Thank you, Mr. Chairman. Mr. Chairman, Municipal and Community Affairs is one area that I'm very interested in, as it relates to three of my communities. One area that I would like to speak briefly on is community empowerment and block funding. I think the two go hand in hand.

Mr. Chairman, I have mixed feelings about this area, there are pros and cons. Mr. Chairman, ever since the day Pelly Bay became a settlement and then became an incorporated hamlet, we have had an elected membership in the community to deal with the community problems, look after municipal services, at cetera. People have begun to talk about the decisions that are made, are made from a distance. People talk about having decisions made at the regional office in Cambridge Bay. People talk about having decisions made in headquarters in Yellowknife. I think the community empowerment will allow the communities, such as Pelly Bay or any other community in the NWT, to decide for themselves what is right for the community and what infrastructure should be built. I think block funding will allow the community ... The community talks about a funding formula coming from this government, but there isn't enough input from the community. The decision about funding is made from the region or regions, or from headquarters. I think block funding will allow the communities to make their own priorities in the area of funding.

I'm not seeking an answer at this point in time, but my question is if, in fact, a community chose to go to block funding from the government, how would the funding be given to the community? Would it be monthly, quarterly or does the community have to produce a financial statement before that community is given block funding? Would it be a portion of block funding given to a community for a year? I don't know. Would the community be given the ability to get into term financing? By that, I mean, would the community be able to put money in the bank. If the community is in fact given quarterly financing, then the community would be able to put money in the bank and retain the money made from the interest. Will the community be able to priorize their own programs? I think this block funding would allow the community to priorize their own programs.

What happens at the end of the year, as has happened many times in the past, is communities in the Territories have gotten into a bad financial situation and have ended up with a deficit. In many cases, they have had to bring in a person from outside to do a recovery program. By that, I mean a manager from outside of the community has to go to the community and try and help the community out of the financial situation. In many cases it has been very successful, Mr. Chairman. In fact, if the community is in a bad financial situation, will the users of the municipal services -- water delivery, garbage, road clearing, at cetera - will the community suffer because perhaps the community has gotten into mismanagement?

Mr. Chairman, the hamlet of Pelly Bay is now getting into taking over the housing association. Before the hamlet council of Pelly Bay was able to take over the housing association, I was involved in the public meetings, I was involved in the council meetings and so on. The hamlet council of Pelly Bay has initiated, prior to taking over the operations of the housing association, a business plan and have gone over this many times in order to ensure that once the hamlet council takes over the operation and administration of the housing association, they wanted to be sure they would start on the right foot. I think that is one area we should look at.

A community has to be ready, a community has to be willing. If, in fact, a community chose to go into the empowerment block funding, will that community retain the services of the regional municipal administrator; a person who comes from the MACA regional office to a community to do a monitoring program among other things such as checking out the books and accounts, at cetera?

Mr. Chairman, during the life of the 12th Assembly when the government was talking about the community transfer, we were given the assurance of that government that the community will have to come out first in order to take over the programs and services and what have you. There has to be training in place before a community is able to take over many of the programs. I believe that community empowerment will do the same thing.

Mr. Chairman, we were given the assurance that the amount of money that was given to a community before the community transfer initiative takes place was not going to be less than what it was prior to that time. We were also given the assurance that a community taking over the program would be phased in. The community has to be ready.

Mr. Chairman, I am in favour of community empowerment to a degree, I am in favour of block funding to a degree, but many questions have to be answered; one of them being is the government downloading because we are in a very serious cashflow situation within the government. I believe that many of my communities, especially Pelly Bay, are very interested in taking over the programs and services -community empowerment and block funding -- but they are also concerned about the ability of that community to take over the financial management process.

We have to make sure that any community that wishes to go to block funding will have to have a very capable management staff. The community will have to have a very capable, very qualified, very understanding member of council. The community has to give the residents of that community the assurance that the community will not suffer from the lack of essential municipal services because the municipal council happens to be in a bad financial situation. Will the government monitor, very closely, the process that is taking place, even after the community has taken community empowerment, block funding, at cetera? Will the resources from MACA be at the regional office, even when the community is taking over all the programs that the system allows that community to take over. Will the resources from the regional office or headquarters be there to monitor what is going on in that community? Thank you, Mr. Chairman.