(Mr. Ningark): Thank you, Mr. Arlooktoo. The Speaker, Mr. Gargan is in his constituency today attending a funeral. Our condolences go the community of Kakisa. Orders of the day. Item 2, Ministers' statements. Mr. Arlooktoo.

Mr. Speaker, I am pleased to speak today about the new housing initiative raised by my colleague, the Honourable John Todd in his budget speech. The Accelerated Homeownership Program initiative is estimated to provide approximately 1,000 new homes. The initiative could inject an estimated $40 to $50 million of housing to meet the immediate demands of homeownership assistance over the next two years. This initiative builds upon the PLAN 2000 initiative announced last year.

The Accelerated Homeownership Program will be directed toward all northerners who can afford to be homeowners. This initiative will utilize the Housing Corporation's Expanded Downpayment Assistance and Independent Housing Programs to allow even more clients to be served in a shorter time period.

There are a number of benefits under this initiative:

The increased ability to serve even more clients under the corporation's Expanded Downpayment Assistance and Independent Housing Programs. These programs have been very popular, with the number of applications significantly exceeding what the Housing Corporation can provide; and

Low income families in the north will have the opportunity to move into social housing units made available by higher income tenants who become homeowners. Also, any GNWT staff housing units made available because the occupants choose to be homeowners will be transferred to social housing thus increasing the social housing stock.

The construction of the 1,000 homes will produce economic spinoffs, particularly jobs, in the communities. The most important benefit, however, will be the health and stability of families in need who receive housing units as former higher income tenants move into their own homes.

Mr. Speaker, the 1996 housing needs survey showed that there was a core housing need of over 4,300 households, many of these are aboriginal families. The Department of Indian Affairs, while commenting on the severe housing need, did not make any commitments to help solve the housing problems in the north in their response to the Report of the Royal Commission on Aboriginal Peoples. Mr. Speaker, I have to say that I was very disappointed; this is an aboriginal housing problem. I plan to continue my efforts to make this point with the federal government, focusing on the fact that investments in housing in the North will play a large part in curbing the growing aboriginal health and social problems.

Mr. Speaker, we know that adequate, suitable and affordable housing is important to the north because overcrowding and inadequate housing conditions are the root cause of many of our health and social problems. The GNWT decided we cannot wait for the federal government to provide assistance to deal with our growing housing problem. Therefore, the GNWT has stepped in to provide innovative solutions now before we have a problem that goes beyond a crisis.

Thank you. Ministers' statements. Mr. Todd.

Mr. Speaker, I am pleased to provide Members with an update on the status of the GNWT's two Immigrant Investor Funds.

Aurora Fund (1996) is fully subscribed. One hundred and thirty nine investors have signed subscription agreements and made deposits to the fund ranging between $10,000 and the full subscription price of $250,000. Fifty-six investors have provided the full subscription price. Of those, the Aurora Fund has issued notes to 47 investors, which means that a total of $11.75 million has been received by the fund.

Of that amount, approximately $7.8 million has been loaned to the following northern companies:

- 3370755 Canada Inc, operating as West Air, in Hay River for the purchase of an aircraft;

- AADRII Limited in Fort McPherson for the construction of a waste heat distribution system;

- GDC Air Leasing Ltd. in Inuvik for the purchase of an aircraft;

- The NWT Cooperative Business Development Fund for the upgrade of digital telecommunications equipment throughout the NWT;

- The Shoe Store Limited in Yellowknife for the purchase of an aircraft;

- 943637 NWT Limited/Beaver Enterprises (Const.) Ltd. in Fort Laird for the purchase of remote camp equipment;

- 2755084 Canada Inc. in Yellowknife for the purchase of helicopters.

This is excellent news, since the companies who have received funding from the Aurora Fund have provided new jobs for northerners.

Out of the balance of the funds received, approximately $3.95 million, $2.45 million has been temporarily invested in bonds and other liquid assets and approximately $1.5 million has been expended in marketing, sales fees and initial start-up costs.

Aurora Fund (1996) should shortly be in a position to issue notes to an additional nine investors, providing $2.25 million to the fund, of which $1.6 million will be available for lending to northern companies

Aurora Fund II has also been very successful to date. So far, the fund has received signed subscription agreements from 136 investors who have made deposits ranging from $10,000 to the full subscription price of $250,000. Of the 42 investors who have now transferred the full subscription price, 17 have received Aurora Fund II notes. Three point nine million dollars has been transferred to the Aurora Fund II investment account as well $260,000 has been expended in marketing, sales fees and initial start-up costs. Of the $3.9 million in the investments account, $2.8 million is available to provide loans to northern business. Aurora Fund II should shortly be in position to issue notes to an additional 25 investors, providing $4.25 million to the fund, of which $3 million will be available for lending to northern companies.

Recently, Citizenship and Immigration Canada announced an extension to the current Immigrant Investor Program. The Aurora Fund II has applied for and received permission to extend the marketing period of Aurora Fund II to June 30, 1998 from December 31, 1997. This extension should allow the fund ample time to sell out the fund, and the majority of the subscription proceeds should be received from both funds by that time.

The two Aurora Funds are government-administered venture capital funds. Therefore, the federal government requires a certain amount of supervision of these funds by our government. To this end, the board of directors of the two funds include: two Ministers of the government, myself and the Minister of Resources, Wildlife and Economic Development and three senior government officials, the Comptroller General and the deputy ministers for the Department of Resources, Wildlife and Economic Development and the Department of Justice. In addition, three individuals from the private sector are also board members, a commercial banking representative and two independent business persons residing in southern Canada. Each of the three has vast experience in the banking sector of the Canadian economy.

Since the Aurora Funds have no full-time employees, firms under contract with the funds are responsible for the administration of the fund. Roland C. Bailey and Associates is the NWT investment manager for both funds and also manages the day-to-day activities of both funds.

The funds also contract, on a fee for service basis, for the legal services from Gullberg, Weist and MacPherson and auditing services from Avery, Cooper and Associates.

I am pleased with the success to date of these two funds. I am confident that they will continue to be successful and that the benefits provided by these funds will be felt for many years to come. Thank you.

Thank you. Ministers' statements. Mr. Ng.

Thank you, Mr. Speaker. I would like to announce progress on plans for 1999, the International Year of Older Persons.

In 1992, the United Nations General Assembly decided to observe the year 1999 as the International Year of Older Persons. The theme it chose was Toward a Society for all Ages with the overall objective to promote the UN Principles for Older Persons: independence, participation, care, self-fulfilment and dignity.

In June, 1996, federal, provincial and territorial Ministers responsible for Seniors agreed they would work cooperatively to develop partnerships with the private sector and seniors to market 1999 as the International Year for Older Persons. The Ministers proposed that a Canada Coordinating Committee, comprised of representatives from each jurisdiction be established to stimulate and coordinate national projects and activities.

A territorial coordinating committee has been spearheaded by the NWT Seniors' Society to assist in the planning and coordinating of activities for celebration of the International Year of Older Persons.

Mr. Speaker, I wish to encourage my colleagues to support the activities that will be forthcoming to celebrate the seniors of the Northwest Territories in 1999. Thank you, Mr. Speaker.

Thank you. Ministers' statements. Item 3, Members' statements. Mr. Evaloarjuk.

(Translation) Thank you, Mr. Speaker. I would my colleagues, to think about a person that is presently being buried in Igloolik. This person committed suicide and has lost a lot of relatives in the past. I just want to tell the Members to think about the family in Igloolik. (Translation ends)

Thank you, Mr. Evaloarjuk. Members' statements. Mr. Barnabas.

(Translation) Thank you, Mr. Speaker. I will be speaking in Inuktitut. Just recently I spoke with people in my constituency, and people approached me with concerns about billeting procedures in Iqaluit. Mr. Speaker, there is a boarding home for students going to college. Mr. Speaker, recently people travelling in the Baffin to go to the hospital had to find their own billets or had to find their own boarding homes, and if a person was going to Iqaluit to have a child, they would have to make their own arrangements or billets. We are glad that there is a boarding home now available to these patients. Mr. Picco is aware of the concerns and he is aware of those people who opened their homes to the people who travelled to Iqaluit. I would also visit Mr. Picco. He also had people from Clyde River and from other communities stay with him. There is a boarding home available now in the Baffin, and we are very happy with this. When I talk to the people who travel to Iqaluit for health reasons, they are very happy with the boarding home. They are able to eat traditional food in the home. They are being very well taken care of. I just wanted to speak today to say that we are very happy that the Department of Health was able to put in a boarding home in Iqaluit. I would also like to recognize the people that took in patients before the boarding home was open. Thank you. (Translation ends)

Thank you, Mr. Barnabas. Members' statements. Mr. Ootes.

Thank you, Mr. Ootes. Members' statements. The Member for Iqaluit, Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, in this House and accumulating with the removal of ERS airport response in Iqaluit and other communities, I continue to oppose the elimination of ERS or emergency response at those airports. ERS was removed because the Department of Transportation followed federal guidelines which indicated

did not have the money to continue to offer the services. Through cooperation with Minister Antoine and Minister Thompson, our fire department received training and some equipment to respond to airport emergencies. After our Department of Transport commissioned a study on ERS in Iqaluit, and after I also commissioned a report to review the government's report, all indicators pointed to the redundancy of ERS in our community, based on those current federal regulations. Mr. Speaker, a couple of months ago in New Brunswick, the question of ERS again was raised when there was an accident in that province. I now understand that a meeting was held in Ottawa last week with the federal Department of Transportation that may impact on readdressing the ER services and it may have a impact here in the north, and in particular at the Iqaluit airport. Mr. Speaker, the GNWT was represented at these meetings in Ottawa and later today I will be asking the Minister about the Ottawa meetings and the emergency response at the Iqaluit airport and the navigation system in place there. Thank you, Mr. Speaker.

--Applause

Thank you, Mr. Picco. Members' statements. Mr. O'Brien.

Thank you, Mr. O'Brien. Members' statements. Mr. Rabesca.

Thank you, Mr. Speaker. Mr. Speaker, I rise in this House in total frustration. The reason for this, Mr. Speaker, is really quite simple. Over the past many months, my community of Rae-Edzo has identified many short comings within the current municipal funding formula which has had detrimental effects on the way the hamlet operates. Months ago, the hamlet produced a report that in summary states the current formula does not give my community its fair and equitable share of the available funding and, in fact, proves that Rae-Edzo is one of the lowest funded non tax-based municipalities in the NWT. In reviewing this document, I could not believe the injustice that has been on going.

I give an example, under the general Government's Services Department the Hamlet of Rae-Edzo received $143,306 a year in a community of 1,615 residents. In comparison, the community of Sachs Harbour with 137 residence receives $148,593 for the same department. Is this fair and equitable?

Over the past months the mayor of Rae-Edzo and myself met with Ms. Thompson during the community tours prior to Christmas. Ms. Thompson came to Rae-Edzo and was given a tour of our community by the mayor. The meeting that took place at that time I was told went very well. We thought things were moving in the right direction. The Department of MACA does realize there are problems with the funding formula in Rae-Edzo and are committed to doing something about it, which is fine. However, we have been told that this work will not be completed until possibly September or October which is too late and will not fulfil the commitment that Ms. Thompson has made to my mayor. We need action now, and not eight months from now. I would, at this time, like to remind the Minister that over the course of our term, I, along with my constituents, have supported her and have never been negative towards her initiatives. It is now time for her to come forward and assist my community in solving the problems that have been put upon them by this and previous governments over the years. Thank you, Mr. Speaker.

--Applause/Hear! Hear!

Thank you, Mr. Rabesca. Members' statements. Mr. Roland.

Thank you, Mr. Roland. Members' statements. Mr. Miltenberger.

Thank you, Mr. Miltenberger. Members' statements. The honourable Member for Hay River, Madam Groenewegen.

Thank you, Madam Groenewegen. Members' statements. The honourable Member for Baffin Central, Mr. Enuaraq.

Thank you, Mr. Speaker. I am going to be talking in Inuktitut. (Translation) Thank you, Mr. Speaker. Mr. Speaker, I would like to discuss fire trucks within the communities of the Northwest Territories, particularly within the northern communities. It is not only in Clyde River, but also in other communities. Fire trucks and fire vehicles are not always in good running condition in the winter.

For instance, I will use this as an example, in the last few years in Clyde River the garage in the community caught on fire. When the fire brigade was called upon, they used a fire truck. They had a hard time putting the fire out due to the hose being frozen within the truck. The garage was on fire and it burnt right to the ground due to the fact that they had difficulties with the fire truck. So, I would just like an awareness of this matter be made, that we have problems, especially in the winter time when they have to use fire trucks. When the time comes up during question period, I will be questioning the Minister regarding these fire trucks. Thank you, Mr. Speaker. (Translation ends).

Qujannamiik, Mr. Enuaraq. Members' statements. The honourable Member for Yellowknife South, Mr. Henry.

Thank you, Mr. Speaker. Mr. Speaker, over the past weekend I listened to an interview on CBC radio with the Honourable Paul Martin, the federal Minister of Finance, in which he categorically stated if the proposed merger between the Royal Bank and the Bank of Montreal was not in the best interest of all Canadians, his government would not let it happen. I sincerely hope, Mr. Speaker, when the federal government introduces its new mineral royalty regime on diamonds they also act in the best interest of all Canadians, specifically, northern Canadians.

We have to work hard to make the federal government agree that as much of the value-added industry that is associated with diamond mining as possible stay in the Northwest Territories.

The honourable Mr. Todd and Mr. Kakfwi are no doubt working hard to convince the federal government that we deserve a large share of the royalties from this diamond play.

I would remind the federal government and particularly, Jane Stewart of DIAND, of the Western Australia State Legislature, an act of legislation that compelled the diamond mining company to perform a significant portion of the value-added components in Australia.

Mr. Speaker, I strongly believe that it is imperative we work together at all levels of government to make sure as many benefits as possible from the diamond mines stay in the north.

What the federal government has to realize is, the sooner we have a tax-base and a viable economy here in the north, the sooner it will be possible for us to reduce the transfer payments we need presently to operate. The sooner we have a viable economy, the sooner we can accept the mantle of provincial status and become truly, the masters of our own fate. Thank you, Mr. Speaker.

--Applause

Thank you. Members' statements. I have the honourable Member for Mackenzie Delta, Mr. Krutko.

Thank you, Mr. Krutko. Members' statements. Any further Members' statements? Mr. Arlooktoo.

Thank you, Mr. Speaker. Later today I will be tabling a petition from my constituency from the community of Kimmirut urging the Minister of MACA to

consider once again, the issue of building an arena for the community.

The community has been asking for an arena for the last 15 years. I am the third MLA who has been tabling letters and petitions in this House for an arena. We have seen many, many communities that have gone ahead of Kimmirut in getting an arena. We have seen our arena in the capital projects plans for years, only to be delayed for many more years.

We are once again asking the Minister of MACA and the Government of the NWT to consider perhaps, as one of the P3 projects, the issue of a community arena in Kimmirut and I will be pleased to table the petition later today.

Thank you, Mr. Arlooktoo. Members' statements. Before we move on to Item 4, returns to oral questions, I would like to recognize in the public gallery, the Interim Commissioner for Nunavut, Mr. Anawak.

--Applause

Thank you. Members' statements. Mr. Antoine.

(Translation) I am going to be saying this in Slavey. Today an elder from Kakisa Lake has passed away. His name is Johnny Providence. He died last week and his funeral is today. There are a lot of people that went to Kakisa to attend his funeral. The elder has lived in that community for many years, so a lot of people would have attended this funeral to pay their respects to him and his family. Honourable Sam Gargan, being the MLA for this area, has also attended the funeral. I myself have known this elder for a few years, and I would like to say this in honour of him and his family. Thank you. (Translation ends)

Thank you, Mr. Antoine. Our condolences go to the family of the deceased. Members' statements. Item 4, returns to oral questions. Madame Thompson.

Mr. Speaker, I have a return to an oral question asked by Mr. Krutko on January 22, 1998 on the Lottery Licensing Policy.

Current regulations under the Lotteries Act outline the requirement for the sale of nevada or pull tickets. These can be sold only during the course of running an actual licensed bingo or casino event. The regulations also allow for the sale of nevada or pull tickets by charitable organizations that sell from a private clubroom or for a community broadcasting society registered under the Societies Act. The Midway Lake Music Festival did not meet these requirements and as a result could not sell nevada or pull tickets.

Several groups, including Midway Lake Music Festival, had made requests to the department that these regulations be changed as they did not reflect the needs of many non-profit organizations.

In response to requests from these organizations, the department had previously been working towards a solution. After reviewing the regulations, the department is making changes that will better meet the needs of non-profit groups. New regulations, which I expect will be in place within one month, will allow organizations, such as the Midway Lake Festival, to sell nevada or pull tickets at the radio station during the day their licensed bingo is scheduled. Thank you, Mr. Speaker.

Thank you, Madame Thompson. Returns to oral questions. Item 5, recognition of visitors in the gallery. Mrs. Groenewegen.

Welcome to the Assembly. Recognition of visitors in the gallery. Ms. Thompson.

Thank you, Mr. Speaker. Today I would like to recognize three ladies in the gallery, two from my riding, Sibina Paniyuk and Monica Angotealuk from Coral Harbour and also Lena Angoo from Rankin Inlet.

--Applause

Thank you. Welcome to the Assembly. The honourable Minister Antoine.

Thank you, Mr. Speaker. Mr. Speaker, I would like to recognize some of my constituents in the gallery today. Chief Rita Cli of the Liidli Koe First Nations and Mr. Robert Hardisty who is also of the Liidli Koe First Nation and the general manager for the Liidli Koe Construction Association.

--Applause

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery. Mr. O'Brien.

Thank you Mr. Speaker. I would like to recognize on behalf of the Nunavut Caucus, Mr. Jack Anawak, the Interim Commissioner for Nunavut.

--Applause

Welcome to the Assembly. Recognition of visitors in the gallery. Mr. Picco.

Thank you, Mr. Speaker. It gives me great pleasure to welcome Mr. Ben McDonald, from the Union of Northern Workers to the gallery today.

--Applause

Welcome to the Assembly. Recognition of visitors in the gallery. Mr. Kakfwi.

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery. Item 6, oral questions. Before we begin question period, I would like to remind all Members that the rules allow the Members to have a preamble for initial questions. The subsequent three supplementary have no preambles because we allow you to make the preamble in your initial questions. In order to make maximum use out of the question period in order to allow each and every Member who wish to ask questions please respect the rules. Thank you. Oral questions. Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, just referring back to my Member's statement, I understand that last week in Ottawa, Transport Canada had a meeting to discuss the requirements for on-sight firefighting at small airports in Canada. I also understand that the Minister had represented us at that meeting. Could the Minister provide this House with an indication of what happened at the meeting and an indication of what Transport Canada plans to do about the lack of firefighting services at Canada's small airports like Iqaluit?

Thank you, Mr. Picco. The Minister of Transportation, Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, yes, there was a meeting in Ottawa last week and I had representation from the Department of Transportation there. This meeting was hosted by the federal government, Transport Canada, and there was discussion about on-sight firefighting requirements at airports that are not now required to provide this service under the new Canadian aviation regulations. There was a working group that was set up. Their task was to study and make recommendations concerning the need to regulate the provisions of on-sight firefighting services at small airports across the country. There was an agreement by all stakeholders that the terms of reference be developed for this working group. Thank you.

Thank you. Supplementary, Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, is it possible to have the terms of reference for that small working group that the Minister just mentioned tabled in this House for review for the Members?

Thank you. Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, yes. Once the terms of references are developed and I have copies of them I will make them available to this Legislative Assembly for review. Thank you.

Thank you. Second supplementary, Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, as I said earlier in my preamble to the question on my concern with the ERS and the navigation aids, I wonder if the Minister could correlate between the ERS and the navigation aid problem that we are having right now in our community?

Thank you. The Minister of Transportation, Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, I am not too clear on the honourable Member's question, but in regard to the ERS, there are specific interests of municipalities at this meeting here. There were the fire chiefs as well as the fire marshal's offices were involved in this meeting here. I would like to ask the honourable Member to see if he could clarify that question and I will try to be more specific. Thank you.

Thank you. Mr. Picco, could you please clarify the question for the Minister?

Thank you, Mr. Speaker. Mr. Speaker, for about three weeks we have had problems with our navigation aids and because of ERS they have to respond to the problems with the navigation aid in Iqaluit, the BRHS system which allows planes to land and take off. So I was asking the Minister about the navigation aids with the ERS service because that is the question I am asking on the ERS and the response that the fire department will have to respond to the problems with the navigation aids. Thank you.

Thank you. Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, the original question was about the meeting in Ottawa and the ERS. On that one there is going to be some ongoing discussion. Like I said, the working group is going to be set up to look into providing on-sight firefighting services but that is sometime into the future. In regard to the immediate problem of the navigation aid in Iqaluit, it is really the responsibility of NAV Canada, which is an independent corporation apart from the federal and GNWT government. For this one here, we have been on the case of NAV Canada to see whether they could speed up fixing this navigation aid. I am told that the quickest that they could do it might be the middle of next month or early next month, which is not very suitable for us. There is no problem at the airport per se in Iqaluit. It just means that the airline companies have to take a different approach when they are landing. So there is a problem now at the airport, but it is manageable and we are asking NAV Canada to see whether they can speed up their service of making sure that this navigation aid is working in the proper way that it is supposed to. Thank you.

Thank you. Final supplementary, Mr. Picco.

Thank you, Mr. Speaker. I wonder if the Minister could inform the house when he thinks it would be possible to know if ERS services and the regulating chains by the federal government which took the ERS services away from our airport, when the Minister would know if the regulations change if they are going to put ERS back in Iqaluit for example? Thank you.

Thank you. The honourable Minister, Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, this working group that I mentioned earlier that is looking into this on-sight service at smaller airports, again the terms of reference are being developed and once they are developed this working group will get to work. Just for your information the Government of the Northwest Territories has two representatives in this working group, one from the Department of Transportation, the other one from the fire marshal's office. If the Canadian aviation regulations are going to be amended to make it mandatory for these services to be provided, then the government will have to look at this situation. I remain very concerned that we will be unable to afford the cost associated with providing these services to the smaller airports here in the Northwest Territories. If there are amendments to the regulations to get us to provide these services, then we will have to look at ways on how we could recover these costs, perhaps from the air carriers. These things we still have to discuss and look into. Thank you.

Thank you. Oral questions. The honourable Member for Baffin Central, Mr. Enuaraq.

(Translation) Thank you, Mr. Speaker. Like I said in my Member's statement earlier on about the problems we have with the fire extinguishers in my constituency, I would like to ask the Minister of MACA, Manitok Thompson, how soon will MACA check the fire extinguishers? (Translation ends)

Thank you. The Minister of Municipal and Community Affairs, Madame Thompson.

Thank you, Mr. Speaker. Mr. Speaker, can the Member please clarify specifically which community he is talking about.

Thank you. Mr. Enuaraq, can you please clarify the specific community that you are referring to?

(Translation) Thank you, Mr. Speaker. I would like to say Clyde River, Broughton Island and Pangnirtung. (Translation ends)

(Translation) Thank you, Madame Thompson. (Translation ends)

(Translation) Thank you, Mr. Speaker. MACA, at the regional office in Iqaluit, when they get information from the hamlet, a specific hamlet, they go to the community to check out what the problem is. I just wondered whether the Member's constituency has written to MACA in Iqaluit and I will get back to him with a response. (Translation ends).

(Translation) Thank you, Ms. Thompson. Thank you, Mr. Enuaraq. (Translation ends)

(Translation) Thank you, Mr. Speaker. I would like to ask a supplementary question to the same Minister. Is the fire hall getting budgeted money from the Minister's department? (Translation ends)

(Translation) Madame Thompson. (Translation ends)

Thank you, Mr. Speaker. Yes, we do.

Thank you. I have been informed that the response by the honourable Minister for MACA was not on the record. Would you please repeat your response? Thank you.

Thank you, Mr. Speaker. I am sorry, I did not see the microphone on. Yes, we do that.

Thank you. Oral questions. I have the honourable Member for Thebacha, Mr. Miltenberger.

Thank you. The Minister of FMBS, Mr. Todd.

Yes, Mr. Speaker, I will try to give some clarity to that issue. The actual operations, if you want, of the fund and the decision making in terms of evaluating proposals and bringing recommendations up, is done outside of government. Mr. Bailey, for example, is the NWT investment manager and three external, if you want, investment committee members. These are done independent of the government, if you want. We have an obligation and a responsibility, given the regulations that are set by the federal government to be seen and to be viewed as a government fund. It has the backing, both the moral and the administration backing, of the government, but it has the independence of where it puts an investment outside of the government through Mr. Bailey and through the independent bankers and, of course, the bankers themselves who finance it, and that is the Pacific Western one. I hope that brings clarity.

Thank you, Mr. Todd. Supplementary, Mr. Miltenberger.

Thank you. Mr Todd.

Yes, Mr. Speaker. Thank you, another good question. I want to assure my honourable colleagues publicly, the GNWT has no liability on the Aurora Fund. Period. Thank you.

Thank you. Second supplementary, Mr. Miltenberger.

Thank you. The honourable Minister, Mr. Todd.

Well, I am not sure. My colleague finds that amusing. Mr. Speaker, I am not sure. I thought that question was asked of me earlier this morning. If I could get both Mr. Kakfwi and myself and the government employees off this fund, I would do it tomorrow, but the reality is that is what is expected by the federal government, so I would have to look into that component of it. We are, as we speak, and if there is, then we will have to make the appropriate adjustments to meet whatever the conflict guidelines are. Thank you.

Thank you. Oral questions. The honourable Member for Arviat, Mr. O'Brien.

Thank you, Mr. Speaker. Mr. Speaker, my question is to the Minister responsible for MACA. It is my understanding that the audits have been completed for the other communities in the NWT by MACA and that for approximately 40 percent of these communities, their audits were issued either as a qualified statement or nonstatement regarding their financial situation. My question to the Minister is, what action does this mean and how does she plan to deal with the issue?

Thank you. The honourable Minister for MACA, Madame Thompson.

(Translation) Thank you, Mr. Speaker. The items that the Member has raised are not in front of me at this time, but when there is a shortage of funding requirement, then we discuss these with our regional offices, along with the secretary treasurers from the communities to see in what areas we have to make some adjustments. I am quite sure the hamlets are aware of this process because we work with them on a regular basis. Thank you, Mr Speaker. (Translation ends)

Thank you. Supplementary, Mr. O'Brien.

Thank you, Mr. Speaker. Mr. Speaker, if this number of the communities are experiencing financial difficulties with their accounting systems, what mechanisms are in place to ensure that these situations do not take place? In other words, how do we avoid them? What regulations are in place to assist the hamlets so that they do not get into this situation? Thank you.

Thank you. Madame Thompson.

(Translation) The hamlet settlement secretary treasurers and their accountants receive ongoing training as to proper accounting practises and we are open to assist them within their hamlet. We look at ways of improving these accounting systems. The people that work within our department are required to report on a quarterly basis to the communities and to find out the status of the hamlets and their budgets and to see if we are able to assist in further improving the budgets, whether they are having financial problems and at times such as those, then we send our employees to go and provide training in those areas. Thank you. (Translation ends)

Thank you. Second supplementary, Mr. O'Brien.

Thank you, Mr. Speaker. Mr. Speaker, the information I have in the case is that there is approximately 40 percent of the communities that find themselves in a difficult situation financially and that they were issued qualified statements or nonstatements regarding their finances. My question to the Minister about this huge number is, does the Minister find this acceptable?

Thank you. Minister Thompson.

Thank you, Mr. Speaker. The auditors issued one of three opinions on financial statements. A denied audit opinion means there is a serious deficiency and a qualified opinion means deficiencies or possible deficiencies in financial statements, but an audit opinion can still be formed. Unqualified opinion, good financial controls, and accuracy of books and records. What I have here is that as of March, 1997, 27 communities had unqualified opinions which means that these 27 communities had good financial controls. Eleven communities had qualified opinions. A lot of times this was because the money in the canteens was not run well, and that could qualify them not to be very good in their finances, but otherwise, everything is looking good. Only one community had a denied audit opinion and we are working with the community. I feel we are doing very well with the communities because we are training them, as I said. We are keeping on track. We do monitor them. I think we are doing great. Thank you.

Thank you. Final supplementary, Mr. O'Brien.

Thank you. Mr. Speaker, my question was, does the Minister feel that with 40 percent of the audits being in trouble, is this acceptable? That was my question.

Thank you. Madam Minister Thompson.

The answer was the 40 percent that the Member is referring to might be just a case of the canteen clerks not doing their finances on the same day they are supposed to be reporting. Otherwise, all the communities are working well, and I am satisfied with how we are dealing with their finances. We are doing everything we can. We are working well with the communities. What the Member seems to be indicating is that 40 percent of those people are in very serious trouble when it could probably be just a canteen in the arena is missing by a few dollars. Thank you.

Thank you. Oral questions. The honourable Member for Hay River, Madam Groenewegen.

Thank you. Mr. Todd.

Thank you, Mr. Speaker. My understanding is there is an incumbent that is at pay level 25 and reclassified to pay level 22. I think there is a government term, they say they are red circled, which means that if that person is in the job, while they are in that job, they remain at that pay level they are at. Should they leave and the job is readvertised, it would be readvertised at a lower pay level. Thank you.

Thank you. Supplementary, Mrs. Groenewegen.