Thank you, Mr. Enuaraq. I would like to welcome back the Member for Mackenzie Delta, Mr. Krutko. Welcome back.

--Applause.

I also would like to make a ruling on the point of privilege raised by the Member for Iqaluit, Mr. Picco.

I would like to provide my ruling on the point of privilege raised by the Member for Iqaluit, Mr. Picco, on October 7, 1997. The Member for Iqaluit raised a point of privilege during question period. The Member indicated, and I will quote Mr. Picco's comments from pages 2424 and 2425 of the unedited Hansard and I quote: "Mr. Speaker, my point of privilege is that as a Member by identifying me as a Chair of a committee he insinuated that my question was not appropriate." Mr. Picco in his point of privilege indicated that he was asking his question as an Ordinary Member, not as Chair of a committee.

To consider whether the Member of Iqaluit has a point of privilege, you have to refer to the series of questions and supplementary questions asked earlier in the question period by Mr. Picco to the Minister responsible for the Liquor Licensing Board, Mr. Todd. Mr. Picco had asked a question and three supplementary questions on the matter of deposit fees on Liquor containers. Mr. Picco's point, as I understood it, centred around Minister Todd's previous comments, and I quote Mr. Todd: "My honourable colleague is the Chair of the Committee", and "I am surprised my colleague would ask that questions given his experience, depth of knowledge and as a Chair and active opponent in this House ...", end of quotes from page 2418 of unedited Hansard.

I considered the relevant authorities contained in Beauchesne's Parliamentary Rules and Forms, 6th edition, including citation 92, and I quote: "A valid claim of privilege in respect to interference with a Member must relate to the Members' parliamentary duties and not in the work the Member does in relation to that Member's constituency." Also, citation 31 provides guidance as to circumstances that may arise that on the surface may appear a question of privilege but are not, and I quote: "A dispute arising between two Members, as to allegations of facts, does not fulfil the conditions of parliamentary privilege", end of quote. There is always a difficulty for Members and sometimes for the Chair to differentiate between questions of privilege and questions of order. As to this particular point, I did not find that the two comments made by the Minister responsible for the Liquor Commission as to the role of the Member for Iqaluit, as Chair of a Committee, to be a question of privilege. However, the Chair does understand how at the time of the questioning the Member for Iqaluit perceived that the comments of the Minister appeared to respond to him as a committee chair rather than as the Member for Iqaluit. This still does not establish a prima facie case of privilege. As citation 69 clearly states, and I quote: "It is very important ... to indicate that something can be inflammatory, can be disagreeable, can even be offensive, but it may not be a question of privilege unless the comment actually impinges upon the ability of Members of Parliament to do their job properly", end of quote.

While sitting in the Chair and later in reviewing the point of privilege, however, I noted both Members were very close to having the Chair call them to order for other comments they each made. I must once again remind Members that questions and answers should not be argumentative nor provoke debate or contain inferences, impute motives or cast aspersions. I would hope all honourable Members will continue to be guided by these guidelines for asking and answering questions. Thank you.

--Applause

Item 2, Ministers' statements. Mr. Morin

Thank you, Mr. Speaker. Mr. Speaker, as many of you know, the Premier of New Brunswick, the Honourable Frank McKenna, resigned Wednesday after ten years as the leader of that province. When Premier McKenna first took office in 1987, the province of New Brunswick faced some serious financial problems. Under his leadership and direction, however, that picture has changed, and New Brunswick is now one of the bright spots in Canada in terms of economic development. An experienced and popular politician, Premier McKenna is not only dedicated to the people of New Brunswick but to all Canadians because of his commitment to Canadian unity. He is also a strong advocate for literacy, and has received international recognition for his efforts in that area.

Mr. Speaker, over this past year, Premier McKenna served as the Chairman of the Annual Premiers' Conference and hosted the Premiers at our meeting in New Brunswick this August.

More recently, in September, he chaired the Premiers' meeting on National Unity. At both of those meetings, he helped to ensure the Northwest Territories had an equal voice at the national level, and he expressed a great deal of interest in the unique challenges we face in the north.

Mr. Speaker, it has been a pleasure and an honour to work with Premier McKenna. He is, in fact, one of the most honourable men I have ever met. Whether he is working at the provincial or national level and whether it is for a professional or personal cause, Premier McKenna is an excellent role model for political leaders across Canada and, indeed, for all Canadians. I am sure all of the Members join me in recognizing the outstanding service Premier McKenna has provided his province and his country and wish him and his family continued happiness and success. Mahsi cho.

--Applause

Thank you, Mr. Morin. Ministers' statements. Ms. Thompson.

Mr. Speaker, this week, the week of October 5th to 11th is recognized throughout North America as Fire Prevention Week. This year's theme is, Know When To Go - React Fast to Fire.

Mr. Speaker, the Northwest Territories continues to lose too many lives each year as a result of fires in the home. It is important for everyone in the Northwest Territories to develop and practice an emergency escape plan for house fires. Once fire strikes, you may only have a few brief moments to safely evacuate the deadly gases given off by fire. I urge all residents to be aware of the danger of fire not only during this week but throughout the year. Check your smoke alarms and ensure that a portable fire extinguisher is readily available in your home.

Mr. Speaker, as I am also sure our fellow Members of the House would like to publicly acknowledge the significant contribution that our local heroes, our fire fighters, have made to the safety of our communities. Without their dedication and commitment to training and public education, we would see more tragic losses of property and lives in the Northwest Territories. I urge all citizens to participate in fire prevention activities planned for their communities and to contact your local fire department or the Office of the Fire Marshal if you need any assistance to make your home safe from fire. Thank you, Mr. Speaker.

--Applause

Thank you, Ms. Thompson. Ministers' statements. Mr. Dent.

Ministers' statements. Ms Thompson.

Thank you, Mr. Speaker. Mr. Speaker, each year hundreds of women and men put their names forward to run for a leadership role on a local municipal council or education authority. This year, municipal elections will take place on October 20th in cities and towns, on December 8th in hamlets and settlements and throughout the year in charter communities. It is expected that nearly 1,000 people will be campaigning for local office. Mr. Speaker, I would like to acknowledge every individual who expresses an interest in serving their friends, neighbours and colleagues at the community level by entering this election process. These are challenging times for local governments and for the people who sit at counsel and meeting tables throughout the north. Federal, provincial and territorial governments have recognized a greater responsibility and control at the local level and this will provide more relevant programs for community residents.

In the Northwest Territories for example, the responsibility of local authorities is expanding through initiatives such as community wellness and community empowerment. My greatest respect goes to the dedication and hard work of the elected leadership. I look forward to working with and continuing to work with our community leaders of today and following the upcoming elections.

Mr. Speaker, I would also like to offer a special congratulations to all the women who have chosen to run for any of the community leadership roles, to serve as campaign or election volunteers or to cast a ballot in the various elections. I strongly believe that the voices of women must be heard at all levels of government and especially at the community level. Women offer an important voice in society and in the north, and the upcoming municipal elections offer a great opportunity for women to get involved.

Finally, Mr. Speaker, I would like to recognize everyone who will take the time to cast a ballot on election day. In the past, voter turnout has been on average 50 percent of eligible electors. While this is a good percentage compared to the Canadian average, I would like to see that number much closer to a 100 percent. I encourage all northerners to exercise their right to vote during the upcoming municipal elections. It is not only your responsibility as a member of your community and as a resident of the Northwest Territories, it is also your chance to have a voice in the decisions that effect you and your family. Thank you, Mr. Speaker.

Thank you, Ms. Thompson. Ministers' statements. Item 3, Members' statements. Mr. Roland.

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

Thank you, Mr. Speaker. Today I would like to take you back to the period when Gordon Wray was Minister for Transportation. Realizing the need to have an upgraded highway system, the department started to improve the southern road system. Work began in the southern section of Alberta/Northwest Territories border, north in the 1980's. Then during session in 1990, Mr. Wray introduced the Transportation Strategy for the Northwest Territories. The subsequent Ministers, Mr. Todd and Mr. Antoine used this document for the basic framework to implement our current strategy for transportation needs in the territories.

In this document it showed the need to upgrade our highway system comparable to southern Canada. In 1990, construction started in both Fort Providence and Edzo to rebuild Highway 3 with the idea that within five years both ends would meet.

This year I was hoping to announce in the House that after seven years of construction, costing millions of dollars, Highway 3 is now paved between the Rae Access Road junction and junction to Highway 1. Meaning, once a person leaves Yellowknife and reached the Rae Access Road junction, he will be driving on pavement to one's destination in the south.

Unfortunately, I cannot say this as there is still approximately nine kilometres to be completed. I have been told that this work should have been completed this year, but due to the high rain fall and other unexpected weather conditions, there will not be the solid black ribbon line going through to the south until next spring.

Later during the question period, I will be asking the honourable Minister a question regarding this situation. Thank you, Mr. Speaker.

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

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

Thank you, Mr. Speaker. I rise today to give a report on a recent trip I took with you to Washington, DC. The trip was organized by the Commonwealth Parliamentary Association and its focus was on the U.S. education system. Discussions were on the similarities and differences between the two systems. Our meetings ranged from Ambassador Chretien at the Canadian Embassy, to officials of the federal government, the National Governor's Association and the U.S. Education Associations.

We also had an opportunity to visit the State of Maryland Legislature. We had discussions and lunch with State Senator, John C. Astle, and delegate, Howard Rawlings. The most striking similarity that I saw between our two countries is the attitude that the education system is failing some, mostly the poor and minorities, and that more results have to come from the money being spent. This has resulted in the Clinton Administration proposing voluntary national standardized tests. One for grade four in English and another in grade eight in mathematics. A major problem is the federal government only kicks in six percent of the budget for K-12 education and the states will foot most of the bills and the school boards which develop the curriculum do not like the idea of interference. At this time, only a few of the states have opted into this program.

Another similarity is the failure of the so called "holistic" form of education. This is where children are kept from their peer group. They are not failed, " x's" or red markers are not used on tests. Mr. Speaker, this debate has been raised many times in the north and the pedagogy surrounding it needs to be looked at by the Government of the Northwest Territories, as several of the provinces are now doing.

The States are also having the same debate over phonetics and whole language. Adherents on both sides insist their way is right and can only see a classroom that fully embraces their teaching methods. An official from the National Education Association pointed out the obvious in the situation. Since phonics are essential in teaching, reading and whole language is essential for writing and structure, both methods should be used in teaching in the classroom. This emotional debate over education, on both sides of the border, it appears that many miss the obvious solutions while fighting for their ideas.

The Americans introduced the whole language approach first in the New England states and then in California. Later on it came across the border and drifted into Canada, and now is widely used nationally and here in the north. Now, as I explained, many states are revisiting this approach and to say that it is a controversial issue is surely an understatement.

Other delegates from Canada also had many of the same concerns with the holistic approach to education. Mr. Speaker, I seek unanimous consent to continue my statement.

The Member for Iqaluit is seeking unanimous consent to conclude his statement. Do I have any nays? There are no nays. Mr. Picco, you have unanimous consent.

Thank you, Mr. Speaker. A disturbing difference between the U.S. and Canada involves teachers. From my understanding, there are no state or national unions for teachers. Each school board pays its teachers the wages it can afford and negotiate. This means that poor, urban centres with a low tax base, offer lower wages. The richer, suburban areas end up getting the better quality teachers, it would seem. The effect is reflected in Maryland where testing in Baltimore's inner-city schools showed 10 to 13 percent of students reached the minimum standard of knowledge for the grade level they were in. Meanwhile, in the richer areas the results were easily three to four times higher.

These sort of results have also resulted in the state going in and taking over the schools with poor test results and trying to establish better learning. This has been done with mixed results. Since each school board set its own curriculum, each school may teach different parts of courses. This includes core courses. This has resulted in many students, even "A" students not being properly prepared for post-secondary education.

Some colleges and universities have set up summer orientation courses to further educate freshman and bring them up to speed in an effort to prepare them for university courses. There is even talk of freshman using their first year of post-secondary education to upgrade their education enough to be able to handle a full university workload. Sounds familiar, Mr. Speaker.

Lastly, there was talk about the charter school system in the States. Charter schools are a relatively new type of public school, that is released from many of the regulations normally applied to public schools. In return there is an increased accountability to ensure students achieve better results. Half the states have passed legislation authorizing the establishment of charter schools. Each charter school is treated like an independent school agency. They get their funding directly from the state. Many areas are looking at charter schools because they feel they will have more say in its operations and standards.

Mr. Speaker, I am going to end my report there . The information on these and other subjects will soon be available in the legislature's library. I found my time in Washington to be very informative and to be able to speak with people who are attempting to deal with many of the same concerns and problems we are, is both eye-opening and helpful. Thank you, Mr. Speaker.

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

Thank you, Mr. Speaker. A year ago the community of Broughton Island decided they would like to have the renewable resource officer position transferred under community empowerment. The Department of Resources, Wildlife and Economic Development were sent a letter of interest in October 1996. The community was informed that there may be a problem with enforcement issues if the renewable resource officer position went to the community under community empowerment. The community did not see

this as being a problem because there are community constables who must enforce the law and do so.

To make transfer to community empowerment easier, enforcement was not to be included in the draft agreement. The community has continued to make requests for a draft agreement and the last three years have actual costs at Broughton Island position. The Department of Resources, Wildlife and Economic Development were contacted by a letter and e-mail over five times last year. Broughton Island has received nothing in writing from the regional office since January 29, 1997. The department has been contacted in writing three times since January, asking for a response. The community is frustrated with the lack of attention that this issue is receiving. Thank you.

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

Thank you, Mr. Steen. Members' statements. Mr. Arlooktoo.

Thank you, Mr. Speaker. My colleagues and I have given the highest priority to ensuring that division occurs as smoothly as possible and have devoted a great deal of time and energy on this issue. I strongly believe that this effort is imperative to ensure that the interests of all residents are met in the creation of two new territories. I also believe it is important to step back occasionally and to listen to what other issues our constituents consider important. Mr. Speaker, recently my constituents have reminded me of what those issues are. In recent constituency meetings and most recently during a phone-in show I conducted in Cape Dorset yesterday evening, I asked them what the most important issue was to them. What is the one issue that concerns them the most in their lives?

I heard people saying it was the daily struggle of keeping their families and paying bills is the most pressing issue. The high cost of living, the lack of jobs particularly in the eastern Arctic was by far the most important issue to them. This is the same thing in three communities that I represent, in Cape Dorset, Kimmirut and Sanikiluaq. With unemployment problems and families with many mouths to feed within their large families and few income earners, it comes as no surprise that people are concerned by the increase in pressure of trying to put food on the table.

For example, I heard concerns about the recent announcement by NAV Canada of user fees on freight rates. I know at this point it is unclear as to what effect this will have on the costs, and my constituency is worried. I know Minister Antoine shared this concern and had expressed them to NAV Canada. In support of Mr. Antoine, I have also met with the president of NAV Canada in Ottawa.

Another issue raised is the cutting of the federal government food/mail program. My constituents rely on this critical and important program to subsidize the high cost of food in the area. It is another issue that requires our attention. Mr. Speaker, I believe as we deal with the pressing and urgent issues around the region, we must continue to pay attention to other important issues raised by our constituents. Thank you.

Thank you, Mr. Arlooktoo. Members' statements. Ms. Thompson.

(Translation) Thank you, Mr. Speaker. I am going to be speaking in Inuktitut. In Repulse Bay this coming Sunday, the church will have an opening and I would like to thank those involved in building the extension of this church. I used to live in Repulse Bay 20 years ago and I was one of the people that founded this church with Paul Suisarnarq, and I am sorry I cannot join them in their celebration. But I will be sending a certificate and Sheldon will be presenting this. May God bless them. Thank you. (Translation ends)

Thank you, Ms. Thompson. Members' statements. Mr. Ootes.

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

Thank you, Mr. Speaker. Mr. Speaker, last year the Standing Committee on Government Operations set up an Investment Search Subcommittee. I was a member of that Investment Search Subcommittee, and we travelled to the Atlantic provinces to share information and ideas. Because of that trip, the Government Operations Committee made several recommendations for new programs to use dollars other than Government of the Northwest Territories' dollars to stimulate business activity across the north. One recommendation, of course, was the Aurora Fund, which is an immigrant investor fund. This fund has raised about $35 million and is now providing loans to northern businesses. The Aurora Fund 2, I cannot remember the name, will raise another $30 to $35 million. As Chairman of the committee that recommended this fund, I have been keeping up-to-date, and I am confident that things are running smoothly.

Another recommendation that the committee made was the Tax Credit Investment Program. We suggested the name of NORTHTIIP, which I believe stood for Northwest Territories Tax Incentive and Investment Program. The idea would be for people to buy shares in the funds which would be invested in businesses. The investors would get Northwest Territories personal on income tax credits and could also claim investments as RRSPs. There are several advantages to a program like this. It would allow Northwest Territories businesses to get equity risk capital in the Northwest Territories that will allow new businesses to start up and existing businesses to expand. A national consequence of that, of course, new jobs are created and old jobs are sustained. It would also help the Northwest Territories' economy to diversify and expand while GNWT dollars are used for social programs instead for economic activity.

Finally, the people investing would get tax breaks thus, they would get more money back from income taxes which would be put back into the system. We are told that every year, Northwest Territories residents invest over $25 million in RRSPs. That money is currently invested in the south. Mr. Speaker, I request consent to complete my statement.

The Member for Yellowknife North seeks unanimous consent to complete his statement. Do we have any nays? There are no nays. Mr. Erasmus, you have unanimous consent.

Thank you, Mr. Speaker. Currently over $25 million is invested in the north every year in RRSPs, which is invested in the south. Our recommendation would be to keep some of that money in the north. The representatives of the Atlantic Provinces that we spoke to told us that their programs are working very well over there. They could see no reason why it should not work over here as well. Mr. Speaker, the Tax Credit Investment Program is a good idea that should not die. At the appropriate time, I will be asking the appropriate Minister questions on this. Thank you.

Thank you, Mr. Erasmus. Members' statements. Item 4, return to Oral questions. Mr. Todd.

In return to an oral question asked by Mr. Picco regarding the Aurora Fund. The Aurora Fund Investment guidelines are established to ensure there is no conflict of interest on the part of the fund manager. All Aurora Fund loan applications are made to fund manager, Mr. Roland Bailey. He conducts an initial assessment to ensure the project is eligible for investment under the federal regulations. If it is consistent with the regulations, he repairs a loan documentation, similar to that prepared by a bank loan and provides that documentation to the Aurora Fund's Investment Sub-Committee.

This committee is made up of three members of the Aurora Fund's Board of Directors who are all independent of government and the fund manager. Before the Board of Directors can approve any loan, the Investment Sub-Committee must recommend the loan for approval. Neither the Board of Directors, nor the fund manager has any recourse if the Investment Sub-Committee does not approve a loan. This segregation of responsibility and authority between the fund manager, Investment Sub-Committee and the Aurora Fund Board addresses any concerns over the possible conflict of interest. Thank you.

Return to oral questions. Item 5, recognition of visitors in the gallery. Mr. Arlooktoo.

Thank you, Mr. Speaker. It is my pleasure to introduce two constituents from Kimmirut, Danny Pitsiulak, and my brother, Kip Arlooktoo.

Welcome to the Assembly. Recognition of visitors in the gallery. Mr. Ng.

Thank you, Mr. Speaker. I would like to recognize a constituent from Cambridge Bay, Mr. Murray Parson, who is the superintendent of FMBS. Thank you.

--Applause

Welcome to the Assembly. Recognition of visitors in the gallery. Mr. Krutko.

Welcome to the Assembly. Recognition of visitors in the gallery. Item 6, oral questions. Mr. Roland.

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

Thank you, Mr. Speaker. Mr. Speaker, let me apologize to my honourable colleague if there have been any members of his constituency who have had to wait for several months for their record of employment. That is not common practice. Common practice is that it is supposed to be done within a 30 to 60 day time cycle. I will look into the matter specifically about the people in Inuvik and see if there are any outstanding issues there and if there are, we will correct them accordingly. So once again, Mr. Speaker, if we have made any errors, and I suppose we have, I want to apologize to my honourable colleague for his constituents.

Thank you. Oral questions. Mr. Roland.

Mr. Todd.

Thank you, Mr. Speaker. Mr. Speaker, my understanding is that we are responsible for the record of employment for all employees. It may have been that there was a significant amount of layoffs earlier in the year, perhaps somewhat more unusual, more than we have ever dealt with before. That may have been the reason why there was such a delay in some of my honourable colleagues' constituents getting their documentation. That is not an excuse. We are responsible and as I have said earlier when I responded to his first question, I apologize for any delay.

Thank you. Oral question. Mr. Steen.

The Minister responsible for Municipal and Community Affairs, Ms. Thompson.

Thank you, Mr. Speaker. Mr. Speaker, Keewatin Pilot Project is a proposal to the Keewatin mayors and the Keewatin Pilot Project is a comprehensive proposal to transfer the management, maintenance and operation of all community based infrastructure to Keewatin community governments. The pilot project proposal was first introduced to the Keewatin communities at the Kivallivik Leadership Forum held in Repulse Bay on April 15 to 17, 1997. It was also in my Business Plan which was passed last budget through this House. Thank you, Mr. Speaker.

Thank you. Oral question. Supplementary, Mr. Steen.

Ms. Thompson.

Thank you, Mr. Speaker. Mr. Speaker, community empowerment is the priority of this government not the NIC, but we are consulting with the NIC and the Interim Commissioner on any infrastructure transfers which may impact on Footprints 2. So, we have studied Footprints 2 before we did this. This is just at a proposal stage to the Kivallivik mayors. Community empowerment is a priority of this government. This is under the priority of community empowerment. Thank you.

Oral questions. Supplementary, Mr. Steen.

Ms. Thompson.

Thank you, Mr. Speaker. Mr. Speaker, there seems to an understanding that this is a regional government we are forming. This is not a regional government. This does not have law making authority, so it is not a regional government. This is what the mayors of the communities want in the Keewatin. We are also proposing this pilot project to the Beaufort Delta communities. This is what we have heard from the communities of Keewatin that they would rather have community transfers done to the whole region instead of each individual community which is already happening across the Northwest Territories. Thank you.

Final supplementary, Mr. Steen.

Ms. Thompson.

Thank you, Mr. Speaker. Mr. Speaker, this is not a form of a regional government. It is not. It is just a coordinated way of transferring infrastructure instead of transferring into each community which is already happening across the Northwest Territories. The mayors got together and thought it would be more of a coordinated approach to do it as a region. We are not developing a regional government, and yes, the Interim Commissioner of Nunavut will be consulted on any infrastructure transfer which may impact on Footprints 2. This is not a regional government. It is a better way of doing things. Thank you.

Oral questions. Mr. Erasmus.

Thank you, Mr. Speaker. Mr. Speaker, my question is for the Minister of Finance. In regards to the investment package recommended to the Minister last year by the Standing Committee on Government Operations and specifically on the tax credit program that I referred to in my statement. Mr. Speaker, I have met with the Minister on this subject earlier, a couple of times. I also asked about it in committee meetings, and I was assured that things were progressing. At this time I would like to know what is happening with the investment tax credit program which we had referred to in our report as NORTHTIIP.

The Minister of Finance, Mr. Todd.

Thank you, Mr. Speaker. Mr. Speaker, first of all let me thank my honourable colleague, Mr. Erasmus for actually providing my department and myself with some direction on some of these new initiatives. As he said earlier, the Aurora Fund which we have just completed and we are on to Aurora Fund 2. On this initiative with respect to the tax incentive for small business we are developing a proposal as we speak. We are checking out what we think the net numbers will be in relationship to how much the tax credit is

going to cost us and what is the return on investment for it. Should we decide to proceed, we will need to bring in some legislation which will have to be fast tracked. I am optimistic at this early stage, although I have not done a complete analysis, but I am optimistic that we are going to get federal government approval because we have to get that to get Revenue Canada to assist us in this process. With committee and legislative support we may be able to incorporate this into our budget in early January and move expeditiously to pass the legislation that is necessary for this important initiative to unfold. Thank you.

Oral questions. Supplementary, Mr. Erasmus.

Thank you, Mr. Speaker. Mr. Speaker, would it be possible to get together with the Investment Sub-Committee and the Minister to see how to proceed on this matter?

Mr. Todd.

Thank you, Mr. Speaker. Mr. Speaker, well suddenly the initial partnership approach which we took with respect to analyzing other jurisdictions and how it would impact our constituency was a very effective one, particularly with the Aurora Fund. I would be only to happy to join with my colleague and the other colleagues to see if we could map out a strategy, assuming once we have done the financial analysis that it is in our best interest to conclude a strategy and to bring this new initiative into place early in the new year. Thank you.

Oral questions. Supplementary, Mr. Erasmus.

Thank you, Mr. Speaker. Mr. Speaker, in regard to another recommendation from the investment package, there seems to be some concerns about the Aurora Fund. I wonder if the Minister would arrange for the Ordinary Members to have an update on the Aurora Fund and the new fund as well.

Mr. Todd.

Thank you, Mr. Speaker. Mr. Speaker, I did try to clarify my return to oral question the day some of the concerns were raised by my honourable colleague, Mr. Ootes and my other honourable colleague, Mr. Picco. Yes. I have actually written to all Members of the House and asked them if they would like a briefing. When I get their responses, we will bring everybody up-to-date, assure them and try to answer whatever concerns. Of course, we will take any praise that they may wish to heap on us for the success of this program. Thank you.

Thank you. Oral questions. Mr. Rabesca.

Thank you, Mr. Speaker. Mr. Speaker, earlier during my Member's statement I talked about the improvements that have been completed on Highway 3. It is my understanding that we will not be able to enjoy a totally paved Highway 3 from Fort Providence to Rae Access Road until next spring. I would like to ask the Minister responsible for the Department of Transportation, the Honourable Mr. Antoine, if this is true.

The Minister of Transportation, Mr. Antoine.

Mahsi, Mr. Speaker. Mr. Speaker, it is true that the contractors were unable to finish about nine kilometres of the chip sealing between Kilometre 145 and 154 between Rae/Edzo and Fort Providence. It is incomplete. The contractors ran into some weather conditions. It was very wet this summer and they were unable to complete that section because of the lateness in the year. The intention here is to come back next summer or early next spring and complete that section and finish the chip sealing. Thank you.

Oral questions. Supplementary, Mr. Rabesca.

Thank you, Mr. Speaker. Mr. Speaker, I would also like to ask the Minister, are the funds for the completion of this section in place and will they be there for the next construction season? Thank you, Mr. Speaker.

Thank you. Two questions. Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, in this project there was some competition so the company that is responsible for building this road was the lowest bidder. It is in the contract to complete the road, and yes, as part of the conditions of the contract, he has to finish this section of the road. Thank you.

Thank you. Oral questions. Mr. Enuaraq.

(Translation) Thank you, Mr. Speaker. I will be speaking in Inuktitut. Earlier last spring the school in Pangnirtung burnt down to the ground. My question to the Minister of Education, Culture and Employment concerns the construction of a new school. I would like to know how well this construction is going. Thank you, Mr. Speaker. (Translation ends)

The Minister responsible for Education, Culture and Employment, Mr. Dent.

Oral questions. Mr. Miltenberger.

The Minister of Education, Culture and Employment, Mr. Dent.

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

Mr. Dent.

Oral questions. Supplementary, Mr. Miltenberger.

Mr. Dent.

Oral questions. Final supplementary, Mr. Miltenberger.

Thank you. Oral questions. Mr. Krutko.

The Minister of Finance, Mr. Todd. Two questions.

Well, Mr. Speaker, I would like the cheques to be in the mail. I have said that consistently. I would like to reach an arrangement on the pay equity. But I have said consistently that pay equity has to be an affordable issue. We are in sensitive negotiations right now or will be in the not too distant future with the UNW to try to reach some resolve on that very issue. Thank you.

Oral questions. Supplementary, Mr. Krutko.

Mr. Todd.

I understand that this has been a long, drawn out issue, by previous governments and this one. There is a genuine attempt here to try to reach an arrangement in a partnership with the UNW. Now, I am going to tell you, and I am going to make a speech about it on Tuesday or Wednesday. I do not think anybody in this House wants this governments to go out there laying off 300 and 400 employees. We have to ensure that the affordability issue is clear, front and centre when we get to the negotiating table because there is no breathing space in our fiscal framework. Yes, we have balanced the budget. Yes, we maybe have a $9 or $12 million surplus. That is one percent of our total budget. That could go in one or two days. So I think everybody has to be aware that while we are all relieved that the budget is balanced, we can get on to doing some other productive work, besides not being as compassionate as we would like.

We have to negotiate this arrangement under, what I call, the fiscal umbrella that we are all living in, to ensure that, one, it is affordable, and two, we do not have any more massive layoffs of employees because it will have to come from somewhere.

I am not prepared to borrow any money and do not have the legislative mandate to do so. Therefore, if there is not a negotiated arrangement reached; we, fundamentally, will have to address what other steps we are going to have to take. It will mean looking at programs and looking at employees.

Oral questions. Final supplementary, Mr. Krutko.