Mahsi, Mr. Speaker. Mr. Speaker, the United States Congress has been working in conference on an energy bill for the past couple of months. Discussions on this legislation have covered broad energy issues for both the production and conservation of energy in the United States.

One element of the bill was a proposed floor-price subsidy for Alaskan natural gas production. If implemented, this subsidy would severely distort the North American natural gas market and could harm the potential development of gas reserves in the Northwest Territories.

The Government of the Northwest Territories was the first to oppose this ill-conceived subsidy. We lobbied very hard and very effectively against this measure. The Government of Canada, the United States administration and many members of the oil and gas industry in both countries also oppose the subsidy. We all agree the subsidy would favour gas production in one region to the detriment of gas production in all other regions of North America.

Mr. Speaker, the United States Energy Bill Conference has been unable to come to an agreement on this legislation. The Alaskan gas subsidy is one of the contentious issues that is still unresolved. We have been informed that Congress has adjourned for the upcoming mid-term elections in early November and has put the energy bill on hold for now.

When Congress reconvenes, we will continue to defend the interests of the Northwest Territories against any measures in the energy bill that puts our gas development potential at a disadvantage.

Mr. Speaker, we have always believed that the timing and extent of northern gas development is best served by allowing industry to make market-based investment decisions and not by the interference of government. We will continue to work with the Government of Canada and the industry to ensure this occurs. Mahsi.

-- Applause