Thank you, Mr. Speaker. Mr. Speaker, the honourable Member was talking about a World Trade Organization motion, which I am not aware of. It is not a document tabled in the House, so I am not familiar with the document. However, understanding the Member's statement in regard to NorthwesTel requesting additional support to carry on the service of providing telephone services in the north, I just wanted to perhaps, do some background to put it in context so it is understood where they may be coming from.

Mr. Speaker, the CRTC initiated the process in early 1997, on the introduction of long distance competition for NorthwesTel's operating area. The Government of the Northwest Territories is registered as an interested party. In June of that year, CRTC conducted hearings in Yellowknife and the Minister of the day made verbal presentations, stating the views of this government and as well, followed through with a written formal position in October.

The Government of the Northwest Territories indicated support for this long distance telephone competition in the north, as long as every citizen in the Northwest Territories continues to have access to affordable long distance telephone service.

The government also called for a way to subsidize high cost service areas, most likely to come from the long distance revenues from telephone companies themselves. This may be the area where NorthwesTel is finding difficulty in trying to deal with long distance competition and at the same time, provide local services in the smaller communities, as they do both now. As long distance competition comes in, then are they going to be able to continue to be able to provide services at the community and regional levels?

As a result of discussion, there is a process in place now, Mr. Speaker. As a result of the discussions and the decision that was issued by the CRTC in February, local access rates will be increased in 1998 and 1999 in order to allow NorthwesTel to prepare for long distance competitions which will begin July 1, 2000. Before that date, there will be a CRTC process on deciding the actual detailed terms of competition such as what rate the long distance providers must pay Northwestel for access to their system. The increase in local rates is to be balanced by a decrease in long distance rates in 1998/1999. This change should not cost this government any extra money. However, it is going to cost more for people at a community level to use telephone service. The process that I mentioned was introduced by the CRTC, issued Public Notice, calling for consideration of issues associated with providing telecommunication service to high cost areas. All the telephone companies in Canada are involved. At stake is the potential establishment of a national fund to be used in subsidizing high cost serving areas such as the Northwest Territories and our smaller communities.

The Government of the Northwest Territories is very much involved in these proceedings and submitted a formal position supporting the introduction on competition, provided that a high cost serving area fund is established. This government believes that without such a fund, competition could place a financial burden on Northwestel that could put at risk the local and long distance telephone services now available in our remote communities. I think that, Mr. Speaker, trying to put this issue in context is perhaps where the honourable Member is coming from. Thank you.