Thank you, Mr. Todd. All those in favour of the motion, please signify. Thank you. Down. Against. The motion is carried. Bill 14 has had first reading. First reading of bills. Item 18, second reading of bills. Mr. Todd.

Thank you, Mr. Speaker. I move, seconded by the honourable Member for Baffin South, that Bill 14, Supplementary Appropriation Act No. 1, 1997/98, be read for the second time. Mr. Speaker, this bill makes supplementary appropriations for the Government of the Northwest Territories for the fiscal year ending March 31, 1998. Thank you.

Thank you. The motion is in order. To the principle of the Bill. Question has been called. All those in favour, please signify. Thank you. Down. Opposed? Bill 14 has had second reading and is now moved to the committee of the whole. Second reading of bills. Item 19, consideration in committee of the whole of bills and other matters. We have Bill 14 and Minister's statement 77-13(4) with Mrs. Groenewegen in the chair.

Thank you, Madam Chair. Supplementary Appropriation, No. 1 can select requested authority for additional appropriations of $39,119,500 made up of $13,866,500 for O and M expenditures, $25,253,000 for capital expenditures. A number of inter-departmental transfers are also included in the supplementary, which do not require additional funding. The additional appropriations have been provided for in the estimated supplementary appropriation requirements included in the 1997/98 main estimates, or will be funded out of new revenue sources. The appropriation requirements include: $16 million for the implementation of the Northern Employment Strategy that we announced today, $12,341,000 with capital projects carried over from 1996/97. These funds were lapsed in the 1996/97 fiscal year. $8,087,000 for the replacement of the Pangnirtung high school, which was destroyed by fire. A major portion of this appropriation will be recovered from our insurer. $1,096,000 with implementation of the government's self-government mandate. The balance of about $500,000 which will be directly

offset by additional revenues. Thank you, Madam Chair. I now would be prepared to get into the detail, along with my staff, if you so wish.

Thank you, Madam Chair. On behalf of the Standing Committee on Government Operations, it is my pleasure to provide our report on the Supplementary Appropriation Act No. 1, 1997/98. The committee met with the Minister of Finance on Friday, May 23, 1997 to review the appropriation. Many of the items in the Bill are related to five areas: funding for the northern employment strategy, capital carry-overs from 1996/97, medical travel funding to boards, user-say/user-pay transfers from the Department of Public Works and Services, and transfers of funds to support community empowerment.

We had some concern about the amount of capital carry-overs. However, we note that it is about $6 million less than last year. Better planning should reduce this amount even further, than has already been done. In areas where the Members had questions about the Bill, we were generally satisfied with the explanations provided by the Minister. This concludes Government Operations report on Supplementary Appropriation No. 1, 1997/98. Thank you.

Yes, Madam Chair. It is Mr. Voytilla, who is the deputy minister of FMBS. Thank you.

Thank you, Madam Chair. Good question. It will not impact negatively on our bottom line at the end of the year. This was funded through the reserves and some, as I said in my speech - are you talking about the $16 million? It is funded by good, solid fiscal management of this government and the sale of some of our assets, which we sold more than we expected in the time period that we had and will have no impact on the bottom line based upon the targets that we have set early in the year. Thank you.

Agreed.

Agreed.

Agreed.