Mr. Roland.

Thank you, Mr. Chairman. The Association of Municipalities became aware of this yesterday evening because of the discussion in this House. They are definitely surprised with this. The fact that the interim appropriation was meant to stand pat.

As I was speaking to the mayor of Inuvik, the financial review the deputy minister referred to was something they were focusing on as well. They have been very concerned. Block funding has been in for a while. They found on a regular basis that those block funds are reduced with little input from the municipalities.

Coming from a tax-based municipality where we have two back to back tax increases to try to make up for the difference of lack of funding from other sources, mainly this government, I am very concerned. We will have to see something happen here because in communities, especially tax-based, any infrastructure that is received you have to pay a large portion of that through your tax base. That is a concern.

For the record, the NWTAM board was informed that there would be some level of reduction. There is a bit of stick handling here between a major amount of reductions or a small amount of reductions. The understanding they had at that meeting was there were to be no reductions in the interim. They were made aware that during the business planning process, some reductions could possibly come around at that point.

Now we have communities reeling because as of April 1, 2000, they are going to have less to spend on municipal infrastructure and operations and maintenance.

Could you confirm for the record that at the board meeting of the NWTAM held on February 25th and 26th, 2000, they were made aware that even during the interim appropriation, there were possible reductions? Thank you.

Thank you, Mr. Roland. Mr. Antoine.

Mr. Murray.

Thank you, Mr. Murray. Mr. Antoine.

Thank you, Mr. Antoine. Mr. Roland.

Is the Minister stating that there would be no changes during the interim, but in fact there will be a review done over the next few weeks and it will come forward during the business planning stages?

Mr. Minister.

Mr. Roland.

Thank you, Mr. Chairman. I would like to thank the Minister and his staff for making that very clear and for allowing the municipalities that would be affected to have a number of months for planning. They could build into their financial situations the possibility of reductions as of March 31, 2000. I would like to thank the Minister responsible for taking positive action on this. Thank you.

Thank you. That was more of a comment than a question. I have on my list Mr. Miltenberger, Mr. Delorey, and Mr. Dent. Mr. Miltenberger.

Thank you, Mr. Chairman. In light of the Minister's comments, my concerns in this matter for the interim appropriation have been addressed. Thank you.

Thank you, Mr. Miltenberger. Mr. Delorey.

Thank you, Mr. Chairman. I am basically of the same opinion. I would like to thank the Minister responsible for taking positive action on this to address the concerns of the public at large. My comments have been addressed under the statement he has made. Thank you.

Thank you, Mr. Delorey. Mr. Dent.

Thank you, Mr. Chairman. I am also pleased that the Minister has committed to no reductions for the period covered by the interim. This will come back for further discussion when we consider the business plans and the mains.

One other thing I would encourage the Minister to do is make sure his staff meets with the municipalities that could be affected by the block funding agreements to ensure the department is fully aware of any proposed cuts that they may wish to come back and discuss with the committee. Thank you, Mr. Chairman.

Thank you, Mr. Dent. Mr. Antoine.

Thank you, Mr. Antoine. Any other questions or comments for the Minister? We are on page 5 of the black binders, tab 6, page 5, dealing with the Department of Municipal and Community Affairs. Total Municipal and Community Affairs, operations and maintenance, $18,322,000.