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.

Thank you, Mr. Speaker. Mr. Speaker, I would like to take this opportunity to congratulate the people of Iqaluit for the enthusiasm they showed during last weekend's "Iqaluit for capital" celebrations. Mr. Speaker, invited guests included several Baffin mayors, as well as the mayor from Sisimiut, Greenland. I was not able to attend all the events, as I was here in Yellowknife, but I was able to attend the opening ceremonies.

Mr. Speaker, I would like to take this opportunity to thank the Honourable Goo Arlooktoo and the Member for Kivallivik, Mr. Kevin O'Brien, for stopping in on the opening ceremonies on their way to Yellowknife. Mr. Speaker, over the past few years, our community has suffered some setbacks, but the pride and spirit shown by the elders and the community last week was indicative of a community which is moving forward towards division and Nunavut with confidence and energy.

Mr. Speaker, I congratulate all the volunteers of the celebration and the people of Iqaluit.

--- Applause

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

(Translation) Thank you, Mr. Speaker. I would like to say hello to my wife and my children in Arctic Bay, as well as my constituents in Grise Fiord and Resolute Bay.

On Friday, I asked the Minister of Finance if he and his officials had done an analysis of what would be the actual effects of cuts in wages and benefits to a typical employee. I asked him how those cuts would affect a typical small, medium and large family in each of the eight different

community groups which have been set up under the collective agreement for settlement allowances.

My constituents are very concerned about these changes and trying to figure out what will be the effect on the pay they take home every two weeks. This would be helpful to me because the effect of the changes are difficult to calculate, especially after taxes. I was pleased to learn that the Minister of Finance said that his officials have already calculated how the cuts would affect our employees and that he would make the figures available to us.

However, Mr. Speaker, in answering my questions, Mr. Todd said that he was not sure if he could divulge the information I asked for on an individual basis. Mr. Speaker, I would like to make it clear to the Honourable John Todd and Members of this House that I am not asking for information on individual employees. What I would like to see is how these proposed changes would affect typical families in my constituency and others throughout the Northwest Territories. This information would be very helpful in allowing us to compare how these cuts will affect people who live on and off the highway system, people who have big and small families and people who live near Yellowknife and very far away from Yellowknife. Mr. Speaker, I seek unanimous consent to conclude my statement.

The Member for High Arctic is seeking unanimous consent to conclude his statement. Do we have any nays? There are no nays. Conclude your statement, Mr. Barnabas.

Thank you, Mr. Speaker. I understand that it is not fair to ask for information about the pay of individuals in this House. Mr. Speaker, later today, I will be asking Mr. Todd if he could provide us with examples for typical employees with small, medium and large families and how their gross and net pay would be affected by these changes. Thank you, Mr. Speaker.

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

Thank you, Mr. Ootes. Item 3, Members' statements. Mr. Krutko.

Thank you. Item 3, Members' statements. Do we have further Members' statements? The trophy that we won from the media is right here. I guess they thought they were going to win so they didn't bother bringing the trophy to the arena. It's 72 hours late, but it's here.

Item 4, returns to oral questions. Item 5, recognition of visitors in the gallery. Item 6, oral questions. Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, the federal government is now in the process of consultation with the provinces on the harmonization of the GST. Mr. Speaker, my question is for the Finance Minister. To date, what negotiations have been held with the federal government with regard to the harmonization of the GST here in the NWT? Thank you, Mr. Speaker.

Thank you. Minister of Finance, Mr. Todd.

We are involved, as the provinces are, in discussions about the possible replacement for the GST. Discussions are Linder way with us as they are with the Maritime provinces and others, to see what arrangements can be made to find a replacement or to harmonize some form of provincial sales tax and the GST. I think it's important to point out that our role is somewhat less than the other provincial jurisdictions because we don't have a sales tax. Thank you.

Thank you. Supplementary, Mr. Picco.

Has the Department of Finance investigated possible repercussions to such harmonization of the GST here in the NWT?

Mr. Todd.

Thank you, Mr. Speaker. It's difficult to determine the repercussions because we don't know what the actual outcome of the negotiations with the provincial and territorial jurisdictions are going to be. As I said, we are involved in this discussion, we are partners in the process and we're adding our two cents' worth. My understanding right now is that discussions were under way last week in the Maritime provinces. We're a long way, I think, from reaching an arrangement; although, Mr. Martin, the federal Finance Minister, is trying very hard to do so. So, yes we're intimately involved. Yes, we're keeping our eyes on the implication for the Territories. Again, I stress, we are somewhat different because we don't have a provincial or territorial sales tax at this time. Thank you.

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

Thank you, Mr. Speaker. My question is to the Minister of Finance. On Friday, I asked the Minister of Finance if he could provide information on the effect of his announced reductions to pay and benefits of employees. The Minister of Finance said he wasn't sure if he could provide that information on an individual basis. Could the Minister of Finance provide information on the effect of layoffs for a typical family in the various regions of the Northwest Territories, without naming names?

Minister of Finance, Mr. Todd.

If I could just get clarification of the question; was that lay-offs or was that the changes in the northern allowance? I wasn't quite sure what the question was. Thank you.

Mr. Barnabas, could you clarify your question, please?

Mr. Speaker, thank you. Does the Minister of Finance have the analysis available for various families in the Northwest Territories?

Mr. Todd.

Thank you, Mr. Speaker. I believe my honourable colleague is talking about the pay and benefits, the changes that we announced and the ones we're negotiating with the union right now. Yes, as we speak, we are putting that analysis together and I would be only too happy to share that with the honourable colleague in this House. Thank you.

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

Mr. Premier.

Thank you, Mr. Speaker. I see that Metis locals as well as First Nations councils at the community level will be fully involved with community empowerment discussions with the Department of MACA or the Department of Health and Social Services on wellness. It will be up to them to decide amongst themselves where they will need a regional function. If they so choose, then they will be funded accordingly. Thank You.

Supplementary, Mr. Krutko.

Mr. Morin.

Thank you, Mr. Speaker. I would like to assure the Member that the communities will be fully consulted on the community empowerment approaches that we are trying to achieve. The whole reason for trying to work with the communities is so the communities can finally start making the decisions of their day-to-day lives in their communities on the programs that are being administered in their communities. So it will be done in a very close working relationship with the communities. Thank you.

Thank you. Supplementary, Mr. Krutko.

Mr. Morin.

Thank you, Mr. Speaker. It's very clear to me that there will be community meetings in every Gwich'in or Inuvialuit community. The community will have meetings with the local leaders and that's what will drive the process. Thank you.

Item 6, oral questions. Mr. Henry.

Thank you, Mr. Speaker. My question is to the Minister of Finance. In his statement in the House last Thursday, the Minister indicated that non-unionized employees of the Government of the Northwest Territories will have their remuneration rolled back 6.5 per cent. Do these rollbacks include Hay Plan employees of Workers' Compensation and the Power Corporation?

Minister of Finance, Mr. Todd.

Mr. Speaker, I will take that question as notice so I can give my honourable colleague the correct answer. Thank you.

Thank you. The question has been taken as notice. Item 6, oral questions. Mr. Erasmus,

Thank you, Mr. Speaker. My question is for the Premier regarding community empowerment. I know that it may be a little early in the process to be asking this type of question; however, we also all know that Yellowknife is a very different community from the rest of the communities in the Western Arctic and the East, as well. The communities will be given the opportunity to take over various areas such as the Department of Public Works, Housing and those types of things. Since Yellowknife already maintains the roads, streetlights and all this type of stuff, what types of opportunities will Yellowknife have through the community empowerment process?

Mr. Premier.

Thank you, Mr. Speaker. Yellowknife is not totally on its own when you're talking about community empowerment, being the only unique community that we do have. We also have other tax-based municipalities that carry out similar functions as Yellowknife does. I guess the biggest advantage to those larger communities is the block funding arrangement that we've been talking about, and the ability to control their own programs in their own communities. I make it very clear that also includes those tax-based municipalities; they also have to work with the Metis and Dene people in those communities. Thank you.

Thank you. Supplementary, Mr. Erasmus.

Thank you, Mr. Speaker. The Premier made reference to taking over programs. When reference is made to programs, what types of programs does this mean?

Mr. Morin.

Thank you, Mr. Speaker. For example, in some of our tax-based municipalities, communities will have the ability to take over not only the municipal programs that they already are handling, but also education, health, social services; all programs that are delivered by this government. The basic thing that has to be accomplished is that those groups that are presently doing that function have to get together in the same room to discuss how we could do it more efficiently and better for the betterment of that community. Thank you.

Item 6, oral questions. Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, a serious matter has occurred which I must address in this House. Mr. Speaker, the Canadian Aviation Regulations Advisory Council last month published a list of 28 airports required to provide airport fire departments. Mr. Speaker, the largest and busiest, as well as the new capital of Nunavut and the only international airport in Nunavut, Iqaluit, was not on that list. Mr. Speaker, several of my constituents have called and have written to me on this serious oversight by the advisory council. My question is for the Minister of Transportation. Is the Minister aware of any plans to close down the Iqaluit Airport fire department, and will he commit to look into this serious matter and report back to the House? Thank you, Mr. Speaker.

That was two questions. Minister of Transportation, Mr. Antoine.

Mr. Speaker, as the Minister of Transportation, I'll reply to the honourable Member for Iqaluit. I am aware that Transport Canada has developed Canadian aviation regulations and that it is to come into force some time soon. There are three airports in the North - Yellowknife being one, Norman Wells and Iqaluit -- which presently have the fire emergency response at the airports. According to the advisory council, you're right that Iqaluit is on the list not to have this service provided any longer after these regulations come into force which, at the present time, are still pending. Yes, I will instruct my department to look into this matter and I'll report to the House accordingly. Thank you, Mr. Speaker.

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

Minister of Economic Development and Tourism, Mr. Kakfwi.

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

Mr. Speaker, in this House on Friday, I asked the Minister of Finance what portion of the new northern allowance was VTA travel and which portion was for the settlement allowance. That question was taken as notice. Mr. Speaker, my question today to the Minister of Finance is how will Revenue Canada know what portion of the northern allowance is the non-taxable VTA benefit and which portion is the taxable settlement allowance.

Minister of Finance, Mr. Todd.

Mr. Speaker, we have to negotiate with Revenue Canada on this important issue. As I said earlier, I would be prepared to answer that question once we have a full and comprehensive report from Revenue Canada and ourselves put together. Hopefully, either this week or later on in the next session, I'll be able to report to the Member exactly what it is. Thank you.

Thank you. Supplementary, Mr. Picco.

Mr. Speaker, I've had some time over the past weekend to review the new northern allowance amounts. My supplementary question to the Minister of Finance is how did he come up with these new northern allowance amounts? Where did they come from?

Mr. Todd.

The new northern allowance amounts come from the amalgamation of the housing allowance, settlement allowance and VTA reductions based upon a new formula based upon the criteria set and an escalating factor for the cost-of-living allowance across the Territories based upon the cost of living in the communities.

Thank you. Supplementary, Mr. Picco.

If that's the case, Mr. Speaker, then why is there a settlement allowance now for Yellowknife, which never had one before, which is now the northern allowance?

Mr. Todd.

This isn't a northern allowance for Yellowknife, Mr. Speaker. This is a northern component of the new northern cost-of-living allowance. Thank you.

Thank you. Final supplementary, Mr. Picco.

Isn't it true, then, Mr. Speaker, if that's the case, that now the northern allowance in places where there was no settlement allowance before, in some instances -and I will be prepared to table in this House these instances, tomorrow -- in actuality, people in Yellowknife, especially single individuals, will actually get a net benefit from this new northern allowance; whereas, in the East --and I will be prepared to table this tomorrow in the House -- have a deduction of up to 20 per cent in some cases because of the new northern allowance?

Mr. Todd.

Thank you, Mr. Speaker. The new northern allowance replaces the VTA, the housing allowance, et cetera, that we alluded to earlier. Thank you.

Item 6, oral questions. Mr. O'Brien.

Thank you, Mr. Speaker. My question is to the Minister of Health. Mr. Speaker, I refer to job posting number 01 1-0060TRW-005, consultant, addictions, East. Mr. Speaker, this competition closes on March 29, 1996. My question is why is this job advertised as a Yellowknife based position when clearly by description, the job should be positioned and physically located in the East. Thank you, Mr. Speaker.

The Minister of Health and Social Services, Mr. Ng.

Thank you, Mr. Speaker. Mr. Speaker, I'm not sure about the reasoning for why it's only posted in Yellowknife, if that's the case. I would assume that if there was a job advertised throughout the Northwest Territories that it would also be advertised in the Eastern papers, the Nunatsiaq News and the Kivalliq News. I'll check into that matter and get back to the honourable Member. Thank you.

Thank you. Supplementary, Mr. O'Brien.

Thank you, Mr. Speaker. Mr. Speaker, that's not the focus of my question. My question was why this job -- that in the description indicates that it's a consultant for addictions, East -physically located in Yellowknife as opposed to being located physically in the Eastern Arctic. Thank you, Mr. Speaker.

Mr. Ng.

Thank you, Mr. Speaker. Mr. Speaker, I'm not entirely sure of the reasoning for that. It's probably because the office space and position is currently located within the headquarters level to administer services to the Eastern communities. Thank you.

Thank you. Supplementary, Mr. O'Brien.

Thank you, Mr. Speaker. Mr. Speaker, would the Minister review this issue to see if there's a possibility of the position being physically located in the Eastern Arctic? Thank you, Mr. Speaker.

Mr. Ng.

Thank you, Mr. Speaker. Mr. Speaker, yes, I would be willing to take a look at it. Of course, it would depend on the most cost-effective way of delivering the service to the residents. The decision would be based a lot on that. Thank you.

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

The Minister of Education, Culture and Employment, Mr. Dent.

Thank you. Item 6, oral questions. Item 7, written questions. Item 8, returns to written questions. Item 9, replies to opening address. Item 10, petitions. Mr. Ootes.

Thank you. 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. Item 14, notices of motion. Item 15, notices of motions for first reading of bills. Mr. Erasmus.