Thank you, Mr. Speaker. Mr. Speaker, we have a transition agreement now with Nunavut to cover the terms of operation of the Power Corporation for the next year, and the one following if the two parties cannot come to an agreement on a long-term solution. Under the terms of the transition agreement, for two years at least, of the division of the Power Corporation, should result in no increase in rates to residents of Nunavut or the west. During this two-year transition period, the corporation will operate pretty much the same as it does right now. There may be some rate adjustments in some communities at the end of March this year, but those are a result of changes approved by the Public Utilities Board in 1997. They have not been implemented until this year.

There is no proposal to raise the rates during the transition agreement because of any extra costs for division. That would not take place during the two-year transition agreement. However, Mr. Speaker, if the Power Corporation is divided, we have projected there will be at least a seven percent increase, and as much as ten or 11 percent in the cost of power in Nunavut to pay for the increased cost of overhead and loss of efficiency in having a smaller corporation. In the west, we see a projected increase of approximately five percent if we are not successful in keeping the corporation together after two years. Thank you, Mr. Speaker.