Thank you, Mr. Speaker. Mr. Speaker, I would like to provide Members with an update on the discussions relating to the formula financing arrangements which will be in place for Nunavut and the Western Territory after April 1, 1999. As Members are aware, a process has been underway since last May, to address this issue. The participants on the Special Committee on Financial Arrangements for Nunavut and the Western Territory are senior officials of the federal government, led by Finance Canada; the GNWT, led by our Department of Finance; the office of the Interim Commissioner of Nunavut; the Western Coalition; and Nunavut Tunngavik Incorporated.
The terms of reference for the committee include:
-the determination of the ongoing expenditure bases of each territory, including the incremental costs associated with the creation of two new territories;
-the determination of appropriate funding mechanisms; and
-the assessment of revenue raising capacity of each territory.
A great deal of work has been accomplished since last May, and the list of outstanding issues has been narrowed down significantly. Officials will be meeting next week in Rankin Inlet to discuss these remaining issues at the working group level, in preparation for a meeting of the special committee, which is scheduled to take place by mid March.
At that point, the federal government will have all the information it needs to make a recommendation to the federal Cabinet regarding the critical issues of funding levels and the broad parameters of financing mechanisms. We, therefore, expect the March meeting will be the last special committee meeting prior to the federal government taking the issue of territorial financing to Cabinet. We are confident that Mr. Martin's commitment to provide one year's notice to northerners on funding levels can be achieved. We recognize, however, there will still be significant work to do to finalize the details and to draft the agreements.
Mr. Speaker, I would like to say a few words of appreciation to all the parties involved in this process for the effort that has gone into meeting this deadline, given its importance in terms of providing the time necessary to develop budgets for the 1999-2000 fiscal year. We need to provide certainty to our employees and to establish confidence among all northerners that the creation of two new territories will have a positive economic impact on the north.
Mr. Speaker, as I stated in my Budget Address, I am very optimistic that adequate funding will be available for the two new governments beyond April 1, 1999, and I look forward to advising this House, in the near future, that formula financing arrangements for Nunavut and the Western Territory have been concluded. Thank you.
--Applause