For the period of the block funding agreement, that is what those communities would expect to receive under the block funding arrangement. However, when the new block funding agreement is negotiated, if it is determined at the end of the current block funding agreement that it should be renewed and the communities and the government believe this has been successful and should be continued, then the amount renegotiated would be reflective of the capital projects eligible for funding under our programs which might be undertaken in the subsequent three-year period. The amounts may change from block funding agreement to block funding agreement. Thank you, Mr. Chairman.

Thank you, Mr. Chairman. The reason for the difference would need to be explained largely from the difference in the capital projects that would be involved in one community versus the other, over the period of the block funding agreement. When we come to an agreement for the amounts, the department does look back on what its expenditures have been in the previous five, six years and looks forward over the future period of three to five years. More specifically, in the three-year period of the agreement, and have considered what the department might be expecting in terms of capital allocations and have in consultation with the community come to some agreement on what that amount should be. The best explanation I could give you right now is, it is reflective of the projects that were planned for the community of Fort Simpson in that period versus the projects that were grantable by our programs that were planned for the town of Inuvik. Thank you, Mr. Chairman.

Thank you, Mr. Chairman. In Fort Simpson, for example, there was a major project relating to a road crossing to the mainland that was part of the block funding agreement. They are making some major improvements to the sewage treatment facilities in Fort Simpson, as well as road repairs, including some paving work. Whereas in Inuvik, there has been a lot of ongoing work on some of their basic infrastructure that has not occurred in Fort Simpson, and so their annual amount is lower. I do not have the details here on the specific projects that went into the discussion around the block funding amounts. Having agreed on what the block funding amounts are, it frees the community to, after we have entered into the agreement, to decide on what those allocations will be within the community. The basis for the amount may be different than how the community is actually expending those funds from year-to-year. Again, that would become part of the discussion when we are evaluating the success of the current block funding agreement and going into the negotiation of a renewal. Thank you, Mr. Chairman.

Thank you, Mr. Chairman. I would appreciate it if you would just give me a little latitude. I am going to move forward a little bit, to get an explanation of something we are dealing with right now. On page 4-32, there is an amount identified for block funding transfers. There is an amount of $2.632 million. Which communities is that money for? Is there any block funding in the community for Fort Simpson, Fort Smith or Hay River?

Thank you, Mr. Chairman. I am advised, the answer is yes.

Thank you, Mr. Chairman. Do I understand the Minister to say that in that block funding agreement of $2.362, there is additional block funding for Fort Simpson, Fort Smith and Hay River. If that is the case, why would these amounts not be added in one area, so that at least Members would have an opportunity to see how much block funding was really going to each community? Thank you, Mr. Chairman.

Thank you, Mr. Chairman. I will allow my assistant deputy minister to answer that. Thank you.

Mr. Christensen.

Thank you, Mr. Chairman. The amounts are voted in different sections of the main estimates because the amount, the contribution to the block funding agreement, came from our operations and maintenance budget for our capital budget, and so the portion of the block funding agreement that comes from operations and maintenance for those block funding agreements showing up in our main estimates under operations and maintenance, whereas the capital portion is showing under capital. The one exception being the block funding agreement for Yellowknife, which appears I believe, in total, a couple of pages previous in grants and contributions. Thank you, Mr. Chairman.

Thank you, Mr. Chairman. Do I understand then, this block funding for Fort Simpson of $1.5 million, they are responsible for the operating of the community and any capital projects and operating, or do they receive funding under municipal operating assistance also?

Thank you, Mr. Chairman. Mr.

Vern Christensen will answer again. Thank you.