. Orders of the day, item 2, Ministers' statements. Minister of Finance, Mr. Todd.

Thank you very much, Mr. Speaker. Mr. Speaker, since the 13th Legislative Assembly was elected in the fall of last year, the government and standing committees of the Legislative Assembly have spent many long days reviewing department multi-year business plans to determine the best and fairest means of dealing with our fiscal problem.

We have reviewed all the government programs and operations to identify ways we can utilize our resources more effectively, reduce expenditures and find innovative ways to live within our means. The conclusions that have been reached are that changes are necessary in almost every aspect of government operations. As a result, the services presently provided by this government will be impacted, capital spending will be reduced, and the manner that we do business will be dramatically altered. These changes will necessarily involve reductions in the size of the public service and in its cost.

Although the business plan review process is not yet complete, to date the process has yielded a number of areas of agreement between government and the standing committees on how the government can be restructured and downsized to reduce expenditures.

This process has also allowed the government to largely determine where positions will need to be eliminated for the 1996-97 fiscal year and to proceed with the implementation of these reductions.

All Members of the House recognize that the budget reduction exercise currently undertaken by this government has caused a great deal of uncertainty and anxiety amongst our employees and their families. It has been our intention since the outset of this process to ensure that the decisions on expenditure reduction and job elimination be taken in a fair, consistent and rational manner.

As importantly, we have tried to implement these changes in a manner that would minimize job loss by eliminating positions through attrition and redeploying many of the staff affected. To a large extent, we have been successful in reducing the number of lay-offs that will be necessary.

Mr. Speaker, this process will result in some lay-offs. Employees affected by these lay-offs will be dealt with fairly. They will be provided with priority on government job competitions during the period that they are on lay-off notice. Employees that are not re-employed may choose from a range of assistance such as an enhanced severance pay package or education assistance for one year.

Mr. Speaker, the number of positions that have been eliminated in departments totals 295. From this number, the total lay-offs required are 150; 49 of these lay-offs were implemented earlier this year and we are in the process of implementing the remaining 101 lay-offs.

The reductions in positions are reasonably balanced across the Territory when compared to total government employment in each area. Headquarters reductions are slightly higher than other areas as emphasis has been placed on minimizing the impact of downsizing on front-line staff and direct services to clients.

The 295 positions that have been eliminated constitute the majority of position reductions required in 1996-97.

There will, however, be some additional reductions over the year as some of the departmental consolidations and other strategic direction initiatives of this government are implemented.

There may also be some staff adjustments made by boards funded by this government to deal with reduced funding. The impact of these actions will become clear within the next several months. In all cases, Mr. Speaker, it remains our intention to implement these reductions in a manner that minimizes job loss and ensures that the staff affected are treated fairly. Thank you, Mr. Speaker.

--- Applause

Thank you, Mr. Todd. Item 2, Ministers' statements. Mr. Todd.

Thank you, Mr. Speaker. When this Legislative Assembly took office, it faced a potential deficit of $150 million for 1996-97. It has been a very difficult task to find ways to manage our way out of this problem. Together, the standing committees of the Legislative Assembly and the Cabinet have come close to achieving the objective of sound fiscal management in a fair and reasonable manner.

As we have reached agreement on the components of our emerging plan over the last few months, we have been announcing the initiatives that we will be implementing. On several occasions, we have stated that one part of the overall solution to our financial situation will require us to address the $460 million that we spend on the public service. This has resulted in considerable speculation and concern among our employees about what this will mean to them. Mr. Speaker, I believe that it is best, wherever possible, to put an end to that speculation and alleviate employee uncertainty.

In February, we met with our non-unionized employees and sought their input on the preferred means by which wages and benefit reductions should be implemented. Taking that input into account, the following changes will be made to the compensation package for non-unionized employees, including deputy ministers, managers and excluded employees, effective April 1. 1996.

- The $5,400 annual accommodation allowance will be eliminated by rolling it into the current base rates of pay. A 6.25 per cent reduction will then be made to the new base.

- The existing settlement allowance and vacation travel assistance benefit will be combined into a northern allowance that each employee will be entitled to. The northern allowance will have a fixed base of $1,750 in Yellowknife and will be adjusted by an index to reflect differences in the cost of living among communities. The new northern allowance is structured to ensure that employees can continue to receive the income tax deductions for travel expenses. However, travel days and winter bonus days will be eliminated.

The ultimate removal entitlement will be frozen as of March 31, 1996, and the maximum benefit will be capped. Ultimate removal will not be available for future employees. In addition, removal on initial appointment will be eliminated as a term and condition of employment and will be revised to support specific recruitment needs.

Medical travel assistance will be retained as a benefit of employment but will be brought into line with the benefits available to the general public through the NWT health care system. And,

Unique rates of pay will be established for excluded casual employees and summer students to reflect the work that they perform.

Mr. Speaker, these changes will be implemented April 1, 1996, for non-unionized employees. It is also our intention to eliminate the $5,400 accommodation allowance, effective August 31, 1996, for teachers and March 31, 1996, for all other employees, by offering to roll it into base wages as done for non-unionized employees. This will be subject to a negotiation process with the unions and will only occur when other changes to the wages and benefits for unionized employees are made.

Implementation of this decision on April 1, 1996, will avoid potential overpayment in wages and vacation travel assistance for non-unionized employees. The recovery of these payments could cause an unnecessary financial hardship for these employees.

The same concern exists for unionized employees. I have asked my officials to work out an arrangement with the unions that will avoid payment of vacation travel assistance in 1996 pending the results of negotiation of a new collective agreement.

Mr. Speaker, these changes to the wage and benefit entitlements for non-unionized employees reflect the new fiscal realities facing this government. Thank you, Mr. Speaker.

--- Applause

Thank you, Mr. Todd. Item 2, Ministers' statements. Mr. Kakfwi.

Thank you, Mr. Kakfwi. Item 2, Ministers' statements. Mr. Premier.

Thank you, Mr. Speaker. All of us can be proud of the effort Team Northwest Territories made at the recent Arctic Winter Games.

Alaska got the most medals, but our athletes got what I believe is the most important award: the Hodgson Trophy for fair play and sportsmanship. It's the second time the team has won the award since 1992.

We can be proud of our sports system in the Northwest Territories. Not only have we produced excellent competition results, our athletes consistently display tremendous respect for their opponents, the officials and the rules of the game.

Mr. Speaker, the important thing is how the game was played, not whether it was a win or a loss.

As a result, I also want to congratulate Alberta Premier Ralph Klein on making good on the bet we made about who would win the Hodgson Trophy in Eagle, Alaska.

To pay off the bet, Mr. Klein wore the Territorial team jacket during a media scrum in the Alberta Legislature yesterday. And his Minister of Sports and Recreation gave a statement in the Legislature acknowledging the presentation of the Hodgson Trophy to Team Northwest Territories. Mahsi cho. Thank you, Mr. Speaker

--- Applause

Thank you, Mr. Morin. Item 2, Ministers' statements. Mr. Dent.

Thank you, Mr. Dent. Item 2, Ministers' statements. Are there any further Ministers' statements? Item 3, Members' statements. Mrs. Groenewegen.

Thank you. Item 3, Members' statements. Mr. Morin.

Thank you, Mr. Speaker. The operation of the Legislative Assembly requires coordinated efforts of everyone on staff and we all appreciate their efforts. I am especially pleased that one particular Member of the staff has returned to her duties after spending a short time in hospital. I know that all Members and the Assembly staff will join me in saying a special welcome back to Carolyn McCabe, who has been a part of this Assembly for many, many years. I am sure she realizes she had everyone worried and we are glad to see her recovering so well and wish her continued good health. Thank you, Mr. Speaker.

--- Applause

Thank you, Mr. Morin. Item 3, Members' statements. Mr. Miltenberger.

Thank you. Item 3, Members' statements. Mr. Steen.

Thank you. Item 3, Members' statements. Mr. Enuaraq.

Thank you, Mr. Speaker. Before I start my statement, I would like to say hi to my wife and kids back home...

--- Applause

... and also to the communities of Pangnirtung, Broughton Island and Clyde River.

Mr. Speaker, I rise today on behalf of a constituent who has been suffering with back problems and back pain for many years. He is now at the point where his back pain, which has worsened over the past two years, makes it very difficult for him to do his job with the local housing association. He is suffering from headaches which can't be relieved by medication, and generally feels worn out.

Mr. Speaker, my constituent has done everything he can to deal with the problem, but he has been to the local health centre many times. He has been doing exercises recommended by physiotherapists who have been in both Iqaluit and his own community. And he has seen doctors many times. The exercise and physicians unfortunately do not seem to have helped him with his problem at all.

After years of trying to get medical help, my constituent is now very anxious to find a solution to his back problem, which seems to be very slowly getting worse. He has done careful research into the problem and has asked many people for help. He is now convinced that the services of a chiropractor may well be what he needs. From talking with a person he knows who had almost identical symptoms to his, my constituent is convinced that a chiropractor will be able to help him.

Mr. Speaker, I seek unanimous consent to conclude my statement.

The Member for Baffin Central is seeking unanimous consent to conclude his statement. Do we have any nays? There are no nays, Mr. Enuaraq.

Thank you, Mr. Speaker. Having tried everything else, he at least wants to give this option a try.

He has recently asked the Baffin Regional Health Board, with my full support, if the board would help to see a chiropractor. Mr. Speaker, I understand that the Minister of Health, Honourable "Pretty Boy" Kelvin Ng...

--- Laughter

... is reviewing whether these services could be provided as insured services under medicare. Mr. Speaker, I believe that chiropractors can often help people with back problems. I think many of us know people who have been helped by chiropractors. I believe that in some cases, they can save money in our health care system by eliminating the need for expensive specialists and even surgery.

Mr. Speaker, I know that some doctors may argue that chiropractors are not real health professionals. Some doctors also believe that traditional healing methods should not be recognized by our health care system. However, Mr. Speaker, I hope that our Minister of Health will be open to consider health care treatment which will be effective, which our people believe in, and which probably will cost less than expensive physicians and hospitals.

I am pleased that the Minister is willing to review this matter, and I look forward to the results. Thank you, Mr. Speaker.

---Applause

Thank you. Item 3, Members' statements. Mr. Rabesca.