Thank you, Mr. Speaker. Mr. Speaker,

the CRTC decided to go for long distance competition and, in preparation for that, the GNWT supported this initiative providing that there is some form of subsidization for the high-cost service areas. The reason being, if other telephone providers, such as AT & T and Sprint, like the honourable Member mentioned in his statement, move into this area, they are business people and they will be going for the high profit areas which are the major centres. We anticipate that the smaller communities may be left out of that arrangement and the cost of providing services in these communities is very high. Currently, NorthwesTel is able to provide the long distance service as well the local service and a form of subsidy is in place. If that is lost, then the small local services will have a very high cost. To try to alleviate that problem and try to continue the services in the communities, this government supported the idea of establishing a fund. This fund would most likely come from long distance revenues from the phone companies in the north as well as in the south.