Thank you. Oral questions. Supplementary, Mr. Roland.

Mr. Todd

It is never too late to make decisions. What is important is that we make them. We have made the decision based upon the advice that we have been given by the honourable colleague and the uproar which occurred in his constituency with respect to expanding the liquor hours in Inuvik, which appeared to some to be a contradiction to the fact that we closed down the drug and alcohol centre. I want to assure you that was not the case. We have taken steps, again, as we speak, this afternoon, to sit down with the contractor to make sure we meet our obligations to him under the contract and at the same time try to respond to the concerns with respect to his constituency, and in particular my honourable colleague, who would like to see reduced hours on the sale of liquor. Thank you.

Oral questions. Supplementary, Mr. Roland.

Mr. Todd.

I always take the concerns of Inuvik and my colleague in particular seriously. I never take them any other way. I believe we are addressing the question as we speak. Hopefully we will have it resolved by this evening and he will be able to say to his constituency I have done what you have asked me to do by persuading the Finance Minister in making the appropriate adjustments with the hours of opening of the Inuvik liquor store. Thank you.

Thank you. Oral questions. Mr. Henry.

The Minister of Finance, Mr. Todd.

Mr. Speaker, as they say in politics, seeing is believing. I did take the time to spend public money to travel to Africa three years ago and take a look at a diamond sorting facility in Botswana in the community of Gabarone. There was a diamond sorting facility there that employed approximately 500 people. I have been told recently by the industry that this was a political decision because these people control the diamonds. I say well then it is a political decision in the north, because I like to think that we control the diamonds. Thank you.

Oral questions. Supplementary, Mr. Henry.

Thank you, Mr. Speaker. I also understand that some countries who have diamond production, particularly South Africa, currently produce around 400,000 carats a year outside of the De Beers production. I also understand they have to offer a percentage of those diamonds for sale or tender before they are exported. Has the Minister considered this as an avenue of generating revenue for the Northwest Territories? Thank you, Mr. Speaker.

Mr. Todd.

I think you have to put it in context, Mr. Speaker. Up until recently, the De Beers group of companies controlled approximately 80 percent of the world's diamonds. As you know, there was a bit of a blip the last year or so with respect to the Russian diamonds. In my discussions with De Beers recently in London, England, Sir Oppenheimer indicated to me they were going to make an arrangement with the Russians. I believe they have done that.

It is important to understand that where the companies sell the diamonds really is a reflection of the kinds of value added or tax concessions that you can make. In Botswana, I was speaking to Mr. Gallatti, who is the general manager of Depswana, which is a joint venture, who is also the former Finance Minister of the Government of Botswana. He indicated to me that one of the ways in which he took his royalty and tax regime was through what he called diamonds in kind. In other words, he took about 20 percent production. Based on that, he created a subsidiary industry by creating some value added components to the diamond industry.

I think it would be fair to say the industry was not enamoured with his position, but that is the position he took. That did create a variety of other jobs outside of the sorting of diamonds for marketing and valuation purposes. Does that answer the question? Thank you, Mr. Speaker.

Oral questions. Supplementary, Mr. Henry.

Mr. Speaker, that was extremely good information, but what I am looking for is has the Minister considered approaching the diamond producers, encouraging them to offer some diamonds for sale in the NWT? I believe there are excellent opportunities for travel to the territories, at least in discussions I had with buyers in Toronto. They say they would be more than happy to spend two hours on a plane to come to the NWT, as opposed to eight hours going to Antwerp. They suggested if there was a good and constant supply, they would come here to buy their diamonds. Thank you, Mr. Speaker.

Mr. Todd.

Thank you, Mr. Speaker. Frankly, the energies of this government, in particular Mr. Kakfwi and myself, has been to try to influence the new public policy that is going to be put into place with respect to how the industry is going to operate through the mining regulations that have currently been developed.

Our energies have primarily been focused on getting our political allies in Ottawa to understand the need for diamond evaluation and sorting to be done in the Northwest Territories. It really has not gone beyond that with respect to any energies we put into it with the industry.

The energy at this level has been to try to get another point of view across to the political masses in Ottawa who will be developing the mining regulations which will determine the rules of engagement by which the industry is going to operate. That has really been where our energy has been put at this time. I have not had the opportunity to discuss the matter with Mr. Kakfwi or the industry. Thank you.

Oral questions. Final Supplementary, Mr. Henry.

Thank you, Mr. Speaker. Mr. Speaker, if it could be demonstrated by the industry that indeed it did cost additional funds on their part to offer diamonds for sale in the Northwest Territories, would the Minister consider subsidizing the potential for offering diamonds for sale in the Northwest Territories? Thank you, Mr. Speaker.

That is a hypothetical question, when you are asking a Minister to guess. Perhaps you might want to rephrase your question, Mr. Henry.

Thank you. I believe the Minister heard the question. Will he consider providing funds if it could be demonstrated that there was a long term benefit to the Northwest Territories by providing incentives? Thank you, Mr. Speaker.