Thank you, Mr. Chairman. Mr. Chairman, looking towards the future, we will be reviewing the opportunities for sharing services, considering different options for out-of-territories arrangements, determining whether the needs of the systems in the east and in the west will require different ministries' structures and functions, and whether the ministries of boards in either territory will offer services to the other territory. In the short term, Mr. Chairman, we have already had to make some difficult decisions in planning our budget. We have had to close facilities and reduce funding for programs. However, with the help of our stakeholders, we have also been able to strengthen our support to some urgent areas of need and to continue our emphasis on ensuring a continuum of care based on home, community, and regional resources.

One of our major challenges in the NWT is support for people dealing with addictions, particularly young people who use alcohol, drugs, and inhalants. In 96/97, we outlined a funding plan for treatment centres that will give the centres much more flexibility in program design and delivery and allow communities an opportunity for more control over treatment for people with addiction problems.

Phase two of this funding plan will provide 50 percent core funding to treatment centres, the balance will be based on occupancy. One treatment centre, Delta House in Inuvik, will lose its core funding. Funding to Northern Addiction Services in Yellowknife has also been reduced. While NAS has the flexibility to determine where program reductions will be made, it is anticipated that the major reductions will be in the detox area.

The problem of youth addictions continues to be a major concern across the Northwest Territories. However, the federal government withdrew its pilot program funding for the Youth Inhalant Abuse Program. Because this is such a critical area of concern, I have directed the department to support that program for 1997/98. In trying to reduce the problems resulting from addictions, the prevention and support programs provided by community projects are critical. To support this, the overall level of community project funding will continue, although the department will ensure a more equitable distribution of resources among communities.

Community control and participation is also important in caring for people who need help living independently. By strengthening our home care supports, people can stay in their home communities longer with less reliance on facility based care. The department can no longer maintain small hospitals whose beds are not effectively used. Consequently, the Fort Smith and Fort Simpson hospitals will be reprofiled. As well, the department will evaluate all eight to ten bed, long-term care facilities.

We have already concluded that 24 hour residential programs are unsustainable in three to five bed facilities and will be moving towards closing them. Consistent with our effort to provide a coordinated continuum of care and an integrated delivery system, work on the Inuvik and Iqaluit hospitals will only proceed when their respective roles within an integrated health system are clarified. Our objective in introducing these changes ensure the availability of care as close to home as possible, to strengthen home supports and, by reducing inefficiencies, ensure the long-term sustainability of the system.

The Community Action Fund was initiated in 1995 as a one year funding arrangement to provide resources for community groups to develop action plans for community wellness. This fund was extended for an additional year in 1996 to allow communities more time to progress with their planning activities. Many communities responded and have developed broad based plans for community action. However, it is now time to move from the more general planning activities to focus better on the areas where the most long term benefit can be realized. Consequently, the Community Action Fund has been eliminated from this year's budget.

A major new initiative designed to produce long term benefits by focusing on helping young children, the Early Intervention Initiative is being introduced in the coming fiscal year. Some of the activities funded under the Community Action Fund will qualify for funding under this new initiative. My colleague in the social envelope, the Honourable Charles Dent, will be speaking to the Early Intervention Initiative in his budget. It is an area where, by re-directing funding, we know long-term benefits can be gained.

One other area of continuing concern is the cost of medical travel. While most boards have managed to reduce the rate of growth, costs continue to climb. The department will give some relief to boards for medical travel. We will address the current funding shortfall and anticipated force growth next year. Despite efforts that have already been taking to reduce the inappropriate use of travel funding it is still apparent that we must press further. To accomplish this, the department will withdraw a portion of their funding for non-medical escorts. Mr. Chairman, with regard to medical travel as well as all other expenditures, it is important for spending decisions to be made at the point where the money is spent.

In the past, the department has held medical travel and other monies, while regional and front line staff have decided how these funds would be spent. This division of responsibility and accountability does not work. To rectify this, a funding allocations system is being developed so the department can fund boards equitably. This funding allocation system will also pave the way to an appropriate sharing of resources between Nunavut and the western territory.

Introduction of a formula based approach to funding will increase the accountability of boards for their expenditures. For the boards to be fully accountable for their decisions, they must also take responsibility for deficits and must be allowed to retain surpluses.

In addition to having greater authority over their budgets, boards also need access to timely and relevant information. To improve this capability and to help the departments and boards make good decisions, the department is improving its monitoring and compliance systems.

This will have the result of ensuring that community, regional, and territorial information is available on which decisions can be based. Mr. Chairman, I have highlighted some of the actions the department has taken in the 97/98 budget by working together and by taking responsibilities for health as individuals and communities. I am confident we can ensure residents of the NWT continue to receive high quality health and social service programs. Thank you, Mr. Chairman.