Thank you, Mr. Speaker. Mr. Speaker, I have a return to a question asked by Mr. Erasmus on July 26, 1999, in regard to seniors' municipal tax obligations.

Mr. Speaker, the Department of Municipal and Community Affairs is continuing to work on the issues related to senior citizens' and disabled persons' property tax relief raised in this House. Next week, I will forward to the Member from Yellowknife North a letter previously sent to the NWT Association of Municipalities describing the department's proposal on co-ownership.

The department has consulted with the NWT Association of Municipalities and the tax-based communities on changes to the program. Tax-based municipalities have the authority to make changes to their tax programs to implement a means test through their municipal by-law making power. The broad application of a means test is difficult, as there is not always a clear link between property value and household income. The department will continue to look for a suitable means test. The municipalities are willing to support changes to the program, but are not readily willing to absorb any additional costs. The department will continue to gather information and carefully consider other models for the program.

Members were also concerned about simplifying the application process. I am committed to continue to work with the Minister of Finance to see what can be streamlined. The department is also working with the Social Envelope Committee to examine the implications of harmonizing seniors' programs and the effect it would have on the property tax rebate for seniors. Some of the issues with this approach are; establishing a common age for seniors among all departments, developing a more simplified and coordinated process for accessing these programs and, whether to operate the programs as a rebate or as a subsidy.

Mr. Speaker, I have asked the department to report back to me by the end of September with their recommendations based on costing analysis, and estimates of benefits. I expect to include recommendations for change in the upcoming business plan for the department. Thank you, Mr. Speaker.