Thank you, Mr. Speaker. I have a reply to a written question asked by Mr. Krutko on January 28, 1997 regarding Chief Julius School gymnasium. Mr. Speaker, the Department of Finance is currently working on our behalf with the insurance company on a final settlement amount. Once we have settled the claim I will inform the Member as to the amount to be recovered. However, Finance advises that the claim is not likely to be settled for a number of months.

The department agreed to fund a standard gymnasium for the new school in Fort McPherson through a contribution agreement to the Beaufort-Delta Divisional Education Council. In turn, the Council signed a contract with the Gwich'in Development Corporation. After the community indicated it wanted a gymnasium to be built with the new school that was larger than would be permitted by departmental capital standards, the Gwich'in Development Corporation agreed to fund the additional costs of building the larger gymnasium within the amount of money being proposed by the department. Tetlit Zheh Construction is the construction arm of the Gwich'in Development Corporation.

Mr. Speaker, it was understood by all parties that the funds allocated for the building of the school were based on the department's capital standards and those items in excess of standards and the agreed amount would be covered by the Gwich'in Development Corporation. Tetlit Zheh Construction was aware of this understanding when it signed the contract. Thank you, Mr. Speaker.