Mr. Speaker, in response to an oral question asked by Mr. Morin on April 26, 1999, on the closure of Arctic Canada Trading Company Ltd. retail stores. On Monday, April 26th, Mr. Morin asked a question about my role in making decisions on the closing of Arctic Canada Trading Company Ltd. retail outlets in southern Canada.

The decisions to close these retail outlets were based on sound business economics and the authority for making these decisions are within the jurisdiction of Arctic Canada Trading Company Ltd. Arctic Canada Trading Company Ltd. is a registered company in the Northwest Territories and has licences to operate in three Provinces of Canada - British Columbia, Alberta and Ontario.

It is true that under the Northwest Territories Development Corporation Act, section 22(1) and section 22(2), guidelines for the sale of shares or other interests are subject to the approval of the Financial Management Board. However, in these cases, where Arctic Canada Trading Company Ltd. has made a business decision to close the southern retail outlets because they were not making money, this does not fall under these provisions of the act. In fact, as a corporation, the Northwest Territories Development Corporation owns subsidiaries and interests in joint ventures and all of these subsidiaries and ventures are legally registered companies. As such, the management of each company can make decisions on their operations. It is only when the Northwest Territories Development Corporation is divesting its shares or interests in these subsidiaries or ventures that section 22 of the act comes into effect.

So in these circumstances, Financial Management Board approval was not sought as the authority and responsibility to make the business operating decisions are within the jurisdiction of the subsidiary company, in this case, Arctic Canada Trading Company Ltd. Thank you.