Thank you. The honourable Minister of Education, Culture, and Employment, Mr. Dent.

Oral questions, Mr. O'Brien.

Thank you, Mr. Speaker. My question is to the Minister responsible for division. I am curious as to whether or not there is an agreement in place as to who will pay for the incremental cost on infrastructure that is required prior to division. For example, if there were 50 homes being built in Arviat and 30 offices prior to 1999, who will pay for the upkeep of these units prior to 1999? Thank you.

Thank you. The honourable Minister, Mr. Todd.

Thank you, Mr. Speaker. It would be the federal government. It certainly would not come out of this budget. Thank you.

Thank you. Oral questions, Mr. Roland.

Thank you. Mr. Todd.

Thank you, Mr. Speaker. If my honourable colleague is referring to the document that I shared with the western coalition last week, my understanding is everybody has signed off on it and we are just waiting for Mr. Martin to send a letter confirming it. The only reason we

have not received it is he is very busy selling the budget he announced on the 18th. Thank you.

Thank you. Supplementary, Mr. Roland.

Thank you. Mr. Todd.

Thank you, Mr. Speaker. I have suggested to my colleague and the western coalition while the federal government has the responsibility to call us to the table to initiate discussions on timelines and the framework for two new formula financing frameworks, I think it is incumbent upon us to take the lead and call a meeting of both the officials of the northern coalition, the GNWT, NTI, interim commissioner, and the western coalition to see if there is some common ground we can reach prior to us going to Ottawa at the official level and starting the discussions on the formula arrangements. As we speak, I am having my staff draft the appropriate letters to the appropriate parties, suggesting we meet as quickly as we can to see if we can reach a common position on the approach we will take when we sit down with Mr. Martin's officials in April. Thank you, Mr. Speaker.

Thank you. Oral questions. Mr. Picco.

Thank you. Minister of Public Works and Services, NWT Housing Corporation, Mr. Arlooktoo.

Thank you, Mr. Speaker. I think the Housing Corporation has been one of the biggest supporters of small businesses and small construction companies. We have gone to great lengths to ensure the small companies get the experience necessary to be able to compete on their own. The issue the Member is talking about, the two different ways of tendering for the building of new houses, the labour-only contracts and the supply, ship and erect contracts, are two different ones that are used throughout the Territories. In some communities we have used one over the other or a combination of the two.

In the Baffin region, as the Member says, there have been many requests by LHOs to go the supply, ship and erect route by local housing organizations and by some of the companies. It is an area we are looking into, an area that most of the region is interested in and I think is the way of the future in many cases.

Thank you. The honourable Member for Iqaluit, Mr. Picco.

Thank you, Mr. Speaker. This is a very serious issue because a lot of the small construction companies which provide work in our communities do the labour only. They do not have the cash flow, for example, to bring in materials to do supply and erect and that is the reason for the labour-only contracts. Can the Minister assure this House that he will actually re-examine this area? This is a major change in direction in policy for this government. Can the Minister tell this House that he will re-examine this and see what the status is? Thank you.

Qujannamiik. The honourable Minister, Mr. Arlooktoo.

Mr. Speaker, this may be a change for a few of the companies that have been working on labour-only contracts. The supply, ship and erect contracts have been going on for some time and is the preferred method for some companies. I do understand the Member's concern. I did see the two letters from two companies in the Baffin. We are looking at them and are considering them. There are cases where a company needs a different type of arrangement for financing purposes and we will remain flexible and assist them wherever we can.

Thank you. Second supplementary, Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, the concern is some of these tenders are already out and they are already saying supply and erect instead of just labour. That puts some of these smaller companies behind the eight ball because they have to try now to get the financing to bring in the material and to book it on the ships and so on. It is the Housing Corporation doing this and not the local housing associations, that is what I am told. If it is the Housing Corporation then that is ultimately the Minister. Will the Minister re-examine the tenders that are actually now out, that have not been signed off and to contact the companies? I do not know what type of work was done with consulting with

those local firms in our communities. Maybe the Minister could tell us what kind of consulting was done before you entered into this type of an arrangement for all contracts. I understand all contracts now issued are supply and erect instead of labour only. Thank you, Mr. Speaker.