Thank you, Mr. Speaker. Mr. Speaker, in my Member's statement today, I would like to make some comments on the issue of long distance competition as it relates to services in smaller communities. Across Canada, there has been a reduction in long distance costs where competition has been allowed to take place. No one can argue against cost reductions. We would all like to see a reduction in our phone bills. However, we have a unique situation in the north. Long distance service is profitable in some areas but is not in others, depending on population and remoteness.

NorthwesTel has made the point that in a competitive environment, if revenues are significantly reduced in larger centres, services to small communities will be jeopardized. This causes me great concern. To give you a real example of what the implications may be if a multinational corporation like Sprint or others were to introduce very low cost long distance service to one of our larger communities such as Hay River, phone services could either be cut off and non-profit making communities or prices could go through the roof and become unreachable for residents in these small communities. This is because revenue from larger communities subsidize the cost of providing service in smaller communities.

Mr. Speaker, the other day it caused me concern to hear the Member for Hay River call for immediate and open competition in this area, without regard to the implications this may have for smaller communities. We need to recognize; however, that one of the reasons these larger centres are able to make long distance services profitable is because they are regional or territorial centres that service the small communities. To be more specific in this example, in Hay River, the Power Corporation, NTCL, territorial correctional facilities and the liquor board are based in Hay River and it serves smaller communities. Mr. Speaker, I ask what is the message then if unmanaged competition may well mean the loss of phone services for smaller communities like Pelly Bay, Hall Beach, Grise Fiord, Clyde river, Kimmirut, Chesterfield Inlet, Paulatuk and other communities in both the east and west? I believe that we must be careful in sending the message that we do not want savings at any cost. Mr. Speaker, I seek unanimous consent to conclude my statement.