Thank you, Mr. Chairman. Mr. Chairman, when the 13th Assembly convened in November, 1995, this government was faced, as we all know, with about $150 million deficit. Within 24 months, or two short years, we have all succeeded in achieving a balanced budget. Frankly, Mr. Chairman, this is an unprecedented achievement that has been attained through, in my opinion, sound fiscal planning and the commitment and diligence and belt-tightening, if you want, by all residents of the Northwest Territories, and, Mr. Chairman, it has been achieved without the need to increase both corporate or personal income tax.
As part of this deficit reduction effort the Financial Management Board led the charge on the reform of government administration which resulted in streamline bureaucracy with a much larger portion of the government's money now going directly to programs and people rather than administration and management. Field base staff have been given more authority to respond to client's needs. Fact, Mr. Chairman, not fiction.
It was also necessary to take the difficult actions needed to make the Northwest Territories Public Service a more northern-based public service. For example, Mr. Chairman, changes to the government staff housing policy have forced a unified housing standard for all community residents and eliminated the distinction between housing provided for Government of the Northwest Territories staff versus that available for other community residents.
Vacation travel assistance and other benefits designed for imported work force have been replaced with a northern allowance which supports non-employees to meet the cost of living in their communities. In addition, Mr. Chairman, an Affirmative Action Strategy has been completed under the guidance of the subcommittee of this House.
The Financial Management Board has also implemented the practise of business planning in the government. We now have a more rational, strategic approach to planning and one which should enable us to conclude the remainder of our tenure with a balanced budget and minimal accumulated debt.
As well, the Department of Finance has successfully concluded the discussions of the federal government on the 1995/1999 Formula Financing Agreement. We are pleased to report that we have negotiated the inclusion of a flow in the agreement which assures this government that the federal transfer payments will not fall below set level.
In the area of Economic Development, the Mortgage Investment Corporation was initiated which was successful precisely because it did not have to be implemented. Think about that. As was their Aurora Fund, and now of course, their Aurora Fund 2. My department, at the present time, is finalizing work of the other three initiatives that arose from Team NWT Tour of the eastern provinces last year.
The Department of Education, Culture and Employment, we negotiated the renewal of the Canada Northwest Territories Infrastructure Agreement. This agreement injected $4.4 million into joint programs aimed at creating jobs for northerners and developing community infrastructure. For job creation, yes, and community-based Economic Development; we initiated the Northern Employment Strategy. This is a $32 million fund aimed at local job creation, summer student employment, business development as an investment in our future and that of our children which, right now, is showing early signs of being, yes, Mr. Chairman, a resounding success.
We champion and advocate the partnership approach to solving economic and social challenges in the north. In the challenging fiscal climate in which we find ourselves, the Government of the Northwest Territories, cannot any longer afford to be, as I have said many times, the engine of the economic growth in the northern communities. We need to develop new and innovative approaches modelled on those which have been pioneered in other jurisdiction in order to bring much-needed capital into the communities we all represent.
My department is currently undertaking a study of public/ private partnership, the three P's, related to infrastructure, investments, and we look forward to continuing work in this area as an important means of improving the economic conditions of northerners.
The Financial Management Board has taken the lead on the development of implementation of a new digital communication network that will bring the Northwest Territories in the communication age, and we are pleased to advise that the contact for this important arctic communications project is with a consortium of, yes, northern businesses and aboriginal development corporations. This initiative will allow widespread application of tele-medicine and distance education which will increase the access by Northwest Territories' residents to a broader array of services.
The Department of Finance working with the Department of Resources, Wildlife and Economic Development is currently in discussions with the federal government of Indian Affairs to ensure the interest of northerners are protected, as the diamond industry becomes established in the Northwest Territories. At the same time, the Department of Finance has conducted in-depth research and analysis in the area of taxation related to resource industries specifically diamond mining. Any tax regime brought in by this government to maximize resource revenues for northerners would only be introduced when all other avenues to successfully conclude discussion with the federal government have been exhausted.
It is the intention of this government to ensure that the benefits flowing from northern diamonds accrue to northerners, not just the foreign interests. Therefore, these taxation measures, if introduced, will be targeted specifically at the large multinational mining corporations which stand to make billions from northern diamonds.
The Department of Finance and the Financial Management Board, and the Division Secretary have taken the lead role for this government in discussion with our federal counterparts and northern partners in the process of creating two new viable territories on April 1, 1999.
With the Finance and Financial Management Board taking the lead, all the departments of this government have made significant contribution to the substantial body of work undertaken in the preparation for division. We have established the process for discussing post 1999 financial arrangements for two territories with the federal government and the northern parties. The discussions at this table have been under way since May, 1997 and are on track for a successful conclusion by the spring of 1998.
We produced the phase when costing document which identifies ongoing corporate costs of two separate governments, and we developed a phase two transaction plan which we tabled in the House. We will be tabling with northern planners this week, geographic, expenditure, allocations for formula financing negotiations which identify the split in program expenditures. We continue to actively participate in working groups, committees and other multi-lateral forums designed to facilitate communications between the parties on a number of issues ranging from preparations for the first election for the two new territories to the legislative amendments required to facilitate two new territories.
I have said many times about the WCB, I think it stands for itself. It is an organization that not only is fully funded, increased the benefits to injured workers, reduced the costs to the owners, and took on additional responsibilities in this government at no additional expense to the employers.
Mr. Chairman, in conclusion, while the departments in my portfolio have made great progress over the last two years, there is still much work to be done. We have set up notice with the Union of Northern Workers to commence a collective bargaining process. We would like to reinstate this government's commitment to the principle of pay equity, and we hope we can reach an agreement prior to Aril 1, 1998.
We will continue to provide advice and support to the office of the Interim Commissioner, and we will continue to work with all northern parties involved in the process of creating two new territories to ensure that the dreams and aspirations of all residents of the Northwest Territories are realized in the creation of two new territories.
On a personal note, I have very much appreciated the wise and often biblical advice that I have been given by a number of Members of this House. I also appreciate the cooperation of the Chairs of the committees, which was essential to the difficult choices we all have to make. I want to leave you with one last, fundamental comment. All of us will be judged on what we do, not what we say. Thank you.