Thank you, Mr. Speaker. Mr. Speaker, I would like to begin my response to the 1998-99 Budget Address of the Minister of Finance by reviewing some of the statements made by the Minister in his Budget Address. Mr. Speaker, Mr. Todd announced that the deficit picture has shown improvement. Mr. Todd is forecasting an annual surplus for the second consecutive year and the 1998 budget forecast also indicates that another $2 million will be put against our accumulated deficit. Like many of my colleagues in this House, I had wanted to try and balance the budget in the first year of the government, but realized that a timeframe of two years was needed. We are now beginning to see the efforts of the downsizing and reductions. Mr. Speaker, I have not been a fan of many of the reductions and cutbacks. I was against the closure of Personnel. I was against the elimination of the regional directors and voted against the Public Service Act. Mr. Speaker, because territorial revenues only account for 20 percent of our revenue, we are at the whim of the formula financing grant. Our revenue is forecasted to decrease again this fiscal year. Mr. Speaker, the 13th Assembly has had many difficult decisions to make, many as a result of the spend-free attitude of previous Assemblies. At the end of the day, this must be remembered. Mr. Todd said that we cannot afford to expect funding levels to grow annually from Ottawa, as in the past.

The budget initiatives focused on investment, job creation and improving social conditions. Mr. Todd announced two new tax initiatives, the NWT Tax Investment Credit and the NWT Child Benefit. Mr. Speaker, I would like to congratulate Mr. Todd on these initiatives. I had asked Mr. Todd to look at some type of tax relief for low income families and was a member of the task force that looked at increasing private business expenditure, through an investment tax credit. Mr. Todd's earlier release of information on the P3 also received much play in his budget. Mr. Speaker, I support the P3 in principle. I see it as a way to follow through on the 1988 agreement with the federal government to replace the Inuvik and Baffin hospitals. However, the P3 have to be affordable and transparent as I have stated earlier. The principle is sound, but the lease cost in the long-term is a concern. As an example, the NWT Construction Association noted that the P3 projects should be transparent, selection of projects and awards should be competitive, known to all parties and be fairly evaluated. The projects selected should also be affordable and sustainable. Mr. Speaker, in other jurisdictions where the P3 principle has been used, the projects were and are, in large part, the bigger projects. An example in the Northwest Territories would be the Inuvik and Baffin hospitals. The P3 in my knowledge has not been used for a new $800,000 building or a $1 million rec centre. More information and the prioritization of projects within the current capital plan has to be the key to the transparency of the P3. Mr. Speaker, the announced increased income support food allowance is also a step in the right direction. This, again, was a good move by the Finance Minister and Minister Dent.

Mr. Speaker, the Accelerated Home Ownership Program is welcomed but will not address the shortage of new social housing units. The federal government abandoned the funding of new social housing and this government has tried various

ways, with some degree of success, to increase home ownership; but what is missing is the almost saturation of low income families eligible for home ownership and the void of new social housing. This has to be addressed. Mr. Speaker, the budget did not address the continued government policy of holding the line on forced growth. As an example, we are now beginning to see major concerns voiced by parents, education boards and the NWTTA with the funding of education in general. Increased pupil/teacher ratios, and staffing shortages, as well as general O and M funding for schools, has not been addressed. Our employees last had a pay increase of a paltry 1.8 percent four years ago, and then suffered the indignity of more than a six percent rollback in 1996, with the elimination of VTAs, Donny Days and other fiscal rollbacks.

Mr. Speaker, the public service has done its fair share for deficit reductions and a signal by the Finance Minister of some gains in collective bargaining would have been well-received. Mr. Todd emphasized a need to start the two new governments, after division, off on the right financial footing. He also stated that the vision would have a very positive economic impact on both new northern governments. Many of the reductions in the first years of the 13th Legislative Assembly, amalgamation of government departments and the elimination of departments like Personnel, have a legacy that may take some more time to fully evaluate. Mr. Todd put into place, starting shortly after the election, so many key deficit and priority spending plans that many thought were not possible.

Mr. Todd has weathered the attacks, criticism and questions in this House, while all the while keeping his sense of humour. I infrequently agree with Mr. Todd, but respectfully submit that few northern individuals or politicians could have changed in such a short time the deficit reduction strategies put in place by Mr. Todd. He has balanced the budget, and again, forecast a small surplus. It will take time to evaluate the impact the achievement of the surplus and balanced budget has had. Mr. Speaker, Mr. Todd's third budget will try and deliver the second annual surplus in several years, but the acid test will be at what cost to the services, programs and people of the Northwest Territories. Thank you, Mr. Speaker.

--Applause