Thank you, Mr. Speaker. This is in response to a question asked by Mr. Kevin O'Brien on May 2nd.
Mr. Speaker, in reply to the Member's questions I will note that today I attended the annual general meeting of the Arctic Co-operatives Ltd. and the Co-op Business Development Corporation here in Yellowknife.
The Department of Economic Development and Tourism continues to be supportive of the co-ops' efforts to initiate unions in the Northwest Territories. The Member is correct that some $400,000 in funds committed under the Canada/NWT economic development agreement were approved in April 1995, but the availability of these funds was contingent on Arctic co-operatives raising a required capital pool of $7 million; a sum which their proposal indicated was required for start-up purposes. Throughout 1995 and the early part of this year, Arctic Co-operatives Ltd. was only partially successful in raising the required capital pool that they need to establish the credit union. To this date, we know they have only been partially successful.
The funds committed in April last year under the economic development agreement were originally approved for a three month period. In an effort to give more time to the co-ops to raise funds for their capital pool, the commitment within the economic development agreement was extended on two occasions last year. By March 1, 1996, the co-ops were still not successful in raising their required capital pool and, as a consequence, the EDA funds were redeployed since they would have otherwise lapsed.
This department, however, remains committed to the credit union initiative and has identified other sources of funding to assist the credit union initiative. However, Arctic Cooperatives has some work to do yet to raise the required capital pool. Once I have had an opportunity to meet with the Arctic Co-operatives executive and learn about the status of their efforts, and once I have gained more information about their efforts to establish their capital pool, I will be in a better position to respond to their requirements. Thank you.