Thank you, Mr. Chairman. Mr. Chairman, economic activity in the oil and gas sector, as well as the diamond industry, is increasing dramatically, which is resulting in many new business opportunities for northern companies. By increasing the limits for loans, bond-guaranteed loans, or indemnified loans that can be made by the Business Credit Corporation, we can assist the private sector to assess these financial opportunities.

The objective of the BCC is to stimulate economic development and employment in the Northwest Territories. The BCC provides financing to businesses in the Northwest Territories where conventional lending institutions are not prepared to participate. This assists companies to become full participants in our industries, including our oil and gas and secondary diamond sectors. As of March 31, 2001, the BCC had total outstanding credit facilities of $27.5 million. This is well within the $50 million working capital advance from the consolidated revenue fund. This fund is a revolving fund, so money repaid by businesses with existing loans can be used to fund future projects.

BCC financing is demand-based. The BCC will consider business proposals for any viable business opportunity that will stimulate economic development and employment in the Northwest Territories. Strict commercial lending practices are followed by the BCC. Its lending guidelines and practices are subject to annual audits conduced by the Auditor General of Canada.

The proposal before you is to amend the BCC Act by increasing the total limit from $1 million to $2 million per business or for related businesses. The act currently provides for an upper loan limit of $1 million. This limit has been in place for roughly ten years. Accordingly, it is time to change.

This proposal supports the objectives of the document Towards a Better Tomorrow for a northern controlled economy that is balanced, diversified, stable and vibrant. The change to the act will provide an option for companies who want to finance capital intensive operations associated with resource development as well as other business ventures. The proposed change will apply only to new loan applications. It will be a benefit to NWT businesses who have different corporate entities.

For example, most aboriginal development corporations have several operating businesses. Under the BCC Act, the $1 million cap applies to all related businesses. The amendment will increase the borrowing room for these development corporations.

I believe this amendment will be welcome by the private sector and am pleased to have the opportunity to review the amendment with the Members of the Legislative Assembly. Thank you.