Thank you, Mr. Speaker. Mr. Speaker, I would like to update Members on the status of the discussions regarding financing arrangements for Nunavut and the Western Territory after April 1, 1999.

The Special Committee on Financial Arrangements for Nunavut and the Western Territory has completed the first phase of its work, examining the issues of funding levels and financing mechanisms for the two new territories. A great deal of work has been done in a relatively short period of time. I would like to commend the work of the officials of the GNWT, the Office of the Interim Commissioner, Nunavut Tunngavik Inc., and the Western Coalition who have been meeting with the federal government since last May to discuss these important issues.

At this time, northern parties are awaiting the decision of the federal government regarding final funding levels and mechanisms. Based on my discussions over the past months with the federal Minister of Finance, the Honourable Paul Martin, I remain confident that sufficient funding will be available for each new territory after 1999 to maintain current program and service levels.

In addition, I believe that we will see some important improvements in the design of the formula mechanisms, some of which will increase the responsiveness of the formula to northern funding needs and others which will lead to greater administrative simplicity.

It is hoped that we will be advised of the federal decision as soon as possible. Business planning for the 1999-2000 fiscal year must begin soon for both territories and information about funding levels is key to this process. It is also important that officials be able to start work as soon as possible on the more detailed discussions and drafting needed to develop formal agreements. We would hope that these agreements would be ready for signing in the fall.

I would like to take this opportunity, Mr. Speaker, to thank Members for their advice and input into the financing process over the past year. Without the cooperation of everyone involved, these discussions would not have been as fruitful or as encouraging. Thank you.