Thank you, Mr. Speaker. Mr. Speaker, last week the federal Finance Minister announced the National Child Benefit. This program will provide families whose income falls below a certain level with a benefit for each child under the age of 18. It will combine federal tax credits and low-income benefits into a single initiative to reduce child poverty. The program will ensure income support levels for children whose parents choose to work are not reduced. The announcement enables each province and territory to begin talks with the federal government to identify how each jurisdiction's income support programs will merge with the national program.

The Department of Education, Culture and Employment will be the territorial government's lead department in negotiations with the federal government, working in co-operation with the Departments of Finance and Health and Social Services. The two major issues facing us are: ensuring that the high cost of living in the north is taken into account when the income levels for the program are set, and determining how to re-invest income support money that is freed up through the program. This re-investment plan will focus on approved programs directed at children, such as early intervention and child care, as well as work incentives for parents.

Mr. Speaker, negotiations with the federal government, and a draft program design, should be finished by June. The federal, provincial and territorial Ministers responsible for social services have agreed to release information in the spring that will focus on how the program will be designed, as well as other issues. A process for national public feedback will be proposed.

The National Child Benefit Program is proposed to start July 1, 1998. However, the federal government, provinces and territories are working hard to advance this date. I note also that the federal government will increase the working income supplement on July 1 of this year as an interim measure. At this point, we are not sure how the National Child Benefit will impact northerners. Education, Culture and Employment staff will be keeping track of the program as it evolves to assess the benefits for Northwest Territories residents.

Income support reform in the Northwest Territories is based on the principle that people should be better off working than collecting income support. The National Child Benefit is intended to help level the playing field between income support recipients and the working poor. I will keep the Assembly informed of progress on this initiative in the coming months. Thank you, Mr. Speaker.

-- Applause