Thank you, Mr. Chairman. The accumulated deficit in the fund has really resulted from increases that the revolving fund has faced over the last few years, which haven't been reflected in cost increases to the public. So the losses in the fund have increased as we have maintained the prices at the former levels. We haven't had a price increase since 1992 in the 45 communities where the government provides the product. We recognize that we need to get the deficit under control and stabilize the fund. Two things have

happened recently that will allow us to balance the budget over the next few years: The first is an award in April 1996 for the Western Arctic fuel resupply, which should save us $2.8 million over the next three years. The second was the award of the Eastern Arctic fuel resupply which is expected to save $1.5 million over the same period. We are currently negotiating the Iqaluit fuel resupply and we are expecting to see some savings in that area as well, which should allow us to balance this budget in fairly short order. That is one of our priorities before we move on the privatization.