Mr. Speaker, my final return, to oral questions asked by Mrs. Groenewegen on July 27th. It is in regards to capital funding for the correctional centre.

All cash outlays to fund government operations and infrastructures are financed from a combination of existing working capital, future revenues, borrowing through short-term credit lines, issuing long-term debt instruments, or financing arrangements such as leases. Except for specific facility leases, financing arrangements are normally based on overall government cash requirements as opposed to borrowing for specific activities or projects.

The $30 million cost of the YCC replacement project will require a cash outlay over the four year project. During this same period, we expect revenues from the exchange of service agreement with Nunavut to be about $18 million. The $12 million difference will have to be temporarily funded from a combination of working capital, other revenues, and short-term debt. Revenues received under the exchange of service agreement after the four year construction period, will replace these financing sources. The interest cost to accelerate the cash flow for this project will be more than offset by the savings that will be realized through the facility replacement approach.

This is why FMB approved the change. The change to the project will not be detrimental to other capital needs. As the Evan's Report clearly established, the YCC project is critical and urgent. It is a significant infrastructure investment that would have to be a priority whether or not offsetting revenues are available. Mahsi, Mr. Speaker.