Thank you, Mr. Bell. Please be seated. Members of the House, before we begin our day, I have a message from Her Majesty the Queen, Head of the Commonwealth.

It is highly appropriate that the theme of Commonwealth Day at the start of the new millennium should be The Communications Challenge. For much of the millennium just ended, the challenge was to relay information as speedily and accurately as possible. What once took weeks, is now instantaneous.

But the advances in technology bring a new challenge of how to use rapid communication responsibly and for the common good. We have to strive to ensure that the advantages of modern communication systems are available to all, and are used to bring us all closer together, not to create fresh divisions. And we need to remember that exciting though the new ways of communicating undoubtedly are, what matters most is what we say to each other.

The Commonwealth is an organization so diverse and widespread that it has always depended on good communications, which are helped, of course, by having a common language. Recent advances in communication technology are particularly helpful in fostering the non-governmental networks, which help to make the Commonwealth so unique.

The exchange of information and sharing of experiences between representatives of civil society in the different countries form an important part of the Commonwealth's activities at the start of the 21st century. Both in these networks, and in our cooperation at government level, our shared values and traditions provide a foundation for using the new technology to our common advantage.

The challenge for the century just started, will be to find ways to use ever faster communications to bring greater harmony and understanding both within each of our societies and between them, and thereby to strengthen the Commonwealth.

Elizabeth R.

Orders of the day. Item 2, Ministers' statements. The honourable Premier, Mr. Kakfwi.

Thank you, Mr. Speaker. Mr. Speaker, I would like to take this opportunity to congratulate Ms. Glenna Hansen of Inuvik on her appointment as Commissioner of the Northwest Territories. Ms. Hansen was born in the Delta, in Aklavik, and has lived her life in the Northwest Territories.

Ms. Hansen has always exhibited a high level of energy, confidence and creativity. She is able to take information, assess it and reach conclusions objectively. These strong personal characteristics have made it possible for her to make lasting contributions to the people in her community and to the Inuvialuit.

Our new Commissioner has a strong interest in the social and economic welfare of people in the Delta. Ms. Hansen's accomplishments in these fields are many. She has been a strong advocate of education, so vital to the future of all Northerners. She has sat on education boards at the local and regional level and on other community and regional boards including that of the Inuvialuit Regional Corporation. Ms. Hansen was also co-chair of the Minister's Forum on Health and Social Services.

Not only has she herself been active in business but has used much of her time, experience and knowledge working for the betterment of others through participation on the Board of Western Arctic Business Development Services and as a director of the Inuvialuit Investment Corporation.

Mr. Speaker, the role of the Commissioner has dramatically changed in the last quarter century. Until the late 1970s the Commissioner was the centre of government in the Northwest Territories. Since then, the position has evolved into one similar to that of a Lieutenant Governor in the provinces. The Commissioner's role is largely ceremonial, but is important in the continuity of governance from one government to the next and a symbol of our growing place in Canada.

The new Commissioner brings with her a strong sense of commitment to the people of the Northwest Territories. This sense of commitment, her tact, her communication skills and her abilities as a team player will enhance her ability to carry out her duties as Commissioner.

Mr. Speaker, in closing, on behalf of the Government of the Northwest Territories, I would like once again to congratulate Ms. Hansen on her appointment. I look forward to a positive and productive working relationship with the Commissioner. Thank you.

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

Thank you, Mr. Speaker. Mr. Speaker, on behalf of my constituents and myself, as the MLA for Nunakput, I would like to offer my congratulations to Ms. Glenna Hansen on her appointment as Commissioner for the Northwest Territories. I believe that the Prime Minister of Canada has made a very wise choice. Ms. Hansen is knowledgeable of the people, cultures, and lifestyles of the Inuvialuit, Dene, Metis, and all Northerners.

Her personality is one where she is respectful and reserved enough to carry out her Commissioner's duties and responsibilities with dignity, while being friendly and always approachable.

I am very pleased to see a young Commissioner who, in a way, reflects the beauty and agelessness of this great land of ours. Her age also makes her equally approachable by both our youth and our seniors.

I am sure I speak for all Inuvialuit when I say I am extremely proud that the new Commissioner is from the Beaufort Delta region of the Northwest Territories. I am pleased that Ms. Hansen is of Inuvialuit descent; however, I know that with her experience working with all people in the North, she will provide balanced representation.

In closing, Mr. Speaker, I would like to offer a farewell and my best wishes for the Honourable Dan Marion, who has represented the North admirably during his term as Commissioner and Deputy Commissioner. I personally have hosted Mr. Marion on a tour of the Beaufort communities. This tour was well received by my constituents, and Mr. Marion was an able representative of the North, this government, and the Government of Canada. He will be remembered. Thank you, Mr. Speaker.

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

Thank you, Mr. Speaker. As a courtesy, I would personally like to congratulate Ms. Glenna Hansen as the newly appointed Commissioner for the Northwest Territories.

Ms. Hansen not only comes from my riding of Inuvik Twin Lakes, but also from my home town of Aklavik. At this time I would like to express my sincere well wishes in her role as the newly appointed Commissioner. Thank you, Mr. Speaker.

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

Thank you, Mr. Speaker. I too would like to congratulate the decision that was made to put Ms. Glenna Hansen as the Commissioner of the Northwest Territories. I believe she will prove that she was the right choice, and of course, coming from and living in Inuvik at this time, it always makes us proud to have another representative in government, working at the business of government.

She has proven over the last number of years that she is very capable. She is a strong lady, and I believe that she will be able to carry on the business that is required of the Commissioner to properly show the Government of the Northwest Territories, to the residents of the Northwest Territories. I would like to congratulate her, and I know that she will do a great job. Thank you.

-- Applause

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

Thank you, Mr. Speaker. Mr. Speaker, I too would like to take this time to congratulate Ms. Glenna Hansen on her appointment as the Commissioner of the Northwest Territories. I have known Glenna for a number of years, and I know for a fact that she will do a great job.

Glenna is not only a mother, she is a lady who is involved in aboriginal politics, and is also involved in the social and economic well-being of people in the communities, through her involvement in different forums, education boards, health review committees.

Most of all, I think one thing that Glenna brings to this responsibility as the Commissioner is her being an Inuvialuit, and a woman. Commissioners in the past were primarily men. At this time, I would like to say that having had the opportunity to work with Helen Maksagak, who is now the Commissioner of Nunavut, I considered it an honour and a privilege to have been involved with her during her term as Commissioner of this Territory.

Other people from the North, especially the Mackenzie Delta, did play a role in the past. We have had a Deputy Commissioner, an Inuvialuit, from the Mackenzie Delta, who also played that role. The past Commissioner, Mr. Dan Norris, who is also from the great Inuvik region, served as the Commissioner of the Northwest Territories from 1989 to 1994.

With that, I would like to extend all the best, and say again that this role, I feel, is unique because she is not only an Inuvialuit, but she is the first Inuvialuit woman to take the role on as Commissioner of the Northwest Territories. I look forward to working with her, and I ask my other colleagues and Members of this House to bring her in with open arms and work with her for the next four years, to make her job that much easier.

The benefit this brings is recognition to this government that reflects the unique cultural differences that we have in the North, and especially with the first Commissioner for the 14th Assembly. With that, congratulations, and thank you.

-- Applause

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

Thank you, Mr. Speaker. Mr. Speaker, I come from a community of about 2700 people. It is a relatively small community, where people, like many of us in the North, are struggling to make a living, to have a strong community, to broaden our economic base.

Since becoming their representative in the 13th Assembly, I entered the Assembly with a feeling of strong optimism, telling people that division would be the best thing that ever happened to the Northwest Territories, that we sit on a tremendous storehouse of wealth. If we could just get the politics right, we can, in fact, become a "have" jurisdiction.

While telling them this, I recognize as well that as a Territory, my community like every community represented in this Assembly, has faced five years of relentless restraint and the erosion of services and programs as we attempted to deal with the deficit. That continues today.

As Members of the 14th Assembly, the people are watching us very closely. If the comments I have heard about the apparent penchant of the Premier for first class travel and stretch limos is any indication, they are watching very carefully.

They are looking to us for leadership. Mr. Speaker, it is not a case of do as I say, not as I do. If we are talking leadership, we have to demonstrate that. I am speaking specifically about the 18 percent forced growth figure in the Executive budget. It is unconscionable that we can come forward with that kind of number while telling people across the Northwest Territories that while the future looks good, it is not for another six years. In the meantime, there will be minimum support from the federal government. Be prepared to tighten your belts.

Mr. Speaker, as far as I am concerned, as long as there is the potential for one person to be laid off, for one program not being funded, of one contract being deferred, as we have deferred millions of dollars worth, the Executive should show leadership and not bring forward a business plan and interim appropriations that layers on many new positions at a time when we are telling everybody else to tighten their belts. Thank you, Mr. Speaker.

Thank you, Mr. Miltenberger. Item 3, Members' statements. The Member for Hay River South, Mrs. Groenewegen.

Thank you, Mrs. Groenewegen. Item 3, Members' statements. The Member for Yellowknife South, Mr. Bell.

Thank you, Mr. Speaker. Some of my constituents have brought a serious concern to my attention. Hopefully this Assembly, with the cooperation of the department, will be able to address the issue.

Mr. Speaker, I am referring to the current manner in which patients in the North are reimbursed under the Extended Health Benefits Program run by the Department of Health. Specifically there is inconsistency in how Northerners are reimbursed or pay for medications.

Patients who qualify for extended health benefits for specified illnesses are able to receive 100 percent payment for their prescription medications. Under this plan, the pharmacist direct bills the Department of Health and Social Services for the entire amount. This seems to work well.

Problems arise for people who already have some other form of partial coverage but who rely on extended health benefits to top up their coverage. In this scenario, the pharmacist direct bills the initial insurance policy but requires immediate payment for the amount covered by extended health. It is up to the patient to pay this amount and then apply to the GNWT for reimbursement. For example, a GNWT employee who has 80 percent coverage under their main plan and 20 percent coverage from extended health must pay the 20 percent out of pocket.

Mr. Speaker, the 20 percent outlay may seem relatively minor to some of us but considering the expense of prescription drugs used to combat something like multiple sclerosis, this 20 percent can be anywhere from hundreds to thousands of dollars.

Mr. Speaker, I believe this government should have on-line billing implemented for extended health benefits which would improve tracking and payment and ensure our constituents are not out of pocket for a substantial amount of money each month.

At the appropriate time, I will be questioning the Minister responsible for Health to see if she is willing to look at correcting this serious shortfall in service.

Thank you, Mr. Bell. Item 3, Members' statements. The Member for Great Slave, Mr. Braden.

Thank you, Mr. Speaker. On March 5, 2000 I attended the Prospectors and Developers Association of Canada Conference (PDAC) in Toronto along with the Deputy Premier, the Honourable Jane Groenewegen, the Honourable Joe Handley, other MLAs, City of Yellowknife and northern mining representatives. This is a world class event at which more than 10,000 participants attended this year.

The Prospectors and Developers Association of Canada is the national organization representing the interests of the Canadian mineral exploration and development industry. The PDAC recognizes excellence and achievement in the mineral industry through its program of annual awards.

The Bill Dennis Prospector of the Year Award is presented to the person or persons who have made a significant mineral discovery, or offered some significant service to the PDAC or been involved in some important technological invention or innovation with respect to improving Canadian prospecting and/or exploration techniques. This year's award was presented to D. Grenville Thomas, in recognition of his outstanding prospecting achievements in the Northwest Territories over the past 30 years and, in particular, his role in organizing and managing the exploration program that led to Diavik Diamond Mines, the Thor Lake rare earth project, and the Sunrise Lake discovery.

For the past 34 years, Gren Thomas' prospecting activity has generated substantial economic benefits for this country, culminating in the development of what will be Canada's second diamond mine. His early recognition of and unswerving faith in the mineral potential of the Northwest Territories have resulted in substantial exploration activity which has brought major economic benefits to the region. His work has also contributed to the region's geological database.

In 1981, he founded Aber Resources to continue his gold exploration efforts and, subsequently, his exploration for diamonds. The first kimberlites were discovered on the Diavik property in 1992. These pipes are high grade and rank among the richest in the world with reserves of 37 million tonnes containing 133 million carats.

Gren Thomas demonstrates all of the qualities of the prospector-- geological expertise, foresight, perseverance, and curiosity. I am pleased to acknowledge in this House his success and the national recognition which he so richly deserves for his splendid contribution to the Northwest Territories and to Canada's mining industry.

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

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

Thank you, Mr. Delorey. Item 3, Members' statements. Item 4, returns to oral questions. The honourable Premier, Mr. Kakfwi.

Thank you, Mr. Speaker. This is a response to a question asked by Mr. Dent on February 28th, 2000. It was a question asked on the Ministerial Procedures Manual.

The Ministerial Procedures Manual provides information on administrative matters to Cabinet Members. The manual provides information such as duty travel, use of non-government vehicles, et cetera. The manual was recently updated and copies were provided to the Ministers' offices.

I am pleased to advise that this government has provided copies of the manual to the Legislative Library so Ordinary Members and the general public can access the manual. I will also be tabling copies of the manual later this afternoon.

Thank you, Mr. Kakfwi. Item 4, returns to oral questions. Item 5, recognition of visitors in the gallery. Mr. Krutko.

Thank you, Mr. Speaker. Mr. Speaker, I would like to recognize Ms. Pat Thomas of the NWTTA. It has been a while since I have recognized her, so I would like to welcome her today.

-- Applause

Thank you, Mr. Kakfwi. Item 5, recognition of visitors in the gallery. Item 6, oral questions. Mr. Lafferty.

Thank you, Mr. Lafferty. The honourable Minister responsible for the Northwest Territories Housing Corporation, Mr. Allen.

Thank you, Mr. Speaker. As the Member is aware, we have been working diligently with the communities and our fellow colleagues in addressing the critical issue of home ownership.

We have taken it a step further to try to define what is equitable in terms of home ownership. We are presently in the process of trying to revise some of the older programs the Member referred to. I feel we can accomplish that in the next six months. Thank you, Mr. Speaker.

Thank you, Mr. Allen. Item 6, oral questions. The honourable Member for Yellowknife South, Mr. Bell.

Thank you, Mr. Speaker. In my Member's statement today, I outlined the concerns that were brought to my attention regarding the reimbursement of extended health benefit expenses. I indicated that this was not only a problem for the constituents of Yellowknife South, but for all residents of the North who are eligible for extended health benefit coverage.

However, it is apparent that this problem is specific to persons who have other insurance plans, and who do not have 100 percent payment coverage. I would like to follow up with the Minister responsible for Health and Social Services on this matter.

Could the Minister advise this House if she is aware of the financial problem constituents with other insurance benefits face when purchasing prescription drugs? Thank you, Mr. Speaker.

Thank you, Mr. Bell. The honourable Minister responsible for the Department of Health and Social Services, the Honourable Mrs. Groenewegen.

Thank you, Mr. Speaker. Mr. Speaker, as a matter of fact, I have had a similar concern raised to me by a constituent in a very similar circumstance where they have a chronic illness that requires expensive medication and prescriptions to be purchased each month. The Member is correct. When the extended health benefit covers 100 percent of the prescription costs, then this is direct-billed to the government. Where it is shared and there is co-payment from the constituent's insurance coverage, which may be through their employer, then the constituent is expected to pick up the 20 or 30 percent out of their own pocket and be reimbursed for that. The good news is that under the extended health benefits program, someone with a chronic illness can be reimbursed 100 percent.

As to why the 20 or 30 percent residual amount cannot be direct billed to the government, I am not sure of the reasons for that and I do know that there is a delay period whereby the constituent is out of pocket for this. I would certainly be willing to look at ways, if it is possible, for this to be addressed and if not, if there would be ways of expediting reimbursement payments to constituents. Thank you.

Thank you, Mrs. Groenewegen. Supplementary, Mr. Bell.

Thank you, Mr. Speaker. Given that the Minister has mentioned that this can be hundreds of dollars per month and that there is a delay, would the Minister commit to working with the Northwest Territories Pharmacy Association to look at how to best deal with this matter? This may include online billing. I am wondering if she will commit to work with the Northwest Territories Pharmacy Association. Thank you.

Thank you, Mr. Bell. The honourable Minister responsible for the Department of Health and Social Services, Mrs. Groenewegen.

Thank you, Mr. Speaker. Mr. Speaker, this process for reimbursement is something that is laid out by policy of the Department of Health and Social Services. I think the first place I would have to take this to is the department to see if there is some alternative way of direct billing for this. Certainly, if such a change was agreed to, then we could undertake it. The secondary step would be to deal with the pharmacies with the change of practice and have it direct billed if it is possible to do it. I do not know what the reasons may be that would preclude that from happening. Thank you.

Thank you, Mrs. Groenewegen. Supplementary, Mr. Bell.

Thank you, Mr. Speaker. I would just like to then thank the Minister for looking into this internally to see what the department could do. I think we have a serious problem here when our constituents have to be out of pocket for money we know they will be reimbursed for. I would like to thank the Minister very much for looking into this.

Thank you, Mr. Bell. There was no question there. Item 6, oral questions. The honourable Member for Thebacha, Mr. Miltenberger.

Thank you, Mr. Speaker. My question is directed to the Minister responsible for the Public Utilities Board. I would like the Minister to inform this House of the timelines for the completion of the review that the Public Utilities Board had underway, but was cancelled because of problems with the contract. When does he anticipate that the contract will be let? Thank you.

Thank you, Mr. Miltenberger. The honourable Minister responsible for the Public Utilities Board, Mr. Allen.

Thank you, Mr. Speaker. In response to the question yesterday, I had stated to the Member that hopefully we will be able to conclude the study by the end of June. That is the latest information I have for the Member. Thank you.

Thank you, Mr. Allen. Supplementary, Mr. Miltenberger.

Thank you, Mr. Speaker. Could the Minister indicate whether there will be an opportunity for public involvement and consultation in this process, given that it affects the rates and delivery of power across the Northwest Territories and the regulation of that power? Thank you.

Thank you, Mr. Miltenberger. The Minister responsible for the Public Utilities Board, Mr. Allen.

Thank you, Mr. Speaker. Yes, from what I understand, there is a process to allow the public to have input. To what degree, Mr. Speaker, I would not be able to answer that at the moment. Thank you.

Thank you, Mr. Allen. Supplementary, Mr. Miltenberger.

Thank you, Mr. Speaker. I will take that as a partial notice. Could the Minister indicate whether or not he has had any discussions with the chair of the Public Utilities Board in regards to this review? Specifically, making sure that any kind of improvement or changes to the Public Utilities Board, the regulations and act reflects the energy strategy that the territorial government says they are working on. The two are directly linked. Thank you.

Thank you, Mr. Miltenberger. The Minister responsible for the Public Utilities Board, Mr. Allen.

Thank you, Mr. Speaker. From what I am aware of, there is a consultation process. I believe part of the board's mandate is to consider the input from various interest groups. That is the answer to the Member's question. Thank you.

Thank you, Mr. Allen. Final supplementary, Mr. Miltenberger.

Thank you, Mr. Speaker. I will restate the question that was asked in regards to the work that has been done at the Public Utilities Board. Has the Minister been in contact with Mr. Hill to ensure that whatever work was done to upgrade the Public Utilities Board and the regulations will fit and be congruent with whatever energy strategy is being put forward by the government? Thank you.

Thank you, Mr. Miltenberger. The Minister responsible for the Public Utilities Board, Mr. Allen.

Thank you, Mr. Speaker. Yes, I have been in contact with the chairman and he advised me that there is ongoing work in this area. Thank you.

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

Thank you, Mr. Speaker. Mr. Speaker, my question is for the Minister responsible for the Department of Transportation, Mr. Vince Steen. It is regarding a question I asked earlier and relates to the statement that I made. I had asked if they have a contingency fund in place, especially if they have difficulties down the road with maintaining roads.

The reason I say that, Mr. Speaker, is because I see, looking through the budgets, especially in my area, Highway No. 8, I see some $500,000 was taken out of the original $2.5 million that was designated for the next five years. I think the same thing applied on Highway No. 5.

Almost 50 percent of the budget for Transportation is being implemented on Highway No. 3, and yet we find ourselves having to deal with more in regards to the economic impacts that are facing us with oil and gas developments expanding in the Beaufort Delta, Fort Liard and in the Mackenzie Valley.

I would like to ask the Minister, when will he reinstate the amounts that were designated in the five-year capital plan? When will he distribute those funds, knowing that they were withdrawn. In the case of my highway, there was $500,000 withdrawn. Will that money be put back into the budget? Thank you.

Thank you, Mr. Krutko. The Minister responsible for the Department of Transportation, Mr. Steen.

Thank you, Mr. Speaker. Mr. Speaker, at this time I am not sure when the government will be putting the funding back that we are deferring for capital. This applies not only to highways but it applies to other capital projects as well that have been deferred.

For how long, that will depend on our fiscal situation in the future. However, the department has made a point, and I am sure that the Legislative Assembly will agree with the department, that we can only defer capital expenditures for so long. At some point in time, we are going to have to address exactly how we are going to put the money back and how we are going to get the capital works back up to where they should be. Thank you.

Thank you, Mr. Steen. Supplementary, Mr. Krutko.

Thank you, Mr. Speaker. Mr. Speaker, maybe the Minister can tell me exactly when he intends to stop the cuts that are presently taking place, especially on Highway No. 8 and Highway No. 5? When will we know that these cuts will no longer take place? I, for one, feel uncomfortable. It seems like all of the cuts are taking place in the ridings in the Mackenzie Delta in the last couple of years. Yet on Highway No. 3, no cuts have taken place in a number of years. When will the Minister balance out these cuts and ensure that no more cuts take place where the cuts have already happened, and start cutting where they have not yet happened? Thank you.

Thank you, Mr. Krutko. The honourable Minister responsible for the Department of Transportation, Mr. Steen.

Thank you, Mr. Speaker. Mr. Speaker, the department draws up capital based on where we identify the major traffic and the impact of development on the highway sections. Highway No. 3 was identified not only by this government but previous governments as a high priority for bringing that highway up to national standards.

The funding we have identified for this particular stretch of highway is reflective of the traffic volumes and the demand on the highway. My department is not planning and will not will be putting in place any cuts that will serve to make highways unsafe. We try to maintain a budget that we can address any specific problems that develop on highways.

One of the options we have is if we do not have sufficient funding in the budget for the year, we would then go for a supplementary appropriation.

Of course, all the funding is approved by the Legislative Assembly no matter what we do with it. Again, the department does not do this in isolation. It does it with full input from the Legislative Assembly through the budget process.

Thank you, Mr. Steen. Supplementary, Mr. Krutko.

Thank you, Mr. Speaker. Mr. Speaker, I think it is unfair, especially socially and economically. A lot of regions do not have the benefits that regions like Yellowknife have where you get the diamond industry and a lot of spin offs from the secondary industries that come with it. Yet, in the Mackenzie Delta where we depend on these contracts, I see a major cut.

Mr. Speaker, some $7,689,000 of the Transportation budget goes into one highway, yet the total budget of the Transportation highway budget totals $16 million. Almost half of that budget goes into one highway.

I would like to ask the Minister why is there not consideration given to the economic benefit that comes from this type of contract? When will he distribute it fairly so all people in the North get the fair share of this money distributed based on need, not just putting it all in one highway? We have some 2,000 kilometres of highway, yet we are only talking 300 kilometres here.

Thank you, Mr. Krutko. Members are reminded to make their preambles shorter and shorter as we get into supplementaries. The honourable Minister responsible for the Department of Transportation, Mr. Steen.

Thank you, Mr. Speaker. Mr. Speaker, the Member brings up a very valid point. It is unfortunate that the department cannot distribute a budget based on spreading it evenly through the regions. Our budget is based on where the need is, based on the traffic volume. Where the major expenses are, of course, is reflective of the traffic volume.

Like I said, the department would have been very willing to work with the communities in trying to spread the dollars around reflective of what we have for that particular region.

I think a good example of that is what the Member brought up yesterday about the access road programs. The department is fully aware of how much people need economic development activity in the region, including highway construction or road construction of any nature. However, we do not base the budget on make-work programs; we base our budget on highway needs and the traffic volumes on those particular stretches of highway. Thank you, Mr. Speaker.

Thank you, Mr. Steen. Final supplementary, Mr. Krutko.

Thank you, Mr. Speaker. Mr. Speaker, there were no cuts whatsoever on Highway No.3; yet there were cuts on Highway No. 8 and Highway No. 5 to the tune of $1 million.

I would like to ask the Minister again, will he, the next time he makes any cuts, consider cutting where half the budget is right now, which is Highway No. 3? So if any cuts take place in the future will he seriously consider cutting Highway No. 3?

Thank you, Mr. Krutko. The Minister responsible for the Department of Transportation, Mr. Steen.

Thank you, Mr. Speaker. Mr. Speaker, the department would be glad to respond the Member's question and affirm that we do consider cuts every year on Highway No. 3. We consider cuts all over, but then we respond to the traffic volume. We definitely consider cuts to Highway No. 3. It is just that we do not put in place any obvious cuts to Highway No. 3, but it is not just certain sections of the highway that were being cut in the department's budget.

We have been asked, along with every other department, to reduce our expenditures. We have done that and we have tried to spread those reductions all across our operations, highways, airports and ferries. It is not just highways. I hope that my response to the Member will be taken as that we do consider cuts to Highway No. 3.

Thank you, Mr. Steen. Item 6, oral questions. The honourable Member for Great Slave, Mr. Braden.

Thank you, Mr. Speaker. I have a question this afternoon for the Minister of the Executive, the Honourable Mr. Kakfwi. Earlier this year the Department of the Executive issued a request for proposals in supplying counselling services to GNWT employees.

This contract is currently carried out by NWT Family Services, an NWT society. The group has been active in the NWT since 1979 and was recently awarded national accreditation. The request for proposals awarded the contract to another northern-based group for a three-year period commencing April 1, 2000.

One issue is the difference in costs, Mr. Speaker. My understanding is that NWT Family Services met the criteria required but the successful bidder was 258 percent higher in cost, a total of half a million dollars more over the life of the contract.

Mr. Speaker, in view of the fact that this government is facing fiscal restraint, would the Minister justify this considerable discrepancy? Thank you.

Thank you, Mr. Braden. The honourable Premier, Mr. Stephen Kakfwi.

Thank you, Mr. Speaker. It is true that there was a call for proposals earlier in the year. There was some criteria set to evaluate the proposals that were received.

A committee was set up to evaluate and recommend the best proposal. There was a difference in cost between the proposals. It is true that the proposal that was accepted does cost more. It was the view of the committee that, given the criteria and objectives set out, the Group of Three as it is called, best met the objectives of the program that was set out, recognizing the call was for a higher dollar amount. It was still felt, even after a review was done, that it was the right decision.

I should say I am not comfortable with talking specifics about the differences in proposals in public. I would prefer if there were some other means by which to be made accountable. It would seem to be unnecessarily critiquing or making negative comments about proposals that were received in good faith by this government. Thank you.

Thank you, Mr. Kakfwi. Supplementary, Mr. Braden.

Thank you, Mr. Speaker. I appreciate the Minister's answer and I too, agree that getting into the details about specific competitive proposals is not in the interest of the House. My supplementary would lead into what the Minister suggested, a way of handling these kinds of discrepancies. In the RFP process, there seems to be something lacking that would allow a structured appeal process that would help build accountability and transparency which this government wants to seek.

My question is, will the Minister look into the RFP process and see if a structured appeal process can be built in? Thank you.

Thank you, Mr. Braden. The honourable Premier.

Thank you, Mr. Speaker. I can tell the Member that there are similar sentiments in the government, and we recognize that there are some concerns about the way we procure services and award contracts.

The Financial Management Board Secretariat has initiated a general accumulated review this past fall. The request for proposals, the business incentive policy and other policies, procedures and processes by which we seek procurement are currently being reviewed. So the Member's comments are timely and will be taken into account. Thank you.

Thank you, Mr. Kakfwi. Supplementary, Mr. Braden.

Thank you, Mr. Speaker. I am pleased the department will look into building a better process along with the Financial Management Board Secretariat.

Given the Northwest Territories Family Services is within days of losing this contract, and given that there is a recognition that the process needs improvement, will the Minister undertake to review the award of this contract, for the Northwest Territories Family Assistance Program and include the Northwest Territories Family Services in a further review of this particular RFP?

Thank you, Mr. Braden. The honourable Premier, Mr. Kakfwi.

Thank you, Mr. Speaker. The contract has been awarded. Legally, we have made a commitment to the group. We have done a review, although there was no obligation to do a review, and we feel the decision by the committee that made the initial recommendation was done in compliance with the process and procedure that was set out.

Thank you, Minister Kakfwi. Item 6, oral questions. The honourable Member for Inuvik Boot Lake, Mr. Roland.

Thank you, Mr. Speaker. Mr. Speaker, my question will be directed to the Premier of the Northwest Territories. It is based on Tabled Document 27-14(2), which is a transcription of an interview the Premier did with CBC. The interview was a reflection of his trip to Ottawa.

On a number of occasions they speak of the potential and what was accomplished in that trip. Mr. Speaker, Mr. Kakfwi stated that one of the goals was to get the attention of Ottawa. At one point he stated, "I think that we did capture their attention".

Mr. Speaker, I believe we do get their attention, seeing as they receive 95 cents of every dollar that comes out of this ground in royalty resources. We would have their attention since we have diamond mines, oil and gas. Hopefully, we at least have their attention in that area.

Mr. Speaker, the area of concern is, are there going to be any differences made in the near future to the revenue coming from Ottawa to the Northwest Territories? Yesterday, I heard Mr. Handley say they will be sending someone up from the Minister of Finance's office to review our books. I think that is a step backwards.

Mr. Kakfwi states in the interview that there is some minor relief in sight. Mr. Speaker, I would like to know from the Premier, in what instance might there be some minor relief? Can he elaborate on that in this forum so we know what we can expect as we review the interim appropriation? So we know when we are putting new resources out there, how far can we go? Thank you.

Thank you, Mr. Roland. The honourable Premier.

Thank you, Mr. Speaker. I have not seen the tabled document or transcripts of the interview with CBC radio. So it probably stands to have some minor adjustments and corrections.

Having said that, it is my view that there is an opportunity to develop a good working relationship with Ottawa, with the Prime Minister's Office, with the Minister of Finance, Paul Martin, and with the Minister of Indian and Northern Affairs, Bob Nault. There is interest. I think they realize the position we are in.

The aboriginal leadership has unanimously called for a construction of a pipeline they would like to own and manage themselves. This spells and articulates a profound change in the North, an opportunity that was only dreamt about only a few years ago. We are on the verge of making even more progress in the area of settling claims and self-government negotiations.

There is a signal from the aboriginal groups that they are prepared to discuss devolution and revenue sharing. The federal government has said categorically they want to move as quickly as we can. There is, at a very minimum, a possibility that with the completion of an economic development strategy the federal government had requested a couple of years ago, we could see some generic funding made available not only to the Northwest Territories but to the Yukon and Nunavut as well.

This is the only part of Canada that does not enjoy money flowing to it through an economic development agreement. This has been noticeably absent from the Northwest Territories and Yukon for a number of years now. There is always a lot of room for optimism. This has been a very hectic two months. We are two months and a week into our mandate as a new government, a new Premier and a new Cabinet. We have not had time to consider reductions that we have had in the departments, for which we are being set up to be soundly chastised for. I believe those things will come once we finalize priorities with the Caucus and with the aboriginal leadership in the course of this year.

Those types of things will be looked at. In the meantime, we are setting the stage for what I hope will be a very positive and productive working relationship with the federal government. Thank you.

Thank you, Mr. Kakfwi. Supplementary, Mr. Roland.

Thank you, Mr. Speaker. I would like to thank the Premier for that great length of detail to my question. Mr. Speaker, in the interview he was asked if the Prime Minister should come North. He spoke quite eloquently in saying the Prime Minister has fond memories of the Northwest Territories when he was a past Minister of the Department of Indian and Northern Affairs in his days in the Liberal government.

I am afraid, Mr. Speaker, that we are, in fact, going to only have fond memories of this if we do not stop the bleeding out of the Northwest Territories. Mr. Speaker, we have heard the Minister of Finance project a $42 million deficit. This will not go down in subsequent years. Will the minor adjustments close that sort of gap? Thank you.

Thank you, Mr. Roland. The honourable Premier, Mr. Stephen Kakfwi.

Thank you, Mr. Speaker. As I have said, we are a little over two months into our mandate. We have, I think, managed our time incredibly well. We have managed to set up the basis for a good work relationship with the federal government. We have set the stage for a very good and productive working relationship with the aboriginal leaders and, no doubt, we have tried to maintain a close working relationship with Members of the Caucus. We have not set priorities by ourselves. We have not gone about setting up how to reduce expenditures and that type of thing unilaterally. We have come here presenting an interim appropriation budget based on what we need because we have had no time to look at a well thought out comprehensive approach to reducing expenditures.

I must say that the stage is set. We can work well together if Members wish. We can continue to do that. With respect to the work relationship with the federal government, the outlook is excellent. The relationship with the aboriginal peoples continues to improve and the potential is there. I would say to the Member have faith, remain optimistic, and compliment us on the things we do because I think we are doing well so far. It should produce results through the course of the four years we are here to serve you. Thank you.

Thank you, Mr. Kakfwi. Supplementary, Mr. Roland.

Thank you, Mr. Speaker. I will gladly pat the Premier and his Ministers on the back when we see the money. Mr. Speaker, yes, we have had some time to do some work and we support the action the government is taking by going to Ottawa and trying to secure more dollars. What we are trying to get from this is, has there been any amount that has been set out there that will narrow the gap we find ourselves in now with a $42 million deficit? Do we have any possible numbers out there that would see this being drawn together instead of going further apart, so we do not hit our debt wall?

Thank you, Mr. Roland. The honourable Premier, Mr. Stephen Kakfwi.

Thank you, Mr. Speaker. I was hoping the Member would say that even if we all stayed poor together, he would still continue to support our valiant efforts to get out of our present predicament.

Mr. Speaker, there are indications that the federal government will be prepared to look at a draft economic strategy and provide some resources to support us on that. The devolution process, the cost to move the devolution agenda along has yet to be addressed. The cost for setting up an intergovernmental forum has yet to be addressed with the federal government. There have been some suggestions as to how that may be done. They are very general and by no means do we think anyone should be accountable for the initial remarks that have been made regarding that in our discussions with Mr. Martin and Mr. Nault.

We know that in the Atlantic region for instance, there have been specific dollars for oil and gas development, somewhere in the neighbourhood of $250 million, specifically set up for the governments in that area to get into oil and gas development. We know that the federal government is open to the idea of project specific dollars that could be made available to the North to realize some of these things.

I know that there is a basis set for what could be some very productive discussions in the next month or so. Once the session is over, we hope to set up meetings again to build on the initial contact and initial basis we have set for further discussions. That is the extent to which we have done our work.

As the Member would know, last week when we were in Ottawa, it was at the height of a filibuster by the Reform Party and the Bloc Quebecois. In spite of that, we did have some meetings. It was done in spite of the fact that there was controversy on the eve of the Liberal convention about the leadership. In spite of that, the Prime Minister, Mr. Martin and Mr. Nault, when we met with them, gave us their undivided attention. They were relaxed, focused, and as I said, keenly interested in the views we shared with them. There is a commitment to meet and meet again shortly to build on the initial discussions we started. Thank you.

Thank you, Mr. Kakfwi. Final supplementary, Mr. Roland.

Thank you, Mr. Speaker. Mr. Speaker, the optimism is good, but I am concerned we have stretch limo optimism while we have a Volkswagen budget. Mr. Speaker, can the Premier inform us, or will he update this House as work continues so that we may know and reply to our constituents about some of these meetings and hopefully the success he will have? Thank you.

Thank you, Mr. Roland. The honourable Premier, Mr. Stephen Kakfwi.

Thank you, Mr. Speaker. Of course I would be prepared to share whatever it is that we achieve in the follow up meetings that we have with the federal government. I would be happy to find a means by which we can share whatever comes out of these meetings that we will set up in the following month with the federal Ministers, so that people can share the optimism and get a sense that some very good things can happen, and will happen and that it will be done in partnership with the aboriginal governments and federal government. Together we can make and hope for a much better future for all our people. Thank you.

Thank you, Mr. Kakfwi. Item 6, oral questions. The honourable Member for Thebacha, Mr. Miltenberger.

Thank you, Mr. Speaker. Mr. Speaker, my question is addressed to the Minister responsible for the WCB. Mr. Speaker, like the Members of the Executive, the Members of this side of the House have been working ceaselessly and tirelessly day in, day out for the last many months, becoming familiar and conversant with their many responsibilities, carrying the Cabinet, making sure they are on the right track, working around the clock trying to do the business of government. One of the issues that has come up out of our hard work and constant pursuit of good government is the issue of the WCB. I would like to address this question to the Minister responsible. I realize that the board appointments are going to be finished at the end of the month. Can the Minister indicate and update this House on what is happening with the board appointments for WCB? Thank you.

Thank you, Mr. Miltenberger. The Minister responsible for the Workers' Compensation Board, the Honourable Mr. Handley.

Thank you, Mr. Speaker. I appreciate the Member's recognition of the hard work we are doing, getting up to speed on our business. There are several appointments that come up at the end of March. Two of them are from the west and I believe one is from Nunavut. It is my intention to refill the positions and before the end of March, I will make that decision. Thank you.

Thank you, Mr. Handley. Supplementary, Mr. Miltenberger.

Thank you, Mr. Speaker. Mr. Speaker, obviously I was not quite clear. In addition to the work that they are doing, which Cabinet keeps telling us at every opportunity, the people over here are almost exhausted at the labours of Hercules we have undertaken since being elected in order to get this Assembly up and running.

Mr. Speaker, could the Minister indicate whether he said reappoint or will he just appoint somebody? Is he planning to reappoint or put somebody new in there? Thank you.

Thank you, Mr. Miltenberger. The Minister responsible for the Workers' Compensation Board, the Honourable Mr. Handley.

Thank you, Mr. Speaker. I too recognize the hard work that is done by the Ordinary Members.

-- Applause

We all recognize each other. I did not say reappoint, I said that I will be delegating the positions before the end of March. Of the current positions, there are three that expire. Two of them are mine to fill. One is for the east to fill. They will be filled. I did not say reappointment at all. Thank you.

Thank you for the clarification, Mr. Handley. Supplementary, Mr. Miltenberger.

Thank you, Mr. Speaker. Could the Minister clarify whether he intends to bring some new blood into the Workers' Compensation Board and hopefully widen the circle so there are as many appointments outside of Yellowknife as possible? Thank you.

Thank you, Mr. Miltenberger. The Minister responsible for the Workers' Compensation Board, the Honourable Mr. Handley.