Thank you, Mr. Speaker. I can't see him but I'm assured that Dave McCann is in the gallery. I'd like to recognize Dave McCann, Mr. Speaker.

--- Applause

Welcome to the Assembly. Item 5, recognition of visitors in the gallery. Mr. Todd.

Thank you, Mr. Speaker. I would like to recognize some constituents of mine: Mr. Bert Dean and his son, Cody, who are in the gallery today. Thank you.

--- Applause

Welcome to the Assembly. Item 5, recognition of visitors in the gallery. Item 6, oral questions. Mr. O'Brien.

Thank you, Mr. Speaker. Mr. Speaker, a statement made earlier this week by the Minister of Finance outlined significant changes to the salary and benefits package of the excluded GNWT employees. Amongst these changes was a 6.25 per cent cut in pay, the elimination of the current settlement allowance and a new northern allowance. In response to this, the Union of Northern Workers applied to act as the bargaining agent for these excluded employees. It is my understanding that under the Canada Labour Code, such a move freezes terms of employment until the application can be dealt with. Can the Minister identify when this application will be reviewed? Thank you.

Thank you, Mr. Speaker. I want to, first of all, correct my honourable colleague: it does not freeze the terms of the conditions of the wages and benefits for the non-unionized employees; and, secondly, we are taking an appropriate and expeditious course of action to determine whether or not these people would become part of the bargaining unit. Thank you.

Item 6, oral question. Mr. Evaloarjuk.

(Translation) Thank you, Mr. Speaker. I have a question directed to the Minister of Health and Social Services. In Pond Inlet, there is a society called the Aulajut Society. It is a newly-formed organization that has requested funding from the department. To date, they have not received a response to their request. When can a response be expected from the Minister's department for the operation expenses of the Aulajut Society? Thank you, Mr. Speaker.

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

Thank you, Mr. Speaker. Mr. Speaker, I will have to find out what the organization is involved in and what kind of proposal went forward to the department. At this time, I'm unaware of the proposal but I will check with my department to see what is before us and deal with the

matter as quickly as possible and get back to the Member. Thank you.

Item 6, oral questions. Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, I've already tabled some examples of the unfairness of the new allowance. Yesterday I asked the Minister how these northern allowances were calculated. Mr. Speaker, his answer was based on criteria set, escalator and the cost of living allowance. That was good to hear. However, Mr. Speaker, if that is the case, then what cost-of-living figures did the department use to base their decision on? Thank you, Mr. Speaker.

The Minister of Finance, Mr. Todd.

Thank you, Mr. Speaker. This gives me an opportunity to clear up my response yesterday to the honourable Member. The northern allowance combines the resources of the former benefits, the vacation travel and the settlement allowance. A base rate of $1,760 was used in Yellowknife and a cost of living index was used to set the remaining rates for all employees in all the other northern communities. I'm prepared to provide my colleague with the details of the index either by tabling it in this House or providing them to him by letter form. Thank you.

Thank you. Supplementary, Mr. Picco.

Thank you, Mr. Speaker. I would really appreciate seeing that and look forward to it. Mr. Speaker, it would seem that this proposal was not well thought out. Will the Minister review the amounts based on the diversity factor of individual communities and, where there is inequity, change it either up or down?

Mr. Todd.

Thank you, Mr. Speaker. The proposal was well thought out. We are -- and have indicated this many times in this House -- trying to deal with this thing in a caring and compassionate way. We recognize, and I certainly recognize after spending 30 years in Arctic communities, what the cost of living is to live in Pond Inlet, I've lived there; what the cost of living is to live in Cambridge Bay, I've lived there; and what the cost of living is to live in Rankin Inlet, I've lived there. This government is trying its best to, one, meet a deficit elimination strategy that this House is supposed to have supported; and, two, to ensure that we keep as many jobs as possible for the people who we all represent.

Every effort is being made by this Department of Finance in the overall deficit elimination strategy to ensure we meet these objectives. Thank you, Mr. Speaker.

Thank you. Supplementary, Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, I think we all realize the financial situation in the Northwest Territories. Mr. Speaker, it would seem the further east, west, north or south of Yellowknife an employee lives, the more adversely they will be affected. Mr. Speaker, will the Minister keep this in mind when bargaining with our NWTTA and other groups next month, for fairness and equity?

Mr. Todd.

Thank you, Mr. Speaker. I am going to say once and for all, we are endeavouring to be fair and to be equitable. But nothing's equitable when you're trying to deal with a $150 million deficit. What's equitable if we end up with a $300 million deficit in 1999 as we divide the Territories? Everybody has to make concessions in this deficit elimination strategy. Yes, when we sit down with the union, as we will on April 9th, we will make a sincere effort to be equitable and fair to everybody across the Territories.

Thank you. Final supplementary, Mr. Picco.