Thank you, Mr. Henry. Good afternoon. Mr. Barnabas, on a point of privilege.

Point of Privilege

Thank you, Mr. Speaker. (Translation) I will be speaking in Inuktitut. Mr. Speaker, this morning I must clear up a big misunderstanding in regard to the Member for Hay River who presented a document. I was unable to be in the House yesterday due to a personal tragedy that occurred in my riding, therefore, I was unable to respond to the issue that was raised by the Member for Hay River. I had not considered this to have grown into this proportion and I was not aware that this problem would become so great. I would like to indicate to the Member for Hay River and to my friend and colleague, Mr. Arlooktoo, that I did write the note. At the time I considered it as a confidential piece of writing and I did it more in the spirit of fun and as a joke. I do pass notes to my colleagues in the House not of a serious nature. I express my true regret today for having caused such a huge problem and I accept responsibility for the hardship that has been caused for the Member for Hay River, Jane Groenewegen, as well as, for the Member, Mr. Goo Arlooktoo. Thank you, Mr. Speaker. (Translation ends)

--Applause

Thank you. Mrs. Groenewegen.

Point of Privilege

The Member for Hay River is seeking unanimous consent to withdraw Tabled Document 49-13(5). Do we have any nays? There are no nays. Mrs. Groenewegen, you have unanimous consent. Tabled Document 49-13(5) is now withdrawn.

--Applause

Orders of the day. Item 2, Ministers' statements. Mr. Morin.

Thank you, Mr. Speaker. I wish to advise Members that the Honourable Manitok Thompson will be absent from the House for the remainder of the week to attend the Manitoba Trade Mission in Iqaluit and the Keewatin Regional Leadership meetings on the Keewatin pilot project in Rankin Inlet. Thank you, Mr. Speaker.

Thank you, Mr. Morin. Ministers' statements. Item 3, Members' statements. Mr. Enuaraq.

Thank you, Mr. Speaker. Good afternoon. Mr. Speaker, yesterday I spoke about the garbage and abandoned buildings at Cape Christian, a former American coast guard station located 12 miles northeast of Clyde River. Today, I would like to talk about the environmental assessment done in 1996 and for the record, Mr. Speaker, I was involved in that assessment in 1996 by the Canadian Royal Military College. Their study showed that there are small amounts of PCBs in the paint of the buildings and 23 cubic metres of soil were found to be contaminated within the site. The study concluded that the site received low priority on the clean-up list, as there was minimal contamination and there was small risk posed by contaminants on site. The owner of the site is now the Government of the Northwest Territories. Mr. Speaker, Clyde River would like assurances from the government that the site is environmentally safe. Thank you.

Thank you. Members' statements. Mr.

Barnabas.

(Translation) Thank you, Mr. Speaker. I will be speaking in Inuktitut. Mr. Speaker, this morning we met with the Members and staff regarding the friendship centres. It is important that these organizations receive funding because of the different initiatives they wish to carry out for their services and to maintain their businesses. In maintaining the services it was indicated, perhaps two years ago, by the friendship centres, the communications departments and the different organizations within the regions to help promote unity among adults and younger people, as well as elders. This is promoted through the use of the friendship centres, including translation requirements, language and culture initiatives. Thank you, Mr. Speaker. (Translation ends)

Thank you. Members' statements. Mr. Krutko.

Thank you. Members' statements. Mr. Roland.

Thank you. Members' statements. Mr. Rabesca.

Thank you, Mr. Speaker. Mr. Speaker, today I rise to congratulate a man from Rae Lakes that saw a dream and pursued it. As you may have seen in yesterday's News North, Alphonse Apples sought an opportunity to live his traditional lifestyle and at the same time help his fellow community and regional members. Alphonse has set up the Faber Lake Outpost Camp which helps minor offenders integrate back into their communities without the need to house them in the YCC. Mr. Speaker, at the present, I understand he only has two inmates at the camp, but he is hoping to get more. Camp life is hard and living is basic, bringing back the traditional Dene way of life. Alphonse teaches the inmates how to hunt, fish and do other camp duties. They also learn how to

skin all types of animals and treat our mother earth with respect. Alphonse's camp is one of the eight camps currently operated across the north. I feel this is an excellent way to teach the inmates the traditional way of life and to bring them back to their home communities. I would like to congratulate Alphonse for his helpfulness and caring for his fellow men. Thank you, Mr. Speaker.

--Applause

Thank you. Members' statements. Mr. Miltenberger.

Thank you. Members' statements. Mr. Erasmus.

Thank you, Mr. Speaker. I rise today to speak about the Arctic Winter Games midget hockey team selection. Mr. Speaker, a constituent of mine contacted me yesterday and wanted me to set the record straight. Apparently, there have been some facts that have not been relayed consistently to the public. There has been a lot of media attention to this, as well as, statements and questions in the House. My constituent wanted me to make it clear the team that won the territorials was not a Fort Smith hockey team, in fact, it was not even a South Slave hockey team, it was a conglomerate of the South Slave and Mackenzie region. There were ten players from Hay River and Fort Smith, there were five players from Mackenzie region. The team did win the territorials, but people knew that it would be an all-star Arctic Winter Games team and that the Arctic Winter Games team would go to the Air Canada Cup tournament.

Unfortunately, it appears that an important fact has been overlooked. The fact is that five players in total from the winning team were selected to the Arctic Winter Games team. My constituent wanted this emphasized that five players were, in fact, selected; there was one from Fort Smith, one from Hay River and three from the Mackenzie region.

Mr. Speaker, I have checked and selecting an all-star team for the Arctic Winter Games is consistent with the past three or four Arctic Winter Games. I have been informed that an all-star format is used in order to keep the larger centres from dominating the games and from sending all the teams. This allows the smaller communities to get their children into the games. Mr. Speaker, this is well demonstrated in the facts that there are ten communities represented on this midget team. Thank you.

--Applause

Thank you. Members' statements. Mr. Picco.

Thank you. Members' statements. Mr. Ootes.

Thank you. Members' statements. Mrs. Groenewegen.

Thank you. Members' statements. Mr. Henry.

Thank you, Mr. Speaker. Mr. Speaker, I am confused by the comments made by some Ministers in this House in the past few days. Several Ordinary Members have pointed out there is an urgent need for legislative amendments to be made because we have several acts that are outdated and cumbersome. The Labour Standards Act and the Condominium Act, for example, are preventing people in the Northwest Territories from carrying out reasonable and necessary arrangements that any employer, purchaser or business person located elsewhere in Canada would be entitled to make.

Under our Labour Standards Act, an employer or employee in the Northwest Territories cannot even come to an agreement about the hours of work that best suit them both. We do not know how many employees our legislation is forcing to work outside of the system, possibly illegally. Another prime example is our Workers' Compensation Act. I venture to say there are no other Workers' Compensation Boards in Canada who have the ability to sue an employer.

Mr. Speaker, Members have been told by the Deputy Premier, by the Minister of Finance and by the Minister of Resources, Wildlife and Economic Development that the legislative agenda of this government is full and that the government has set its priorities and apparently, that is that. Division is coming and our hands are tied. There is very little they say they can do.

On the other hand, new initiatives are being brought forward and we cannot seem to get a clear answer as to whether legislation will be required to implement them or not and I refer to the Keewatin pilot project.

Mr. Speaker, the government seems to have its priorities misplaced. With division coming, there is even more reason to clean up the field. The last thing that the two new governments need, is to inherit obstructive legislation. Our outdated statutes are causing enough problems now. Surely, we do not want to duplicate them. Before we spend all our efforts putting into place grand new initiatives that may not even be appropriate for Nunavut, we need to make sure we do not perpetuate past mistakes. That is where our priorities should be. Thank you, Mr. Speaker.

--Applause.

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

Mahsi, Mr. Speaker. Mr. Speaker, I have two returns. The first one is one asked by Mr. Barnabas on February 13th in regard to the impact of freight cost increases.

On Friday, February 13, the Member for High Arctic directed a question to the Premier asking how NAV Canada's phase I introduction of fees for air navigation services on April 1, 1998 will affect the cost of living in the north. As the Premier indicated, this is not an easy question to answer precisely.

The creation of NAV Canada as a not-for-profit private corporation was the result of the federal government's decision to put Canada's air navigation system on a commercial footing. Commercialization meant that Canadians would pay for the cost of air navigation services differently than they had before. Formerly, the government of Canada paid for most of the costs of air navigation services through the Air Transportation Tax (ATT) that was added to the price of every air passenger ticket sold. As NAV Canada brings in its new service fees, collected directly from the air carriers instead of the passengers, the Air Transportation Tax will be eliminated. Passenger fares would go up to cover the new fees, but the old tax that was added on top of the ticket price will be gone.

NAV Canada's new fees will come in two stages, one effective April 1, 1998 and the second on November 1, 1998. At the same time, the Air Transportation Tax will disappear in two 50 percent reductions.

How the air carriers, in turn, plan to recover NAV Canada's fees from the customers is a matter of each carrier's corporate pricing strategy. Depending on its competitive position, a carrier may decide to pass on all or a portion of the fees. The carrier also has the additional flexibility to distribute its fee recoveries between its passenger fares and its freight rates.

The new fee structure could not be avoided as NAV Canada put the air navigation system on a full cost recovery basis. Nonetheless, in a vigourous lobbying campaign with the northern air carriers over the past year, the Department of Transportation has been successful in minimizing the impact of the new fee structure on northern routes.

The department was able to make NAV Canada recognize that the fee structure, as it was originally proposed, would have had a greater effect on northern than southern air routes. As a result, NAV Canada agreed to raise the weight limit of the aircraft which the phase I fees would apply from 5.5 to 8 tonnes. The higher weight limit exempts Twin Otters and aircraft of similar size from the phase I fees. The department also won the concession that the new fees would not apply to flights departing from northern and remote airports where the air navigation services are delivered by CARS stations.

The phase one fees are set to come into effect on March 1st. The department is still in discussion with NAV Canada on the phase two fees that will come into effect on November 1st. Although I cannot be specific at this point, I am confident that we will have similar success in reducing the impact of phase two fees as we have already had with phase one fees.

For all that, I am sorry, I cannot give the Member an exact answer on the overall effect the new passenger fares and freight rates will have on the cost of living in northern communities. Too much depends on how the air carriers themselves decide to factor NAV Canada service fees into their fares and rate schedules. The final effect on the delivery costs of air cargo will vary from community to community.

I can tell the Member that the effect of the new fees on the northern cost of living will is less than if the Department of Transportation had not intervened with NAV Canada as early and as vigorously as it did.

My second return to oral question, Mr. Speaker, was a question asked by Mr. Erasmus on February 13th, in regard to NorthwesTel rate increases.

First, I would like to remind Members that my role in relation to NorthwesTel is to ensure that the interests of the people of the Northwest Territories are made clear to the CRTC. It is the CRTC that makes the rules and sets the rates for phone companies.

I can tell you that providing local telephone service is very expensive, especially in the north. For a long time, phone companies structured their rates so that every house could afford to have a phone. This meant that long distance rates had to be higher in order to help pay for the local costs.

When phone companies were deregulated, competition for long distance services became intense. In order to compete for long distance customers, the companies that provided local access decided that the local system had to pay for itself, instead of depending on long distance revenues.

The rate increases we have seen so often in the Northwest Territories in recent years are the result of NorthwesTel getting ready for competition. They are increasing local access and balancing that with decreases to long distance rates. This works out well for customers who make a lot of long distance calls. Their total phone bill will probably go down. However, the CRTC has specifically ordered the introduction of long distance competition by July 1, 2000. NorthwesTel has been directed to increase local rates by $4 effective August 1, 1998 and by $6 effective August 1, 1999.

This government made a submission to the CRTC when they were holding hearings last year to decide on whether long distance competition should be implemented. We supported long distance competition. We realized that it would mean some increases in local rates, but we recommended to the CRTC that they introduce subsidies for areas like the Northwest Territories where costs of providing service are very high.

I am pleased to report that the CRTC took that recommendation seriously. They will be holding hearings across the country and in the north starting in May of 1998. We intend to continue to be aggressive on the need for subsidies to help northerners and we will be making a submission to the CRTC to make sure that northerners' interests are represented on this important issue. Mahsi, Mr. Speaker.

--Applause

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

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

Thank you. Welcome to Assembly. Recognition of visitors in the gallery. Mr. Miltenberger.

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery. Mr. Krutko.

Recognition of visitors in the gallery. Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, I am happy today to introduce two members of Fort Simpson, two of my constituents who are also here with the friendship centre delegation. First of all, I would like to introduce Dwayne Lafferty, he is the executive director of the Deh Cho Society Friendship Centre in Fort Simpson, as well as, Alexa Tsetso, she is a youth representative with the Deh Cho Society Friendship Centre in Fort Simpson. Mahsi and thank you.

--Applause

Welcome to the Assembly. Recognition of visitors in the gallery. Item 6, oral questions. Mr. Ootes.

The Minister of Transportation, Mr. Antoine.

Thank you, Mr. Speaker. I just want to clarify that I wear three different hats as Minister here in this House and, I think, my role as Minister of Public Works and Services is what my relationship with NorthwesTel is. Again, we are there to represent the interests of all the people in the Northwest Territories and the request that we made is for all the residents of the Northwest Territories in regard to the subsidies which they should consider in their increases to their telephone rates. Thank you.

Oral questions. Supplementary, Mr. Ootes.

Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, the CRTC will be starting to hold hearings across the country, and in the north, starting in May of this year. We recommended to the CRTC that they consider introducing subsidies for areas like the Northwest Territories, especially areas where the cost of providing the service is very high.

Thank you. Oral questions. Supplementary, Mr. Ootes.

Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, previously, before this change by CRTC and the billing of the telephones started, the long distance telephone rates were subsidizing the local telephone rates. Now, with long distance competition that is going to be implemented in the Northwest Territories, is going to change. The cost of long distance telephone services will decrease and the cost of local telephone services will increase. In a lot of the smaller communities, there is a volume that is very small to try to subsidize themselves, so we will be looking at the smaller communities more so than Yellowknife. It is just in the beginning stage, we really do not know how it is going to go. The CRTC will be holding hearings to listen to all the interested parties in the north. As a result, hopefully, that will influence them in how they are going to be implementing the telephone rates. Thank you.

Thank you. Final supplementary, Mr. Ootes.

Mr. Antoine.

No, we do not know where they are going to start. We will find out. Thank you.

Thank you. Oral questions. Mr. Roland.

Mr. Premier.

Thank you, Mr. Speaker. I know that this government does recognize the hamlets, the city or settlement councils in the communities on an equal basis to band councils and Metis locals, but whether or not it recognizes the friendship centres on that same level, I do not know. I would have to find out for the Member what element is involved in the recognition of local governments. Thank you.

Oral questions. Supplementary, Mr. Roland.

Mr. Morin.

Thank you, Mr. Speaker. We are committed to working with local elected officials in every community. For example in Inuvik, the town council, the Gwich'in, the Inuvialuit people and the community empowerment. I do not think it would be proper for us, as a government, to say if that does not work, we are going to do it another way. We are totally committed to working with the local

community groups to achieve community empowerment. Thank you.

Two questions. Supplementary, Mr. Roland.

Mr. Morin.

Thank you, Mr. Speaker. That would be completely up to the community. They know best what function, avenue or vehicle they would use to deliver services to their community members. For example, in Inuvik, if the local government organizations decided that the friendship centre would be the best vehicle used to deliver a service to the people, then, by all means, we agree with local organizations. Thank you.

Thank you. Oral questions. Mr. Krutko.

Mr. Premier.

Thank you, Mr. Speaker. As the Member is well aware, the grants and contributions of this government have a very limited amount of dollars. I would be quite willing to look at that. I am not even sure, offhand, Mr. Speaker, how much grants and contributions we do have. I will take a look at that and get back to the Member. Thank you.

Oral questions. Supplementary, Mr. Krutko.

Mr. Morin.

Thank you, Mr. Speaker. I apologize. I did not catch the full question. Can I have the Member repeat it please?

Mr. Krutko, your second supplementary.

Mr. Morin.

Thank you, Mr. Speaker. As I said earlier, we do have a limited amount of dollars available in our budget for grants and contributions. We have approximately $95,000 for the women's initiative grant, we have $167,000 for the Native Women's Association, we have $296,000 for the Status of Women Council. I believe, Mr. Speaker, that is all the dollars we do have within the Executive's budget on grants and contributions. I know, previously, Members of the Assembly were quite concerned if we reduced any grants and contributions to the women's organizations or the Native Women's Association. Thank you.

Oral questions. Supplementary, Mr. Krutko.

Mr. Morin

Centres

Thank you, Mr. Speaker. I will commit to the Member, and to the friendship centres, that we will work with our local organizations in the communities, as well as, with the friendship centres, the Metis locals, the band councils, the local elected hamlets, settlements or towns, to look at the funds that are existing in those communities to see how they can better use those funds. I will commit to that. Thank you.

Oral questions. Final supplementary, Mr. Krutko.

Mr. Morin.

Thank you, Mr. Speaker. We do have a disposal of goods policy that we do use. The local government, whether it is a hamlet, settlement or whatever municipal government, the band council and the Metis local, all these three are treated equally on the disposal of property assets with this government. I do know that in the past, for example, the Soaring Eagle Friendship Centre in Hay River, we gave them that building and the Metis local as a government, for a dollar. The book value on that building I believe was $380,000, the old liquor store warehouse. The last time I went by there, there was a beehive of activity and they are making very good use of it. It was a good investment by our government by giving them that building. I should know that. My mother started it or was very instrumental in starting it many, many years ago.

Oral questions. Mr. Barnabas.

Thank you, Mr. Speaker. Mr. Speaker, as to my Member's statement earlier this morning, I would like to ask the Minister of Education, Culture and Employment if any equipment that was used by the language bureau could be made available for friendship centre use? Thank you, Mr. Speaker.

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

Thank you. Oral questions. Mr. Picco.

Thank you, Mr. Speaker. Several times in this House we have heard from various Ministers, last week from the Education Minister, that there was no more money to rebase their budgets, but there are surpluses and slippage within individual departments. I am wondering would the Finance Minister commit to the House at this time that, when there is slippage, when there are surplus monies within individual departments, would he commit those funds to Mr. Dent to help him rebase Education so that our teachers are not in bad situations with overcrowded classrooms and so on. Thank you, Mr. Speaker.

The Minister of Finance, Mr. Todd.

No, Mr. Speaker. It would be inappropriate for me to commit to one department versus another department. As Finance Minister, I have the obligation and responsibility to make sure that monies that we distribute to the programs and departments are done in a fair and reasonable way based upon the priorities of the government. We have heard earlier today everybody speaking about the friendship centres and need for additional dollars there. We have heard in the House from Mr. Picco himself that we need money for librarians, we need money for teachers, we need money for health, we need money for everything according to him the last three or four years. What I would say is that, if there are any surpluses or slippages in departments, we would look at it as an overall approach to government and allocate those dollars accordingly, but at this time, I have not seen any surpluses or slippages. Thank you.

Thank you. Oral questions. Supplementary, Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker I could refresh the Minister's memory. Last week in Hansard, the Education Minister and the Finance Minister said that the Members of this House pick and select the priorities of the government where money is going to be spent. For example, $500,000 or more surpluses in the firefighting budget was then reallocated to other departments based on a priority. Is the Minister telling me if the Members of this House do not think education is a priority, he cannot shift money around? I think

over the last couple of weeks the questions and the statements made in this House have demonstrated that, indeed, to the Members of this House, education is a priority. I will ask the Minister, what happens to that money when there are surpluses that he cannot remember? Thank you.

Mr. Todd.

Thank you, Mr. Speaker. I like it when my colleague gets excited. (Applause) Anyway, Mr. Speaker, as I said to my colleague and the colleagues in the House at this time, I do not see where there are going to be any surpluses except for what we announced in the budget. I believe if there was an overall surplus in the budget, it would go against the accumulated deficit to ensure that when the two new territories come into being, that the debt load that they will have to carry will be less. Thank you.

Oral questions. Supplementary, Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, I am not trying to debate the Minister or take the bait. I am trying to ask a question. I believe the Minister is not entirely correct when he says that the only surpluses in this government would be directed toward the deficit because, as I just explained, there was a surplus in the firefighting budget. I believe last month there was $1.2 million under RWED that was rebased into other departments. My question is, in those cases, not at the end of the fiscal year, but in those cases, where money has not been expended within an individual line item, individual departments, would the Minister help Mr. Dent, he said he needs the priority from the Members of this House. Will he help the Department of Education and rebase those monies? That is what I am asking.

Mr. Todd.

Thank you, Mr. Speaker. As my honourable colleague knows, I was talking about any surpluses that may be acquired at year end that would be charged up against the accumulated deficit to ensure that his children, whom he talked so fondly about earlier today, are going to have a future and that they are not going to carry along a huge debt into Nunavut. That is the overall objective of this government and if there are any departmental surpluses, we would review it as we normally do at the FMBS, make some recommendations, whether it is education or whether it is health care, or whether it is our colleagues in the House today and the friendship centres, et cetera. I am not prepared here to say whether one way or another. We put money into education, the friendship centres, health care, justice system, hospitals, et cetera, that this House has been debating for the last two and a half years. What we will do is look at any surpluses in a comprehensive way, allocate them according to the priorities established in this House by both Cabinet and the Legislative Assembly and get on with the job of doing government and doing it well. Thank you.

Thank you. Oral questions. Final supplementary, Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, it took a couple of supplementaries to get to this point, but indeed, we just found out that there are departmental surpluses at varying times, that FMBS and this House decide what the priorities are. It has been demonstrated, this House has identified education as a priority. Again, I would ask the Minister of Finance, that when there are departmental surpluses, would the Minister and the FMBS, the Cabinet, the government and Ordinary Members have an opportunity to ask and go to Mr. Todd to make education a priority so we could rebase like we did last week with some other organizations within this government? Thank you, Mr. Speaker.

Mr. Todd.

Thank you, Mr. Speaker. I must be clear, Mr. Speaker, education is a priority of this government, the same as health care, housing for poor people and friendship centres, et cetera. It is naive for my colleague to stand up in the House and say, it is a number one priority and, therefore, we should shift the money there because I have the support of this House. If he wishes to bring a motion in, and suggest to me as to where we put it, and the House says where it wants it, we would give it due consideration. Thank you.

Oral questions. Mr. Henry.

Thank you, Mr. Speaker. My question is for the Minister of Finance, Mr. Todd. Sometime ago, the government had listed some assets that they wished to offer for sale. Among those assets was the real estate known as the location of the liquor warehouse. Could the Minister tell us as to what the situation is with that particular piece of land, as far as disposal? Thank you, Mr. Speaker.

The Minister of Finance, Mr. Todd.

Thank you, Mr. Speaker. If my honourable colleague is referring to the liquor warehouse which currently resides across from the MacDonald's, the arrangement which has been made with this government is, we have offered the land to the city at a nominal fee, so they can build the new arena they wish to build. The land and the arrangement are

conditional upon them building the arena on that property. We would put out to public tender the acquisition of the building itself. It is no longer required as it now has been privatized and is in private hands. Thank you.