Thank you, Mr. Speaker. I would like to first of all start off by thanking the Premier for agreeing to reinstituting this government's central switchboard. I am sure it was due to the well reasoned and researched arguments put forth in this House by some of the Members in this House. Mr. Speaker, I will be following the format of the Finance Minister's Budget Address.

The first thing that the Minister touched on was the government anticipates a small surplus and a reduction in the accumulated deficit. Mr. Speaker, I think we should applaud this, but it is not only the politicians who have to take credit for this. The people of the Northwest Territories have been asked to and have taken cuts in programs and services as well as layoffs. We have to thank people for putting up with this.

Also the bureaucrats who have implemented our policies. We have to thank them as well. I know it is very difficult to say, no, to people when people have perhaps in their own mind, they have legitimate questions and requests. However, in order to achieve a balanced budget we have to toe the line. I believe this is a good way to end our budgetary relationship with our comrades from the east. This is the last budget that we will be working on and improving together. To have a balanced budget I think is a good way of doing it.

On the issue of the pay equity. This has been going on for a long time, but as the Minister has indicated we cannot agree to a settlement that forces further job loss or program and service reduction to our people. Mr. Speaker, as I indicated earlier, we have already gone through program and service reductions and job loss and we cannot go any further. So I urge both sides to work together and to come to an agreement on a reasonable settlement.

In the area of the Formula Financing Agreement, the Minister indicated he has been working with his federal counterparts for financial arrangements based on the expenditure base of each territory which should be determined separately and based on each region's requirements. This, of course, is a good way of doing things, Mr. Speaker. We in the west have stated many times we support the creation of Nunavut and the aspirations of the people in Nunavut, but we cannot agree to implement this dream at our expense. Meaning that the programs and services in the west should not deteriorate because of implementing this.

At the same time, Mr. Speaker, we have to recognize that most likely there will be several advantages because of the division. The main one being that both sides will be able to fully concentrate on their particular problems and aspirations. Although we have dealt with the aspirations and problems of both in the past, it will just make it simpler to not have to deal with the extra problems and aspirations from the other side of the territories.

The existing staff of the GNWT, Mr. Speaker, they are our most valuable resource. They have experience and knowledge that has been accumulated over the years. We cannot continue the brain drain as it is called. So we have to ensure that our current staff are treated fairly and have first crack at the jobs in the east upon division. I am glad to see that the Interim Commissioner agreed to implement the $4.2 million human resource computer system and to pay their fair share. I am sure this will improve things dramatically. In the area of the investment credits, Mr. Speaker, I am glad to say I was part of the sub-committee of the Standing Committee on Government Operations that made some recommendations.