Mr. Arlooktoo.

(Translation) The question the Member is posing regarding article 24 is one of the most important clauses in the Nunavut agreement. I would like to inform the Member that we are talking about article 24, which is being recognized by this government. We will be following all our agreements and honouring all our contracts. When Nunavut Caucus is meeting after the session, I will be informing them further and update them on information regarding this matter.

Thank you. Item 7, oral questions. Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, my question is for the Minister of Finance. We have heard over the past few months from this government that one of the main reasons why our transfers from the federal government have decreased is because of the perversity factor built into our formula financing agreement. This means that when southern jurisdictions reduce their spending we, in turn, have a reduction in our grant. Will the Minister be approaching the federal government to somehow try and renegotiate said formula, because of our growing accumulated deficit? Thank you, Mr. Speaker.

Minister of Finance, Mr. Todd.

Thank you, Mr. Speaker. Yes.

Supplementary, Mr. Picco.

Mr. Speaker, it can never be said that Mr. Todd is a man of few words. Mr. Speaker, have the Minister and his officials reviewed the implications of major reductions in spending by southern jurisdictions, like Quebec, that will impact on our federal cash transfers?

Mr. Todd.

Yes, Mr. Speaker, we're well aware of the implications of the deficit reduction strategy that was put in place in Ontario and the impact it had on our revenues. We're also aware that depending on what happens with the current deficit reduction strategy by Mr. Bouchard in Quebec -- who has a $3 billion deficit -- if he does take the same dramatic steps that his counterpart in Ontario took, it could have and will have a serious impact on our revenue formula agreement. However, I have communicated with Mr. Martin, the Minister of Finance for the country, and it's one of the issues that I will be dealing with him on when I meet with him later this month. Thank you, Mr. Speaker.

Thank you. Supplementary, Mr. Picco.

Mr. Speaker, the GNWT raises roughly 11 per cent of the money that we expend. Will the Minister also take our case of continued transfer reductions to other jurisdictions to build support for our unique position, because of our low revenue-generating ability at the present time?

Mr. Todd.

Thank you, Mr. Speaker. I haven't myself initiated any discussions with other provincial jurisdictions, but I know the Premier has spoken with the Honourable Ralph Klein and the Honourable Roy Romanow to ensure that we have some provincial leaders who are sympathetic to our position; not just in our deficit strategy, but also on other issues related to this government like the accord, like investment, at cetera. So it is our intention in the coming months to work very aggressively, through partnerships with our provincial colleagues, to try to seek their support in some of the initiatives that we're taking. Thank you, Mr. Speaker.

Thank you. Item 7, oral questions. Mr. Miltenberger.

Minister of Public Works and Services, Mr. Arlooktoo.

Mr. Speaker, the Department of Public Works, like all government departments, is participating in delayering of management positions and efficiency movement. At the present time, here at headquarters, we have eliminated two ADM positions. We've reduced the number of directors from eight to five, and there are further reductions proposed.

Supplementary, Mr. Miltenberger,

Mr. Arlooktoo.

Mr. Speaker, the restructuring is department wide. We are beginning with positions at headquarters, and down the road with consultation with the rest of Cabinet, there will be further changes in regional offices also.

Thank you. Supplementary, Mr.

Miltenberger.