Thank you, Mr. Speaker. Mr. Speaker, when the majority of health services were transferred from federal to territorial responsibility in 1988, the federal government committed to paying part of the cost to replace the Inuvik hospital and to renovate the Baffin hospital. The federal share of the projects was to be based on the percentage of status Indian and Inuit living in each region. Health Canada will provide funding assistance to a level needed to replace the Inuvik hospital and to renovate the Baffin facility. It has now become clear that both facilities must be replaced, and the Government of the Northwest Territories is committed to doing this.

The Department of Health and Social Services and Health Canada have reached an agreement on federal funding for these two facilities. Over the next five years, the federal government will provide $18,600,000 in new funding in addition to $ 18.9 million in base transfers. Of the $18.9 million in base transfers, $12.2 million has been received. With this new agreement, total federal funding for these two projects will be $37.5 million. This agreement represents a sound business decision. Settling this matter now increases our ability to complete these projects quickly. We have secured funding and flexibility to build two facilities best suited to our needs.

Mr. Speaker, we believe that this is a solid agreement. It provides the GNWT with greater flexibility and fiscal certainty as we proceed with these major health facilities. Thank you, Mr. Speaker.

--Applause