Thank you. Again, to caution the Members regarding limiting what they can display in this chamber. It being Friday the 13th, I would like to ask that if Members wish to display that they also share with the rest of the Members in this chamber. At this time, I would like to recognize the former commissioner of the Northwest Territories, Mr. John Parker and his lovely wife, Helen.

--Applause

Welcome to the Assembly. Members' statements. Mr. Ootes.

Thank you. Members' statements. Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, Tuesday evening I had a constituency meeting in Fort Simpson and one of the opportunities to address the citizens in Fort Simpson. I also represent five other communities and it is difficult to have one constituency meeting for everybody, so it takes awhile to get around.

Mr. Speaker, the concerns raised there were just general questions about what are we going to do for division and concerns with other issues like health and social services, the road and NAV Canada. One of the areas it is looking into the future is in development of the natural resources that we have in the Nahendeh constituency. There is a boom going on in the southwestern part of the Northwest Territories and the Fort Liard area. We have oil and gas, gas was discovered there last year. There are going to be about nine different wells drilled this year. The concern there is that people in that area are saying we are overlooked because there are diamonds in everybody's eyes here and all our efforts seem to be focused on that. There should be more effort put into looking at developing our natural resources. We have forestry there as well, but the main thing in our area is tourism.

I think this is the concern that citizens in my constituency are concerned about, how can we best capitalize on what we have? We should try to do it the right way and try to keep most of the resources and revenues generated from our natural resources to flow into the north rather than have, them escape into the south. This is the position that was explained to me. We have all these different natural resources and this government is making an effort to do all we can to capitalize on them, but I think the feeling there is that we have to put more effort and energy into working together with people in the community and this government to make sure we truly benefit from our natural resources in that area. Thank you, Mr. Speaker.

--Applause

Thank you. Members' statements. Mr. Steen.

Thank you, Mr. Speaker. Mr. Speaker, I was going to make another statement today concerning another topic, but having heard several Members speak about the Electoral Boundaries Commission, I feel I have to make a comment as well. Mr. Speaker, following what happened yesterday, it is a natural reaction and quite easy to react angrily. However, I see that some good has come out of that discussion. For one thing, it was nice to see some Members working together again. Specifically, the Member for Hay River

working hand in hand with the Member for Tu Nedhe and the Member for Thebacha, which we have not seen for some time.

Mr. Speaker, I notice this morning the sky had not fallen in, the sun was still shining, so things are now out of our hands and we have to continue with the business of government. I would urge the Members to forget about what happened and let us continue on with our business of doing government. Thank you.

--Applause

Thank you. Members' statements. Item 4, returns to oral questions. Mr. Todd.

Thank you, Mr. Speaker. I have two returns to oral questions, one asked by Mr. Ootes on November 6, 1998, with respect to the WCB Transition Plan Status.

Background

Mr. Ootes was referring to a letter from the NWT Construction Association dated October 16th to the Chairperson of the WCB requesting, among other things, an update on the value of the accident fund and the reserves, given the downturn in financial markets.

At December 31, 1997, the total reserves of the Workers' Compensation Board were $50.7 million. The book value of investments on which the surplus is based was $206.8 million, and the market value was $248.9 million. These values are reported in the 1997 Annual Report.

Current Status

In the third quarter of 1998 (July - September) world markets went through the worst period for investments in many years. In Canadian dollars, the TSE 300 index lost 20.5 percent of its value, the S & P (US) index lost 6.1 percent, and the EAFE index (non-Canadian and US) lost 11.0 percent.

In spite of these losses, the market value of the accident fund investments, at September 30th, is actually higher than at last year-end, at approximately $255.2 million.

The first thing to note about the WCB's investment is the conservative nature of the board's investment policy. As only 40 percent of the funds are invested in equity markets, the exposure to the third quarter downturn was limited. The return on fixed income investments, which make up most of the board's portfolio, was positive for the third quarter.

The second thing to note is the limited impact on the surplus. The surplus is based on the book value of the investments, which is much lower than the market value and much less sensitive to market swings. Most of the impressive gains of the last four years on the board's funds are deferred to future years.

At present, the board is not expecting its total reserves for 1998 to decline from 1997 values due to investment returns. Thank you.

I have a return to oral question asked by Mr. O'Brien with respect to the Immigrant Investor Fund.

Both funds have been very successful to date in raising capital for investment. The Aurora Fund (1996) has signed 139 prospective investors. The Aurora Fund (1996) had closings and has issued notes to 66 investors. This gives the fund over $15 million, $10.5 million of which is available for investment in eligible NWT businesses.

As I previously reported to you January 27, 1998, $7.8 million was loaned to seven northern projects. On August 28, 1998, the fund's board approved loans for another six projects totalling $14.4 million. These loans are in the process of being finalized with the borrowers. These projects are:

1. NWT Cooperative Development Fund - for the purchase of fuel delivery vehicles for domestic fuel delivery in communities.

2. The Shoe Store Ltd. - for the purchase of two aircraft.

3. NWT Development Corporation - to broaden its investment capabilities in, and support to, eligible NWT businesses.

4. Yellowknife Golf Club - to expand the golf course facility to an 18-hole layout.

5. Regency International Hotels Limited - to renovate, upgrade and refurbish the Explorer Hotel.

6. 2822636 Canada Incorporated (operating as Continental Helicopter) - for the purchase of a helicopter.

To date the fund has approved over $22 million in loans. These loans have met the fund's goals of maintaining and creating employment and providing alternate financing to businesses in the Northwest Territories.

The fund continues to explore lending opportunities with northern businesses. The fund has presently lent the maximum permissible amount under its offering memorandum until further investors transfer their full subscription amounts. As further funds become available, we will be concluding lending arrangements with other potential borrowers who have indicated an interest in a loan from the Aurora Fund.

The supply of money to the fund is dependent on the rate at which subscribing investors transfer the full value of the note proceeds to the fund. Once an investor transfers the full $250,000 and the note is issued (termed a "closing"), the fund has only 75 days to lend the money. If that time limit is exceeded, the GNWT could be prohibited from launching further funds until the violation has been corrected.

As I stated in January, 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.

--Applause

Thank you. Returns to oral questions. Item 5, recognition of visitors in the gallery. Mr. Krutko.

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

Recognition of visitors in the gallery. Item 6, oral questions. Mrs. Groenewegen.

The Minister of Education, Culture and Employment, Mr. Dent.

Oral questions. Supplementary, Mrs. Groenewegen.

Mr. Dent.