Thank you, Mr. Chairman. We take every concern from the communities very seriously. We work with each community. I know the department staff have been working very well with the communities that David Krutko has been raising. We have a good working relationship with those communities. We are taking them seriously. Thank you, Mr. Chairman.

Thank you. Community development. I have Mr. Ootes.

Thank you. Madam Minister.

Mr. Chairman. I will get Mrs. Ballantyne to answer that.

Thank you. Deputy minister, Mrs. Ballantyne.

Thank you, Mr. Chairman. Mr. Chairman, the answer is yes. The department reviews the unaudited quarterly statements on a regular basis throughout the year. In addition, the audited statements are also reviewed as well. To provide just a little more information to the Member, the regional offices report the monthly balance in each community has accumulated surplus deficit accounts. This review is done with each of the funds that are in the communities accounts. That would include things like the municipal operations fund, the water and sewage fund, equipment reserves, water sewers, vehicle replacement, et cetera.

The regional offices are the front line. They are working on a day-to-day basis with the municipal government so they are providing feedback to municipalities. That is our early warning system on the front line.

Generally, in the past, MACA, in its instructions to auditors identified the specific areas the department might find of concern, the specific communities. In general, we have reviewed those instructions to auditors. They are becoming more detailed this year. In addition, as part of the department's re-organization, we have set up a new unit that will monitor and evaluate the financial and other performance of community government. It is an area that we brought increased rigor to and expect to provide even better feedback to communities in 1997/98. Thank you.

Qujannamiik. Mr. Ootes.

Thank you, Mr. Chairman. If I were to say I would like to have a look at the financial statement of each of the communities, in a day or two, three or four, the department should be able to provide me with a run down of the financial condition of each of the communities here in the territories. From what I heard the Minister state, this is done on a quarterly basis and on an annual basis. Perhaps I could have the Minister comment on my particular comment and question.

Thank you. Madam Minister.

Thank you, Mr. Chairman. We provided all the information to the Infrastructure Committee. The Infrastructure Committee has all of the detailed information the Member is asking for. Thank you, Mr. Chairman.

Thank you. Community development. Mr. Ootes.

Thank you. Madam Minister.

Thank you, Mr. Chairman. We have been talking to the Infrastructure Committee on the legislation bill. The first base is ready for the House. Thank you, Mr. Chair.

Thank you. Third supplementary, Mr. Ootes.

Thank you. Madam Minister.

Thank you, Mr. Chairman. If the Member had asked me an oral question on that, I would have taken it as notice and he would have received all the information afterwards. Anyway, I will get Mrs. Ballantyne to answer that.

Thank you. The deputy minister, Mrs. Ballantyne.

Thank you, Mr. Chairman. Mr. Chairman, with respect to government policies like the BIP and Affirmative Action, the department currently does encourage the municipal governments to adopt a northern preference policy with respect to purchasing and many community governments do so voluntarily. The question of GST is a concern for the department as well and we are looking at that specific issue. Perhaps I could ask if Mr. Christensen might address some of these issues, particularly with respect to the airport transfers. He does chair our infrastructure task team.

Thank you. Mr. Christensen, would you expand from here.

Thank you, Mr. Chair. The discussions the Department of Transportation has been having with communities in the Keewatin have been in terms of applying the Business Incentive Policy as part of any transfers. The issue of GST, though, is interesting in that the rules that will apply to communities after transfers are different than the rules that apply to the GNWT. In some cases insurance premiums and deductibles are different. The case of the application of

the GST or excise taxes on fuel is different as well. So, the approach that is being taken is to be very open with all the communities in any of these discussions to show and put all of the information on the table, so everybody can see what the financial implications will be to communities and what funding is available within the GNWT for these transfers.

On the one hand, there may be extra costs. One of the objectives for the transfer is to achieve savings through consolidations of assess management at the community level and to identify those potential opportunities for greater efficiencies by consolidating some of these activities through transfers at the community level. In the end there should be a net gain to the community as a result of these empowerment transfers. The increased GST cost is recognized, but it is brought into the presentation and the discussion and analysis that goes into coming up with transfer agreements that are developed. Thank you, Mr. Chair.

Thank you. Community development. Final supplementary, Mr. Ootes.