Thank you Mr. Evaloarjuk. Good afternoon, Members. Before we begin today, I would like to remind Members that today is the 47th anniversary of a historic event for the Northwest Territories and for this Assembly. On September 17, 1951, for the first time some Members of the Council were elected to office.

There were three Members elected in 1951 to represent the whole Northwest Territories. They were, Mr. Mervyn Hardie, representing the Mackenzie North constituency; Mr. James Brodie representing Mackenzie South and Mr. Frank Carmichael, representing Mackenzie West. At that time, there were also six appointed Members on the Council, as well as the Commissioner, Major General Hugh Young.

There have been many changes in this Assembly and in the Northwest Territories as a whole since 1951. Forty-seven years ago we began the process toward responsible government. For the last 47 years, Members of this and previous Legislatures have worked to ensure that all residents of the Northwest Territories are represented responsibly and effectively.

With the creation of two new territories, we will see many more changes and will continue to break new ground. As elected Members, we will remain committed to the principle of responsible government that is reflective of the interests of all northern residents.

If I may, it is appropriate today that we have in the gallery four of the 19 returning officers, who will conduct the first election for the Nunavut Legislative Assembly. They are in Yellowknife for training this week. They are:

Mona Autut, Returning Officer for Baker Lake - from Baker Lake

Nancy Kalluak, Returning Officer for Arviat - from Arviat

Jean Kaniak, Returning Officer for Cambridge Bay - from Cambridge Bay

Sarah Kidlapik, Returning Officer for Akullik - from Repulse Bay

Welcome to the Assembly.

--Applause

Orders of the Day. Item 2, Ministers' statements. Mr. Kakfwi.

Thank you. Ministers' statements. Mr. Todd.

Thank you, Mr. Speaker. Mr. Speaker, the Workers' Compensation Board has experienced several years of exceptional financial results since finding itself in a deficit position in 1992. In 1997, it achieved an operating surplus of over $20 million. To date, the board has an accumulated operating reserve of over $35 million. These positive results can be attributed to several factors.

The total number of registered claims dropped last year to its lowest level in four years. On the other hand, increased economic activity in the NWT meant that employer revenue was higher than anticipated. Perhaps the most significant influence on the financial health of the WCB has been the success of its investment portfolio. In 1995 and 1996, the WCB made significant changes to its investment policy and asset mix model. A more aggressive and better balanced investment strategy has resulted in three successive years of solid investment performance. Mr. Speaker, since 1996, the WCB has consistently reflected its financial success by decreasing employer assessment rates and increasing benefits to injured workers.

Mr. Speaker, effective January 1, 1999, a further 35 percent decrease in the average assessment rate will take effect. This means the assessment rate for NWT employers will decrease from $1.87 to $1.21 per $100 of assessable payroll. This new average rate has been approved by the board of directors and will be maintained for three years. As well, Mr. Speaker, I will be introducing legislation in the Assembly this fall to increase the YMIR from $52,000 to $60,000, effective January 1, 1999.

--Applause

If approved, the new YMIR in the NWT will become the highest YMIR in the country.

This increase will allow the board to fully compensate 85 percent of the NWT workforce. The new YMIR will also provide greater coverage to the mining industry, where currently only 35 percent of the workers are fully covered. It should also be mentioned, Mr. Speaker, that increasing the YMIR will create inequities between those workers and their dependants who will be receiving pensions and those whose pensions are based on earlier YMIR's.

--Applause

Thank you. Ministers' statements. Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, Members of the Assembly, late yesterday afternoon I learned through a general press release from NAV Canada that the federal Minister of Transport, the Honourable David Collenette, gave his approval to NAV Canada's fee proposal last Friday. I want to inform the House that I am greatly disappointed with the consistent refusal of NAV Canada and the federal government to recognize the impact the new fee structure will have on northern Canada.

NAV Canada's announcement makes much of the fact that, as a special concession to the north, it will phase in the new fees over a two year period. This is merely a delay. The pain will come in small cuts over time rather than all at once. Delays or deferrals were not what we had asked NAV Canada or the Minister of Transport to consider. NAV Canada also makes much of the fact that the former Air Transportation Tax is to be removed as the new fees are introduced to replace it. Unlike the Air Transportation Tax that was added to the fares of paying passengers, the new service fees are charged on aircraft movements - regardless of whether the aircraft is empty or loaded. Since the fees are based on aircraft movements, the air carriers must recover the fees from their passengers and freight. The new fees have and will impose added cost to the movement of freight. This is a new cost to northerners and the substance of our criticism. The announced deferrals do not change the fact that, in the end, fresh groceries and other essential air cargoes delivered to our northern and remote communities will cost more.

Next week I will be meeting in Regina with the federal Ministers and my provincial and territorial counterparts. I intend to take up the issue of the NAV Canada fees at the meeting and I have already had the item included on the agenda. The deferrals do give us time. With the support of this Assembly, the people who live in our communities and the northern air industry, I intend to pursue every avenue at our disposal to mitigate this added increase to our high cost of living in the north. Mahsi, Mr. Speaker.

--Applause

Thank you. Ministers' statements. Item 3,

Members' statements. Mr. Evaloarjuk.

(Translation) Thank you, Mr. Speaker. Mr. Speaker, I rise today out of concern regarding my visit to Pond Inlet and the issues I wish to bring to your attention. These problems still have not been resolved;

First of all, the school and gymnasium that was planned for the community was designed to be too small, and the foundation for the building remains very muddy. The marina/dock that was to be built still has not gone through. More and more people are buying their own boats and this facility is required for safety purposes, as Pond Inlet has no safe harbour. The travel routes by air also remain the same. In order to travel between Hall Beach, Pond Inlet and Arctic Bay, they still have to stop over in Iqaluit.

Also, they need a nursing station, which they were told they would get. To date, they have never heard anything more. They have had only two nurses all this time even though they should have five according to ratio and population numbers. There should also be nursing training provided for Inuit but this has also been discontinued.

Mr. Speaker, these issues I speak of will be brought forward in question period at the appropriate time. Thank you, Mr. Speaker. (Translation ends)

--Applause

Members' statements. Mr. Picco.

Thank you, Mr. Speaker. Mr. Speaker, this past summer has seen unprecedented growth occur in Iqaluit. There are numerous single family and multi-plex housing units as well as office buildings and the new Legislative Assembly building being built. This activity has meant increasing numbers of people moving to Iqaluit and this has pushed resources to their limit. Housing shortages remain very serious and the homeless shelter was over flowing before it was closed down. A new shelter is now being built to help deal with the problem of homelessness. Mr. Speaker, with all this growth and activity the youth of Iqaluit have not been forgotten. With support from Frobisher Developments Limited they kindly donated a housing unit to be used as a youth centre. Over the past several months, I have chaired a committee of community volunteers that have tried to put together a sound plan to open the youth centre. We have had support from various organizations and companies Mr. Speaker, but we have had no luck with this government.

Our latest request for core funding to help us hire a full-time staff person who would be available to counsel youth and coordinate activities was rejected. Mr. Speaker, last Friday we met to review our options and the committee is scheduled to meet again tomorrow. We now plan on preparing a funding proposal to the federal government. Mr. Speaker, many of our youth are in crisis. The youth centre would be a safe place where they could hang out with their friends and we would have someone available to help and talk to. a trained councillor. I do not understand why this government cannot find a way to help fund such a worthwhile project.

We pay lip service to many of the problems affecting youth. When youth get in trouble or when we have to deal with suicide, crime or drug related problems, we talk about diversion type programs. Mr. Speaker a dedicated environment for youth with trained staff on hand is what is needed. A safe place to go. Later today, I will ask the appropriate Minister about these issues. Thank you, Mr. Speaker.

Thank you. Members' statements. Mr. Krutko.

Thank you. Members' statements. Mr. Ootes.

Members' statements. Mr. Erasmus.

Thank you, Mr. Speaker. Mr. Speaker, I rise today to also talk about the sod turning at the BHP valuation sorting facility that I had the opportunity to attend at noon hour. Mr. Speaker, I can honestly say that this is a momentous occasion. This is the first such facility in North America and there will be around 15 jobs to start and more will be coming of course with other mines opening and greater development. Mr. Speaker, this is a win-win situation. First of all BHP gets its facility, secondly, the City of Yellowknife gets much need tax dollars at the full economic rate. There were no concessions made. Thirdly, the valuator as a consortium of the Yellowknives Dene First Nation, the Dogrib First Nation and the Kitikmeot Inuit Association. These three birthright organizations will be able to get jobs and other economic opportunities from this venture. I say birthright organizations because there are three land claimant groups.

Mr. Speaker, this could not have happened without the hard work of a lot of people and I believe they are to be congratulated for a job well done. Hopefully, this is just the start of a full value added secondary diamond industry in the north, meaning diamond polishing, jewellery making and so on. Mr. Speaker, this of course means more jobs and less social programs for not only Yellowknife, but also for the surrounding communities. Indeed, we can say we have a bright and glittery road ahead of us. Thank you.

--Applause

Thank you. Members' statements. Mr. Steen.

Members' statements. Mr. Rabesca.

Thank you, Mr. Speaker. Mr. Speaker, today I rise to inform this House that my region is hearing how important education is. Over the past number of years, our leaders have been telling young and old that education is the backbone to a better life. We all try to ensure that our children have the best we can offer. Be it a good warm home, food on the table, a caring and loving family, it is our duty as parents to ensure these things are provided. It is also our duty to ensure our children can achieve their goals. We must enforce and encourage our children to attend school and get as much education as is possible.

With this in mind, I would like to inform this House that for this current school year we have had tremendous response for individuals to attend post-secondary schools as well as getting a high school education. This year we have 47 students out attending post-secondary schools throughout Canada. The Chief Jimmy Bruneau High School has had an increase of almost 100 students over the same period last year. This is all very good news for our region and our residents.

We cannot stop now, we must continue to encourage our residents to get educated, our government must continue to develop new and interesting programs and methods that focus on our ever changing environment. New opportunities are becoming available and we must respond to these. To end, I would like to commend our students for their achievements and keep up the good work. Thank you, Mr. Speaker.

--Applause

Thank you. Members' statements. Mr. Miltenberger.

Members' statements. Mrs. Groenewegen.

Thank you. Members' statements. Mr. Henry.

Thank you, Mr. Speaker. We are all familiar with the now famous no lay-off policy. I quote the Premier from his statement in this House last March when he said, "this government plans no more lay-offs, either due to division or to department consolidations" for the remainder of this government's term. This was a welcome announcement, after the difficult times and the uncertainty that government employees have faced over the past years.

I am sure the government knows that the policy was much talked about among employees. As it turns out, we are now hearing conflicting messages. Members may recall a letter we received from the Premier in August. The Premier pointed out that the creation of two new governments will result in a transfer of responsibilities to the Nunavut government. This is not ground breaking news. He also said, and I quote, "the need to downsize the public service".

Now, we are downsizing the public service, but apparently not laying off. The Premier wrote that there would be no lay-offs because there will be an internal competition process for GNWT jobs. According to the Premier, this would reduce staff numbers by creating greater mobility within the workforce. Mr. Speaker, I am not convinced that it will be quite that simple or painless or effective for that matter. We need a lot more information. To me, downsizing sounds a lot like lay-off policy by another name. Later today, I will be speaking and asking questions to the Premier on this particular topic. Thank you, Mr. Speaker.

Thank you. Members' statements. Item 4, returns to oral questions. Item 5, recognition of visitors in the gallery. Mr. O'Brien.

Thank you, Mr. Speaker. Mr. Speaker, I would like to recognize from my home riding Nancy Kalluak from Arviat and also from Baker Lake, Mona Autut. These two ladies are Nunavut's first returning officers.

--Applause

Welcome to the Assembly. Recognition of visitors in the gallery. Mr. Miltenberger.

Welcome to the Assembly. Recognition of visitors in the gallery. Ms. Thompson.

(Translation) Thank you, Mr. Speaker. I would like to recognize Sarah Kidlapik, her mother and father are also in Repulse Bay and she is here too as well. I would like to thank her for coming. (Translation ends)

--Applause

Welcome to the Assembly. Recognition of visitors in the gallery. Item 6, oral questions. Mr. Henry.

Thank you, Mr. Speaker. My question today is to the Premier. The Premier said a number of GNWT employees must be reduced. The government intends to do this without lay-offs by creating an internal competition process for the GNWT employees. The Premier said that the staff would be reduced by creating greater mobility within the workforce. My question to the Premier is, can the Premier tell me approximately how many GNWT positions still need to be eliminated prior to division? Thank you, Mr. Speaker.

Mr. Premier.

Thank you, Mr. Speaker. I cannot give him a number today. I will be pleased to try to find that number for him and forward it. Thank you.

Thank you. Oral questions. Supplementary, Mr. Henry.

Thank you, Mr. Speaker. I would ask the Premier then, Mr. Speaker, to give me some clarification of what he meant when he addressed this House last March when he told this House that this government plans no more lay-offs either due to division or to departmental consolidations? Thank you, Mr. Speaker.

Mr. Morin.

Thank you, Mr. Speaker. Like I said in the last Legislative Assembly, there will be no more lay-offs to government staff due to division and downsizing. When we say that, we meant that. There is a certain amount of people who work for the government right now. We are going to need a certain amount of people to carry out the functions of the new western governance. What we have done, is we have internal staffing that we have to do. So, some people may be in positions right now that will be in a downsized position after division. We are attempting to move those people to other positions so we do not have to lay people off. We have approximately the same number of people on staff as we do positions. Thank you.

Thank you. Oral questions. Supplementary, Mr. Henry.

Thank you, Mr. Speaker. Do I understand the Premier to tell us that there will be no more lay-offs regardless of these internal competitions that he spoke of earlier? Is he telling this House there will be no lay-offs of GNWT staff? Thank you, Mr. Speaker.

Mr. Morin.

Thank you, Mr. Speaker. Yes.

Oral questions. Mr. Ootes.

The Minister responsible for the Economic Strategy, Mr. Todd.

Yes, thank you, Mr. Speaker. I am not sure why that took place, but I will check with the people who are working on the project and report back to my honourable colleague. Thank you.

Thank you. Oral questions. Supplementary, Mr. Ootes.

Mr. Todd.

I would have to check with the administration that dealt with the issue, but we did put it out to public tender. Why only one person applied, I do not know because I think that is where my colleague is leading to. I cannot answer that question. I do not know why only one person applied. I would only be too happy to table in this House the excellent proposal we received from Mr. Bailey and associates, if the Member would like to have that.

Oral questions. Supplementary, Mr. Ootes.

Mr. Todd.

Thank you, Mr. Speaker. I imagine the debate would end up where we would be talking about the contract around the content of what we are trying to achieve here. I would say to my honourable colleague that I would have to look into it. I do not get involved in the detail of that kind of thing. I would hope at some point he would ask me questions of what we are trying to achieve here. What the overall objective is, how we are trying to make life better for northerners and how we are trying to get more money from the federal government. Thank you.

Oral questions. Final supplementary, Mr. Ootes.

Mr. Todd.

Thank you, Mr. Speaker. My understanding of this initiative of this government, which is still in place until March 31, 1999. In fact, there is a committee over in Nunavut working under, I believe NTI, the Interim Commissioner, the GNWT, the Nunavut Chamber of Commerce, et cetera they are working with us on this important initiative.

Thank you. Oral questions. Mr. Miltenberger.

The Minister responsible for Resources, Wildlife and Economic Development, Mr. Kakfwi.

Oral questions. Mr. Picco.

Thank you, Mr. Speaker. Following up on my earlier Member's statement concerning the youth centre. I would address my question to the Minister of Education, Culture and Employment. Could the Minister indicate if this government actually provides any type of funding for youth centres? Thank you, Mr. Speaker.

The Minister responsible for Education, Culture and Employment, Mr. Dent.

Oral questions. Supplementary, Mr. Picco.

Thank you, Mr. Speaker. When I was trying to help this committee out, to get money, I e-mailed every one of the Ministers and their EAs in their departments and I only had a response out of two of the Ministers' departments about help for the Youth Centre. Would Mr. Dent and his department be able to contact me or my office to make his staff available to help me in this quest, to get money from one of the funding pots that are out there, so we can, indeed, try to get the Youth Centre up? It is needed and I think the need has been demonstrated. Thank you, Mr. Speaker.

Mr. Dent.

Oral questions, Mr. Krutko.

The Minister of Public Works and Services, Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, unless I know the specific project the honourable Member is talking about, then I could answer him pertaining to these specific cases there may be out there. Generally speaking, the department issues tenders to the public as soon as they can, early in the year. The majority of the contracts I am aware of are done in this manner. Maybe there are some circumstances that arise throughout the summer, where projects may be awarded later on, and these are special cases. Generally speaking, the department is going out and trying to put these projects out as early in the building season as possible. Thank you.

Oral questions. Supplementary, Mr. Krutko.

Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, the Department of Public Works and Services deals with different projects that are put forward from client departments. It could be Health and Social Services or RWED or Education, Culture and Employment. In the case of Housing which the access unit come under, they do their own project management themselves. In this particular case, the access housing the honourable Member is talking about, is out of the Department of Public Works hands. I believe it is under the Housing Minister. Thank you.

Thank you. Oral questions. Supplementary, Mr. Krutko.

Thank you. I did not hear a question and I will remind the Members to limit their preambles in their supplementaries. Oral questions, Mrs. Groenewegen.

The Minister of Finance, Mr. Todd.

I do not quite understand the preamble of my honourable colleague. She makes some reference to some things I said, I do not remember saying anything that she indicated I did. Let us clear that up, first of all. Secondly, I really was looking at this economic strategy as a return on investment. What is it going to cost us to get the kind of return we want? In this strategy when we lay it out to you, and it is not quite ready yet, but when we lay it out to you, we will demonstrate, clearly demonstrate. Some people will look beyond tomorrow, but what we are building is a case for the future. What we are building is a case for more money to enable us to do the kinds of things our constituents expect us to do. Sometimes you have to spend money on the front end to ensure at the end of the day you get more money on the back end.

If my honourable colleague would be just a little patient, I think we will be able to demonstrate in the coming weeks, that the investment we are putting in on the front end, will bring us significant return on the back end, when we explain it in detail to the Caucus, to the public at large and by the way, to the groups I have been speaking to over the last three or four months. Just let me, if I may, for the moment, explain who I have been talking to. I spoke to a number of aboriginal leaders, Ms. Cournoyea, Mr. Beaulieu, Mr. Gaudet, Mr. Hagen, Chamber of Mines, Chamber of Commerce, City Hall, Interim Commissioner, et cetera. During the summer, when I was actively, discussing these things, we did in fact look for public input into where we were going. The net effect of what we are trying to do is get a return on investment now for future generations. Thank you.

Thank you. Oral questions. Supplementary, Mrs. Groenewegen.

Thank you. Mr. Todd.

I had not anticipated an amount of money at the time. What I was looking for was a proposal that would bring us about the kind of ammunition or substantiation, if you want, for the overall strategy we have in relationship to our federal fiscal relationship with the federal government. I do not know the actual cost of this thing to date. I think it is somewhere in the $300,000 to $500,000 mark. I can get that from my colleague.

It is important to point out in a serious vein that the intent here is to develop the case to be able to show to the federal government we need a new fiscal relationship, to provide us some incentive to garnish more revenues, to get into the non-renewable resource tax window, to support the initiative of my honourable colleague Mr. Antoine in his desire to build roads to resources, to support my honourable colleague, Mr. Kakfwi, to get more EDA money and to support the overall objectives of this House. That is to find more money to deliver to our constituents the kind of services they have come to expect. That is what this initiative is all about. As I said, if my honourable colleague will be patient for awhile, I think we will be able to demonstrate and substantiate this money is a wise investment for the future. Thank you.

Oral questions. Supplementary, Mrs. Groenewegen.

Mr. Todd.

This initiative came about based on previous discussions with Miss Stewart and Mr. Martin, a year or a year and a half ago. Mr. Martin said to me at the time, you balance the budget, you get two new formula agreements and we will look at a new fiscal relationship once those two issues are dealt within the Northwest Territories. That is what this is about. What I do not know today is whether or not we budgeted, how much we budgeted for that particular part of the strategy. The part that we are dealing with Mr. Bailey and Associates is only one small part of the strategy. I will get that number from my colleague and advise her accordingly. I just do not have it.

Thank you. Oral questions. Final supplementary, Mrs. Groenewegen.

Mr. Todd.

I was not involved in the evaluation of the contracts. That is the role of the administration. This honourable colleague talked many times that you want to avoid political interference in many of the activities taking place in this House. This decision on this contract is made by the administration. I will get the figure that my honourable colleague wants and present it to her in the House if she wants. I will get it. It is not that I do not want to give it, Mr. Speaker. I do not have it.

Oral questions, Mr. O'Brien.

Thank you, Mr. Speaker. Mr. Speaker, following up on Mrs. Groenewegen's questions regarding this contract for the economic strategy for both east and west. My question would be why was this contract or proposal not dealt with by the Minister of ED&T and his capable staff? Why did we have to go outside to do this? Why is not the Minister of ED&T in charge of this project? Thank you.

Mr. Premier. Two questions.

Thank you, Mr. Speaker. I have appointed Mr. Todd in charge of the Economic Development Strategy and that is who is in charge of bringing all aspects of what is happening in the north together, to make it presentable. As far as why it was not done in-house instead of contracted out, there was a decision made to contract it. That is the way it went. Thank you.

Oral questions. Supplementary, Mr. O'Brien.

Thank you, Mr. Speaker. Mr. Speaker, if that is the case, what is the role then of the Minister of Economic Development or RWED in this particular contract and others that are related to it? Thank you.

Mr. Morin.

Thank you, Mr. Speaker. Mr. Todd is the lead on Economic Strategy. Mr. Dent is involved in Economic Strategy as Department of Education. Mr. Antoine is involved as the Department of Transportation and Mr. Kakfwi is involved in it as the Minister responsible for RWED. There is involvement from all parts of government and Mr. Todd is coordinating on behalf of government. Thank you.

Oral questions. Final supplementary, Mr. O'Brien.

Thank you, Mr. Speaker. Mr. Speaker, the cost that we hear bandied about is approximately $500,000 for this particular contract. Whether that is right or wrong, my question is, has this amount been budgeted? Thank you.

Mr. Morin.

Thank you, Mr. Speaker. One thing I have learned from this business is never to quote figures unless you know what you are talking about. I do not know what the exact budget is, because it could mislead the public and until I find out, I will find out what the contract was, if it was budgeted and how it fits into the budget. Thank you.

Oral questions. Mr. Henry.

Thank you, Mr. Speaker. Mr. Speaker, my question is to Mr. Todd, Minister responsible for the Workers' Compensation Board. The Minister today brought us good news about the financial health of the Workers' Compensation Board, and I am quite sure all of the employees and employers welcome the news. There is some information in the Minister's statement that requires some clarification. The Minster talks about in 1997 it achieved an operating surplus of over $20 million and to date the board has accumulated operating reserve of over $35 million.

Mr. Speaker, my question to the Minister is, could he elaborate on that particular statement as to, whether the $35 million is part of the $20 million plus, or is there $35 million generated in this year, or is it $35 million to date from March 1st to the present date? If he could just elaborate on that statement, I think it would be important information for Members of this House and for employees. Thank you, Mr. Speaker.

The Minister of Finance, Mr. Todd.

Yes, Mr. Speaker. I believe I said in my statement an accumulated operating reserve of over $35 million that is what we are sitting with right now. That is the accumulated net operating reserve, if you want to call it surplus. Thank you.