Mr. Chairman, Mr. Lovely will respond.

Mr. Lovely.

Thank you, Mr. Chairman. We don't think that privatization is going to happen overnight, obviously. We are probably talking about 12 to 18 months before we have it finalized, if we are able to do it. The savings that we expect to achieve through these resupply contracts are savings that will apply either to the companies that take over the petroleum products operation or to the government, if they retain the responsibility. So we don't see the requirement to balance the budget as being an impediment to proceeding with privatization because the ability to balance the budget is there, whether it is handled by the private sector or by the government, just because of the new deals we have been able to negotiate. Thank you.

Thank you, Mr. Minister. Thank you, Mr. Deputy Minister. Mr. Miltenberger.

Thank you. Mr. Minister.

Mr. Lovely.

Thank you, Mr. Chairman. The issue of price regulation and control is one that needs to be looked at in a

detail before we proceed on this We don't want to be in a position where we see, because of a monopoly situation, that prices can fluctuate so dramatically that they have a very negative impact on the lifestyle of northerners. That is one of the biggest issues we want to explore before we come up with a privatization plan. We need to consider how we maintain a reasonable balance of prices across the Northwest Territories, even in a deregulated sector.

Right now, the price structure that is in place allows a certain degree of fairness across the Territories. Not all the prices are the same, but we aren't in a situation where some of the communities in the higher transportation cost areas are paying costs for home heating fuel and for gasoline that are way beyond their means to purchase. We don't want that situation to disappear with privatization. So it will be one of the major elements of any proposal we come forward with.

We are reviewing Public Works and Services, directorate, operations and maintenance, I have two people who want to speak. Mr. Ootes and then Mr. Erasmus. Mr. Ootes.

Thank you. Mr. Minister.

Mr. Chairman, there is some privatization that has been occurring over the past few years and that has to do with the garages that we have privatized in the Baffin, the Keewatin and this year in Inuvik. As I stated earlier, the privatization plans that are being drafted up at the officials level have yet to be reviewed by Cabinet. I have yet to review them. I stated earlier that I would share those with the Standing Committee on Infrastructure and the Standing Committee on Government Operations.

Thank you. Mr. Ootes.

Thank you. Mr. Minister.

Mr. Chairman, the privatization of the garages is an initiative that was started by the previous government about two years ago. It is in its final stages with the Inuvik garage being privatized this year. It is an ongoing initiative from the previous Assembly. I believe that one will go ahead. It is separate from these new initiatives.

Mr. Ootes.

Thank you, Mr. Ootes. Mr. Minister.

Mr. Chairman, firstly, I do recognize that in areas where we are privatizing or laying off people, there are people involved who are displaced and who need to find employment. Where we lay them off has usually been industry where they are specialized. With that, I would encourage them to go into private business and create their own employment. I would ask the deputy minister to make a comment about safeguards or about the cautionary measures the Member asked about.

Thank you. Mr. Lovely.

Thank you, Mr. Chairman. This issue is one that has come up when we have talked about some of the larger privatization initiatives that are being considered now, such as systems and computer services, for example. Some consideration was given to actually proceeding with a negotiated contract with the existing staff. However, we rejected that and decided that, when we do move in this direction, we would put it out to public tender so those companies that are starting to get a foothold in the business will have the same opportunity to take on the job as any staff who might form their own companies or who might go out and work for them. That is another opportunity that many of the staff will have in some of these larger privatizations.

When that process occurs, the documents that are provided to the public to enable them to submit bids contain enough information to give them an overview of the service to be performed and the environment within which they will do it. While there may be a slight advantage to some of the staff who currently work there, it wouldn't be enough of an advantage to win the bid unless they were seriously competitive. We think there are enough safeguards built in to allow for a reasonably competitive process.

Thank you. Directorate, operations and maintenance, Mr. Erasmus.

Thank you, Mr. Chairman. My two questions that I had were almost exactly the same as Mr. Ootes. I was concerned about unfair advantages of former employees bidding on contracts and I still do hold reservations where there are huge profits to be made; for example, in the petroleum products area.

My other question had been in relation to whether there had been any privatization of petroleum products at all. That has also been answered. Thank you.