Thank you, Mr. Speaker. Mr. Speaker, last week, Members of this House asked several questions concerning a review being done into the processes followed by employees of the Department of Public Works and Services. I made a commitment at that time to consider making this report available to Members once it became available.

Mr. Speaker, the focus of this review was the manner in which PWS employees performed their duties in relation to the lease of office space in Fort Resolution, the renewal of the lease for the Lahm Ridge Tower, and in the preparation of ministerial briefings. In summary, Mr. Speaker, Mr. McLennan has concluded in his report that PWS employees substantially complied with the processes and policies of the Government of the Northwest Territories in the conduct of their duties. Mr. Speaker, I will be tabling this document at the appropriate time today. Thank you, Mr. Speaker.

--Applause

Thank you, Mr. Speaker. Mr. Speaker, I would like to take this opportunity to highlight a successful program that is helping northerners combine artistic and business training. The Jewellery and Metalwork Program is a partnership between Aurora College, Nunavut Arctic College and the Dogrib Community Services Board. It has been operating out of a classroom in the Chief Jimmy Bruneau School and is staffed by experienced instructors and professional jewellers.

Ten students from Rae-Edzo have taken part in the program since January. They have learned design, small business operations and metalsmithing techniques for silver, brass and copper jewellery. Mr. Speaker, one of the many important aspects of this program is the opportunity it provides these young people to eventually participate in the secondary diamond industry. Aurora College is currently working with the department to identify funding through Labour Market Initiatives to continue this program in the fall. The next session would focus on lapidary and facetting skills. It is hoped that indicator stones from kimberlite pipes could be cut, polished and incorporated into the students' work.

Mr. Speaker, I would like to invite all Members and the public to support this program by attending the students show later today. They will be exhibiting their work between 3:00 pm and 8:00 p.m. at the Aurora College campus here in Yellowknife. Thank you, Mr. Speaker.

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Thank you, Mr. Speaker. Regarding the Budget Address, it stated that there will be no cuts to the existing programs in the Northwest Territories. Mr. Speaker, I do have some concerns regarding the cuts that are taking place in the government and, especially in the area of the NWT Development Corporation. In particular, Mr. Speaker, my concerns are in regard to two particular projects which are in my riding, the Fort McPherson Tent and Canvas Shop and the Aklavik - Tuktoyaktuk Fur Limited project. Mr. Speaker, these two projects are critical to the economic well- being of those two communities. It not only brings pride to those individuals working there, but it also gives them a feel for being respected for work that they do.

Mr. Speaker, I think it is essential that this government not only look at how it can improve our economies but also try to expand these economies. In both cases in Aklavik and Fort McPherson, the work- force is getting older, we have to spend more money on training new people and bringing them into that particular sector. Also, Mr Speaker, in meeting with the managers of the Fort McPherson Canvas Shop and the Aklavik Fur Shop, that one of the big concerns that they have is their involvement in what goes on within the Business Development Corporation and how they are monitoring these two projects.

Mr. Speaker, there are a lot of concerns raised about their involvement in what is happening in this particular department. At no time in the last three years, there has been no effort made by this department or the Minister of this portfolio to make an attempt to go into these two fine businesses that we have in place in Fort McPherson and Aklavik to see exactly who is making these canvas bags and the fur hats and see the pride of those people that do work on these specific projects. Mr. Speaker, the concern I have is that there is talk about revising or restructuring this particular corporation or organization and I feel this may threaten the jobs of these people in my riding. Thank you, Mr. Speaker.

--Applause

Thank you, Mr. Speaker. I see a lot of similarities, Mr. Speaker, between our government and the federal government. Both do studies, consultations and produce reports and produce only meagre meat and potatoes. My comments today though, will be in regard to the federal government, Mr. Speaker. Two years ago we considered a motion that I put forward before the House and passed it that we have a comprehensive list developed of federal positions that are dedicated to policy and development in the Northwest Territories of positions located in the south and these positions be repositioned here in the North. There are hundreds of positions all across Canada better placed here in the Northwest Territories and the Nunavut areas. No longer should important decisions be left to those in southern Canada who do not have to live with the consequences of their decisions and their actions.

In response to our motion, Mr. Speaker, DIAND hired a consulting firm to assess potential transfers. A report was issued in July of 1998 and it confirmed that there is solid rationale of a transfer of federal positions. In December, we were informed by the Deputy Premier that of the three federal government departments with significant staff dedicated to the north, such as DIAND, Environment and Fisheries and Oceans, it is likely that only staff from the Northern Affairs program of DIAND would be considered. Now the Northern Affairs Program has 135 positions, but only 80 to 90 might be classified as solely dedicated to work in the north. Last fall the federal government signed a devolution protocol with the government of the Yukon and reached agreement to transfer a potential 20 NAP positions. Yet DIAND has been silent on the transfer with respect to the Northwest Territories. There are hundreds of jobs that should be located in the north. I say to the federal government, stop spending those thousands of dollars on studies and just get on with it and give us some meat and potatoes.

--Applause

Thank you, Mr. Speaker. Mr. Speaker, I have a return to an oral question asked by Mrs. Groenewegen on April 20, 1999, in reference to the Lahm Ridge Review terms of reference which she requested be tabled in the House. The terms of reference for this review of Public Works and Services are included in the report that will be tabled today.

Thank you, Mr. Speaker. Mr. Speaker, my question concerns my statement referring to Minister Kakfwi in regard to the projects that I mentioned in Aklavik and Fort McPherson, where we have the canvas shop in McPherson and the fur shop in Aklavik. A concern I have, Mr. Speaker, is that there is talk about a review of this department. I would like some assurances from this Minister that there will not be any layoffs or basically downsizing of these two unique projects, in my riding. Without those we will have a bigger cost to this government relation to welfare costs, income support costs and people who are unemployed and do not feel that they are helping the economy of the Northwest Territories, but at this time they are. I would like to ask the Minister, can he give me some

assurances that there will not be any drastic cuts to this program or layoffs in relation to the review?

Thank you, Mr. Speaker. It is our intent to continue to support the subsidiaries that are operating in the communities under the NWT Development Corporation because of division and a reduction in overall funding in the department. But, because of the termination of programs like the Northern Employment Strategy it has become necessary to review, for instance, the operation of the NWT Development Corporation where it is our intent to ensure that the subsidiaries operating in the communities shall continue and, we will reorganize to provide as much support as we can to make sure that they continue to be viable operations. Thank you.

Thank you, Mr. Speaker. In regard to this review, what attempt has been made by the department or the Minister's office to inform these two vibrant groups, the McPherson project and the fur project in Aklavik to make them aware of these changes that are happening within the department and their involvement regarding this review?

Mr. Speaker, we have asked the new President of the Development Corporation, Mr. Koe, to prepare, with the assistance of the board of the Development Corporation a new business plan with a reduced operating budget for this year. I believe the meetings between the deputy minister of my department and Mr. Koe, the new President of the Development Corporation, they have started as of today. They have begun to undertake work to review the operations of the Development Corporation and to see how it could perhaps improve on the way it operates.

Some of the questions that come up, Mr. Speaker, for instance, are the size of the headquarters operation and the amount of money allocated to Arctic Trading which is the marketing arm of the Development Corporation. With division the number of subsidiaries operating under the Development Corporation have been reduced dramatically. The quantity of products that could be marketed have also been reduced substantially because the Eastern Arctic is now choosing to set up their own independent operations and so it has become necessary to redo the business plan and review the operations of the Development Corporation. Thank you.

Thank you, Mr. Speaker. One of the concerns I had from both managers in Aklavik and McPherson is that the interest that is shown from the department in regard to the Business Development Corporation, and also the Minister's office of making attempts to go in to see for themselves exactly what these operations are made of and who these individuals are that are producing these products. I would like to ask the Minister if he can assure myself and the people in Aklavik and McPherson that he will make an attempt, along with Mr. Koe, to go into both of these communities and see for yourselves first-hand exactly what is being done in those communities, so you could get a feel for basically the pride that these people put into developing these products. Can the Minister give me that commitment?

Thank you, Mr. Speaker. I will be prepared to sit down with the Member of the Legislature to look at the earliest date that could be possible and convenient for all of us to pay a visit to Fort McPherson and Aklavik and perhaps Tuktoyaktuk to review the operations of those subsidiaries there. I am prepared to do that. Thank you.

Thank you, Mr. Speaker. Regarding the question about marketing, it is one thing that seems to have been really lacking from those subsidiaries, that they were not involved in any marketing of products, or even involved in talking to the people that are in southern Canada who market these products and educating these people on exactly who the people are that do produce these products and where these communities are. Where is Tuktoyaktuk, where is Fort McPherson, where is Aklavik? I think as an educational tool it is important that they play a more hands-on involvement in anything that happens with marketing the products that they produce. Can the Minister also make some assurances that they will also consider looking at the involvement of these enterprises that this department holds so that they are involved in all aspects of producing these products?

Thank you, Mr. Speaker. There have been some initial discussions with Mr. Koe to look at the marketing arm of the Development Corporation and its Arctic Trading Company Ltd. to see whether it is the preferred and most convenient way of marketing the products that are developed through the subsidiaries, whether there is more local

control and input necessary, or whether there is a blending of those two types of approaches to marketing that could be achieved. So, it is the intention of Mr. Koe to speak to the subsidiaries to discuss with them the future of Arctic Trading and the preferred approach to marketing in the future by the subsidiaries involved. Thank you.

Thank you, Mr. Speaker. I spoke earlier about the similarities between our government and the federal government in doing reports and studies. I just have some questions for Mr. Antoine, the Premier, in this regard. The point is, Mr. Speaker, that the federal government has been studying this issue for some time now and I referred to meat and potatoes, and I am not asking for gravy on it, I am just asking for a bit of meat and potatoes and I wonder if the Premier could tell us and update us as to what the Northern Affairs Program transfer situation is today?

Thank you, Mr. Speaker. DIAND did do a report and it was some 60 pages in size. I guess I am cynical from time to time, Mr. Miltenberger, because, in this case I am cynical. A report was done of 60 pages, and yet we hear rumours about another report having to be prepared, another report having to be studied, in order to get this transfer brought about. I would like to know if the Minister may be aware of whether further study is being done on this issue at this particular time?

Thank you, Mr. Speaker. In our motion of two years ago, we also asked that an inventory be requested from the federal government. There are other departments beyond Northern Affairs, such as Fisheries and Oceans and the Department of Environment, which apparently have substantial individuals or positions dedicated to northern work. It would be nice to have that inventory. I wonder if the Minister could tell us if he can pursue the direction of that motion to get an inventory of federal positions in the other departments? Thank you.

Thank you, Mr. Speaker. Previous to my assuming this portfolio, the subsidiaries under the Development Corporation had used products ranging from moccasins to dolls and carvings, through subsidiaries, most of which are located now in the territory of Nunavut. There was no concerted effort to market and no particular operation that did exclusive marketing. Since assuming the portfolio, we have seen the creation of Arctic Trading Company which, again, marketed mostly eastern Arctic products, and also set up certain outlets in southern Canada, namely, I believe, in Vancouver, Victoria, Calgary and Toronto, are the stores that the marketing arm set up and operated. With division happening the marketing arm, Arctic Trading, found itself as a million dollar operation with very little produce, in fact, left to market since the Eastern Arctic

has insisted that they will set up their own operations and do not wish to use Arctic Trading any longer. That is, in very general terms, what has been happening over the last three years. Thank you.

Mr. Speaker, because of the impact of division and because of concerns with the Auditor General that have been outstanding for some years, that we have been unable to resolve substantially, although the documents that we provided to the standing committee on the review of the Main Estimates were given the target of a lower $4 million for the Development Corporation, we have in fact asked that in view of the impact of division, and the need to look at Arctic Trading and the size of headquarters to ask the Development Corporation to look at putting together a new work plan with a reduced allocation to the Development Corporation. Mr. Soloy, who was the President at that time, had undertaken to develop such a business plan. We had indicated to the standing committee at that time that was what we intended to do.

There is still no revised business plan prepared by the Development Corporation since the new President at this time is reviewing the operations and reviewing the concerns of the Auditor General and meeting with the Development Corporation subsidiaries to get a good understanding of the state of the Development Corporation before undertaking to meet the commitment that I have asked him to meet. Thank you.

Thank you, Mr. Speaker. As I have said earlier, because of division the amount of product that the Arctic Trading Company is expected to market has been reduced substantially. There is very little product from the eastern Arctic, very few subsidiaries that are, in fact, being serviced by the Development Corporation since division. Therefore it is difficult to rationalize continuing to fund the Development Corporation, specifically the headquarters and the Arctic Trading Company at the level that we were funding it previous to division. That was the reason I had asked if the Development Corporation President could prepare a new business plan to meet the reduction in overall funding of the operations of the Development Corporation. It was not intended to reduce the funding we give to the subsidiaries or to the level of subsidies that we provide to the community operations that we have. I think that should be clear.

Members are also aware that with the sunsetting of the Northern Employment Strategy, we are short of funding for operations like the Community Futures and there is a demand by communities and regions to set up loan operations as we have, and we need to free up funding in other areas in order to meet this demand as well. The intent is to recognize that the Development Corporation is no longer of the size that it was previous to division and, with the impact of division, it is my expectation that we can reduce the level of funding to the Development Corporation without impacting negatively the viability and ongoing operations of those businesses that we have set up in the communities. In fact, we will do what we can to enhance those through the reduction and reallocation of resources. Thank you.

Thank you, Mr. Speaker. Mr. Speaker, the Development Corporation has not submitted a revised business plan or prepared one that could be reviewed by myself at this time. That is underway. We have indicated to them that the level of funding that we give them will be reduced and the challenge to the Development Corporation President is to try to meet that target. What specifically they are doing, I am not certain exactly what has been done to date but I believe that an outlet that had been set up by Mr. Soloy, for instance, in BC outside of Vancouver, is closing or has been closed and we are also looking at closing an outlet in Calgary. Both of these

locations have been losing money and have been a drain on the resources of the Development Corporation. I would require more information before I can give other specific measures that may have been undertaken at this time. Thank you.

Thank you, Mr. Speaker. Mr. Speaker, these decisions were made because of things like timelines and the need to renew leases, so whether or not there was a review in the reduction of funding, I believe that it was the view of the staff and the people in charge of the Development Corporation that, following Mr. Soloy leaving that we could no longer rationalize and continue to operate these outlets in southern Canada and that business decisions had to be made and they were made. These did not impact on the northern communities. These were outlets that were set up in southern cities to make money and to sell our products in southern outlets and they were not doing that very well. Thank you.

Thank you, Mr. Speaker. Mr. Speaker, I only recall one. It is in regard to how will we market the products that are produced in our communities and when will the business plan be ready to reflect that. I would say that Arctic Trading can continue if the President and the board believe it is the best way to market.

The challenge, as I said, is for the new President and the board to prepare a business plan that will allow them to continue operating a headquarters and Arctic Trading, if they wish, or some sort of a marketing agency to continue to operate the subsidiaries with the approved subsidies that have been extended. This business plan is being developed, it is underway and will include some indication and will be prepared after discussions with the various community subsidiaries that the Development Corporation has as how they, the communities, wish marketing to be done. Whether it is exclusively through Arctic Trading, if not, what other options do they wish to look at, or do they want to do their own marketing exclusively. That is going to be an item of discussion, I believe, that Mr. Koe is going to have, the new president of the NWT Development Corporation, will have with the existing subsidiaries. Thank you.

Mr. Speaker, I will take the question as notice because I think it is important to avoid quibbling about exactly who did what to whom at what time that I prepare a written response to that. There are certain specific dates...

Thank you, Mr. Speaker. Mr. Speaker, recently in the House we have been speaking quite frequently about the cost and usefulness of studies, strategies, review, et cetera. Not so long ago the Department of Health and Social Services commissioned a report called the Med-Emerg Report, at a reported cost of $750,000. My questions today are for the Minister of Health and Social Services. Did that report serve as a useful document to the operations of the department, and could he tell us if it enhanced the delivery of health and social services to the people of the Northwest Territories? Thank you, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, as we know the Med-Emerg Report did receive a lot of debate in this Assembly. It was commissioned by the previous Minister, now moved on to Nunavut. The Med-Emerg Report itself was delivered to the department and is being used in a number of areas in the health care system, but it is early in the process to gauge if there is an actual end effect from the report. I know, for example, in confirming with the Member for Mackenzie Delta that the Department of Health and Social Services will go out and do a ministerial forum on western health care. Parts of the Med-Emerg Report will be used in setting up that process. We believe that all the work that has been done on behalf of this government through the Med-Emerg, we will be able to take some positive aspects of that and move forward with other initiatives. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, my honourable colleagues in this House have suggested it is being, in fact, used and used as a doorstop, but the Minister assures us that that is not the case. I do recall debate in this House on the Med-Emerg Report but, in fact, I think the majority of the debate was on the cost of the report as opposed to the contents of the report. Mr. Speaker, were any of the recommendations contained in the Med-Emerg Report implemented to date? Thank you, Mr. Speaker.

Thank you, Mr. Speaker. While conferring with my colleagues here on the Med-Emerg Report I failed to catch the last part of the Member's question. I apologize for that, but can she repeat that, please.

Thank you, Mr. Speaker. I will leave out my preamble. Were any of the recommendations of the Med-Emerg Report implemented to date? Thank you, Mr. Speaker.

Thank you, Mr. Speaker, and I apologize for that. I could not give the Member a specific example of what part of the Med-Emerg Report was or is being used to date in the health care system. I would have to get back to the Member with that, but I do know that part of the Med-Emerg Report was dealing with the P3 issue to a certain degree of alternate financing within health care and the facilities we use, so I know there were a number of areas that have been included. As I stated earlier, in the ministerial forum that I will be

sending out here over the spring, summer and hopefully coming to a conclusion in early fall, will include some of the information we received through the Med-Emerg Report. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. The Med-Emerg Report, I understand, was an exercise in collecting and compiling a very comprehensive overview of health care services in the Northwest Territories. Could the Minister please tell us what the different slant or the different purpose is of the ministerial forum which now he is going to commission to go out and collect information as well? Could he identify for us why this would be different than the information solicited by the Med-Emerg Report? Thank you.

Thank you, Mr. Speaker. Mr. Speaker, the ministerial forum that we are proposing to send out will be focused on the people and how they feel the system is being used, but it will have a focus to it. As I said earlier, we will be taking some of the information from existing work that has been done on the other strategies and combining that and getting response from the people of the Northwest Territories.

The Med-Emerg Report itself, was more of an internal process with some consultants and the professional end of it and had some input from the health boards. This one is going to go further out into the public and get some response back as well as sharing information on the concerns we have as the Department of Health and Social Services in sustainability and where we are going with our system as we know it, and trying to get some concrete answers as to what the future holds and preparing future Assemblies for the direction they will go with in Health and Social Services. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, how soon could the Minister anticipate and would he consider tabling in this House prior to the commencement of the ministerial forum on health and Social Services, the anticipated cost and also the terms of reference of this particular forum. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. The ministerial forum, right now the terms of reference I have been working on those with the department and we are close to bringing those to the attention of the Members. I am planning, before the end of the recess of the session, that I will have a letter out to Members requesting a name from them as well, letters and calls will be going out to organizations within the territory for possible representatives to be named to this forum. As I said earlier, hopefully from that this process will be a much more public process and will be set up in an atmosphere were we are trying to get some concrete feedback on the system and how we operate. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, I have some real concerns regarding the statement made by the Minister of Finance in the committee of the whole. It is to do with the incremental cost that was occurred by this government for division, especially the amount of money that was incurred by this government, and the Western Territory for the cost of division. Mr. Speaker, I was under the assumption by the previous Minister of Finance, that do not worry, everything is okay, the federal government will pick up the tab.

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But, yet, Mr. Speaker, we find ourselves today without money for education or health. We are short of money and we are stuck holding the bag for the cost of division. I would like to ask the Minister of Finance exactly why were we caught with the cost of division in the Western Territory?

--Applause

Thank you, Mr. Speaker. Mr. Speaker, I comment as to why the federal government has refused to live up to, what we believe was their obligation to pay for the incremental costs of division, but I do know that they have been approached many times. We had initially been led to believe that there would be some support for all additional costs this government incurred, but, unfortunately, we have been unable to convince the federal government to follow through and provide that level of support. Thank you.