Thank you, Mr. Chairman. Mr. Chairman, right now the GNWT, through the various departments, spend quite a bit of money on administration of programs. Part of the reason we spend as much as we do in that area is because of the duplication between the different departments in the administrative area. Part of the premise for the community empowerment initiative is that by combining a number of activities at the community level under local administration, then the savings that are realized through the consolidation of activities that money can then be used on other community priorities. Right now there is a significant amount of every program dollar that is spent on administration and it is really a consequence of each department running everything from Yellowknife right down to the community level through the regional operations.

What we would like to see communities able to do through community empowerment is to combine a number of activities and maintenance is a good example. In every small community in the Northwest Territories, DPW has a garage and a workshop. The Housing Corporation has the same, the local hamlet office has the same. If all of those functions can be combined under the hamlet then there are savings. Cape Dorset has had some significant success in this area by combining the warehouse, by consolidating the equipment and the tools. The other good thing that happens in those situations is that you get some of the more highly skilled staff able to provide apprenticeship opportunities to others who may previously not have had that opportunity. Those are the plus sides.

As Members have been pointing out, we are trying to balance that with any additional cost or cutbacks in programs that the communities are also needing to take into account. Overall, we need all of that information on the table before communities. The analysis needs to be done at the local level to make sure that in each specific case it is going to be not only cost effective but that we will not see reduction in the level of service to the public as a result of the transfer. Many more objectives in place than simply us transferring a program. It is very much meant to be an opportunity for communities to take control over the programs and services that do matter to local people. Thank you.