Mr. Chairman, our formula is a fairly complicated one. Two of the main factors that have an impact on us are our population numbers and provincial local spending across Canada. The government works out the spending increases or decreases that might be across Canada and, based on a ratio, then adds that or uses that in calculating our money. If provincial local spending across Canada goes down, then there will be a downward adjustment of our revenues as well. If provincial local spending goes up, we will get an increase.

I believe that is based on the assumption that we will experience the same kinds of trends and should benefit from the same kinds of trends that are happening across Canada. If we were in a period of economic growth, it would not just be the federal government that would get the benefits of economic growth in the Territories. We would also get some of that built back into our formula. I do not know if that helps with the explanation or confuses it.

On the population factor, which is another major factor, then our formula is adjusted according to our population growth or decline. Again, there is a formula for working it out but it works out to roughly $13,000 to $15,000 per person, which is the basis for calculating our formula. Thank you.