Recognition of visitors in the gallery, Mr. Henry.

Mr. Speaker, I would like to recognize Bob Sanderson. I know he was here earlier this morning, but I am not sure if he is still here. Bob lived in Yellowknife for a number of years. He is presently the Regional Director of the Financial Management Board in Fort Smith. Thank you, Mr. Speaker.

Recognition of visitors in the gallery. Item 6, oral questions. Mr. Miltenberger.

Minister of Finance, Mr. Todd.

Mr. Speaker, I will make no comment about my colleagues nice new suit he has on today. Anyway it's a shining example to everybody. Mr. Speaker, I think we have made it clear and we have been consistent, not just this last week, but certainly the last year and a half with respect to our government's position on northern diamonds. Diamond sorting and valuation should be done, must be done in the Northwest Territories to ensure that we have an accurate reflection of the value of the diamonds so that Canadians can get their equal share, if you wish, of royalties and taxation.

To say I am disappointed is an understatement. That a company of this size would make these kinds of comments without any consultation with this goverment, and I do not know what consultation they had with the federal government, but I was certainly disappointed. I am looking forward to meeting, and I am assuming that he wants to meet with us, with Mr. Rothwell later on this week or next week, where both myself and Mr. Kakfwi will be clear with him the ramifications with continuing along this corporate strategy of suggesting that northern diamonds should be sorted on site, in a small and concrete way, and the rest of the jobs and opportunities that will prevail from sorting diamonds from marketing and sales purposes will be done offshore. Surely that would be unacceptable, not just to northerners, I would expect that to be unacceptable to most Canadians.

Oral questions. Supplementary, Mr. Miltenberger.

Mr. Todd.

Thank you, Mr. Speaker. It is important to put it in perspective. I think you know, it is not the intention of this government and I would suspect the federal government, to determine board policy as it relates to the diamond industry. What I suggested to the industry in the past, and just recently in London and in Antwerp, that we are developing in consultation with our federal colleagues public policies in the way in which this industry should operate.

I want to remind everybody that this is a unique industry. It is not the same as some would have us believe, as gold, as iron ore or as coal. It is different. It operates differently and it has to have a different set of conditions in our opinion as to how it does operate.

I suggest to him that when we develop public policy to protect the interests of the public, and at the same time maintain, if you want, the profitability of the shareholders of BHP and others; it is important we have a two way dialogue. But it seems to me on this issue of diamond sorting and valuation they have made up their mind in isolation of a two way dialogue between us and our federal colleagues.

I have indicated to the Minister of Indian Affairs and Northern Development as recently as a week and a half ago that we are not happy with this position, and to her credit she has agreed earlier today that she is prepared later on this month to meet with myself and Mr. Kakfwi along with the Minister of Finance, Mr. Martin. The whole issue of diamonds, whether it is on the revenue side through taxes and royalties or it is on valuation and sorting, will be on the agenda for discussion with Mr. Kakfwi and myself. I hope at some point we will be able to have a collective partnership on a strategy that we need to take to ensure that Canadians and Northerner's interests are protected both on the job and in the tax revenues site.

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

Mr. Todd.

Thank you. Mr Speaker. Let me start off by saying that, yes, I think in our initial discussions it would be fair to say when we developed the social and economic agreement which was done a year, year and a half ago with the diamond industry we were very pleased with the spirit of cooperation that we had. Mr. Kakfwi spoke earlier last week

about the impact on the construction of the mine site that it has had with respect to the use of northern businesses and with respect to the use of northern employment. We have been encouraged all along that the corporation has been working in a spirit of partnership to meet the objectives that we set in the social economic agreement over a year, a year and a half ago, I believe.

I am somewhat confused, Mr. Speaker, as to why they are putting the spin on and not discussing with us the next phase, and that is the operation phase of their mine as it relates to the royalties and tax regime which in calculating the royalties and the tax revenues, the diamond sorting and valuation is a critical component of it. It seems to me maybe that we are caught in a communications problem. I am not sure, but certainly if you look at the spirit of cooperation that occurred in the early days when we discussed the construction of the mine it was going extremely well.

I am hoping that Mr. Rothwell will be able to clear up and give us some clarity when we meet with him as to why we seem to be heading for a collision course as it relates to diamond sorting and valuation and as it relates to revenues and royalties. We will be left with no alternative but to bring forward options for this House to protect the fiscal interest of all northerners. Thank you.

Oral questions. Final supplementary, Mr. Miltenberger.

Mr. Todd.

Thank you, Mr. Speaker. My understanding is Mr. Rothwell had asked for a meeting with myself and Mr. Kakfwi, I believe it could be sometime this week. He is probably a busy man, no doubt running a large organization like this one, but once our discussions are concluded, I would be only too happy to report back to the House on this important issue. I want to say again for clarity purposes, frankly, I am disappointed that we have got to this stage, that it has been necessary to debate as long as we have had to debate the issue. When you consider that the corporation was at the table with us on the initial stages for whatever reason, whether they are getting the wrong advice from some of their community relations people or others out there, I am not sure, suddenly it is the intent of this government and both Mr. Kakfwi and myself to try to negotiate a reasonable arrangement. There are two critical meetings coming, one hopefully with Mr. Rothwell, either this week or next week, and perhaps more importantly the meeting with Mr. Martin, our Finance Minister, and Ms. Stewart later on this month to see if we can convince them through persuasive discussion about the need for another point of view besides the one they are currently getting from the federal bureaucracy. Thank you.

Thank you. Oral questions. Mr. Enuaraq.

Thank you, Mr. Speaker. I mentioned in my Member's statement that the community of Broughton Island needs housing for the elders. My understanding is that the Department of Health and Social Services determines which communities need seniors' housing the most. A list is then given to the Housing Corporation which then builds the units. I would like to know if the community of Broughton Island is on the list. Thank you.

Minister of the Northwest Territories Housing Corporation, Mr. Arlooktoo.

Thank you, Mr. Speaker. I do not have the needs survey and the priority listings in front of me, but I will get the list from the Department of Health and Social Services and provide it to the Members.

Thank you. Oral questions. Mr. Henry.