Thank you, Mr. Ootes. The question has been taken as notice. Item 6, oral questions. The honourable Member for Inuvik Boot Lake, Mr. Roland.

Thank you, Mr. Speaker. As I mentioned in my Member's statement, residents of the Northwest Territories wanted to hear the budget speech to see what impact it would have on the residents in the Northwest Territories. One cannot say that more money into the pockets of residents throughout Canada and the Northwest Territories is a bad thing.

The fact is, for example, in my community alone the cost of a two litre container of milk when the ice crossings are closed is $7.00. The price of gas in Inuvik is now 95 cents per litre.

Mr. Speaker, when talking of the benefits we will receive from the changes in the tax policy of the federal government, those impacts, and the $400 per year that a low income family might receive in the Northwest Territories, does not cover the costs of increases. That is why I question, in the area of the northern residents deduction as well, because that is the tax side of things that can benefit all residents.

But back to the basic message of the budget speech, our Member of Parliament, the Honourable Ethel Blondin-Andrew, stated on Northbeat that there should be transfer payments to the North of approximately $100 million. Can the Finance Minister tell us how that will impact us in the Northwest Territories? Thank you.

Thank you, Mr. Roland. The honourable Minister responsible for Finance, Mr. Handley.

Thank you, Mr. Handley. Item 6, oral questions. Supplementary, Mr. Roland.

Thank you, Mr. Speaker. So a slight of hand has occurred. Can the Minister inform us, in fact, of the $2.5 billion being invested in the CHST, what is the net impact? Do you believe it is $3.4 million? Does that cover both the health and social services side and the education side? Thank you.

Thank you, Mr. Roland. The Minister responsible for Finance, Mr. Handley.

Thank you, Mr. Speaker. The federal budget did announce a $2.5 billion, one-time adjustment to the Canada Health and Social Transfer. The Government of the Northwest Territories' share of that money, as the Member has noted, is approximately $3.4 million. This is one-time money. That money is to cover health, social costs and post-secondary education.

Mr. Speaker, our ongoing costs are higher than that. The amount of the adjustment is not enough to meet the increasing expenses we face in the Northwest Territories. Thank you.

Thank you, Minister Handley. Item 6, oral questions. Supplementary, Mr. Roland.

Thank you, Mr. Speaker. What initially sounded quite good is starting to sound rather negative. Can the Minister inform us how we in the Northwest Territories benefit from this budget? As the Government of the Northwest Territories, what is the net impact of this budget? Thank you.

Thank you, Mr. Roland. The Minister responsible for Finance, Mr. Handley.

Thank you, Mr. Speaker. I think the people in the Northwest Territories certainly benefit, as do all Canadians, in that there is a tax cut for wage earners both at the lower and middle income, as well as at the higher income.

In the case of lower and middle income, it is cutting the percentages down over a period of three or four years. In the case of higher income earners, there is a gradual reduction of the five percent surtax. However, over five years that would disappear. Mr. Speaker, that would be the main way people in the North will benefit.

In terms of businesses in the North, there is also a benefit in the corporate taxes are gradually being reduced as well. In the case of smaller businesses, the rate will decrease from 28 percent down to 21 percent in a fairly short period of time.

This, very broadly, is the impact benefit to our people. In terms of how the government benefits from this budget, it does not provide us with the money we had asked for and hoped to see in the budget. That money was primarily in the areas of health and social services, our social costs, and the ability that would give us for capacity building.

The other area, in terms of infrastructure; while there is a provision in the budget for some infrastructure money, it is not adequate to meet the kind of infrastructure that we need, particularly in transportation.

That would be the main impact. I could go on with some of the more minor adjustments that have been made in this budget to give us some benefit, but I will not get into all of these details unless it is the wish of the Member. Thank you.

Thank you, Mr. Handley. The question period is only one hour, so... Item 6, oral questions. Final supplementary, Mr. Roland.

Thank you, Mr. Speaker. I do not have to ask many more questions on this, because he has already answered a few others that I had, except for the question of what is the net benefit to this government? How does it impact our revenues? Thank you.

Thank you, Mr. Roland. In a word, Mr. Handley.

Thank you, Mr. Speaker. It will take some time for us to calculate exactly what the net benefit is, because that is complicated. There are a lot of elements to this budget. Many benefits will have to be negotiated with the other provinces.

In terms of the tax side, the change in the taxes, if that is what the Member is asking about specifically, the federal government reducing its taxes will result in a $3 million loss in personal income tax for our government. By the time we do the adjustment with the formula and the grant, then that is a $600,000 decrease in our revenue through taxation.

Thank you, Mr. Handley. Item 6, oral questions. The honourable Member for North Slave, Mr. Lafferty.

Thank you, Mr. Lafferty. The honourable Minister responsible for Transportation, Mr. Steen.

Thank you, Mr. Speaker. Mr. Speaker, in reference to the running lights issue, the Member raised that issue with me in my office. I advised him I would look into it. I understand from my department they are unprepared to respond to the Member at this time. I just advised him that the department will be putting forward a response to his concern. We will respond directly to him. Thank you.

Thank you, Minister Steen. Supplementary. Mr. Lafferty.

Thank you, Mr. Lafferty. I believe that would be a new question. We were talking about one issue and now we have moved into another. I will have to ask you if you want to ask a question along the same lines as the first one about running lights on vehicles?