Heavenly Father, may your spirit and guidance be in us as we work for the benefit of all our people, for justice in our land and for constant recognition of the dignity and aspirations of those whom we serve. Amen.

Thank you, Mr. Roland. Good afternoon, everyone. Please be seated. I understand his honour, the Commissioner of the Northwest Territories, is prepared to enter the Chamber to give assent to bills. Mr. Clerk, could you attend to and escort in the Commissioner of the Northwest Territories?

Orders of the day. Item 2, Ministers' statements. The honourable Minister responsible for the Status of Women, Mrs. Groenewegen.

Thank you, Mr. Speaker. Mr. Speaker, March 8, 2000, is International Women's Day, and the beginning of International Women's Week. As the House will not be in Session during that period, I would like to take this opportunity to express this government's appreciation for the many contributions that women have made in the Northwest Territories.

Mr. Speaker, International Women's Day was first recognized to highlight the struggles of working women, and to promote universal suffrage for women. Over the years, International Women's Day has come to be a time for reflection and for women and men to celebrate women's ongoing commitment to improving the quality of life for all.

In the Northwest Territories, women have played a significant role in the social, economic and political changes that have taken place. They are working hard to remove the obstacles that have limited the choices and opportunities for women to be full and equal partners in today's society.

Mr. Speaker, the role of women has been a catalyst. They have initiated the move toward community empowerment and self-empowerment by producing volumes of work that address all aspects of social, political and economic equality. The production of videos and public service announcements and the completion of reports that address issues of self-esteem, human rights, violence against women and children, women's health, family well-being and women in politics complement the work of governments and other special interest groups. Improving the quality of life is everyone's goal, and these initiatives help to achieving this important objective.

Mr. Speaker, northern women in particular must be commended for their achievements and we, as government, must continue to support them in their goals and aspirations. We can do this by reaffirming our commitment, which is to "actively support and encourage the participation of women on an equal basis with men in all aspects of society in the Northwest Territories".

Mr. Speaker, today I would like to thank all women's organizations for their continued dedication to their communities and their families. A number of communities throughout the North will be celebrating International Women's Week and I encourage all Members to participate. Thank you, Mr. Speaker.

Thank you, Mrs. Groenewegen. Item 2, Ministers' statements. The honourable Minister responsible for Municipal and Community Affairs, Mr. Antoine.

Thank you, Mr. Antoine. Item 2, Ministers' statements. The honourable Minister Joe Handley.

Thank you, Mr. Speaker. Mr. Speaker, I am pleased today to speak about the Northern Leaders Forum that will be held in Whitehorse on March 4, 2000. Premier Okalik from Nunavut, Government Leader Piers McDonald from the Yukon and Premier Kakfwi will meet on that day to discuss further action on issues that are common to all three of the northern territories.

The Northern Cooperation Accord was signed in August, 1999. The accord outlines the principles under which our three territories cooperate and some of the areas in which mutual benefits can result from working in tandem. The accord, however, only captures in writing what has traditionally been done by Northerners for many years. Although the three territories each have their own unique circumstances, Northerners have worked together for many years, and on numerous issues. Northerners understand Northerners.

This upcoming meeting provides another chance for the three northern leaders to exchange ideas and set priorities. The issue of governance is common to all three territories. The Yukon has been working toward assuming the responsibilities being devolved from the federal government. Nunavut has had almost one full year as a new government in a new territory. Here in the Northwest Territories, we are advancing land claims and self-government and are solidly supporting the government to government to government process. Although the three territories are dealing with different approaches to governance, it is a common issue to all of us.

Given our mutual status as territories, all three northern governments deal with the federal government on fiscal issues in a manner distinct from the provinces. That relationship is a critical one, given escalating costs and mounting pressures on Northern budgets. We look to each other to learn what advances have been made in each individual jurisdiction that may benefit the others. As well, economic development is of critical concern to all of us.

Within our own country, the three northern territories have much to gain when common issues with common positions can be brought to forums such as the Western Premiers' Conference and Annual Premiers' Conference.

More globally, all three northern territories must cope with a changing and shrinking world. Climate changes are showing their effects on the North. We need to address that. The North forms a large part of the circumpolar world. The activities and developments of our international neighbours are becoming increasingly important to us, for instance, environmental concerns, transportation patterns, shared economic development and the role of Canada in a North that includes other countries.

Mr. Kakfwi is looking forward to meeting with his fellow territorial leaders to discuss these issues. Thank you, Mr. Speaker.

Thank you, Mr. Handley. Item 2, Ministers' statements. Item 3, Members' statements. The Member for North Slave, Mr. Lafferty.

Thank you, Mr. Lafferty. Item 3, Members' statements. The Member for Range Lake, Ms. Lee.

Thank you, Mr. Speaker. Mr. Speaker, on this last day of this Session, I would like to take this opportunity to highlight something very positive that is being done by the Yellowknife Chamber of Commerce, under the able direction of its president, Ms. Tracy St. Denis and her hardworking board members.

On Thursday, March 2, 2000, dozens of the chamber members will be travelling to Rae-Edzo on a customer appreciation trip. A bus has been arranged to transfer the members on the infamous Highway No. 3 to Rae-Edzo. There will be a reception hosted by the chamber and a presentation to the residents of Rae-Edzo.

The main objective of the trip, Mr. Speaker, is for the chamber members to go to the community and show firsthand how much they appreciate the business our friends in the surrounding communities bring to our city. It may be the chamber members will get an earful as to what we can do better. In the end, I am sure this will be a good thing for everyone involved.

I know the business community in our city is very aware that our friends across the North spend money on a wide array of goods and services in Yellowknife. The residents of Rae-Edzo are some of our best customers. Mr. Speaker, the goods and services include professional services such as hiring a lawyer, accountant, or an architect, or more simple things like eating in our many restaurants, taking in a movie, or buying many different things in our stores, both small and big, including, as Mr. Lafferty informed me, fuel for residential homes.

I can also advise you, Mr. Speaker, that the chamber will be making four trips this year to the communities surrounding the city of Yellowknife. I would like to commend the Chamber of Commerce for taking an active role in this way. I am not able to make this trip, as I will be tied up in committee meetings for the next two days. If I may, Mr. Speaker, I would like to take this opportunity, on behalf of all Members representing Yellowknife, including yourself, to say thank you to our friends in Rae-Edzo and all other surrounding communities near and far for buying our goods and services. Thank you, Mr. Speaker.

Thank you, Ms. Lee. Item 3, Members' statements. The Member for Inuvik Twin Lakes, Mr. Allen.

Thank you, Mr. Speaker. This may be an unusual Member's statement, however, I would like to advise my fellow colleagues that many ex-Northerners watch us regularly on APTN.

Therefore, Mr. Speaker, on behalf of our Northwest Territories Legislative Assembly, I would like to extend our greetings and well wishes to the following families in northern Alberta who frequently watch our proceedings during question period:

• • Mr. And Mrs. Gordon Norrie of High Level;
• • Mr. Bob Milner and Lena Malegana of Fort Vermillion;
• • Mr. Floyd Sydney and Edna Elias of High Level;
• • Mr. Art Bingham and his wife Deanna of High Level;
• • Mr. Pat Gauchier of Paddle Prairie;
• • Bill and Kathy Crozier of High Level; and
• • Jack and Holly Fletcher of Rocky Lane.

Thank you, Mr. Speaker.

Thank you, Mr. Allen. Item 3, Members' statements. The Member for Thebacha, Mr. Miltenberger.

Thank you, Mr. Speaker. Mr. Speaker, in this, the last day of this particular sitting, I would like to raise a constituency issue. It is in line with some of the discussion earlier on that dealt with highways and the highway strategy. The fact, as my colleague for Mackenzie Delta pointed out, not all roads lead to Yellowknife.

There are many roads in the Northwest Territories that need attention. In the South Slave, there are two pieces of road that are in dire need of attention. I am specifically referring to the section of Highway No. 5 from Fort Smith to Hay River. My colleague for Tu Nedhe has a section of road from Fort Resolution to the Pine Point junction. Both need repair and upgrading.

As we look at the money and the strategy, we have to keep our mind on the whole Territory. As the Minister responsible for Transportation mentioned the other day, every section of road you drive on is the most important one. For the people of the South Slave, the road they drive on to Hay River points south and is very important to them. It has had its share of accidents as well. I think we could make the same case the Yellowknife MLAs are making. It is due to the condition of the road. It could also benefit from extra attention.

In my opinion, if you upgrade these roads to the proper level and chip-seal them, you have longer term cost savings. I know the community of Fort Smith and the residents of Tu Nedhe have been pushing to have their roads looked at. I will be raising this issue again, as I did repeatedly through the 13th Assembly. I know money is tight, but I definitely want to ensure the people of Thebacha have their concerns on the record. Thank you, Mr. Speaker.

Thank you, Mr. Miltenberger. Item 3, Members' statements. The Member for Hay River North, Mr. Delorey.

Thank you, Mr. Speaker. Mr. Speaker, one of the many issues that arose as I campaigned was the government had already stripped its workforce to the bare minimum. Mr. Speaker, the people I talked with thought that any more cuts to staff would impact the ability of the departments to deliver the programming.

Mr. Speaker, the people thought that, if anything, the government had already cut programming too close to the bone. This becomes apparent when you look at the one example of the cuts addiction services received over the life of the last Assembly. We may have gone too far.

As the Member with possibly the most experience within the labour movement, Mr. Speaker, it is natural that I would be expected to take the lead on labour issues emanating from this side of the House and would become the contact point for the Union of Northern Workers.

I understand the pressures the uncertainty over whether there will be any further reductions in government employees is placing on my former brothers and sisters in the Union of Northern Workers. Mr. Speaker, it is hard, in fact impossible, to plan your life if you are not sure whether you will have a job two or three months down the road.

The Union has been looking for assurances there would be no further layoffs to the Northwest Territories hardworking public service. Mr. Speaker, the Union had thought they had the support for no reductions in the public service, as a result of a poll they took of candidates during the election.

In that poll, Mr. Speaker, the Union asked the candidates whether they supported cutting government jobs to balance the budget. The majority of the successful candidates the Union managed to contact on both sides of the House, gave a simple "no" answer. A couple of current MLAs qualified their answer by saying not without further study on the issue.

The point I am trying to make, Mr. Speaker, is that this promise to the electorate should have made it relatively easy for me to shop a non-binding motion to my fellow MLAs on no more cuts to the civil service for the upcoming fiscal year. This was not the case.

Mr. Speaker, I would like to assure my constituents I have not forgotten the promises I made. I will fight any further reductions to the public service.

In closing, Mr. Speaker, I would like to encourage the government to make a statement reassuring the public service sector as soon as possible. Thank you, Mr. Speaker.

-- Applause

Thank you, Mr. Delorey. Item 3, Members' statements. The Member for Mackenzie Delta, Mr. Krutko.

Thank you, Mr. Speaker. Mr. Speaker, we have heard many announcements in the last couple of days regarding the oil and gas potential that exists in the Beaufort Delta. In the last couple of years, lands have opened up. Currently, Petro Canada is doing a seismic project. The Inuvialuit Regional Corporation has opened lands in the Inuvialuit settlement region. The Gwich'in have submitted letters to people in Ottawa to look at doing the same thing.

Mr. Speaker, I had the opportunity to travel to Calgary to meet with the oil and gas industry. I met with Embridge Resources, BP Amoco, Paramount, Trans-Canada Pipelines, Ranger Oil, Petro Canada, the Canadian Association of Petroleum Producers, and West Coast Energy.

One thing I discovered during these meetings is the inadequacy of information that flows between the Northwest Territories and people in Calgary who do not understand the regulatory process in the North, nor the claims that have been settled. They do not understand the demands the industry has to meet, especially in the area of having trained people and infrastructure in place, so their costs will make it more realistic to produce and drill in the Northwest Territories.

Mr. Speaker, I found the industry is willing to come back to the North. They want to make a presence in the North. They see a potential in the North. At the present time, there are very few lands left in Alberta to put out for leases. Due to that, the industry is looking northward. I think it is critical that this government refocuses its priorities of developing the oil and gas industry. In the long term, the oil and gas industry will be generating in the area of 1600 jobs because of these developments, compared to 600 jobs for one diamond mine.

Mr. Speaker, I will be asking the Minister responsible for Resources, Wildlife and Economic Development about what this government is doing to stimulate the oil and gas industry in the North. Thank you, Mr. Speaker.

Thank you, Mr. Krutko. Item 3, Members' statements. The Member for Tu Nedhe, Mr. Nitah.

Mahsi, Mr. Nitah. Item 3, Members' statements. The Member for Great Slave, Mr. Braden.

Thank you, Mr. Speaker. Mr. Speaker, my comment this afternoon is related to the release of the federal budget for the year 2000-2001. I must confess some envy when I consider the full range of choices the Government of Canada had when they were establishing their budget. These choices are currently not available to the governments in the Northwest Territories.

Mr. Speaker, Canada used the fiscal choices of strategic investments in new programs, enhancing existing programs, reducing the tax burden, targeting tax cuts to those most in need, and reducing the overall government debt. In fact, they were able to use all of these options in shaping their budget. These are tools Members of this House can only dream about at the present time.

The Government of Canada used many of these tools to deliver a budget that benefits Canadians, Northerners included. Businesses, students and families will all see some benefit. The budget seems to have failed to recognize, Mr. Speaker, at least one of the immediate needs of the Northwest Territories - new infrastructure development to improve our roads and inject other new capital into the Northwest Territories.

All northern leaders need to resolve to unify their actions and bring control of northern resources home. We need to focus on the signal given last month by Mr. Robert Nault, the Minister for DIAND, that Ottawa is prepared to work to that end.

Mr. Speaker, I look forward to the day when our own Minister responsible for Finance can rise in this House and deliver a budget that uses all of the fiscal tools available to other governments in this country. We want the independence to do the right thing for the people of the Northwest Territories. It is time we had options and choices similar to other governments in this country. It is time for the Northern Accord. Thank you, Mr. Speaker.

-- Applause

Thank you, Mr. Braden. Item 3, Members' statements. The Member for Deh Cho, Mr. McLeod.

Thank you, Mr. Speaker. Mr. Speaker, last week I made a statement regarding the Arctic Winter Games that seems to have sparked a great deal of interest both inside and outside of this House.

I listened with great interest as my colleagues rose and spoke of the impact the Arctic Winter Games had on their lives. For them, the experience was positive. It created a sense of pride and fostered lifelong friendships. This is an experience that every athlete in the Northwest Territories should have equal access to.

Mr. Speaker, I could stand here and say warm and fuzzy things about the games. My son participated with pride in the 1996 games in Eagle River, Alaska. My daughter will be participating this year in Whitehorse. I know they will remember this for the rest of their lives.

However, Mr. Speaker, there is a glaring omission from this year's Arctic Winter Games team. That omission is athletes from 17 Northwest Territories communities. Less than half of the communities of the Northwest Territories will be represented on the Arctic Winter Games team this year. In fact, Mr. Speaker, the Sahtu region does not have any representation. Are we to believe there are no athletes in the Sahtu?

Further, when I look at the different sports participating at the Games, I note that some of the sports are fielding teams consisting mainly of athletes from the larger communities.

Mr. Speaker, I make these points because I am convinced there is a flaw in the Arctic Winter Games team selection process. The flaws are both at the support level and at the Arctic Winter Games trials level. Many of the communities do not have the recreational facilities required for some of the sports in the Games. At other times, the selection process is defective and does not provide for the fair selection of athletes.

I would like to remind the Members of a debate in the 13th Assembly. The debate was over a hockey team from Fort Smith. The team won every game of the tournament at the 1998 territorial trials. Yet only one athlete was selected for the Arctic Winter Games team. Later that year, two players from the Fort Smith team went on to play Junior A hockey in the south. I cannot be convinced that players chosen to play Junior A in the south cannot make the cut for the Arctic Winter Games team.

Mr. Speaker, the Games have changed greatly since their inception in 1970. We have gone from three contingents to six contingents. The sports involved have changed and we have adult participation in very few of the sports. The cost to participate has become a barrier to some athletes.

Mr. McLeod, your time has elapsed.

Mr. Speaker, I seek unanimous consent to conclude my statement.

The Member for Deh Cho is seeking unanimous consent to conclude his statement. Are there any nays? There are no nays. Mr. McLeod, you have unanimous consent to conclude your statement.

Thank you, Mr. Speaker. Mr. Speaker, these changes require me to ask this government insist on an independent evaluation of our Territory's participation in the Arctic Winter Games. This evaluation should address how the different sports are selected to be in the Games, how athletes are selected to be on the different sport teams, cost for athletes to participate in the selection process, and whether or not we should continue our participation in the Arctic Winter Games. Thank you, Mr. Speaker.

Thank you, Mr. McLeod. Item 3, Members' statements. The Member for Inuvik Boot Lake, Mr. Roland.

Thank you, Mr. Speaker. Mr. Speaker, yesterday was a big day for the federal government. The budget speech was read, and the news given to Canadians of the benefits a surplus will bring to them.

Mr. Speaker, we have to ask ourselves how the federal budget impacts the residents of the Northwest Territories. Our Member of Parliament stated publicly there will be transfer payments to the North of around $100 million. Mr. Speaker, if that is the case, I think we have come out of some difficulty and have some cash in hand to help out our much needed program areas, like health and social services and transportation.

The fact is, from my previous work in the Legislative Assembly, when the federal government spends a billion dollars, we are lucky to receive $1.3 million when it works out to getting money in the Northwest Territories.

What does this mean to residents, Mr. Speaker? Yes, we benefit. Some people will receive lower tax deductions. We also forget an area here. I think the budget could have focused on one of the things that would have positively impacted every resident of the Northwest Territories; northern residents' deductions.

Mr. Speaker, when it comes to that area, we share the same distinction as residents of northern Alberta. We are in the prescribed Zone A, which means we, as residents of the Northwest Territories, can claim $15 a day. Mr. Speaker, when you live in Holman Island, Paulatuk, Sachs Harbour, Inuvik, and many of the smaller communities which are not connected by road in the Northwest Territories, the cost of living far exceeds the costs in northern Alberta. Yet we fall in the same zone.

As a government, we need to start pushing to have that changed, so we may be recognized differently in the Northwest Territories. Mr. Speaker, I would like to see clarification from our Minister responsible for Finance as to the differences in the budget. Thank you, Mr. Speaker.

-- Applause

Thank you, Mr. Roland. Item 3, Members' statements. The Member for Nunakput, Mr. Steen.

Thank you, Mr. Speaker. Mr. Speaker, as with all communities in the Northwest Territories and other northern regions, young athletes of my riding have been competing for the privilege to represent the Northwest Territories at the Arctic Winter Games in Whitehorse.

At this moment, I would like to recognize and congratulate the following individuals who will be going to the Arctic Winter Games in the Arctic sports category:

• • Sharon Alanak and Daryl Egotak, from Holman;
• • Mathew Aninkin, Randy Cockney, Irwin Elias, Philip Jacobson, Eli Nasogaluak, and Noah Pokiak, from Tuktoyaktuk; and
• • Edgar Kotokak Jr., who will be their coach.

In the midget hockey category, Charlton Wolki will be representing Tuktoyaktuk.

Mr. Speaker, the Tuk Drummers and Dancers will also be taking part in cultural activities in Whitehorse; Albert Elias, Jodi Felix, Norman Felix, Josephine Felix, Sarah Mangelana, Brian Panaktalok, Eunice Nasogaluak, and Willima Nasogaluak will be the representatives.

Mr. Speaker, I hope the Members will join me in wishing these athletes and performers all the best while attending the Arctic Winter Games next week and representing the Northwest Territories while in Whitehorse. Thank you, Mr. Speaker.

Thank you, Mr. Steen. Item 3, Members' statements. The Member for Frame Lake, Mr. Dent.

Thank you, Mr. Speaker. Mr. Speaker, as a taxpayer, it was hard not to like parts of the budget tabled by the federal Minister of Finance. Who can argue against lower taxes, or the indexing of the tax system to inflation?

As a Northerner, it was what was missing that I notice most. The Northwest Territories has huge potential, but we need investment to realize it. I saw nothing in this budget to promote economic development in the Northwest Territories. I saw almost nothing for a highways program. There is $150 million to split up across Canada between the provinces and territories, which leaves almost nothing for the Northwest Territories.

This is a real missed opportunity for economic development and training for our people in the Northwest Territories.

We know the spin-off from economic development in the Northwest Territories benefits southern jurisdictions more than it does those of us who live here. It is really short-sighted of Canada not to invest in the North.

Like most Canadians, Northerners want to see increased funding for health and education. We should welcome the additional funds we see in the Canada Health and Social Transfer. But there is a catch. These funds are allocated on a per capita basis. With the $2.5 billion added to CHST funding, we will only see $3.4 million in the Northwest Territories. Contrast that with the $55 to $60 million in direct cuts we took a few years ago in our transfer payments from Ottawa.

Mr. Martin talked of how transfer payments to provinces and territories have been increased. Mr. Speaker, in spite of what we hear our Member of Parliament has said, I do not see it in this budget speech. I do not see increased transfer payments to the Northwest Territories.

We did more than our fair share to help defeat Canada's deficit. One year, our grant was frozen, leaving us $40 million short of expected growth. The next year, the grant was reduced by five percent, which meant an additional $60 million was cut.

If Canada is not going to restore the transfers and invest more in economic development in the North, then they must quickly agree to negotiate with this government and aboriginal governments to move ownership and control of resources to the North.

Mr. Speaker, since we cannot count on Canada, we need the tools to invest in the North ourselves. Thank you.

-- Applause

Thank you, Mr. Dent. Item 3, Members' statements. Item 4, returns to oral questions. The honourable Minister responsible for Health and Social Services, Mrs. Groenewegen.

On February 23, 2000, the Member for Thebacha raised questions in the Legislative Assembly of the Northwest Territories about the Child and Family Services Program review. I am pleased to provide the Member with further Information.

The first question concerned how child protection files were selected for the Child and Family Services Review. I have been advised that over 100 child protection files were reviewed. Reviewers selected files at each child protection worker office in three different ways. One was that they chose some on a random basis. In some smaller communities they read every file. They also consulted with local community social workers and selected files the local workers desired for case consultation.

The second question raised concerns regarding the consultation process in each community. I can assure the House the contractor developed consultation activities that were well organized and efficient.

In each community a variety of interviews were prearranged. Community councils, including band and municipal offices, as well as local school authorities, were contacted in advance so they could identify representatives to participate. The length of each visit was determined by the size of the community, the number of individuals or groups to be interviewed. The reviewers spent a total of 37.5 days interviewing people and groups. This has worked out to be an average of four days per community.

The consultation process is now winding down. Last week in Yellowknife and Rae-Edzo, reviewers held focus group sessions with children and parents receiving services through the Child and Family Services Act. A third session was held in Fort Simpson this past weekend. Thank you, Mr. Speaker.

Thank you, Mrs. Groenewegen. Item 4, returns to oral questions. The honourable Minister responsible for Education, Culture and Employment, Mr. Ootes.

Thank you, Mr. Speaker. I have a return to an oral question asked by Mr. Nitah on February 23, 2000. It is regarding funding for language development.

The honourable Member raised questions regarding French schools in the Northwest Territories.

Ecole Allain St. Cyr is the only French first language school located in the Northwest Territories, and as of September 30, 1999, there were 70 students. It is funded by the Government of the Northwest Territories under the same formula as other schools in the Northwest Territories.

The cost of constructing the French school was shared between the federal government and the Government of the Northwest Territories. The federal government provided $3.5 million and the Government of the Northwest Territories contributed $500,000.

Thank you, Mr. Ootes. Item 4, returns to oral questions. The honourable Minister responsible for Resources, Wildlife and Economic Development, Mr. Kakfwi.

Thank you, Mr. Speaker. This is a response to a question asked by Mr. Floyd Roland on February 24, 2000, regarding policies of this government on non-renewable resources.

The question was asked on February 24, 2000, if the Department of Resources, Wildlife and Economic Development had a broad policy in the area of non-renewable resources, and who would be in charge of that. This government's Sustainable Development Policy provides a framework for decision making on issues related to natural resource development. The Sustainable Development Policy is based on the recognition that sustainable development of resources is essential to the long term economic security, self-sufficiency and social well-being of northern residents. In guiding decisions and actions related to resource use in the Northwest Territories, this policy sets out a number of objectives, with specific reference to non-renewable resources, including the following:

Promote Integrated Resource Management

Recognizing that resource development decisions usually involve numerous management objectives and interest groups, the Government of the Northwest Territories shall promote an integrated approach to managing the environment and its resources.

Maintain and Enhance Environmental Quality

Recognizing that the Northwest Territories' economy and cultures are deeply rooted in the environment, the Government of the Northwest Territories shall ensure that environmental quality is maintained to support the long-term stability of northern society.

Develop Non-Renewable Resources in Ways that Contribute to a Sustainable Economy

The Government of the Northwest Territories will promote exploration, development and use of mineral, aggregate and fossil fuel resources in ways that provide lasting social and economic benefits while maintaining ecological processes and natural diversity.

These objectives are to be implemented through GNWT programs and through collaboration with other governments and organizations. The Minister responsible for Resources, Wildlife and Economic Development is responsible for implementation and periodic review of this policy. Thank you.

Thank you, Mr. Kakfwi. Item 4, returns to oral questions. The honourable Minister responsible for Transportation, Mr. Steen.

Thank you, Mr. Speaker. This is a reply to a question asked by Mr. McLeod on February 28, 2000, relating to the Mackenzie River crossing in Fort Providence.

The Department of Transportation uses the Gold formula to calculate the thickness of ice necessary to support the weight of a truck on its winter roads and ice bridges. Dr. Lorne Gold developed the formula from his studies of winter logging roads in northern Quebec in the 1950s. Dr. Gold is Canada's foremost authority on the use of ice as an engineering material for transportation and has been the standard for design for many years.

The bearing strength of ice is not related to traffic volume. If the ice is strong enough to support the passing of one truck, it is strong enough to support any number of passes. Increased truck traffic does, however, damage the surface of the ice road by causing ruts. Many other factors, of course, also play a role and these are described in the Department of Transportation's manual, A Field Guide to Ice Construction Safety. Higher truck volumes increase the department's maintenance efforts in blading, flooding and smoothing of the travelling surface. If the wear and tear at a crossing becomes excessive, the department would open a second parallel crossing while it repaired the first.

So, in answer to the Member's question, heavier truck traffic does not effect the initial construction of an ice crossing, but it does impose greater maintenance costs on the Department of Transportation through the operating season.

Thank you, Minister Steen. Item 4, returns to oral questions. Item 5, recognition of visitors in the gallery. The honourable Member for Nahendeh, Mr. Antoine.

Thank you, Mr. Antoine. Welcome to the Legislative Assembly. Item 5, recognition of visitors in the gallery. The Member for Range Lake, Ms. Lee.

Thank you, Mr. Speaker. Mr. Speaker, I am very happy to recognize Ms. Thomas, president of the NWTTA. Thank you, Mr. Speaker.

-- Applause

Thank you, Ms. Lee. Welcome, Ms. Thomas. Item 5, recognition of visitors in the gallery. The Member for Tu Nedhe, Mr. Nitah.

Thank you, Mr. Nitah. I am sure the folks back home are watching here on the television. They will be able to appreciate your recognition of them.

I would like to take this opportunity to recognize from the riding of Kam Lake and St. Joseph's School, the pages who are here today. We have Francesca Marrai, Konstantin Gavrikov, Alexander Grant, Sarah Erasmus, Brittany Herriot, Jessica Macintyre, Carmela Venezuela, and Matthew Battiste. I would like to welcome them to the Assembly.

-- Applause

Item 5, recognition of visitors in the gallery. Item 6, oral questions. The Member for Tu Nedhe, Mr. Nitah.

Thank you, Mr. Nitah. The honourable Minister responsible for Municipal and Community Affairs, Mr. Antoine.

Thank you, Minister Antoine. Item 6, oral questions. Supplementary, the Member for Tu Nedhe, Mr. Nitah.

Thank you, Mr. Nitah. Minister Antoine.

Thank you, Minister Antoine. Item 6, oral questions. Supplementary, Mr. Nitah.

Thank you, Mr. Nitah. The Minister responsible for Municipal and Community Affairs, Mr. Antoine.

Thank you, Mr. Antoine. Item 6, oral questions. Final supplementary, Mr. Nitah.

Thank you, Mr. Nitah. The honourable Minister responsible for Municipal and Community Affairs, Mr. Antoine.

Thank you, Minister Antoine. Item 6, oral questions. The Member for Thebacha, Mr. Miltenberger.

Thank you, Mr. Speaker. Mr. Speaker, my questions are addressed to the Minister responsible for the Northwest Territories Power Corporation. There are two specific issues that are going to have a dramatic impact on the Power Corporation. One of them is the impending split with Nunavut. The other one is the work that is being done in Fort Simpson where they have done a lot of major work in reviewing the provision of power by Northwest Territories Power Corporation. They put out a request for proposals and are seriously looking at changing suppliers.

Regarding the split, can the Minister indicate the timelines and the effect on the NTPC headquarters? Thank you.

Thank you, Mr. Miltenberger. The honourable Minister responsible for the Power Corporation, Mr. Ootes.

Thank you, Mr. Speaker. The agreement reached was that the Power Corporation would continue to operate as one until March 1, 2001. In the interim, an agreement was reached to look at methodologies of handling the split. Thank you.

Thank you, Mr. Ootes. Item 6, oral questions. Supplementary, Mr. Miltenberger.

Thank you, Mr. Speaker. Unfortunately, I am going to have to use a supplementary to get the Minister to finish answering the first question. Could the Minister indicate the potential or projected impact on the headquarters in Hay River? Thank you.

Thank you, Mr. Miltenberger. Mr. Ootes.

Thank you, Mr. Speaker. I will take that question as notice. Thank you.

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. Speaker. The $100 million that is being referred to is $100 million divided between the three northern territories. The $100 million dollars is a result of the normal adjustments that are made to the territorial grants under the current formula. It is money that has already been accounted for in our estimates. It is not new-found money, it is simply an adjustment that is made to the grant for this year and for previous years. Mr. Speaker, there is no new money as a result of that $100 million adjustment. Thank you.

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?

Thank you, Mr. Lafferty. Item 6, oral questions. The Member for Range Lake, Ms. Lee.

Thank you, Mr. Speaker. My question today is for the Premier. I would like to ask him a question about the concern many of the civil servants have all over the Northwest Territories.

Mr. Speaker, it is my understanding that the previous government, after they engaged in major job cuts, introduced what is known as a no lay-off policy within the civil service. My question today to the Premier is whether or not he plans to introduce a new policy, or will the no lay-off policy remain in effect? Thank you, Mr. Speaker.

Thank you, Ms. Lee. The honourable Premier, Mr. Kakfwi.

Thank you, Mr. Speaker. The no lay-off policy was a policy that was set out by the previous government. It was intended to stay in effect until the end of the last government. We have indicated in discussions with our senior managers that there are no plans, at this time, to make changes to the size and the structure of our civil service. In some ways, the policy is considered to still be in effect, although it is not a policy of this government. Thank you.

Thank you, Mr. Premier. Supplementary, Ms. Lee.

Thank you, Mr. Speaker. Could the Premier confirm whether or not the voluntary separation agreement packages that were practiced by employees who were having to be laid off in the last government would be available for any employees laid off during this government? Could the Premier indicate, if there are any layoffs or any need for cuts which we currently are unaware of, would the employees have the ability to exercise such an option? Thank you, Mr. Speaker.

Thank you, Ms. Lee. The honourable Premier, Mr. Kakfwi.

Thank you, Mr. Speaker. Since there is no lay-off policy in place, there is no need to consider whether or not this would be something that would be available to staff who would be considered for lay-offs, since there is no intent to lay-off staff at this time. Thank you.

Thank you, Mr. Premier. Item 6, oral questions. The Member for Mackenzie Delta, Mr. Krutko.

Thank you, Mr. Speaker. Mr. Speaker, my question is for the Premier and Minister responsible for Economic Development.

In my Member's statement, I made reference to the positive news that is coming out of the Beaufort Delta. There is a real interest being shown by the oil and gas industry to return to the Beaufort Delta to start developing the oil and gas potential we have.

Mr. Speaker, one of the strongest economic indicators we have is that it has been almost 20 years since the Beaufort oil and gas development really took place. With the good news we are hearing, it is critical this government takes the same initiative it did with the diamond industry, and put block dollars in place for training and secondary industries, to ensure this government get as much potential out of that development as we can.

With that Mr. Speaker, I would like to ask the Minister to ensure we get the best economic benefit out of these developments. This government should seriously consider improving the oil and gas development at the department secretariat by putting new human resources and dollars into the oil and gas sector so we can be on the same footing as the diamond industry. Will the Premier consider looking at that?

Thank you, Mr. Krutko. Premier Kakfwi.

Thank you, Mr. Speaker. It is true that, until recently, there was no substantive interest in oil and gas development in the Northwest Territories. The industry has returned very quickly. There has been substantive interest shown in the Liard area in the last two years and, more recently, in the Beaufort Delta as well as the Sahtu.

In recent years, we have put some resources towards ensuring the interest in diamonds could be enhanced through work we want to do, to make sure there were substantive benefits returning to us through our limited means. We have done that. We need to try to be able to sustain that.

It is also true the returns in oil and gas development would be more substantive for the Territories, due to the nature and size of the oil and gas industry and its impact on our economy.

We also have signalled the aboriginal leaders and communities that we will work in tandem with them. It is not for us to go out unilaterally, advocating oil and gas development in the Sahtu, for instance, on Gwich'in lands or Inuvialuit lands. Where there is interest, and the industry is prepared for the aboriginal groups, we are prepared to work in partnership with them. We are prepared to look at ways in which we could allocate more resources to oil and gas development.