Thank you, Mr. Chairman. Today, I am pleased to present the 97/98 main estimates for the Department of Public Works and Services. This budget covers the first year of our three year business plan. The department's proposed budget for 97/98 showed the need for $83,672,000 in O and M, for 335 positions. Also for $3,835,000 in capital funding. This represents a decrease of 12 percent from the 96/97 main estimates. These amounts do not reflect the transfers of O and M resources that will go to departments as a result of the user pay/user say initiatives. The department estimates that $56 million will be transferred to other departments so that they can manage services such as the operation and maintenance of buildings and vehicles, purchasing and mail services, and project management.

After the transfer of funding to client departments about 150 Public Works and Services employees will continue to provide various services such as building and maintenance. The department will charge back the costs of those services to the user department. This charge back fund is expected to include $20 million and $25 million. The remainder of the $56 million transferred will be used by departments to provide their own service. The user pay strategy is a good way for departments to become familiar with the costs and the responsibilities of these services.

The department also continues to manage resources for the petroleum products division through a revolving fund which operates on a cost recovery basis. The research for privatization of petroleum products is being finalized in preparation for review by Cabinet before the end of March, 1997. I will update Members as soon as possible, as soon as more information is available.

A major change from the last fiscal year is the addition of the safety inspection group, formerly located in the Department of Safety and Public Services. This will increase the O and M budget by about $1.5 million. The Department of Public Works and Services provides support for many of the services that are being devolved to communities as part of the community empowerment initiative. The department is working with MACA to ensure that this process works smoothly. My department will turn over ownership and operation of buildings and equipment which support many community programs. While the plans are being developed, the department is preparing transfer agreements for the communities of Pangnirtung, Pond Inlet, Rankin Inlet, Arviat, Repulse Bay, Cambridge Bay, Tsiigehtchic, and Kahtlodeeche.

Thirteen other communities have expressed interest in transfer agreements. Community transfer agreements are the best way for the communities to gain experience in managing government resources. It is a natural transition to take more responsibility and helps the community to develop management skills. Mr. Chairman, a transition team was created in the department to steer the department's privatization, user pay and community empowerment initiatives. This transition team is temporary and will phase itself out as its objectives are accomplished over the coming year.

Finally, Mr. Chairman, I would like to add that the Department of Public Works and Services takes career development seriously. We demonstrate this by working closely with Education, Culture and Employment; Transportation and the private sector to sponsor the first ever northern pre-engineering program at Aurora College. Students in this program are working to gain the math and science skills to allow them to go on to studies for engineering technologist careers. I would like to take this opportunity to commend both management and staff of Public Works and Services for their contributions in accomplishing government initiatives during these difficult times. I am proud of how the staff of Public Works have dealt with the many significant changes. That completes my opening remarks, Mr. Chairman. I will be pleased to answer Members' questions.