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