Thank you, Mr. O'Brien. Orders of the day, item 2, Ministers' statements. Mr. Premier.

Thank you, Mr. Speaker. I wish to advise Members that the Honourable Manitok Thompson has been delayed in Chesterfield Inlet and will be absent from the House today. Thank you.

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

Thank you, Mr. Speaker. Mr. Speaker, we've learned of a major fire last night in the hamlet of Kugluktuk. Unfortunately, the hamlet's recreation complex, including an arena, curling rink and two community halls were completely destroyed. We were thankful that there were no injuries sustained in the blaze, but the community now faces the situation of being without important community recreation facilities.

I would like to assure the community and the Members of this Assembly that the Department of Municipal and Community Affairs will work with the community to develop a plan for replacing these vital community facilities. Our regional office has been in contact with the community. Mr. Speaker, the office of the fire marshal and the insurance company will be sending representatives into the community this week to review the fire damage and discuss insurance details.

The loss of this major community facility presents a challenge to the department and this government. Securing the resources and planning a replacement facility will take time, but every effort will be made to have a new facility as soon as possible. Thank you, Mr. Speaker.

Thank you. Item 2, Ministers' statements. Item 3, Members' statements. Mr. Enuaraq.

Good afternoon, Mr. Speaker. Before I start with my statement, I would like to say hi to two of my brothers-in-law back home in Clyde River, Solomonie Natanine and James Arreak.

Hear! Hear!

Mr. Speaker, today I received a touching message from an Inuk who works as a school secretary in Pangnirtung. She was writing on behalf of the UNW employees of Attagoyuk School in Pangnirtung.

This young woman told me that she and her fellow workers are already finding it very difficult to live on the pay cheques they are now getting in the Baffin. She stated that food is now extremely expensive, much more than what it was in the past. My constituent also told me that right now she is paying $238 a month rent for her small place, and that starting April 1st, her rent will go up to $600 per month. She is wondering how she will be able to come up with grocery money. She asked whether our government knows how expensive it is to live in the Baffin region. She asked whether the government cares. She asked if our government would prefer that people like her go on welfare. She asked me if I would support employees like her.

Mr. Speaker, I will do my best. Thank you.

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

Thank you, Mr. Speaker. Mr. Speaker, my statement today is regarding economic growth and job creation. Mr. Speaker, on Wednesday past, I spoke about the need for this Assembly to develop strategies to deal with the economic; and social challenges facing communities across the Northwest Territories. For many years, Mr. Speaker, the government ties been the main engine of economic growth in the Territories, either through the direct creation of new jobs or the indirect creation of jobs by using policies to ensure that its capital budget benefits northern businesses.

Mr. Speaker, it is clear from the statements of the House, of the government, to date, that if government is the engine of economic growth in the Territories, then we have just slammed on the brakes. Government is restructuring in such a manner that will eliminate jobs, not create them. Spending on capital and government programs is expected to be reduced significantly, affecting a number of jobs in the private sector. Mr. Speaker, while the downsizing of government will be felt in headquarters and in the regional centres, the smaller centres that are even more dependent on government will be especially hard hit.

On Wednesday, I told Members about the RSV outbreak in Arviat and the underlying economic and social problems that I believe contributed to this tragedy. Mr. Speaker, the two communities that I represent face similar challenges to other communities in both the Western Arctic and Nunavut. They are not regional centres and for the most part do not have the economic opportunities available to them, aside from the pursuit of traditional activities. Unemployment rates in these communities are astronomically high. For example, in Arviat and Baker Lake, although the official unemployment rate runs in the area of 25 to 30 per cent, the real unemployment rate is closer to 70 to 75 per cent. Many of the people in these communities have given up looking for work because there is none. As a result, they are not included in the Stats Canada estimates. At the same time, Mr. Speaker, the birthrates in these communities are amongst the highest in North America. The basic fact of the matter is that the problem is simply getting worse.

Mr. Speaker, reductions to government programs are felt more acutely in these communities. The more diverse economies in the larger regional centres make them better able to absorb these cuts. Mr. Speaker, I'm not trying to make light of the challenges facing the larger centres.

Mr. Speaker, I ask for unanimous consent to continue my statement.

The Member for Kivallivik is seeking unanimous consent to conclude his statement. Are there any nays? There are no nays. Conclude your statement, Mr. O'Brien.

Thank you, Mr. Speaker. Mr. Speaker, there are opportunities to be taken in all the communities if we can position these communities to take advantage of them. For example, all the communities in the Keewatin region have the opportunity to take advantage of the economic benefits from mineral exploration that is taking place in the area. These are the types of opportunities that we have to be prepared f or.

Mr. Speaker, in my view, the mandate of the committee on economic growth and job creation Would be to develop strategies that would place our communities in this position. In my view, it is not enough for the ordinary Members to simply review or criticize the initiatives that are brought forth by this government. It is our responsibility and our elected duty to offer constructive statements on how we can better deal with these problems; the problems that threaten people of the North who need our help the most: the unemployed and the less fortunate.

Mr. Speaker, I will be pursuing this matter with the Members during this Assembly. Thank you.

Thank you, Mr. O'Brien. Item 3, Members' statements. Mr. Miltenberger.

Hear! Hear!

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

(Translation) Thank you, Mr. Speaker. I wish to make a statement on behalf of the Baffin Members of the Legislative Assembly. We are very concerned to learn the decision has been taken by Cabinet to eliminate the regional director's position in the Baffin region. There are a number of important issues in our region which the regional director is handling. The Baffin regional director has been

providing very good support to the Baffin Leaders' Summit, which I chair.

It is helpful that the regional director can represent all departments and agencies of the government in the Baffin region. Community transfer is an important priority in our region. The regional director is chairing a committee of all the key departments overseeing implementation of Community transfer in our region. Having the regional director chair this committee shows that it is an important priority for Cabinet and not just one department.

At our recent Baffin Leaders' Summit, this initiative, which we know is also a priority of the government, was identified as a priority by Baffin leaders. It is especially important that it succeed in our region which, unfortunately, has more than its share of social problems.

Our regional director now chairs a regional wellness committee. If the regional director no longer chairs this committee, we are concerned that this might reduce the support given to this important committee by other departments.

We know that the regional director carries out a number of other important functions in the region. For example, the regional director looks after important visitors who regularly come to the Baffin region. Last year, it was Prime Minister Chretien and Chancellor Helmut Kohl. There are other important visits and meetings planned for the coming year.

Mr. Evaloarjuk, your time is up for making a Member's statement.

(Translation) Mr. Speaker, I seek unanimous consent to complete my Member's statement.

Mr. Evaloarjuk is seeking unanimous consent. Are there any nays? There are no nays. Conclude your statement.

(Translation) Thank you, Mr. Speaker. When people become mentally ill, the regional director has the authority to commit them to a mental hospital without delay. Mr. Speaker, the regional director also looks after labour relation problems in the region. The regional director has signing authority in a variety of areas, such as special leave and travel. We do not know who will exercise these important functions if the regional director is gone.

We understand that the laying-off of a senior public servant such as our regional director requires that he be paid a lot of money as severance pay. We believe that with the important work which lies ahead in our region on community transfer and community wellness, the people would be better served if the regional director was actively working with the Baffin management team to conclude these initiatives, rather than doing nothing and still collecting his pay.

There are other important functions being performed by our regional director. He has participated actively on committees which make decisions on fishing and shrimp licences. The fishery is very important to our region. He has also been working very closely with the Nunavut Implementation

Commission to advise them on designing a new government for Nunavut. If the regional director is to be removed, Baffin MLAs will be asking questions to find out what plans the government has to make to make sure that these important jobs will continue to be done in our region.

Mr. Speaker, we believe that now, more than ever before, with the changes being made to try to save money, we need strong leadership at the regional level. For all these reasons, we would not like to see the Baffin regional director removed. If the Baffin regional director must be laid off, we suggest that he be given one year's notice, so that he can bring these initiatives to a successful conclusion and can be productively employed rather than getting paid for doing nothing. Thank you, Mr. Speaker.

--- Applause

Thank you, Mr. Evaloarjuk. Item 3, Members' statements. Mr. Picco.