Thank you, Mr. Speaker. Mr. Speaker, I feel as a government we do have to do something to assist this industry. We cannot sit back and say that we are not competitive, we do not have the resources and that we have to find new ways and mechanisms to assist the tourism industry. We have for years gutted this department to a point where we are now facing reality, where we have to compete with other governments.

Using the Yukon as an example, they have a tourism industry worth $30 million. They are our next door neighbours. They have made it a priority, but yet, Mr. Speaker, we hear about competing in the international market. Tourism is the fastest growing industry in the world but we are losing out. We talk about what is going to happen with these funds that are collected via the tourism tax. I, for one, feel that it will eventually make its way back into the tourism industry, to assist them by promoting their hotels, by promoting the regions, by promoting the different sectors of our tourism economy from the fishing lodges, to the tour operators, to the guides and other people that depend on this industry to make a living.

I think it is essential that we as a government find new forms or new solutions to how we are going to assist this industry, but also expand on promoting our sectors within this economy. We have been able to come up with some stringent ways of assisting the diamond industry. We were able to have some guaranteed loans where we could assist the industry. We are managing tourism programs. Also, we have dollars within this government to assist in training and what not through the Department of Education.

I have been following this industry for quite a few years and realize we have to do something as a government because this industry is a turning industry, especially for the operators who are barely making ends meet with what they have. There are some sectors of our economy that are making a go of the tourism industry, especially with the Asian tourists, but that is just one sector of our economy. We have to start realizing that there are other elements to tourism that also need a hand out.

We have to look at our small communities. We have operators in our small communities who are trying to get their bed and breakfast operations off the ground. Again, they need to have the resources and the ability to promote their business. Right now, there are no programs in place within this government to assist them. Again, I would like to ask, where is that money going to come from?

We had an economic development agreement with the federal government where there were dollars to assist tourism but that ran out in 1996. There again, we are waiting with our hands out to the federal government to say help us. However, unless we have some agreement in place with the federal government, we will continue to find ways to drag out the tourism industry and say just wait, hold on, we will try and find some other way. I for one feel we have to come up with some solutions to this problem.

There are other ways that we can look at generating revenues. We have different programs within this government. We have the Development Corporation. I think we have to start looking at how we can streamline some of these programs and services that we have to assist in other areas. I feel that it is essential that we realize there are presently tax systems in place. We pay GST. We find hidden taxes. We have taxes added on in regard to your interest payments that you have on credit cards. Taxing is just another form of collecting revenues.

I think we have to find a way to assist this industry. For us to simply say no to this proposition without trying to find some unique solutions to assist the industry and also to be able to work with the tour operators and the hotel operators, making them realize tourism is their bread and butter. You can say it does not really affect me, but tourism in a lot of our communities and regions is a seasonal activity. With that activity comes revenues that get a lot of those small operators, the small bed and breakfast operators in the communities, through the winter. If they did not promote, enhance, or attract tourists to the different regions in the Mackenzie Delta, Tuktoyaktuk or the Beaufort Sea, they will not be able to make a go of that industry.

I think we have to find initiatives and ways to enhance that industry. I mentioned the motion that was passed by the Hamlet of Fort McPherson. One of the things that they asked for is they urged the passing of this legislation. Also, what they would like is to empower the regions and communities to have the ability to establish a collection agency for the hotel tax and to use it to promote tourism in that area. I think it is apparent that we will have to find new ways and new forms of generating revenues.

The resources we have in the North continue to flow south. A lot of our revenues and royalties that come from the North continue to flow to Ottawa. We depend on Ottawa for our transfer payments to run this government. Yet the amount of money that they take out in royalties almost exceeds that with the developments that are happening. The federal income tax that is being taken out can be used towards this. There is one area that I feel we can continue to enhance or strive to become independent in, but also realizing that unless we settle devolution of the Northern Accord with the First Nations and amongst ourselves and retain those revenues in the North so we can use it to offset programs and services, we will continue to see programs and services declining. Also, different resource sectors striving to make a go of it, regardless if it is the fishing industry, tourism industry, the forestry industry, the trapping industry, even the oil and gas industry.

We have done tons and tons of studies but again, it takes money to implement those studies. Right now, we do not have those revenues. I, for one, feel that we have to do more than just simply saying we do not agree with this, but as a government and as Members of this House, we have to find initiatives and ways of finding new means of generating revenues. I feel we have to be able to avoid the burden that we have with Ottawa, where every dollar we generate goes to the federal government and we only get 80 cents on the dollar. We have to find a way to get around that.

The other concern I have is how is this tax going to be distributed fairly across the North, not just to the large regional centres. A lot of tourism and promotion takes place, but people within the tourism sector need the resources. I think it is imperative that we do have answers to these questions and that we do try to work together to find solutions to this problem. With that, Mr. Speaker, thank you.

-- Applause