Thank you, Madam Chairman. Does that make sense? Madam Chair. Sorry.

I am pleased to have an opportunity to present to Members of this House the budget of the Department of Energy, Mines and Petroleum Resources. This department's mandate is to manage the development and use of non-renewable and energy resources for the maximum social and economic benefit of the people in the Northwest Territories.

With the consolidation of Energy, Mines and Petroleum Resources with the departments of Renewable Resources and Economic Development and Tourism, responsibilities for energy and non-renewable resources will be delivered through a much larger organization. This should result in increased focus and effectiveness in bringing new private sector investment and increased economic benefits to the North through non-renewable resource development.

The proposed 1996-97 budget for the Department of Energy, Mines and Petroleum Resources is $5.242 million, which includes a capital budget of $25,000 and 27.9 person years. The proposed budget reflects a reduction of $69,000, or about eight per cent, from the 1995-96 budget. Overall, the budget for the department is very small and represents about one-half of one per cent of this government's total budget.

Madam Chair, the importance of the energy and minerals sectors to our economic future cannot be overestimated.

In round figures, the Government of the Northwest Territories alone spends about $100 million per year on energy, mainly in the form of refined petroleum products. Unnecessary energy consumption drains our economy and our finances, not to mention its negative impact on the environment.

Mineral exploration expenditures in the NWT continue to lead all other jurisdictions in Canada by a substantial margin; $190 million was spent in 1995, and the industry is expected to spend $220 million on mineral exploration in the NWT in 1996.

These investments are very important to our future. As the Minister of Finance stated in his budget address last week, it is clear from any objective analysis that the responsible development of our mineral resources represents the single most important opportunity that we have for sustainable economic growth.

Non-renewable resources provide the greatest opportunities to create new jobs and increased business opportunities, a stronger small-business sector, a larger economic base, increased own-source revenues and increased economic self-sufficiency.

I should also emphasize that, by taking advantage of these opportunities, we do not have to sacrifice the environment, our cultures or traditional lifestyles. Through responsible resource development, using modern technologies, effective regulatory mechanisms and impact and benefit agreements with communities and aboriginal organizations, mineral development will provide a significant net benefit to the NWT over the long term.

We are fortunate to have a wide distribution of mineral activity, both in terms of location and commodity. Although attention has centred on diamonds in the Slave Geological Province, there are numerous gold and base metals exploration plays and advanced priorities in other regions such as the Kitikmeot, Keewatin and Baffin.

Experience has clearly demonstrated that the single most cost-effective incentive that government can provide to encourage mineral exploration, particularly in remote areas, is through the development of geoscience information and geological maps. The mineral exploration industry depends on geological maps as a basic exploration tool. Many of the key mineral discoveries in the North and across Canada can be traced to geosciences and mapping programs.

As I mentioned, more exploration dollars are spent in the Northwest Territories than any other jurisdiction in Canada, but at the standard scale of one to 50,000, less than five per cent of our land has been mapped. This is less than one-tenth the coverage in southern Canada. It is therefore very important that we make an investment in the continued development of an information base about our geological resources.

Under the proposed budget, the department will carry out four mapping projects in 1996. Our mapping programs are planned in close consultation with the industry and with other agencies to ensure that they provide maximum benefit to future exploration.

Additional funding will be allocated to prospectors' assistance programs, which include grubstakes grants and prospector training and for the community minerals program. Under this program, professional knowledge and expertise is made available to residents and organizations at the community level, and communications with the industry are facilitated so that our residents can better understand and take advantage of mineral activity in their regions.

The department will also be working closely with the industry and the Department of Education, Culture and Employment to establish workforce development initiatives which will help to maximize northern and aboriginal employment in the oil and gas and mineral sectors.

Madam Chair, if we are to bring new investment dollars to the North to create new, sustainable jobs and business opportunities, then we must work together to continuously improve our investment climate. Industry needs a predictable and efficient regulatory process; it needs to have access to land to explore and it needs a fair and competitive fiscal regime.

The Minister of Finance, in his Budget Address, spoke to creative partnerships, where individuals, businesses, aboriginal organizations and all levels of government pool their resources to stimulate economic growth and job creation. An excellent example of this approach is reflected in the NWT community mobilization partnership and job development strategy. The department is one of the cofounders of this society, along with DIAND, BHP and several northern businesses.

Oil and gas exploration activity has resumed in the Sahtu region and around the community of Fort Liard, following a 25-year moratorium. This activity has provided an important new infusion of employment and business activities into a number of our communities.

The department will be working closely with other communities in the Mackenzie Valley where land claims have not yet been settled, in order to build arrangements under which oil and gas exploration rights can be issued, and thereby create additional economic activities for our residents.

I am pleased to say that a complaint raised by the department is likely to result in a significant reduction in the tariff for the Norman Wells pipeline. This will enhance the economic value of oil in the Sahtu region and should thereby result in increased industry activity over the long term.

Although exploration activity in the Mackenzie-Delta and Beaufort Sea is unlikely to occur in the foreseeable future, there is evidence of increasing interest in the development and production of existing oil reserves.

The department will be closely monitoring these developments and will be working with the industry and regulatory agencies to facilitate the establishment of an effective and efficient review and approval process in advance of actual project applications.

Madam Chair, I am very interested in energy management and conservation. As this government faces a continuing need to reduce wasteful expenditures, increased attention must be devoted to energy awareness and technical advisory services to energy users.

The department will be stepping up its efforts to promote energy conservation and the utilization of alternative energy sources in our communities. The department will also be working with the Department of Public Works and Services to consolidate the delivery of energy management programs.

A new position of community energy advisor was recently created in order to provide direct assistance to communities in their efforts to reduce energy expenditures and develop alternative energy options using sources such as wind, solar and biomass. Alternative energy sources have the potential of not only reducing expenditures but of also creating new employment and business opportunities and increased self-reliance at the community level.

Madam Chair, people of the North do not have control over their resources. Therefore, I am pleased to hear that the Minister of the Department of Indian and Northern Affairs has recently confirmed that he regards devolution of remaining provincial-type programs and jurisdictions as a priority, and he has reaffirmed his commitment to proceeding with this initiative. The federal government has also indicated, in the February Throne Speech, that it is prepared to withdraw from its functions in such areas as mining. This is consistent with statements that the Prime Minister made at the opening of this Legislative Assembly building.

As Members of this Legislature know, the Premier has the lead responsibility for the northern accord. The department will have an important role to play in supporting the Premier in the negotiation of this agreement. The additional responsibilities that should be transferred to this government, including land and water, environment, oil and gas and minerals, would be the primary responsibility of the new consolidated department.

The department will be devoting substantial time and resources during 1996-97 to planning and implementing the consolidation with Renewable Resources and Economic Development and Tourism. Consolidation will provide opportunities for more effective delivery of support to our regions and communities in the critical areas of energy and non-renewable resource development.

As a final note, I believe we should be very encouraged by the fact that, at a time when we face a reduced level of government spending, the private sector is increasing its investment in the long-term economic future of the North. We must work together to encourage continued investment and to maximize the level of long-term benefits that it brings to the residents. Through responsible resource development managed under a new consolidated department, we will be able to significantly improve our self-reliance over the long term. Thank you.