Thank you, Mr. Chairman. Mr. Chairman, my questions to the Minister are regarding the formula financing arrangements and negotiations. I would ask the Minister to bear with me. Some of this information has probably came out during the course of the day, But I will ask some questions somewhat different from the ones that were asked. Recently, we have had two key players from the Minister's department leave his department, Mr. John Ruttan and Eric Nielsen, two very experienced long serving employees with tremendous knowledge in this area. We are not quite sure what the reasons why they have left are. I am sure that is their business. My question is, at this point in time, who is looking after these negotiations now?

Thank you for that concise, short question. Mr. Todd.

We probably have the strongest team this government has ever had with respect to our negotiating team for the formal finance agreement. We have Dr. Patrick Grady, who is a Canadian renowned economist, who worked formerly in Mr. Martin's office who gives us advice on a regular basis as to what we do. We have Ms. Sheila Purdy, who had worked in the Prime Minister's office and was the executive assistant to the Honourable Allan Rourke at the time when he was Minister of Justice. We have Margaret Melhorn, who is the new deputy Minister of Finance. I was fortunate enough to get Mr. Pierre Alvarez, formerly working in the Prime Minister's office under the conservative government, formerly the principal secretary to the Honourable Nellie Cournoyea, who all agreed to work with me in an effort to assist in the negotiations of these two new formulas. I would say that this is probably the best team on the fiscal side we have had, since this government was put in place in 1966. Thank you.

Thank you. Question number two, Mr. O'Brien.

Thank you, Mr. Chairman. Mr. Chairman, it is my understanding that Mr. Ruttan is now working on behalf of the western coalition regarding their negotiations and planning. Who is the lead person in charge of the negotiations and the arrangements at this point?

Actually, the western coalition and my colleague, Floyd Roland, should be congratulated in being able to bring back Mr. Ruttan to assist the western coalition in these negotiations. Mr. Ruttan had left a couple of years ago for early retirement, my understanding was he did not want to work full time. We feel very fortunate that he is back into the loop, providing support to the western coalition. My honourable colleague is correct that the lead, if you want, in terms of this government is Ms. Margaret Melhorn, who is the deputy Minister of Finance.

Thank you. Any questions? Mr. O'Brien are you sure now? Mr. O'Brien.

Thank you, Mr. Chairman. Thank you, Mr. Todd. My next question is regarding division. In the Minister's role as chair of the division committee. Mr. Chairman, the Nunavut infrastructure that is being put in place now is being built by the Nunavut Construction Company, NCC. The Nunavut Construction Company will be repaid through long- term leases, we can put it that way, for the infrastructure they will put in place and in return, I believe it is DIAND that would sign these leases and then in the end, it would be then turned over to the new Nunavut government.

Mr. Chairman, it is my understanding that to this date, before I ask the question, I should add that my concern coming from my riding is to make sure that the infrastructure which is planned for my communities is going to be in place in a timely fashion so that, of course, decentralized government and plan can take to place. My concern is at this point in time I have the understanding that the agreement for these long-term leases has not been executed yet and that we are still waiting on DIAND to commit to these leases. My question to the Minister is, at this point in time, is he concerned about the situation? Number two, how can we assist in bringing closer these agreements to speed up the process? Thank you.

Thank you. There were two questions. Mr. Todd.

Thank you, Mr. Chairman. First of all, I am told by my honourable colleague, Mr. Arlooktoo, that NTI and NCC are fairly confident they are going to meet targets and the deadline they set for their infrastructure. We applaud them for that. There is no question my colleague is right. There is a concern about who is going to pay the leases. My understanding is that is some of the discussions right now with the Interim Commissioner. I would believe that the ultimate sign off on fiscal responsibility would perhaps be a combination of the federal Minister and perhaps, although I am not sure, the Interim Commissioner. I mean I cannot speak for the Interim Commissioner; but if I was him, because I should qualify this, I would want some assurances from the federal government that they will pay the bill, whatever the cost is going to be. It would seem to me, I am advised, that there are discussions under way on this very issue. I do not know what the final outcome will be. We are trying to encourage some clarity on it. When that does unfold, I will only be too happy to advise my colleague because I know it is extremely important for him and the other community of Baker Lake which have both decentralized communities, which we support. My initial reaction would be the fiscal responsibility for the leases and the lease costs lies with the federal Minister. That would be my

reaction at this time. Now, others may interpret it differently, but that is the way I would see it at this time.

Thank you. Mr. O'Brien.

Mr. Chairman, it is a concern to myself and the constituents I represent, and I am sure as it is to Mr. Todd. Mr. Chairman, I will not belabour the point. Is the Minister aware of what is causing the delay in executing these arrangements and what are the causes for the delay? Thank you.

Thank you. Mr. Todd.

I am not sure. To be honest, as I said, this was an arrangement made between the federal government and NTI with respect to the ownership of the infrastructure required for Nunavut houses and offices. That discussion really should be between those two parties. We have very little direct input into this issue, and I agree with my colleague. We need to get some clarity but the reality is, we have a very limited role in this particular aspect of division. Thank you.

Thank you. Questions. Question number six, Mr. O'Brien.

Thank you, Mr. Chairman. Mr. Chairman, carrying on in the same vein regarding the decentralized model as put forth, this issue was touched on earlier in the last few weeks in another committee of the whole meeting. I would like to seek further assurances from the Minister in charge of division if he would work towards and encourage the use of existing office space that may not be identified as office space that is to be used for decentralized jobs that had been indicated for the smaller communities, but also the use of some of the new housing units that have been put together in the various communities as temporary office space, so that some of these jobs, when they are available, can be put into place so these communities can benefit from the design, decentralized model in Footprints 2 Thank you.

Thank you. Mr. Todd.

I am prepared to give some direction to my officials to look at suggestions to the Interim Commissioner that this may be a way in which, in the interim if you want, a short term move forward with some of these initiatives. It is also in Iqaluit as well because I think the big office complex is not going to be ready until the fall of 1999. I think everybody recognizes that, as my honourable colleague knows, the House is out and under way in the new community. I hope from a political perspective reassures you that some of the stuff is going to happen, but certainly I will give some direction to my officials to discuss this matter with Mr. Anawak and his staff. Thank you.

Thank you. Mr. O'Brien.

Thank you, Mr. Chairman. Mr. Chairman, my next question is more for clarification, I would expect that Mr. Todd will be able to answer the question. If I am stepping over the line, I stand to be corrected. The question was asked earlier by Mr. Enuaraq regarding where we are going to stand by the time division comes regarding our accumulated deficit? Mr. Speaker, we are contemplating at this point in time at making some changes to the Financial Administration Act. I realize we are not at that point yet, but it is in discussion now. If and when this goes ahead, can the Minister indicate as to where we expect to be in 1999, in regard to our accumulated deficit?

Thank you. Mr. Minister.

When we started this pilgrimage of cutting and slashing as some would like to think it, I believe the accumulated deficit at the time was $86 million. As I said earlier today, Mr. O'Brien, barring any major physical catastrophe, a reasonable settlement in pay equity for example, is one issue, I am optimistic that we could probably have an accumulated deficit of somewhere around the $30 million range which would be depending on how we divide the assets and liabilities, would be an easily manageable deficit for the two new governments. The ultimate issue for me, I would like to be able to show that it was all cleared off the books, but I think that would be a pretty ambitious program right now. Probably around $30 million if everything goes reasonably well in the next 18, 20 months.

Thank you. Final question, Mr. O'Brien.