Thank you, Ms. Thompson. Good morning. Mr. Barnabas.

Point of Privilege

Thank you, Mr. Speaker. Mr. Speaker, I rise today on a point of privilege under Rule 20(1). My point of privilege concerns an article from the Friday, February 20, 1998, issue of the Yellowknifer. The article is entitled Questions about Confession. Mr. Speaker, the article quotes MLA Jane Groenewegen as stating that, it is unfortunate I was caught up in the dispute. She is quoted as saying;

"I don't want Levi to get hurt, personally or politically. Levi Barnabas is not a person who should in anyway be caught in the crossfire of this."

Mr. Speaker, the article also refers to my refusal to provide a handwriting sample. Mr. Speaker, at the request of the Member for Hay River, just prior to my apology in the House, I provided Mrs. Groenewegen a handwriting sample which was clearly identical to the unsigned note that the Member, Mrs. Groenewegen, took offence to.

--Applause

I say again, Mr. Speaker, it was an exact copy. I note that this fact was not mentioned in the article or by Mrs. Groenewegen. Mr. Speaker, I further take offence to the statement by the reporter, Mr. Richard Gleeson, that I did not respond to the media and refused to provide a handwriting sample. Mr. Speaker, I am responsible for my actions to this House and to my constituents, not to the media.

Mr. Speaker, this article and Mrs. Groenewegen's comments, if indeed, they are accurately reported, suggest that I was lying when I admitted that I was the author of the note to Mrs. Groenewegen. Mr. Speaker, I do not like the suggestion that I am a liar. I wish to state categorically for the record that I am not lying - that I am not, taking the fall for the Honourable Goo Arlooktoo and to repeat, again, for the record, that I am the author of the note in question - an action which I deeply regret. I trust that my words today will satisfy the honourable Member for Hay River that I was, indeed, telling the truth when I offered my apology to this House last week. More important, Mr. Speaker, I trust that my statement today will put this issue to rest. I deeply regret the fact that this House and Members of this House have been discredited by this unfortunate incident. Thank you, Mr. Speaker.

--Applause

Thank you, Mr. Barnabas. Orders of the day. Item 2, Ministers' statements. Mr. Todd.

Thank you, Mr. Speaker. Mr. Speaker, I have an emergency statement to make. Mr. Speaker, as everyone is aware, the federal Minister of Finance, the Honourable Paul Martin, brought down his 1998-99 budget yesterday. For the first time in over a quarter of a century, the federal government has balanced the budget. I am aware of what a difficult task it is to achieve a balanced budget in even a small jurisdiction such as this one, and I commend the Minister of Finance for his efforts to achieve this goal at a national level.

Mr. Speaker, I am encouraged by this budget and by the positive impacts that it will have for northerners. A major focus of the budget is on education. Education is a priority in the NWT and the initiatives announced yesterday complement the existing and future programs of this government, particularly supporting lifelong learning, distance education and improving opportunities for post secondary education. Our Minister of Education, Culture and Employment, the Honourable Charles Dent, will be speaking to these federal initiatives in greater detail later this week.

Mr. Speaker, the federal budget also contains measures aimed at employment which will benefit our young people, including, the elimination of the employer share of employment insurance premiums on new jobs for youths aged 18-24, and wage subsidies to employers for up to $10,000 to encourage hiring young people who have not finished high school.

Mr. Speaker, I am particularly pleased to see that the federal government will be contributing an additional $850 million to the Child Tax Benefit Program over the next two years. When I brought down the territorial budget on January 22, of this year, I announced that the GNWT would be supplementing the existing federal Child Tax Benefit. This additional injection of federal funding, announced yesterday, means that starting in 1999, even more money that we originally anticipated will be put in the hands of families at the lower end of the income scale. This, Mr. Speaker, is very good news for northerners.

Mr. Speaker, I should point out that it is not always the information that is contained in the Budget Address which is of significance, but details contained within the budget itself. This federal budget contains a specific reference to the economy of Canada's territories, which is noteworthy. In this budget, the federal government has recognized that the economies of Canada's territories are undergoing significant change and that, as a northern government, we are pursuing diversification of our economy through various means, including a focus on the nonrenewable resource sector and, in particular, the diamond industry.

Mr. Speaker, as the Minister of Finance, I am very pleased that, with the support of our Members of Parliament Ms. Ethel Blondin-Andrew and Ms. Nancy Karetak-Lindell, the federal government has acknowledged the significance of the nonrenewable resource sector to the northern economy and has agreed to work in partnership with us to develop an Economic Development Strategy which recognizes the changing dynamics of the north.

Mr. Speaker, I am also very pleased that the federal budget recognizes that incremental funding will be required for the ongoing operations of two new territories after 1999. The budget uses the current transfer payment to the existing GNWT as a holding figure that will be amended to reflect the two new formulas, once discussions have been concluded this spring.

Mr. Speaker, while this budget is good news for northerners, there is, as they say, always room for improvement. I look forward to a continued cooperative working relationship with Finance Canada, so that we may focus our future budgetary efforts on direct employment initiatives, on the infrastructure and on health care initiatives that northerners need and desire.

Again Mr. Speaker, my congratulations to the Honourable Paul Martin and to the federal government for bringing down a balanced budget, one which recognizes the unique circumstances of the north and which will positively benefit the people of the Northwest Territories. Thank you, Mr. Speaker.

--Applause

Thank you. Ministers' statements. Mr. Kakfwi.

Thank you. Ministers' statements. Ms. Thompson.

Thank you, Mr. Speaker. Today I would like to announce the appointment of seven new board members to the Status of Women Council of the NWT. However, before I announce these appointments, I would like to say thank you to those outgoing members who have made a significant contribution to the work that has been done by the council. These women are: Vera Morin of Yellowknife, Elizabeth Lyall of Taloyoak and Joan Kalaserk of Rankin Inlet.

Mr. Speaker, the newest board members to the Status of Women Council of the NWT are Eliza Kingdon of Iqaluit, Jeannie Padluq of Kimmirut, Phoebe Palluq of Clyde River, Cathy Towtongie of Rankin Inlet, Tessie Gonzales of Hay River, Theresa Cazon-Whelly of Fort Simpson and Vi Beck of Yellowknife.

Mr. Speaker, these new board members will continue working on the initiatives that the Status of Women Council have implemented, while at the same time, they will face many challenges as we move toward the establishment of the Nunavut Territory. As Minister Responsible, I commend the council for all their achievements and wish them continued success in the work they are about to undertake. Thank you, Mr. Speaker.

--Applause.

Thank you. Ministers' statements. Item 3, Members' statements. Mr. Krutko.

Thank you. Members' statements. Mr. Erasmus.

Mr. Speaker, I rise today to make some comments about the federal budget. Mr. Speaker, first of all, I would like to congratulate the federal government on balancing their budget. We understand that it is not an easy task as we have had to do the same thing. However, I would like to categorically state that this is not the time for major tax cuts, neither is it the time to pour major dollars into the social programs.

Mr. Speaker, this country still owes over $900 billion, and the only reason, I feel, that we have been able to make substantial gains in the past year is because of low interest rates. Mr. Speaker, the Government of Canada must keep interest rates low. The banks make billions of dollars every year and Canadian citizens do not need to continue subsidizing the banks. What we need to do is close the loopholes for companies who have not paid income taxes for several years, decades in some cases, I understand. I understand that the federal Finance Minister has moved cautiously in several areas, for instance, in the area of education, which as you all know, I am considerably interested in. There will be money going to help students who owe money after graduation from post secondary institutions. There is also a northern economic development plan. Hopefully, this will assist us in developing a secondary diamond industry. There is also a child tax benefit which we have discussed here earlier and this will assist the poorest people who need it the most. There is also a moderate tax benefit for low and middle income families who also need this. I think that there could have been employment initiatives and it would have been nice to have something in the health care area, since we have such substantial costs in health care, travel costs and forced growth.

Overall, it was a good news budget, but I reiterate, Mr. Speaker, that this is not the time to begin dancing in the streets. This is not the time for major tax cuts or major spending. We still owe over $900 billion, and because of that, Mr. Speaker, I understand that 40 percent of our national revenues goes to pay the interest on the national debt. Once we get rid of that $900 billion debt or a substantial amount of it, then we can do our dancing, then we can cut our taxes by 20 percent and still pour money into social programs and we could still regard ourselves as the best country in the world to live in.

Mr. Speaker, at this time, we cannot hand out rewards before they are earned. Thank you.

--Applause.

Thank you. Members' statements. Mr. Rabesca.

Thank you, Mr. Speaker. Mr. Speaker, as you are aware, over the course of this session, I have pushed to ensure that the shortfalls within the municipal funding formula for the communities of Rae-Edzo are fair and equitable. I know the Minister has instructed her staff to work with the hamlet to ensure this historical problem has been resolved. I am confident that Ms. Thompson will make history in the near future by finally correcting this problem that has been around since the community was established in 1971.

However, Mr. Speaker, I am not sure why my community and myself did not receive support from other colleagues from Yellowknife. I would like, at this time again, I would like to thank my colleague Mr. Ootes, for his support and efforts. Mr. Ootes sees the entire picture, where I guess, my other colleagues from Yellowknife do not.

Mr. Speaker, I would like to tell this House a few facts about the marriage between Rae-Edzo and Yellowknife. For years now, many people in Yellowknife have thought of Rae-Edzo as the small Dogrib community down the highway. This is true compared to Yellowknife. Rae-Edzo has a population of approximately 2,000 residents and is the largest Dene community in the Northwest Territories. Rae-Edzo has a very small business base, basically as the result of having Yellowknife so close. Rae-Edzo contributes millions of dollars every year to businesses, charitable organizations and entertainment facilities within Yellowknife. This happens year in and year out. It is a permanent relationship formed by pure economics and in some cases, a detriment to the overall growth of Rae-Edzo.

Mr. Speaker, many people over the years have recognized this relationship, the mayor of Yellowknife, the president of the chamber of commerce, private businesses and others. However, when it comes to support over a fundamental issue such as the municipal funding formula, the truth is finally told.

As we see it, Mr. Speaker, what is good for Rae-Edzo, ultimately is good for Yellowknife. Thank you, Mr. Speaker.

--Applause.

Members' statements. Mr. O'Brien.

Thank you, Mr. Speaker. Mr. Speaker, today I would like to recognize the establishment of the Inuit Heritage Centre, a special project in Baker Lake that has been initiated and developed by the elders of Baker Lake. This centre provided a great solution to our elders as they face two major challenges. Mr. Speaker, they are the last representatives of the unique Baker Lake Inuit Group. These were the only Inuit people living a traditional inland life based on a diet of caribou and fish.

Mr. Speaker, with instincts sharper than university tools, the elders simply decided to present their traditional wisdom in a modern form that would appeal to youngsters, tourists and historians as well. The elders were the driving force behind the new Inuit Heritage Centre. The concept was theirs and while the old community hall was being renovated, they helped design the building and develop the story line.

Their final and perhaps most brilliant idea included a room inside the centre where elders can meet, record oral history and discuss the details of their ancestors lives. The exhibits will be constructed next. They will eventually display such treasures as the centre's own Kazan River and Back River kayaks, a collection of caribou-skin clothing and a variety of other traditional artifacts and crafts.

Our elders are determined to ensure that their ancestral traditions will be preserved through exhibits, audio and video recordings. When funding permits, the elders intend to purchase materials to demonstrate the construction of traditional items in the original style as an instructive part of the centre.

Finally, Mr. Speaker, I am pleased to announce that his Excellency, Mr. Romeo LeBlanc, the Governor General of Canada and his wife, Mrs. Diana Fowler-LeBlanc, will join our elders on June 3rd, this year in officially opening the Baker Lake Inuit Heritage Centre.

Mr. Speaker, hats off to the Baker Lake elders, Mayor David Tagoona and the council for their hard work on this project. Thank you.

--Applause.

Thank you. Members' statements. Mr. Arlooktoo.

Thank you, Mr. Speaker. I would like to make a few comments on the point of privilege raised earlier by Mr. Barnabas and once again, I would like to say thank you very much for trying to clear the air as I had tried to do the other day. Members will recall that I did raise a Point of Privilege in the House, which I argued for, and the Speaker did agree, that my privileges had been breached, and that there was a case for breach of privilege and I was in a position to take the next effort to propose a motion on how to deal with that breach.

However, on the morning of the day that we were supposed to propose that motion, I was informed and did receive an apology from the Member for Hay River. I accepted the apology and believed that the apology was made honestly and with meaning. I found out later on in the day that further statements casting doubt on my statement saying that I did not write the note and Mr. Barnabas' statement that he was the one who wrote the note. I believe that what happened on that day and the previous day was a deliberate effort to create doubt and mistrust in the House, on the fact that Mr. Barnabas had written a note. There were further suggestions that Mr. Morin and myself had put Mr. Barnabas up to saying that he wrote the note when he did not. There were other rumours on how that had occurred. That, to me, is totally unacceptable. It is a style of politics that is not mine. Mr. Speaker, I notice that my time is up. I would like to conclude my statement. Thank you.

The Member for Baffin South is seeking unanimous consent to conclude his statement. Do I have any nays? Mr. Arlooktoo, you have unanimous consent.

Thank you, Mr. Speaker. I thank Members for allowing me to try to clear the air once again. What had happened since the time when I had made the public statement and Mr. Barnabas had made his statement and was interviewed, et cetera, in the media suggesting that other things were going on that I must tell the House again, were not going on? There was no deal, et cetera. I do not want to stand here in the House and deny things because I think what that does is it raises the profile of that, but I have to say that here in the House again. The point that I want to make is how unacceptable it is for me and to my constituency how this whole thing has been handled by the Member for Hay River, by the Member for Yellowknife Centre, the newspaper, and by others, from what I have seen, it has taken a parasitic approach to feeding on this issue. Living on, politically, the cloud of mistrust and suspicion, to me, is not acceptable. That is not the way I do politics. It is, in my way of thinking, dishonest. There are other things I could bring up, my own analysis of why this has occurred, but I will not say in the House. Maybe I will say that in a media interview, which I am very open to taking afterwards. The final thing that I want to suggest, Mr. Speaker, is that I am so upset at this situation, my constituents are very upset at this situation. I have taken steps to ensure that a credible forensic examiner will do a credible analysis of my handwriting and any others, perhaps, all of the MLAs in the House, to clear up once and for all, who wrote the note because Mr. Barnabas has said twice, that it still did not clear the air.

Further, I am making arrangements to take a polygraph test, a lie detector test which I will be pleased to table again, in the major session, to show that I did not, in fact, write the note. Mr. Speaker, those are a few words from the heart, perhaps a bit disorganized but, once again, I would like to thank the Member for High Arctic for trying to clear the air once again. Thank you.

--Applause

Thank you. Members' statements. Mrs. Groenewegen.

Thank you. Members' statements. Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, I have had an opportunity on several occasions to take people from Iqaluit on a tour of our legislative building. All were very impressed and have asked about the Inuit art work and carvings that are here. Mr. Speaker, this building that houses the NWT Legislature cost approximately $25 million. It has many amenities and has much art work, wall hangings and carvings. Many of the carvings, for example, are from the late 1960s and early 1970s. These carvings are quite valuable. The mace that is presently used was largely constructed in Cape Dorset. Will it be retired and transferred to Nunavut? Mr. Speaker, the artifacts, pictures and carvings are unique to Nunavut. Is there a process to catalogue and identify that art work? Will the art work be transferred to Nunavut, so that Nunavut residents will have an opportunity to see and appreciate the work of previous generations? Mr. Speaker, the art work is very valuable and later today, I will be asking questions to the appropriate Minister on this matter. Thank you.

Thank you. Members' statements. Item 4, returns to oral questions. Item 5, recognition of visitors in the gallery. Mr. Barnabas.

Thank you, Mr. Speaker. Mr. Speaker, I would like to recognize a resident of Grise Fiord, Mr. Seeglook Akeeagok. He is the renewable resource officer in Grise Fiord who will be attending the conference on Peary caribou in Yellowknife this week.

--Applause

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

Thank you, Mr. Speaker. Mr. Speaker, as I just mentioned in my Member's statement, I have some questions concerning the artifacts, carvings and such, in the legislative building. Would the Premier, be able to let me know what process is in place to identify and catalogue those artifacts to see if, indeed, some of that property which is owned presently by all the people of the Northwest Territories could be transferred to Nunavut? Thank you, Mr. Speaker.

Mr. Premier.

Thank you, Mr. Speaker. It is my understanding that the vast majority of the art, wall hangings and the things which decorate the Legislative Assembly were gifts to the people of the Northwest Territories and kept in this building on behalf of the people of the Northwest Territories. Other than the fish in the Caucus room, is mine. Thank you.

Oral questions. Supplementary, Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, several times when I have had an opportunity to take people around the Legislative Assembly, they have remarked at the carvings and the wall hangings. For example, when you come into the building the caribou there is quite unique. They have been gifts to this government. I understand that some of the carvings and wall hangings that are presently in this building, Mr. Speaker, were actually bought by this government. They came from the Executive Collection. Has the Premier looked at some type of protocol arrangement or if those carvings, wall hangings and art work, could be transferred to Nunavut on a permanent basis? Is there some type of mechanism in place where they could be transferred to Nunavut, so the residents of Nunavut could have an opportunity to appreciate that art? Thank you.

Mr. Morin.

Thank you, Mr. Speaker. All residents, all of the people in the Northwest Territories, when they have the opportunity to visit the Legislative Assembly, have the opportunity of seeing all the art work in the Legislative Assembly. Like I said earlier, it is kept in this building for all people of the Northwest Territories. All the paintings and art are numbered by the Northwest Territories government. It is all kept track of. This is how it is kept. As far as the Member's concern on whether or not all that stuff could be transferred to Nunavut, I will raise that issue with the Speaker, who is in charge of this building, and I will let the Member know what he says. Thank you.

Oral questions. Supplementary, Mr. Picco.

Thank you, Mr. Speaker. The Premier can keep his fish that does not need to be included on the list. Mr. Speaker, after division, many residents of Nunavut will not have the opportunity to come to Yellowknife because there will not be any reason to come here. Even on a borrowing or lending basis, would be opportune to give the residents a chance to share in the unique artwork of previous generations. My supplemental question, Mr. Speaker, concerns the Mace. Is there a process in place, with the present Mace as an example, where it could be retired? Is there any type of protocol with the current Mace which was largely constructed in Nunavut? The last time it was in Iqaluit was this past spring, we heard that it was priceless. Is there any type of process in place for that? I think Mr. Morin is really ready to answer this question. I will give him an opportunity. Thank you.

Mr. Morin.

Thank you, Mr. Speaker. There are two Maces. The original, I believe, is held in the museum as well as the Mace that is here. It does represent all the people of the Northwest Territories. It is a Mace that is made and it has parts from the Western Arctic, parts from Nunavut, so that it does represent all the people of the Northwest Territories. There is no doubt in my mind that April 1, 1999, there will not be a border put up between Nunavut and the Western Arctic where we do not share and work together.

Hear! Hear!

We have a long standing understanding. We have an ability to work together. We prove that in this House daily, Mr. Speaker, all Members working together. We have close relationships with the Nunavut people and I believe that will just continue after April 1, 1999. We will continue to have a close working relationship with them. Thank you.

Oral questions. Mr. Krutko.

The Premier. Two questions.

Thank you, Mr. Speaker. I will be pleased to take that up with the Minister responsible for Income Support that there is an issue the Member has raised on the appeals process and Income Support. I would not direct any department to do anything at this time, but I will talk to the Minister. This is how we will handle this issue that the Member raises.

Oral questions. Supplementary, Mr. Krutko.

Mr. Morin.

Thank you, Mr. Speaker. We do have people in our communities who are income support workers that work very hard and I commend them for the work they do. Possibly, we can work with our communities in partnership as to what would be the best approach on how to make sure the clients all know what options are available and open to them. We will work in partnership with the communities. Thank you.

Oral questions. Supplementary, Mr. Krutko.

Mr. Morin.

Thank you, Mr. Speaker. I could suggest that to the Minister and I thank the Member for his recommendation. Thank you.

Oral questions. Mr. Miltenberger.

The Minister of Finance, Mr. Todd.

Thank you, Mr. Speaker. I was as encouraged as my Cabinet colleagues were that there was reference in the fine print, in the budget to the fact the federal government was working with the territorial government and the partnership the territorial government has to provide funding for the two new territories. It made reference to the fact that while they were using the current budget as a holding number that there clearly was a requirement for additional incremental costs. It was a statement in the budget that is what it said, in terms of the detail. My point this morning was that I was encouraging the fact we were able to get it there. That was due in part to our efforts, as well as our MPs efforts. It is a symbolic gesture to the federal government saying to the rest of the country that we are ready to move in providing adequate funding for the two new territories in April 1, 1999. We and my Cabinet colleagues have appreciated that. Thank you.

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

Mr. Todd.

Yes, that is exactly it. That is the reason I referenced it in my statement this morning. The reality is, as my honourable colleague knows and the House knows, we are in intense negotiations right now. I am optimistic that we will be able to reach an arrangement and meet the targets that we set for ourselves in April, 1998. I certainly hope so. My reason for referencing it was to show clearly that the federal government, through a statement, whether it is a small paragraph or not, in the budget, in the detail, has committed to incremental costs as it relates to the two new territories. I am confident, as my Cabinet colleagues are, that we will be able to accomplish that, in the not to distant future to, hopefully, have a reasonable good news story for both east and west. Thank you.

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

Mr. Todd.

No, Mr. Speaker. The transitional costs are

separate entities that are being discussed between the Interim Commissioner's office and the Honourable Jane Stewart's office. This reference in the budget was in reference to the ongoing, long-term operations and maintenance costs related to two new territories. I will get those two paragraphs that one and the economic one, which are also a good sign for us. I will get that excerpt from the budget for my colleague and the colleagues in this House. Thank you.

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

Mr. Todd.

We do not have the details of that. We are working fairly hard today and tomorrow trying to get a much more explicit interpretation of what that means. Again, my Cabinet colleagues and particularly, Mr. Kakfwi, the Minister of RWED, is encouraged by the fact the federal government said in its budget that it wanted to work with the territorial partners in the establishment of a partnership working toward the new changing economy in the territories. We were extremely pleased to see there was a reference to diamonds in that. What that translates into, I do not want to speculate at this time, but from my position as Finance Minister, what that could translate into is perhaps, an agreement between the federal and territorial governments or the two new governments in relationship to a new economic agreement. I am certainly hopeful that is what will occur. Thank you.

Oral questions. Mr. Henry.

Thank you, Mr. Speaker. Mr. Speaker, my question will be to the Premier. I would like to follow up on some of the comments of Mr. Picco earlier this morning. It is nice to know the Premier gets to keep his fish and as usual, Mr. Picco has fallen for the hook, line and sinker. My question to the Premier is, does this government have any policy about when it receives gifts or gives out gifts? Do we ever put any conditions on gifts this government gives, that we may wish to take them back? If this government gives a gift to another government or entity, is there a condition put on it or is there a chance this government may ask for it back at some time? Thank you, Mr. Speaker.

--Laughter

Mr. Premier.

Thank you, Mr. Speaker. We would never give anybody a gift and then ask for it back. Thank you.

Oral questions. Mr. Erasmus.

Thank you, Mr. Speaker. I want to ask some questions to the Minister of Finance on his statement on the federal budget, particularly in the area of the economic development plan for the north. Could the Minister elaborate a bit, I know Mr. Miltenberger briefly asked that question earlier? Could the Minister elaborate a bit on what he does know in this area?

The Minister of Finance, Mr. Todd.

I am encouraged by the fact we were able to get two brief paragraphs in relationship to formula financing and of course, economic growth in the territories. We do not have the details at this time, and I am sorry because the budget was just announced yesterday. As I said earlier, Mr. Kakfwi's office has been working diligently to try to encourage the federal government to look at the possibility of another economic agreement similar to what we had in the past. It would be imprudent of me at this time to suggest that may occur because we are not quite sure of the detail. In the next three or four days hopefully, we will have some of that detail. If, in fact, there is a desire on the part of the federal government, which we hope there is, to join us in partnership with some new economic agreement, which Mr. Kakfwi will be taking the lead, as Minister of RWED, I am sure Mr. Kakfwi and this Cabinet will be pleased to provide the House with as much information as we can at that time. At this time, it is just not clear as to how that is going to come about. We are certainly encouraged by the fact it was in the budget. Thank you.

Oral questions. Supplementary, Mr. Erasmus.

Thank you, Mr. Speaker. Mr. Speaker, I am sure that whatever has occurred or did occur, as a result of or was influenced by the work of our two MPs, Ms. Ethel Blondin-Andrew and Ms. Nancy Karetak-Lindell, could the Minister indicate whether he and his department have been conferring with our MPs and to elaborate on this issue?

Mr. Todd.

Anything of this nature is a collaborated effort, Mr. Speaker. Certainly, I said today and in earlier

interviews, I want to applaud both of our MPs, Ms. Ethel Blondin-Andrew and Ms. Nancy Karetak-Lindell. I know the Premier and Mr. Kakfwi have been strong advocates of trying to find another economic agreement that would bring some cost sharing between this government and the federal government on economic activity. As I said earlier, the statement which I will provide to my colleague, in the back-up detail of the budget, indicates the economy of the Northwest Territories is changing dramatically. It requires a new partnership and makes specific reference not only to diamonds but to the nonrenewable resource and the renewable resource and indicates in several lines the federal government is prepared to sit down with the territorial government in seeking a new partnership. The Premier, in his discussions with his federal counterparts, has been encouraging that over the last little while. There was some discussion with respect to the other provincial jurisdiction seeking its support when the Premier was on the Team Canada trip recently. I am optimistic that between Mr. Kakfwi, the Premier's efforts and whatever efforts I can contribute to this issue that we will be able to move in partnership with the federal government on some new economic initiative. I am sure Mr. Kakfwi and others will be prepared to share that with this House and with the territories as a whole, once the detail unfolds in the coming days. Thank you.

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

Thank you, Mr. Speaker. I just received this budget speech this morning as well and I have not had a chance to look at it in detail. Since the Minister indicated the Budget Address had in fact mentioned diamonds, is he optimistic this can be used to develop a secondary diamond industry in the north here? Thank you.

Mr. Todd.

Thank you, Mr. Speaker. I managed to get the actual wording that is in the budget and I think it will be of some value to the Members. I think all of us earlier this morning in our Cabinet Caucus meeting are encouraged by this. Both the Premier, Mr. Kakfwi and myself have spoken vigorously about the need for the diamond industry to benefit northerners and we are much more optimistic that will occur. This is what it says:

The federal government is committed to working with the territorial governments and other northern partners to develop a modern economic development strategy that recognizes the dynamics of the north and the need to establish a more diverse economy. It makes specific reference to development of traditional economies, knowledge-based economies and a new diamond industry.

That is encouraging Mr. Speaker. Again, I want to applaud, my Cabinet colleague's efforts and the two MPs for getting this detailed stuff into the budget. I think it is a first, quite frankly. It indicates the federal government is certainly prepared to sit down with the territories and work toward a new economic partnership. Thank you.

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

Thank you, Mr. Speaker. I would like to thank the Finance Minister for indicating the exact words used in the budget. The other question is, whether or not the federal Finance Minister is willing to use his budget and what he has indicated in his budget speech, whether he intends that to be used for this purpose? Is the Cabinet still adamant about purchasing diamonds to ensure there is a consistent supply of diamonds here in the north for a secondary industry?

Mr. Todd.

As the Premier has stated, Mr. Kakfwi and occasionally myself, we think the access to rough diamonds is an important issue for northerners and certainly that commitment and the need to have meaningful and constructive dialogue with industry are there. I am fairly confident these discussions will be underway soon. Hopefully, we will be able to come to a reasonable agreement, as my honourable colleagues have said, on a frequent basis. Thank you.

Oral questions. Mrs. Groenewegen.

Mr. Premier.

Thank you, Mr. Speaker. Mr. Speaker, I do not have the exact numbers for every portion of expenditure that we would have to do as a government. Everyone is well aware the infrastructure, just in roads alone, the wear and tear

on our highways, is quite dramatic in the building of this mine. Approximately 4,000 loads alone went in last winter. We are finding that some of our stretches of highway are deteriorating and we will have to upgrade those. We will have policing costs and we pick up a portion of that. We will have increased counselling as well as social workers and people working with the community people who are not used to working. There are other issues as well. I do not have all that information at my fingertips. Thank you.

Oral questions. Supplementary, Mrs. Groenewegen.

Mr. Morin.

Thank you, Mr. Speaker. The government is doing that already. We are looking at all the costs associated with the increase in population, as well as the increased draw down on our programs. There will definitely be a draw down on our health care demand, school requirements, new employees coming in, as well into the government to service and counsel people that are working and get work. You must remember, Mr. Speaker, the majority of our people come from the small communities. They basically come from a trapping and hunting environment and then into a wage economy. Those things do not happen in a smooth process. There will be a need for extra counselling and other things as well, but we are undertaking that work. Members are well aware that during the environmental process, this concern was raised by many northerners, by many northern women, especially, how do they cope with their people going off to the mine to work and leaving them in the communities. Those are all things we have to take into consideration. Thank you.

Oral questions. Supplementary, Mrs. Groenewegen.

Mr. Morin.

Thank you, Mr. Speaker. There is no finished document yet, but there will be one. Thank you.

Oral questions. Final supplementary, Mrs. Groenewegen.

Mr. Morin.

Thank you, Mr. Speaker. No, we have not. If we had, for example, someone saying to us from the federal government or mining industry, that the very most you can expect is to be revenue neutral, then those diamonds may as well stay in the ground because we have to benefit as northerners. We have to benefit from the development of our resources. Those are our diamonds and we have to benefit in order for the future to be better for our children. We have to think of the children ahead. We cannot just think of today and what job spinoffs we get from a diamond mine. We have to think more long range. Thank you.

Oral questions. Mr. Rabesca.

Thank you, Mr. Speaker. Yesterday, as we heard, was budget day for the federal government. Although, it was somewhat a good news budget, with the news having the budget balanced, by providing students with adequate funds for them to continue their education. My question to the Finance Minister would be regarding the funding support for students. Would this program be available to our residents, as currently, our students are not funded under the Canadian Program, as is the case in other jurisdictions across Canada? Thank you, Mr. Speaker.

The Minister of Finance, Mr. Todd.

Thank you, Mr. Speaker and thank you, honourable colleagues. As I said the other day, and again, I am not trying to avoid the questions on the budget, I am trying to answer them to the best of my ability. First of all, we were encouraged by the fact the federal government has placed a great deal of emphasis on education at all levels, whether it is post secondary or whether it is for grants to students and scholarships. What I have learned so far, late last night and early this morning, I am optimistic there will be some benefits

for northern students. Certainly, if you watched Mr. Martin earlier today, in his comments on the early morning news show, he indicated monies will be provided. For example, in post secondary education, he talked about it being provided to NAIT in Alberta, to Dalhousie in Halifax and to the different institutions across the country. I am assuming this will include, for example, our Arctic College, et cetera. I have spoken to Mr. Dent as late as yesterday afternoon, and as you know, he is down there right now and, hopefully, he is going to come back with more detail.

One of the areas that may be advantageous to us is, student grants where it indicates that 100,000 students will be given scholarships over the next ten years. These scholarships will be based on need, merit and mobility. Mobility to me means the cost of moving from point A to point B. Many of our students who choose not to use Arctic College or go to university or whatever, there is a significant cost attached to that. I am hoping this will be part of the benefit for the north, but as I said, Mr. Dent will be able to speak to that later next week. He is trying, as we speak, to get a more detailed interpretation of how these significant educational initiatives affect us. Thank you.

Thank you. Oral questions. Mr. Barnabas.

Thank you, Mr. Speaker. Mr. Speaker, recently the Minister of Justice had been attending a meeting in Ottawa. I understand that the Minister had a meeting with the federal Minister of Justice and the Minister of DIAND. I understand that some of the discussions were on Nunavut commitments. Can the Minister give a status report on this? Thank you, Mr. Speaker.

The Minister of Justice, Mr. Arlooktoo.

Thank you, Mr. Speaker. The Nunavut Act Amendments are scheduled to be introduced in the House by the Honourable Jane Stewart in the next week or so. As such, because of protocol, it is improper for me to get into the specific details, but what I can say is, the work on the bill has been done in a cooperative effort by a working group of officials from the Government of the Northwest Territories, from NTI and from the federal government. I am fairly assured that our views will be reflected in much of the bill. I can also tell the House, standing the bill, we are relatively pleased with what is proposed. We did have some concerns, however, which hence the reason why I went down to Ottawa, met with the Minister and was assured they would look at our concerns and do one of two things. One, either they could make the changes before it is introduced; or two, that we would work together with the Standing Committee on Legislation in putting together the required changes. In a nutshell, we will see soon enough the result of the proposed bill. At that point in time, it will be important for the government and the Ordinary Members, especially the Nunavut Caucus Members, to work together to ensure that our views are reflected in the bill. Thank you.

Thank you. Oral questions. Mr. O'Brien.

Thank you, Mr. Speaker. Mr. Speaker, my question is to the Minister responsible for Municipal and Community Affairs and it concerns with the Keewatin pilot project. Mr. Speaker, I am sure the Minister can understand the difficult situation I am in with one of my communities supporting the project and one, not. Mr. Speaker, the fact that the community of Baker Lake is not supporting the project was made very clear this week by the mayor of Baker Lake. I have to respect their views on this as their MLA, and I do, as well the wishes of the mayor of Arviat in his strong support for the project. Having said that, Mr. Speaker, after discussions this week with Baker Lake, an issue arose and I was asked to bring it forward in the House. The question, Mr. Speaker, I would like to pose to the Minister is, will the Minister consider block funding to the community of Baker Lake in the same manner, same magnitude, as she is proposing for the Keewatin pilot project that will be overseen by the Keewatin people? Thank you.