Thank you. Acquisition of equipment, Inuvik region, total region, $114,000. Agreed?

Thank you. Acquisition of equipment, Baffin region, total region, $99,000. Agreed?

Thank you. Acquisition of equipment, Keewatin region, total region, $58,000. Agreed:

Thank you. Acquisition of equipment on page 11-15, Kitikmeot region, total region, $59,000. Agreed?

Thank you. Total acquisition of equipment, $685,000. Agreed?

Thank you. Total activity, $3.134 million. Agreed?

Thank you. Page 11-16, activity summary, forest management, operations and maintenance, total operations and maintenance, $27.761 million. I recognize Mr. Krutko and Mr. Miltenberger. Mr. Krutko.

Thank you, Mr. Chairman. In regard to the forest fire management, one of the things that we seem to spend a lot of time and effort and money fighting fires, but with a lot of these forest resources we have, we are not really using them as a product where we can develop a lot of our own infrastructures in the communities. We are importing a lot of lumber materials from southern Canada. We do have timber resources here in the north. I would like to ask the Minister a question in regard to the forest management area. If you look at the traditional communities which originate up and down the Mackenzie valley, a lot of them had some sort of a sawmill operation. Traditionally in the past, in my riding there were sawmills in Aklavik, Fort McPherson and Tsiigehtchic where at one time these were thriving businesses, in which people built the communities with raw materials from the local surrounding area in regard to cutting their own timber locally and constructing a lot of the old buildings that were built one time in the communities. We seem to have become so dependent on southern resources that we do not use the timber that presently exists in a lot of our regions, where at one time it generated a lot of jobs where a lot of people were able to supply the sawmills with raw materials such as logs.

One thing I see lacking in the north is we have to rehash that industry to where it was at one time. If we go back in history, we will realize a lot of these communities were based on building a lot of their infrastructure by the raw materials in the area. Has the Minister looked at the possibility of investing in local sawmills that communities can start developing there own wood products so that they can go back to the whole notion of constructing and building your own houses with the materials that are around the communities?

Thank you, Mr. Krutko. Mr. Kakfwi.

Thank you, Mr. Chairman. We have been trying to complete forest inventories in as many parts of the Mackenzie Valley as we can. We have also been encouraging communities to look at ways in which they can support milling operations, in places where timber is being cut and harvested. We try to make it a condition of the licence that some milling is done within a certain time period. It is my view the private sector is probably in the best position to get into the milling operation that we would try to continue to work with communities to see that jobs are created.

In the business of trying to use our own materials for building, we can continue trying to do that. Rough lumber is supplying and meeting our own needs. In the area of rough lumber, it is probably the best option we have right now having the finished lumber for actual construction framing. We need to meet national standards and that requires the set-up of a kiln, to dry and finished lumber to be produced in the north. It requires a kiln and right now we do not have that available. Thank you.

Thank you, Mr. Kakfwi. Mr. Krutko.

Thank you, Mr. Chairman. In regard to inventories that have been done, I know that one happened in my riding. How soon will those studies be concluded and the possibility of looking at accessing these resources to start producing wood products in the different ridings, so that we can try to find some way of stimulating our economy by finding a new source of job creation, such as in this area? In my riding, there is that potential. We do have a lot of large stands of timber, especially in the headwaters to the drainage systems. How soon does he feel those studies will be concluded and how soon can we possibly look at going into production with resources in the communities?

Thank you, Mr. Krutko. Mr. Kakfwi.

Thank you, Mr. Chairman. The two areas we are going to put priority on are to try to finish proper inventory which would be conducted jointly with the communities involved and those would be in the areas of Cameron Hills, north of the Cameron Hills and the Gwich'in area. We will work with the communities affected to get those done and to try to find some money to make sure this work is done and completed as soon as possible.

Thank you, Mr. Kakfwi. Mr. Miltenberger.

Thank you, Mr. Chairman. I, as well, have some questions in regard to the whole area of the economic potential of harvesting timber. Before we can do that accurately, there is a need for a clear inventory in the different areas of some sections in the South Slave, Cameron Hills and in the Fort Liard area. In fact, there has been lumbering for some time. The Minister has indicated they are working in Cameron Hills and up in Mr. Krutko's riding. Are there current inventories already done in the South Slave or Liard area, where there is already fairly intensive lumbering?

Thank you, Mr. Miltenberger. Mr. Handley.