Mr. Chairman, under certain conditions, yes, we would be doing that. Usually when a community objects to a certain activity, they have a reason. Usually these are valid reasons that have to be dealt with before we proceed on anything. As a general rule, not that they have a veto, but they have a substantial amount of influence on the decisions we make. For instance, if a community group or a business person wants to cut a certain amount of timber in a certain area, but the community object because they want a good management plan for the resources in that particular area first and we think there are valid reasons for asking for a delay, we would seriously look at delaying. That is a bit of a hypothetical situation, but it highlights the relationship. Thank you.

Thank you, Minister Kakfwi. Mr. Erasmus.

Thank you, Mr. Erasmus. Mr. Minister.

Thank you, Mr. Chairman. We are not really encouraging southern businesses to apply to come in, cut the timber and ship it south. We have tried to make it clear to applicants and interested groups that they must have some northern, local or regional involvement in their businesses. Especially if they are southern based, there has to be some plan in place that says that within a year or two they will start to look at creating more jobs here in the north by starting to process some of the timber cut right here in the Northwest Territories before shipping it south. Thank you.

Thank you, Mr. Minister. I have operations and maintenance. I have Mr. Ootes next, but I also have a note from him to kindly introduce his wife, Marg Baile.

-- Applause

Mr. Ootes.

Thank you, Mr. Chairman. My understanding is the forest in the Deh Cho area, some of the timber is amongst the best in the world simply because it grows so slowly and is excellent wood. It no doubt has a great deal of value. I am wondering if the Minister could tell me how much the territorial government receives from the stumpage fees on an annual basis from the NWT forests?

Thank you, Mr. Ootes. I would also like to take this opportunity to recognize a former member of the Legislative Assembly and member of the Executive Council, Mr. Silas Arngna'naaq.

-- Applause

Mr. Kakfwi.

Thank you, Mr. Chairman. I believe what we have for this year is $1,872,000. Thank you.

Thank you, Minister Kakfwi. Mr. Ootes.

Thank you, Mr. Chairman. Does the department have a value of the timber that is shipped from the Deh Cho area, what the market value of that timber is?

Thank you, Mr. Ootes. Mr. Kakfwi.

Thank you, Mr. Chairman. We probably have that, but it is not readily available here. We can provide that to the Member. As far the Deh Cho and the Liard Valley, we have indicated to the operators that apply for timber permits in those areas that within a year or two of their initial operations that we expect to see some evidence they are going to start processing and cutting rough lumber, for instance, in the north as a condition of license renewal in the future. We are trying discourage the notion they can come in, cut the timber and ship south. We want some jobs created. We want to see some finished product or semi-finished product processed in the north before shipping south. Thank you.

Thank you, Mr. Kakfwi. Mr. Ootes.

Thank you, Mr. Chairman. That was going to be my next area of questioning. Why are we not encouraging more cutting and processing of the timber in the Territories? When we were in Fort Smith last summer, we had several presentations made to the Resources Committee by independent sawmill operators who were having difficulty getting timber rights. It would seem to me we are shipping timber out of the Deh Cho to the south with very little benefit to the communities. Although $1.8 million is very substantial, we could increase that if we were to commit the independent operators to work in concert with the band councils and the communities of those areas. They have the mills. They are not large mills, but they do have the mills. With the government's support, then it could possibly set up larger mills or portable mills to work in these areas. I am wondering if the Minister could comment about what steps are being taken to touch base with all the private operators and see if they can work with the community organizations on this matter?

Thank you, Mr. Ootes. Mr. Minister.

Thank you, Mr. Chairman. I believe the officials that deal with interested business applicants have been consistent in informing those businesses that apply for harvesting permits, to show some substantive indication they will, if they do not in their initial year of operation, early in the following year or years show some substantive commitment to processing a semi-finished or finished product by setting up a sawmill or showing they will sell to a sawmill located here in the Northwest Territories. In

one case that I know of, that was the condition of the issuance of a permit. Thank you.

Thank you, Mr. Minister. Mr. Ootes.

Thank you, Mr. Chairman. Has the department looked at the feasibility of setting up a sawmill in the Deh Cho area?

Thank you, Mr. Ootes. Mr. Minister.

Thank you, Mr. Chairman. Yes, we have been actively encouraging the communities and businesses involved in this sector to look at establishing a sawmill operation. Thank you.