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.