Canon James Muckpah would you lead us in prayer.

You, the one and only blessed Lord God, the creator of all good things. We pray that you guide the Legislators of Canada, the Northwest Territories and in Yellowknife for the benefit of all people and guide them Oh Lord as you please. For your glory, bless the people and Christians everywhere. We pray for the good of our people of the Northwest Territories. In Jesus' and our Saviour's name. Amen.

May the Father, the Son and the Holy Spirit be with you now and forever more. Amen.

Thank you, Canon Muckpah. Mr. Clerk, would you ascertain if Her Honour, the Commissioner of the Northwest Territories, is prepared to enter the Chamber and give the opening address.

--O Canada

Mr. Speaker, Members of the Legislative Assembly. It is my pleasure today to open the Fifth Session of the 13th Assembly of the Northwest Territories. I am honoured to serve as the Commissioner of the Northwest Territories during this time of historic change, and equally honoured to work with the Members of this Assembly.

Building on the success of those who came before you, as a Legislative Assembly you have accomplished a great deal in two years. You started by stating your vision for the north for two financially secure and viable new territories, with more control over their economic future and with a healthier population and better quality of life. In establishing that vision, you have focused a bright light on Canada's north; light that will ensure a safe, healthy and prosperous future for our children.

To help fulfil your vision, during the Fifth Session you will be considering a number of investments aimed at improving the opportunities and the lives of northerners. First, you will be investing in the economy, because creating economic opportunities and helping people lead productive lives is the key to affecting our overall quality of life. Second, you will be investing in quality care and good health and in building healthier and safer communities for our citizens because these are the things that serve as the true fabric to our society. Third, you will be investing in the development of all Northerners building their skills and knowledge to deal with the challenges of the new millennium.

As part of that, you will be investing in children and investing in creating opportunities for youth, for they are truly the future of the north and the future of Canada.

Finally, you will be investing in a dream of two successful and prosperous territories that are a viable and self-sufficient part of the Canadian landscape.

Responsibility and Accountability

To complement the vision you set for the north, 18 months ago, Members of this Assembly agreed to an Agenda for Change -- a series of strategies aimed at increasing decision-making at the community level, improving government efficiency and addressing the health, education, human resources and economic development priorities. In setting out this agenda, you have set a standard for responsible and effective government in the north. The steps you have taken to date in fulfilling it have proven you are accountable.

There is no better way to be accountable to your citizens than to show strong fiscal management responsibility. You have balanced the territorial budget and making more efficient use of limited dollars to ensure you receive the highest return on your investment. Managing the deficit, securing the financial future of the north, and in general, becoming responsible have been key goals of this Assembly.

With that accomplished, you can now focus your efforts on three related priorities within your agenda: 1) improving social conditions; 2) improving economic conditions; and 3) working towards the successful creation of two new territories. Strong fiscal management and accountable government are the corner stones for a stable political environment. A stable political environment fuels a healthy economy. Social conditions are related to economic conditions, or more specifically, people's ability to work and to be self-sufficient. Therefore, by affecting change in one area, you can influence and make a difference in all of the others.

Investing in Our Economy

With a balanced budget in place, a strong next step for affecting change is to continue and enhance efforts to secure the financial future of the north. A strong economy leads to higher employment that is important for northerners because it enhances self-reliance and productive involvement. At present, there are not enough jobs for all Northerners who want them. As well, the skills of the northern workforce do not yet match those required by employers. As Members of the Legislative Assembly, you have worked to address this situation in a number of ways.

You have built an economic framework which identifies the best places for government to invest and participate in the economy. You have developed a $32 million Northern Employment Strategy which supports the development of community-based business. You have established programs to assist youth in transition between school and work and you have initiated regulatory reform to streamline processes and simplify the environment within which businesses are created and operated in the Northwest Territories.

The government has also established a Labour Force Development Plan and related training to prepare northerners for opportunities that exist now, and that will exist in the future. This Legislative Assembly has also made a strong commitment to creating a public service which is representative of the communities it serves. Building on that commitment, we must continue to participate in initiatives such as the Inuit Employment Plan, the Nunavut Unified Human Resources Development Strategy, developing training plans for the new western government and affirmative action initiatives.

The north is blessed with an abundance of natural resources. Our wildlife, fish and forest have provided sustenance for our people in the past. As we move forward, these things can now play an important role in wage employment. Our renewable resources offer export opportunities and jobs can be created by processing and adding value to these resources. The natural beauty of our land also offers potential for further development of tourism. We must continue to encourage and support northern artisans and crafts people in the development and export of their work.

On the resource side, the north also harbours vast oil and gas, gold, diamonds, zinc and other mineral reserves. Development of these resources offers enormous business and employment opportunities. Almost one billion dollars will be invested in the BHP Diamond Mine, which will begin production within the next year. Other diamond development may soon follow as there are promising finds in the Keewatin and Kitikmeot regions. There is also renewed activity in oil and gas exploration in the Liard and Mackenzie Valleys.

Overall, we must work to bridge the gap between the new sustainable jobs that these development will create and the people who need them the most. We must ensure that northerners and northern businesses can take advantage of every opportunity. We must be prepared to invest in training, employment support, business start-up and expansion programs and in increasing community capacity. The north is really a bright spot in the future of Canada. Under the leadership of the Assembly, it is within our reach to harvest the wealth of resources on the land, under the ground and in the sea. To do so, you must continue to make very effort toward creating a strong investment environment and expand opportunities for the people of the north.

Investing in Our Communities and Our Children

The best measure for our social and economic success is in the quality of life and opportunities for children and youth, and how well we build the foundation for the future. We must remember that it is our children and our youth who will be living in our communities far into the future. For their sake, it is essential that we invest in the education, health and safety of our communities so that they can develop to their greatest potential, and so they can have the future you have set forth in your vision. Playing an active role in territorial and national actions such as the Healthy Children's Initiative, the development of a National Children's Agenda, the National Child Benefit Program and health and social reform are a good start.

As part of your Agenda for Change, you have made a commitment to move more decision-making powers to communities. This is part of a fundamental belief that the people most directly affected by, and closest to the need, are in the best position to make the best decisions. It means much more responsibility for community leaders, but it also means making sure the decisions reflect the needs of the community, and that there is flexibility to ensure that services and funds are being invested where they are most needed. To be successful, it is vital the Legislative Assembly and the government work closely with communities to identify and develop the skills communities, organizations, businesses and individuals need to manage and deliver the program at the local level.

We also need to strengthen our relationships with our aboriginal communities and organizations. Thousands of years ago, aboriginal people began building Canada's first communities, and today, by recognizing and celebrating the diversity that exists in the north, we can build a better future. By creating and nurturing a spirit of partnership at all levels, we can ensure our foundation for the future will stand on solid ground.

Valuing Our Citizens

As we invest in our children, our communities and our people, it is important to take the time to recognize the efforts of individuals who are helping to make a difference. I am pleased today to honour five such people who through some special act or who through their commitment to excellence and public service have made a significant impact on the lives of northerners. Please join me in congratulating the recipients of this year's Commissioner's Awards:

Ms. Alayna Krutko of Fort Providence and Mr. Levi Palituq of Pond Inlet, who have been awarded the Commissioner's Award for Bravery at the highest level; the Honourable Justice M. M. de Weerdt of Vancouver, British Columbia, who has been awarded the Commissioner's Award for Public Service at the highest level; Ms. Mary Teya of Fort McPherson, who has been awarded the Commissioner's Award for Public Service at the second level and nine-year-old Bennan Debassige of Yellowknife, who has been awarded the Commissioner's Award for Bravery at the second level.

It will be my honour over the next few weeks to present each of these individuals with their awards.

Investing in Our Future Collaboration and partnership is also the key to the political future of the north. It is a fact that in 1999 we will have two new territories. This Legislative Assembly is part of history in that you will be the last Members to meet collectively to represent the people in both the eastern and western Arctic. You are also an important part of history in that you have the unique challenge of preparing for the creation and transition to two new governments.

Along with the federal government, you have pledged to do this with minimal or no disruption of service and with fairness and equity to all of our citizens. To accomplish this, we must continue to work with our federal partners in this process to secure appropriate financial arrangement for two new governments and to work with all of the other key parties to work out new government structures that support these principles.

We will continue to work with the Interim Commissioner's Office in Nunavut and support the development of the Nunavut government, and we will support political development in the Western Territory by continuing involvement in self-government negotiations and constitutional development.

Another key component will be to continue work on the details to ensure a smooth and successful transition. As part of that, among the legislation, Members will be reviewing during this session will be two acts relating to the creation of two new territories. The Power Corporation Act will enable the existing Northwest Territories Power Corporation to incorporate under the Canada Business Corporations Act and remain as a single corporation serving the two jurisdiction of Nunavut and the Western Territory. The Public Utilities Act Amendment will enable a joint regulatory scheme of a single power corporation by Nunavut and the Western Territory.

Each day brings us one step closer to April 1, 1999. There is much work to be done. But working together, we can ensure that the transition will be a time of celebration for all of the people of the north and all of the people in Canada.

In general, we must continue to think broadly and strategically about the needs of northerners not just in the next few years, but into the new millennium. While our focus should remain on creating political stability and improving economic and social conditions in the north, we must also fulfil our responsibilities at the national level. We are an important part of Canada today, and more importantly, will play a key role in its future.

Over the next few weeks and months, Canadian citizens will have the opportunity to get involved in a debate on national unity. In the north, we will be focusing those discussions within our communities through the month of November, leading up to a special sitting of this Assembly in early December. To truly show we are a vital part of Canada, and that we are serious about wanting to work with the rest of Canada, every individual must take the time to share their thoughts on Canada as a nation. This is an important issue for each of us as Canadians, and as northerners. It is our opportunity to let our distinct and unique perspective be heard. We live in and represent one-third of the land mass of Canada. We are influenced by what happens in the rest of Canada; and therefore, we deserve the same right as every other Canadian citizen to be heard at the national level.

Investing in Partnerships

There are many things the people of the Northwest Territories can and are doing as a government and in communities to resolve the issues facing the north. However, in order to be successful, we must continually draw our efforts together in working with our citizens at the individual, family and community level. We must also work more closely with the groups and organizations that serve our people politically, economically and socially at other levels.

The federal government is on record stating that governing in the 21st century means recognizing no government can act alone. Given the complexity of issues we all face, collaboration is an essential ingredient for the success of Canada. More than ever, our people want government to work together in partnership. Therefore, to be successful, collectively, we must face and address the root causes of our many social and economic challenges, and collectively, we must develop made-in-the-north solutions.

Just as the history of Canada is built on partnerships and cooperation, we must continue to seek and create partnership and support in order to take the steps we need to secure the future for two new territories in Canada. To date, working in conjunction and in partnership with aboriginal organizations, community councils, community groups, the private sector and individuals, we have achieved varying levels of success and are indeed making great strides in some of the key social and economic areas. But many challenges remain. We need to reaffirm those partnerships, and forge stronger and better ones for the future. For it is through government and public partnerships that we can provide economic and employment opportunities for our people and hence, provide individuals and communities opportunities for development and self-sufficiency.

Leading the Way

There is no question the challenges we face are great. But as Members of this Legislative Assembly, you have proven you have the commitment, ability and willingness to tackle any challenges head on, and at the same time remain responsible and accountable to the people you serve. You have come a long way in a short period of time. You have made some hard and difficult decisions, and you have shown true leadership. More importantly, you recognize the key to maintaining your vision is in finding the balance between meeting the needs of today, while striving for an ideal of well being and quality of life for the generation that will follow.

It is not easy to find certainty in these uncertain times. However, based on the work you have accomplished to date and the manner in which you are facing the challenges that lie ahead, I believe you can and will fulfil your vision. In doing so, I encourage you to continue to work together to fulfil the spirit and intent of consensus government. By working together, by respecting and valuing our diversity, we can and will secure two strong new territories with strong economic ties, healthy communities and a legacy of help for our children and youth.

As Commissioner, and on behalf of all citizens of the Northwest Territories, I would like to thank and commend all Members for your hard work and positive efforts over the past two years and encourage your continuing good judgement in the weeks and months ahead. I now declare open the Fifth Session of the 13th Legislative Assembly of the Northwest Territories.

--Applause

Good afternoon. (Translation) Today we are starting the Fifth Session of the 13th Assembly. I would like to thank Canon James Muckpah of Arviat for his opening prayer and blessing of this Assembly. Our thanks are also extended to Mr. O'Brien, the Member for Kivallivik, for bringing Canon Muckpah to the opening of the Fifth Session. (Translation ends) I would also like to express my appreciation to Her Honour, the Commissioner for her address today and we look forward to joining her for a reception in the Great Hall later this afternoon.

I am sure Members will also join me in welcoming back the MLA for Amittuq, Mr. Evaloarjuk.

--Applause

Let us wish him a continuing speedy recovery from his leg surgery that prevented him from joining us at the closing of the Fourth Session. Orders of the day. Item 3, Ministers' statements. Mr. Ng.

Thank you, Mr. Speaker. Mr. Speaker, I along with many of my honourable colleagues have just had the honour of participating, in the Great Hall of the Assembly, in the launch of a video about Fetal Alcohol Syndrome and Fetal Alcohol Effects. This video is an exciting example of how a community group's vision, in partnership with government, can result in a product that will be a lasting resource to families, care givers and to communities.

As we are all aware, alcohol has had a profound effect on the people of the Northwest Territories. Among the most tragic results of alcohol misuse are children born with Fetal Alcohol Syndrome and Fetal Alcohol Effects. These children require special care and attention. Their families need support to raise them.

The Yellowknife Association for Community Living is one of the northern organizations that has been working to help children with FAS and FAE and their families.

The Association recently completed a 28-minute video entitled Helping Families - Helping Children. Funding was provided by the federal government and the video was produced by a northern company. The Department of Health and Social Services is providing funding to translate the video into aboriginal languages.

Mr. Speaker, I would like to congratulate the Yellowknife Association for Community Living on the work they have done. The Department of Health and Social Services is proud to be associated with this exciting project. Thank you, Mr. Speaker.

--Applause.

Thank you. Ministers' statements. Mr. Arlooktoo.

Thank you, Mr. Speaker. Earlier this year the CRTC began a review of whether or not long-distance competition should be introduced in the north. The process leading up to this decision has included a great deal of consultation and there is still an opportunity to provide input until October 31st.

Telecommunications play a vital role in northern society and in the northern economy. I believe telecommunications reduces isolation between our remote communities, connects us to the world and can provide a vital lifeline to services such as health, education and policing. The same factors that make telecommunications so critical, like remoteness and the harsh climate, also result in high costs, almost double the cost in southern Canada. It is vital that long distance communications costs do not defeat our ability to compete globally and that basic telephone services are available at reasonable cost to all residents.

NorthwesTel's network today extends across the north and customers now have the lowest rates for local services in Canada. However, we also have the highest long distance rates in the country because our local rates are being heavily subsidized by long distance revenues. This subsidy to achieve low local rates is not likely to continue. NorthwesTel has stated that, with or without competition, they intend to rebalance their rates. This means they will increase the price for local services and reduce long distance charges. The Government of the Northwest Territories recommends to the CRTC that local rate changes be limited to an increase of $4 per month in August, 1998, and another $6 per month in August, 1999, with equal reductions being made to their long distance rates.

The Government of the Northwest Territories position paper also requests that the CRTC recognize the urgent need to develop new mechanisms or subsidies, funded on a nation-wide basis, to support the high cost of telecommunications services to remote communities in the north and in other parts of Canada. In southern Canada, long distance competition has resulted in significant price reductions, service packages tailored to individual customer needs and suppliers are more responsive than ever. Our position paper to the CRTC recommends that northerners can also benefit from long-distance competition. In short, we feel that:

The CRTC should immediately allow certain aspects of competition, specifically allowing competitors to purchase and then resell NorthwesTel switched long distance services. Full competition will require changes to NorthwesTel's network, and we recommend this be in place no later than September, 1999.

Any company who decides to compete with NorthwesTel for northern dollars should have certain obligations. For example, competitors should contribute to NorthwesTel's competition start-up, such as network modifications to allow competition.

Some amount of subsidization of local services by long distance revenues will still be necessary, and competitors should match NorthwesTel's level of subsidization.

Quality of service should be vigorously maintained.

Lastly, we feel that any new competitors should be encouraged to invest in capital and jobs in the north.

--Applause

Thank you, Mr. Arlooktoo. Ministers' statements. Item 4, Members' statements. Mrs. Groenewegen.

Thank you. The Member for Hay River is seeking unanimous consent to conclude her statement. Do we have any nays? There are no nays. Mrs. Groenewegen, you have unanimous consent. I would ask the Member to slow down. There are interpreters that cannot keep up with you. Thank you. Mrs. Groenewegen.

Thank you. Members' statements. Mr. Miltenberger.

Thank you. Members' statements. Mr. O'Brien.

Thank you, Mr. Speaker. Mr. Speaker, I would like to refer to the statement made by Minister Goo Arlooktoo regarding the request for proposals for the Keewatin resupply. Mr. Speaker, I have some serious reservations regarding the Minister's statement as it relates to the Keewatin resupply committee's report, the committee that I chair, although, I do acknowledge the support the Minister gives to the committee for all their hard work.

Mr. Speaker, if the Minister of Public Works and Services is going to reference this report, he should do so in its entirety and not just single out one recommendation. Mr. Speaker, the committee's report stated the following: that the status quo would remain until 1999, regarding the resupply method, that we would work toward direct resupply. There will be full consultation to all the communities, a full environmental study would be completed and a cost benefit analysis. Lastly, Mr. Speaker, that there would be a moratorium placed on privatization of POL, if the direct resupply method were to move forward.

Mr. Speaker, there is fear and great concern with the manner in which this project is moving forward. For example, a surveyor showed up in Arviat, conducted some surveys, then responded back to the hamlet staff with the proposed new route. This route travels directly across a main char harvesting area and recreational area. This is not acceptable. Mr. Speaker, the hunters and trappers nor the full hamlet council were properly consulted regarding this issue and are quite concerned about the manner in which this project is being moved forward.

Mr. Speaker, we see a situation where either poor consultation or no consultation is taking place regarding issues that effect the Keewatin people. The people of Arviat, the Hamlet of Arviat, Baker Lake and the Keewatin Chamber of Commerce are rejecting this proposal at this time for obvious reasons. This proposal should not move forward until the results of the hydrographic mapping are analyzed and a full report presented to all affected parties. Also, that a full environmental risk analysis be conducted. Thank you, Mr. Speaker.

Thank you, Mr. O'Brien. Members' statements. Mr. Barnabas.

Thank you, Mr. Speaker. Mr. Speaker, I rise today to address an issue of some importance to every northerner. I refer to the impact of Fatal Accidents Act on parents who suffer the loss of a child. I am sure we all agree that there is nothing more devastating than the loss of a child. Mr. Speaker, we all know that we lose too many children to water trucks, snowmobiles, ATVs and other vehicle accidents in the Northwest Territories. Recently, the Supreme Court ruled that the mother could not be compensated financially for her son's death because he did not contribute to her economic well-being. The legislation did not permit compensation for the grief and suffering of the parents. This decision, Mr. Speaker, exposes a flaw in the current Act and provides evidence this is not in tune with northern culture or practices.

This decision and this law reflect the European idea that only an adult is the bread winner for the family. Aboriginal culture puts more value on the child and this legislation fails to reflect the importance of the child in aboriginal communities, where children secure our future. It is not only our children's parents, brothers or sisters who may rely on the child. Later in life elders are clearly dependent on the children, not only to provide the necessities, but as to carriers of their culture. This legislation must be amended to include provisions to allow parents to make claims for nonpecuniary losses of care, guidance, companionship and other losses.

This amendment will not be the first of its kind in Canada. It is reflected in other jurisdictions such as Ontario, Nova Scotia, New Brunswick and Manitoba in making similar amendments giving greater importance to the children in our culture. I believe that the north must have higher maximum of damages given the unfairness of this law. Mr. Speaker, I seek unanimous consent to conclude my statement.

The Member for the High Arctic is seeking unanimous consent to conclude his statement. Do we have any nays? There are no nays. Mr. Barnabas, you have unanimous consent.

Thank you, Mr. Speaker. I would like to ask that any such amendments to the legislation be retroactive to January 1, 1994. Mr. Speaker, the challenge to amend the Fatal Accidents Act has been clearly made by the Supreme Court in the Stokes' decision. I am hopeful that the legislative drafters will rise to the challenge. Thank you, Mr. Speaker.

Thank you, Mr. Barnabas. Members' statements. Mr. Roland.

Thank you, Mr. Roland. Members' statements. Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, today I am wearing a ribbon to promote awareness of FAS/FAE. Pauktuutit, the national Inuit women's organization, during the week of October 7 to 9, held a very important workshop on the subject in Iqaluit. This workshop, which had been in planning for over a year, consisted of representation from each of the six Inuit regions. The participants included daycare workers, community health representatives, addictions workers, FAS/FAE birth and foster parents, policy makers, RCMP and local community people.

Mr. Speaker, the purpose of the workshop was to bring together people from a wide variety of professional and personal backgrounds to discuss the issues, raise awareness and see what can be done to cope and prevent it.

What is fetal alcohol syndrome? When a woman drinks alcohol during pregnancy, it can damage the unborn baby. FAS/FAE is the name given to the condition caused in the fetus. It can be characterized by physical, mental, social and behavioural disabilities. When drinking alcohol, the alcohol passes directly into the baby's bloodstream. It damages the growing cells of the baby's body and brain.

Mr. Speaker, we often speak about community wellness. The FAS/FAE workshop sponsored by Pauktuutit has put into action the verbiage so often heard that awareness and prevention is one of the corner stones of community wellness. Thank you, Mr. Speaker.

Thank you, Mr. Picco. Members' statements. Mr. Rabesca.

Thank you, Mr. Speaker. Today we witnessed the very interesting and moving video regarding FAS/FAE. This video told the ways and means to help our children with these disorders and the frustrations that can be experienced by their children and parents trying to cope with day-to-day living. This video entitled, Helping Families, Helping Children is a 28-minute production that was made in the north by northerners for northern families, organizations interested people to use as a resource to assist people who are working or living with the Fetal Alcohol Syndrome or Fetal Alcohol Affects residents. Most, if not all stars that were in this video, were northerners telling their stories. It is a very good production that the Yellowknife Association for Community Living has provided. I would like to congratulate these organizations and the Department of Health and Social Services for the excellent work they have done. Thank you, Mr. Speaker.

Thank you, Mr. Rabesca. Members' statements. Mr. Enuaraq.

Thank you, Mr. Speaker. The community of Clyde River is excited about the possibility of having tourists come to see the bowhead whales. Every August, these whales migrate through Isabella Bay which is south of Clyde River. The community and Hunters and Trappers Association see the whales as being an attraction for tourists. They would like to set up tours to see the whales when they come through here. Tourists can view and take pictures of the bowhead whales and other wildlife. The beautiful community of Clyde River can provide guides for the tourists. The visitors can

travel by land and boat. They can enjoy Inuit culture and the lovely scenery. Clyde River hopes to form a designate Inuit organization that will pursue this tourist trade. The community will provide experienced Inuit guides. The visitors will get to see the midnight sun, the bowhead whales and experience Inuit culture. I support the community in this venture. Thank you.

Thank you, Mr. Enuaraq. Members' statements, Mr. Ootes.

The Member for Yellowknife Centre is seeking unanimous consent to conclude his statement. Do we have any nays? There are no nays. Mr. Ootes, you have unanimous consent.

Thank you, Mr. Ootes. Members' statements, Mr. Henry.

Thank you, Mr. Speaker. Mr. Speaker about 250 people gathered in the Explorer Hotel last Saturday evening, an occasion to help celebrate the retirement of Jan Stirling. Jan is a respected pioneer in health care delivery in the north for almost three decades. She is extremely well respected in that field. All segments of the community of Yellowknife and the Northwest Territories were involved. Mr. Ng, the Minister of Health and Social Services brought remarks on behalf of the Government of the Northwest Territories and the Mayor on behalf of the city of Yellowknife. Jan's family also made remarks and I had the honour of being asked to make a comment also. Jan's working colleagues are to be congratulated on the great evening they put on which spoke so well to their love and admiration for Jan as a colleague. I would like to call on all Members of this House to show their appreciation for a long-term government employee for services rendered over and above the call of duty. Thank you, Mr. Speaker.

--Applause

Thank you, Mr. Henry. Member's statements. Item 5, recognition of visitors in the gallery. Mr. Ng.

Thank you, Mr. Speaker. Mr. Speaker, first I would like to recognize several members of the Yellowknife Association for Community Living with us today, Liz Wyman the past president; Heather Potter, board member and Lanny Cooke, executive director. We also have individuals that

appeared in the video, Helping Families, Helping Children and those individuals are Bob, Mary and Bridget Richardson and Julie Harrison. I would also like to recognize some constituents from Kugluktuk, the mayor Stanley Anablak and former member of this House, Ernie Bernhardt who is accompanied by his wife, Beatrice Bernhardt.

--Applause

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery, Ms. Thompson.

Thank you, Mr. Speaker. I would like to recognize two people in the gallery. I would like to recognize first, Mr. Roy Desjarlais, a 30-year resident of the north and chairperson of the steering committee responsible for Team Northwest Territories involvement in the North American indigenous games held this past summer in Victoria, BC. Another person I would like to recognize is Mr. Doug Rentmeister, who was our team manager at the Canada Summer Games hosted in Brandon, Manitoba. Doug was responsible for managing Team Northwest Territories involvement at these games and they are sitting beside Daniel Autut, who is originally from Chesterfield Inlet.

--Applause

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery, Mr. Todd.

Thank you, Mr. Speaker. I would like to recognize Ms. Jackie Simpson today, who is the president of the Union of Northern Workers. Thank you.

--Applause

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery, Mr. Dent.

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery, Mr. Ootes.

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery, Mr. Arlooktoo.

Thank you, Mr. Speaker. It is my pleasure to recognize Ms. Pat Thomas, the president of the Northwest Territories Teachers Association.

--Applause

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery, Mr. Picco.

Thank you, Mr. Speaker. I would like to welcome Mr. Ben MacDonald from the Union of Northern Workers and an alderman candidate here in Yellowknife. Thank you.

--Applause

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery, Mr. Henry.

Thank you, Mr. Speaker. Mr. Speaker, I would like to recognize a constituent of mine in the gallery today, Mr. Barry Bran. Mr. Bran will soon be assuming the duties of the deputy Sergeant-at-Arms. Thank you, Mr. Speaker.

--Applause

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery, Mr. O'Brien.

Thank you, Mr. Speaker. I am not sure if he is up there or not, but I would like to recognize Reverend James Muckpah from Arviat who did the opening prayer today and took the time to come and be with us. Thank you.

--Applause

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery. We will take a 15-minute break. I would like to invite the people from the gallery as well as the Members for a Commissioner's reception in the Great Hall.

--Break

I would like to call the house back to order. Item 6, oral questions. Mr. Miltenberger.

The Minister of Finance, Mr. Todd.

Thank you, Mr. Speaker. While my honourable colleague brought to my attention about a year ago that perhaps we should be considering new ways in which to amortize our capital projects as we have all known, there was going to be some difficulties in balancing the budget. It was clearly going to be a requirement to take some money out of the capital allocation of dollars. In fact, over the last two years we have gone from about $180 million on an annual basis to somewhere around $130 million. So, in fact, we have had about $100 million less capital dollars to build public infrastructure, and that is a significant amount of dollars, Mr. Speaker.

We have been looking for over a year, for some creative, visionary alternatives to ensure that the need for public infrastructure whether it is hospitals, roads or bridges can continue at the level in which we have done in the past. Hence the reason for my desire to conclude a public/private partnership policy and also a need for changes within the Finance Administration Act, that I will be introducing later on today. Thank you.

Oral questions. Supplementary, Mr. Miltenberger.

Mr. Todd.

Thank you, Mr. Speaker. While the short answer is no, let me repeat again, the reality is that the $100 million less spending on public infrastructures taking place over the last two years. If that trend continues, we will not be able to meet the minimum demands that have been placed upon us by our constituencies. Hence, the reason why some of us have taken the time to look at what other jurisdictions are doing. It is not like this is some new, foreign idea. The reality is that we are in the same situation as some of the Maritime Provinces are. I think the recent big project was the Prince Edward Island bridge. Schools, correctional facilities, hospitals, most have-not provinces are looking at ways and means in which to continue with the level of public infrastructure which has been demanded by the constituency and finding new ways to amortize the cost. That is really what we are about here and I would suggest to my honourable colleague, we will not be able to continue down this road, of reduced expenditure and meet the kind of demands we have for infrastructure, whether it is, as I said, schools, hospitals, roads, et cetera. That is why we are looking at this creative public/private partnership, and hence, the reason why I need changes as I will be bringing forward today to the Financial Administration Act, to make sure that this government can carry on and meet its obligations, not just this year, but in the coming years and the two new governments. Thank you.

Oral questions. Supplementary, Mr. Miltenberger.

Mr. Todd.

Thank you, Mr. Speaker. Well, I would hope so. I think to sit back and suggest we do nothing, to sit back to suggest that we continue with the status quo, when again I say to you all, $100 million less in capital spending. The Northwest Territories Construction Association is saying, to my honourable colleagues, the jobs have not been created because we have reduced capital spending, and if I do not cut in capital spending, then I cut in programs. People do not want to cut from programs. If I do not cut from programs, then I cut from wages and benefits. People do not want to cut wages and benefits. So, in the capital side of things, we have to find new creative ways in which to continue with a level of expenditures which we have had historically in this government, and it is somewhere around $180 to $200 million on an annual basis. I think that this is a good, sound business way in which to do it. Thank you.

Oral questions. Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, my question is for the Minister for FMBS. The Standing Committee for Government Operations requested an inventory of sites with potential environmental liability. In the response to an oral question on October 7th, to me, the Chairman of the Financial Management Board stated that the inventory identified 648 sites. At 624 of these sites an environmental liability exists or may exist.

Mr. Speaker, this is very serious and disturbing news. Could the Minister inform this House that the 624 sites includes federal, or just solely territorial government liabilities?

The Minister responsible for the Financial Management Board, Mr. Todd.

Thank you, Mr. Speaker. I remember the question my honourable colleague posed to me earlier last week. I do not know if they are all territorial sites and have been identified, that this government is obligated. I would have to, unfortunately, go talk to my staff and try to confirm for my honourable colleague, which ones are federal, which ones are territorial, and perhaps which ones may in fact be joint. I am unable at this time to answer that technical question, but I will endeavour to do so by the end of the week.

Oral questions. Supplementary, Mr. Picco.

Thank you, Mr. Speaker. I will await that response. Following up on the same area of questioning. The Government of the Northwest Territories, according to the response by the Finance Minister last week, cannot afford to conduct detail assessments of the sites. We feel an inventory is a positive step. Mr. Speaker, from the Government of the Northwest Territories own record, that amount of liability could be between $6 and $30 million. Will the Minister commit to placing a contingency amount in a budget to cover off this liability or are we going to get stuck with the same situation we are now, with pay equity? Thank you, Mr. Speaker.

Mr. Todd.

Thank you, Mr. Speaker. Well as my honourable colleague knows, we are working with our partners in the Union of Northern Workers to reach a negotiated settlement under Pay Equity. I do not see the relevancy. I have indicated to you in the House that it is my desire, assuming the partners and Union of Northern Workers can come to the table that we will try to conclude an agreement by April 1, 1998. I have set some deadlines as to how we are trying to reach an arrangement. I do not see where that is relevant to a much larger issue in relationship to long-term environmental liabilities that have been going on for 20, 30 or 40 years.

I have already said to my colleague, I will try to figure it out, and I will ask my department what degree of liability does this government have, and what does the federal government have. We recognize it is important and we are trying to, through negotiations, reach an arrangement and determine what the net cost of this is going to be in relationship to cleanup. Thank you.

Oral questions. Supplementary, Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, the inventory of the sites demonstrates a liability which will be reflected in division of assets and liabilities prior to April 1, 1999. When will the Government of the Northwest Territories know what the amount will be for the Western Arctic and Nunavut? What would the time line be on that?

Mr. Todd.

Thank you, Mr. Speaker. Environmental liability will be dealt with the same as any other liability in this government, through negotiations, and through some form that will determine when we get to the table and try to determine an appropriate process for assets and liabilities and the appropriate split in terms of costs and responsibility as we move towards April 1, 1999. Thank you.

Thank you. Oral questions. Final Supplementary, Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, I do not think it is acceptable for this government just to state that by a cursory inventory, we cannot afford to clean up these sites, and just leave it. Does the government, the Minister's department in cooperation with Arviat have a plan to address the 624 identified sites to date for mediation?

Could I ask the Member for Iqaluit if he could rephrase his question as to the financial responsibility of the Minister? I heard two different questions and I would like you to rephrase your questions, Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, I will rephrase the question. It is not acceptable for this government just to state by cursory inventory that it seems we cannot afford to clean up these sites. So my question is, does the department have a plan to address the 624 sites and to clean them up?

Thank you, Mr. Speaker. I agree with my honourable colleague, it is not acceptable. There is no question about that. There are a lot of things that are not acceptable, that this government cannot do because of the fiscal constraint in which we are under.

I have already indicated to him that we have identified the sites and I am advised that it is going to cost somewhere around $30 million, not for clean up, but just to do a careful analysis of what each of these sites are going to be. I am not prepared to commit today as to whether we could afford $30 million right now or not. All I am telling you is, that as far as I am concerned, it is an important issue, it has to be identified and we need to find the funding. Maybe it is a joint federal/territorial responsibility. I do not know, but certainly, I do not have some money tree as people occasionally think I do and go out and pluck large dollar bills from the tree.

We are trying to deal with the issue as we move towards division for the assets and liabilities. We have done a preliminary review of 640 odd sites. I will endeavour, as I said in an earlier question, to answer his concern about responsibility and at the same time will undertake to determine an appropriate course of action as to whether we can do a full feasibility study which will cost $30 million and discuss it with the committee at the time and determine which programs, and which jobs and programs we are going to take it from.

Thank you. Oral questions. Mr. Krutko.

Minister of Health and Social Services, Mr. Ng.

Thank you, Mr. Speaker. Mr. Speaker, it is our responsibility to set standards for overall health care delivery through the Northwest Territories. We have worked with our partners, the boards, that deliver the programs and the services to the constituents in recognizing their priorities and working with them in trying to support them in those initiatives. Thank you.

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

Mr. Ng.

Thank you, Mr. Speaker. Mr. Speaker, yes, regional health boards have a lot of independence in recognizing the needs. They are made up of community representation on the regional boards to set programs and standards, and the concerns of the well-being of their services and constituencies is of their utmost priority just like it is of ours, Mr. Speaker. Thank you.

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

Mr. Ng.

Thank you, Mr. Speaker. Mr. Speaker, as the Minister responsible for this government for Health and Social Services, I have the responsibility for the health and well-being of the residents throughout the Northwest Territories. But having said that, of course, the federal government and the federal ministry, as one of the main providers of funding for the health care system nationally also has standards and criteria and a responsibility to ensure that health care is delivered in an effective manner.

Oral questions. Final supplementary, Mr. Krutko.

Mr. Ng.

Thank you, Mr. Speaker. Mr. Speaker, I said that it is the health board's responsibility to set their priorities and what programs they would deem as the most necessary ones to enact and to act on in a proactive manner, Mr. Speaker. Thank you.

Thank you. Oral questions. Mr. Roland.

Thank you. The Minister responsible for the Financial Management Board, Mr. Todd.

Thank you, Mr. Speaker. I was trying to deal with the big picture, and if I have confused my colleague, who I frequently look up to, I apologize. The reality is, what I was trying to explain is that $100 million has come out of the capital budget over the last two years. That is a lot of money. That is a lot of money where capital projects did not go. There is a lot of money where people did not get jobs, as the NWT Construction Association and others have said, and we have to find new and creative ways to continue with that level of capital infrastructure to ensure:

1) the infrastructure is in place for the people we represent;

2) create economic activity and jobs;

3) meets the targets that we have set for deficit elimination.

That is the reason behind the questions earlier. I believe it, and that is the reason behind my answer. It is certainly not the intention to imply that my honourable colleague's hospital is in jeopardy. It is merely suggesting that unless we get changes, we may not be able to go with the public and private partnership route. That is the route we are heading with the development of these public structures, as he well knows. Thank you.

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

Mr. Todd.

The short answer to that is, absolutely. We need to find the right policy methods to move forward, not only on my honourable colleague's project but on others. I want to assure him, for his audience back home that it is our intention, with the cooperation of this House, and I believe there are enough people who will cooperate with us, to move forward on these amendments, to get on with the job of doing what we are supposed to do, to try to find new creative ways to put the infrastructure that our constituencies expect, create new jobs, and still keep within the Deficit Elimination Act that is before us. I want to assure Mr. Roland that is the intention of this government, provided the cooperation of the House, we will be able to move forward this week and change the Act to do what has to be done, as I have said earlier. Thank you.

Thank you. Oral questions. Mr. Ningark.

Thank you, Mr. Speaker. Mr. Speaker, my question is directed to the Minister of Public Works and Services, Mr. Arlooktoo. On October 16th, Mr. Arlooktoo addressed the Legislative Assembly regarding improvement to the Keewatin fuel resupply. Since then, I have had the opportunity to talk to Mr. Pat Lyall, Chairman of the Nunasi Corporation on this regard. Mr. Lyall and his board members are concerned about the potential impact to the small business people in the Keewatin region. Mr. Speaker, Mr. Steen, Mr. O'Brien and Mrs. Groenewegen have stated many times in this House that this government seems to be making a decision for Nunavut to be. We thought we agreed that the decision which will have an impact, come 1999, would be left up to the decision-makers of Nunavut. My question, Mr. Speaker, is why is the Government of the Northwest Territories committing to the Nunavut Government to direct resupply in Keewatin when we have said many times, the decisions such as this should be left up to the people of Nunavut? Thank you.

The Minister of Public Works and Services, Mr. Arlooktoo.

Thank you, Mr. Speaker. The announcement I made last week had to do with the building of shore pipelines from the tank farms in four Keewatin communities to the shoreline which would enable offshore tankers to deliver fuel to those tanks rather than the barge operation, which exists now. This has to do with the decision made by Cabinet several months ago following recommendations of the Keewatin's Resupply Steering Committee, that the Keewatin resupply, whether it be fuel or for cargo should be open to competition, therefore, at some point in time, lower prices. At this point in time, as the Member may know, or up to now, the resupply to the Keewatin has been through sort of a negotiated contract with NTCL. The reason we are moving ahead with this is because as a government we know it is a good move. It will improve service overall, and over the 20-year life cycle of these pipelines, it will save $100 million. Thank you.

Oral questions. Supplementary, Mr. Ningark.

Thank you, Mr. Speaker. Supplementary to the same honourable Minister. Mr. Speaker, will the Minister give any guarantee that direct resupply to Kivallivik will provide employment and training for local people and economic spin-off to the communities in the way of work for local contractors? Thank you.

Mr. Arlooktoo.

Thank you, Mr. Speaker. Certainly, when the government reviews a request for proposal for building of the infrastructure, that I announced, the training and employment for local people and local businesses will get extra consideration, as they always do. I cannot guarantee that it will be a regional operation that gets these, but certainly we do insist that local people are hired, and we will make sure of that.