Thank you, Mr. Chairman. Just a couple of points I would like to touch on in general comments. One of them is regarding the changes the department is making to block funding. I would like to commend the department for finally looking at this and making some changes. As you know, Hay River has been talking about the fact that they were underfunded in the block funding formula for a long time. Finally, the department has looked at that and recognized the fact that they have been underfunded.
The only problem I have, to some extent, is the fact that they will not be brought up to speed as what they now see as the fair formula amount. Hay River will still have to wait some three years before they get brought up to that full amount. Hay River is in a situation where they have limited funding in some cases, because of the block funding, to have extra money to put into their sporting facilities or any capital projects that the town wants to put money into. I am sure they are happy to see these increases in the block funding come into effect fairly quickly.
With this latest announcement that Mr. Miltenberger has touched on, and it has been on the radio, with the increasing insurance premiums. Just when something looks favourable, they get hit. I think Hay River is estimating that it is going to be something like a 74 percent increase in their insurance premium to the municipality. Why is this happening now?
One of the things that was pointed out is that the insurance premiums on their vehicles is going up at the same rate as anything to do with water and sewer. The insurance companies are riding on the issues that are coming out of the water deal in saying this is why they want to put the insurance premiums up, but why is it hitting every different spectrum if it has to do with water? Those are some questions they had that they would want to look at. I am hoping the department will be working with the municipalities. Hay River brought up the same point that Mr. Miltenberger brought up as far as what happens if the insurance premiums are going up so high that the municipalities are going to be looking elsewhere? They are just being priced out of the market. That should be a major concern to the department as well. I am hoping they will look into those areas.
There is still an ongoing concern with the town of Hay River as far as lands and taxes and leased lands within the municipality and how that is all being worked out with the Department of MACA and different land claim groups. That is an area they are very willing to work on, but departments have to come together and different land claim groups have to come together and put some closure on this and get some definite answers, so the town administration has more capable ways of going ahead and developing a municipality.
Those are some of the areas I wanted to touch on in general comments. I probably will have more questions coming into detail, but I will just stop at that and maybe get some comments back from the Minister. Thank you, Mr. Chairman.