Mr. Speaker, we all want to ensure a sustainable health and social services system. However, to achieve this, the system must change.

Last month, the Minister of Health and Social Services, the Honourable Michael Miltenberger, announced an action plan that will strengthen programs and services for all Northerners. The plan listed 45 actions that will be carried out over the next three years. The actions are focused on improving the quality and effectiveness of health and social services. It places a primary focus on close collaboration and cooperation between health care providers, health and social services authorities, and the GNWT.

During the 2002-2003 year, a number of new investments will be made to strengthen the health and social services system. We are proposing to invest $250,000 for on-call centres to support clients and front line staff, $320,000 for expanded action to address tuberculosis, and a $270,000 pilot project to expand screening for breast cancer. In addition, over $10 million has been added to the budget of Health and Social Services to meet the increased costs of providing existing services.

Funding for health initiatives also includes enhanced health protection measures. The Department of Public Works and Services, working closely with the Departments of Municipal and Community Affairs and Health and Social Services, will spend $300,000 to identify and correct existing or potential deficiencies in drinking water systems and services in Northwest Territories communities.

Mr. Speaker, providing funds for education today is an investment in tomorrow. It is an investment in people at the same time as it is an investment for the Northwest Territories. For these reasons, this budget includes an additional $2.7 million for student support services. Actions taken by this government continue to fulfil our legislative requirement to establish a pupil/teacher ratio of 16.5 to one for 2002-2003. In addition, we will increase student support funding to 15 per cent of school contributions, one year in advance of the requirement set out in legislation.

-- Applause

Last year, we implemented an Early Childhood Development Action Plan to improve programs and services for our youngest residents through enhanced program spending and better coordination of programs and delivery mechanisms. We committed $10.5 million over three years for this plan. This budget includes nearly $2.9 million in 2002-2003 for initiatives under this plan. This funding includes initiatives in speech development, literacy rates, screening tools for developmental delay tests, and a public awareness campaign to tackle key issues such as FAS/FAE and nutrition. In addition to these actions, we will be investing a further $2 million for the implementation of the second year of a three-year plan to enhance child protection. Ten additional social workers and expanded professional training for workers and foster parents will be provided using these funds.

All Members of this Assembly have heard strong, clear messages, Mr. Speaker, from the Status of Women Council of the NWT, the Native Women's Association of the NWT and, in fact, all organizations represented on the Social Agenda Working Group, that many families need support in regaining self-sufficiency and pride. We need to provide families with access to quality, reliable childcare that is affordable for parents. Investing in children's early years provides more opportunity for children to reach their full potential in school performance. It also can help reduce future expenditures. The Honourable Jake Ootes, Minister of Education, Culture and Employment, will be implementing measures to increase day care support funding. This budget provides an additional $1 million to fund these increases.

-- Applause

This initiative will both increase educational opportunities for children and respond to the needs of low-income northern families by removing barriers to affordable childcare.

Mr. Speaker, our young people are our future. We need to help our youth become healthy, educated people with the experiences and mentoring examples to make responsible personal choices. This budget includes $1 million to develop and implement a Youth Corps.

-- Applause

The Youth Corps will be designed to improve the outlook and opportunities for young people by providing support and leadership for an extended time period. Activities in the Youth Corps will include work assignments, volunteer and community contribution assignments and skills improvement. We will also contribute funding to host another youth conference this year and will assist with the costs of youth activities delivered by community organizations.

Our cultural diversity makes the Northwest Territories truly unique. It is one of our most precious resources and the source of our strength. This government is committed to supporting and celebrating our traditions, our diverse cultures and our languages and people. This budget includes a significant investment in this resource. First, an increased investment of $919,000 will be provided to assist in the acquisition, maintenance and revitalization of our aboriginal languages and culture.

-- Applause

Second, $521,000 has been allocated to facilitate the work of the Special Committee on the Review of the Official Languages Act.

Third, I am pleased to announce that, along with numerous sponsors from the public and private sector, our government will be helping to sponsor the Living History Project with a $100,000 contribution to the three-day symposium the society is hosting in June of this year. The Living History Project explores the evolving social and political landscape of the Northwest Territories over the last 25 years. The planned symposium will have representatives from communities across the North and will include a visit from the Governor General of Canada, Her Excellency the Right Honourable Adrienne Clarkson.

Finally, Mr. Speaker, as part of the celebration of our heritage, the GNWT has allocated $500,000 to mark the inauguration of National Aboriginal Day as a statutory holiday in the Northwest Territories. This funding will be used to support the planning of activities throughout the territory and to provide contributions to municipal, community, regional and territorial organizations in support of community celebrations. We encourage all residents to join in the recognition of our aboriginal heritage on June 21st.

Mr. Speaker, one of the ways to help Northwest Territories residents deal with economic conditions in the North is through the tax system. Last year, we changed the Northwest Territories personal income tax system from one of "Tax on Tax" to "Tax on Income". This change gave us more flexibility to design a system that meets our needs. In addition, we increased the maximum Cost of Living Tax Credit for Northwest Territories residents from $645 to $822, an increase of $177. This change was effective for the 2001 tax year and residents will be receiving the increased credit after filing their tax returns in the next few months.

Last May, I established the Minister's Advisory Committee on Personal Income Taxation to provide recommendations on how the tax-on-income system could best serve the residents of the Northwest Territories. The advisory committee studied other provincial and territorial personal income tax regimes and reviewed public submissions. In October, the committee provided a report on the options available to the Government of Northwest Territories, including specific recommendations for seniors, persons with disabilities and low-income residents.

Mr. Speaker, I am pleased to announce that I plan to take the necessary steps to implement the specific recommendations made by the advisory committee, which would lower taxes for all Northwest Territories taxpayers.

-- Applause

I plan to increase, effective July 1, 2002, the personal credit from $550 to $796, and the married credit from $467 to $796. In 2003, this change will save a single taxpayer $245 and a single income couple $575. These changes increase the level at which a single taxpayer pays no Northwest Territories income tax from $14,447 to $20,650 in 2003. For single earner couples, the income level will increase from $26,076 to $37,071.

-- Applause

Last summer, the NWT Seniors' Society recommended measures to ease the tax burden on low-income seniors. Effective July 1, 2002, I am proposing to increase the age credit from $268 to $389 as a measure that will specifically benefit senior residents. In addition, Mr. Speaker, I intend to increase the disability credit from $445 to $645, again effective July 1, 2002.

-- Applause

We are all aware of the high cost of living in the North. Last year's change to the Cost of Living Tax Credit will help address this problem. However, as Members pointed out last year during debate on this measure, further action is needed to provide relief for low-income residents of the Northwest Territories. Mr. Speaker, I am very pleased to announce this government's intention to introduce a minimum Cost of Living Tax Credit for low-income residents. This initiative will ensure a minimum Cost of Living Tax Credit of $250 for an individual over the age of 18 and $500 for a couple. This measure will be effective for the 2002 tax year.

These changes to our tax system will not only benefit seniors, disabled persons and low-income taxpayers but will allow the Northwest Territories to remain competitive with most other provincial jurisdictions. Increasing the tax credit amounts and the minimum Cost of Living Tax Credit will put extra money in the pockets of taxpayers, which in turn puts extra dollars into our communities. For example, the tax measures I have announced today will mean an additional $62,000 on an annual basis in communities the size of Deline and Fort Resolution.

In total, Mr. Speaker, these measures will result in tax savings for Northwest Territories residents of $4.3 million in 2002 and $7.5 million in 2003.

-- Applause

These tax reductions respond to Northwest Territories residents' concerns about the cost of living in the North, especially for low-income individuals and families. These initiatives also respond to the pressures for the Northwest Territories to remain competitive with other Canadian jurisdictions. I will be introducing the legislation necessary to implement these tax changes later during this session.

Other provinces are lowering both personal income tax and corporate income taxes. We will be monitoring the changes made in other provinces as part of our ongoing efforts to keep the Northwest Territories tax structure comparable to the tax structures in the other provinces and territories.

Mr. Speaker, at this point we can clearly see our vision of a better tomorrow take shape. Our economy is strong and the promise of future prosperity is enormous. Our people are working and our businesses are prospering.

However, our vision is not yet complete. We know we have more work to do to ensure:

• • that the benefits of development are shared between governments, communities and regions;
• • that we have a diversified economy and encourage growth in all sectors;
• • that development balances economic benefits, social impacts, and protection of the environment;
• • that our people, our families and our communities are strong, healthy, educated and self-reliant;
• • that our young people are motivated and prepared to take advantage of the opportunities available; and
• • that the diversity of languages and cultures of the Northwest Territories is respected and encouraged.

Our fiscal situation allows us to continue to make investments in building our future that we would otherwise be unable to make. We have responded to the concerns and recommendations made to us. This budget sets out a balanced approach -- a balance between investing in the economy and in our people and our communities; a balance between developing our resources and protecting our land; and a balance between our current revenue capacity and our future spending needs.

Mr. Speaker, our approach is balanced, our foundations are level. We are ready to finish the job we have set out to do. Thank you, Mr. Speaker.

-- Applause

Thank you, Minister Handley. You had not advised us as to what kind of new shoes you were wearing for this occasion.

Mr. Speaker, this year, given the responsibilities we have, the fiscal situation we have, I thought I should get something that is very sensible, very conservative, that represents the responsibility we have. I want to ensure the Members though that these are not loafers.

-- Laughter

Call them what you want, but they are not loafers. There is no time for loafers. I also want to assure you that they have a good grip on the bottom so that we can keep a grip on everything that is happening.

So this year, Mr. Speaker, I chose something very conservative, very sensible in terms of the responsibilities. Thank you.

-- Applause

Thank you, Mr. Minister. We can use that as your Members' statement. At this point in the day, I would like to take the opportunity to recognize in our gallery the former Minister of Finance and former Speaker of the Legislative Assembly, Michael Ballantyne.

-- Applause

As well, colleagues and guests, I would like to take this opportunity to recognize in the gallery former MLA for the Deh Cho and former Speaker, Samuel Gargan.

-- Applause

At this point, the House will rise and join the Minister of Finance and invite the guests to join the Minister of Finance for a reception in the Great Hall. We will reconvene at the bell.

-- Break

The House will now come back to order. Item 3, Ministers' statements. Item 4, Members' statements. The honourable Member for Hay River South, Mrs. Groenewegen.

Thank you, Mr. Speaker. Today, Mr. Speaker, I rise to speak about the importance of recognizing the values of balance and fairness. In our western democratic tradition, these values are at the centre of our model of governance. This is even more so in our unique consensus style of government.

We recognize that the government cannot control everything. Development and economic activity will happen where certain resources naturally occur. Demand, markets and world prices in the commodity sector will affect investment in exploration and development.

We heard the enthusiastic tone of the Minister of Finance's budget speech, but I would like to ask my colleagues on both sides of the House to continually ask ourselves if we as a government have done everything possible to ensure our financial resources are being invested in a way which fairly recognizes the importance of all regions.

The constant lens of government needs to be balanced in fairness in everything we do. Mr. Speaker, I want to underline that no one begrudges prosperity in Yellowknife. Indeed, it is the quest of all our communities and prosperity is at the heart of the aspirations of every community large and small, urban and rural.

However, we recognize that development spawns more development. This economic activity then feeds on itself. When we attend to our duties here in the capital it is easy to become discouraged and even sometimes downright depressed about the corresponding level of activity in the communities that we represent. It is hard to see the balance. I notice that the word balance was mentioned quite frequently today in the budget address.

I have a simple solution. Let's draw a map, look at recent and current activity within GNWT control and ensure that no region is being left behind. It sounds so simple, but we cannot forget about any group, any sector, any region or any community. Our strength is in our diversity. Yes, we have a promising resource sector and we are thankful for that, but do we need to have the consequent development and activity from this sector all based in the capital?

Mr. Speaker, surely we should ask the following question. Every time a new initiative or opportunity arises, can this function or activity reasonably be directed outside of Yellowknife, whether it is centres of excellence and centralized functions arising from the Health and Social Services plan, federal jobs being devolved from Ottawa, or a new Energy Secretariat, new capital infrastructure with associated programs and jobs -- does it have to all happen in Yellowknife?

I would strongly suggest...

Mrs. Groenewegen, your time for your Member's statement has ended.

Mr. Speaker, I would like to seek unanimous consent to conclude my statement.

Thank you. The honourable Member is seeking unanimous consent to conclude her statement. Are there any nays? There are no nays. Mrs. Groenewegen, you may conclude your statement.

Thank you, Mr. Speaker, and thank you, colleagues. I would strongly suggest that in these modern times we have many tools like advanced communications and affordable inter-community travel that can all assist communities in taking full advantage of new opportunities. This distribution of opportunity may take our recent focus from mega to smaller scale but effective development. What other sectors can be initiated, revived or enhanced in our communities and regions? Activities like big game outfitting, eco-tourism, crafts, hunting, trapping, commercial fishing, forestry and manufacturing just to name a few. Diamonds, oil and gas and minerals are exciting, but we cannot forget about the activities that have traditionally contributed to our northern economy that are readily accessible to our people.

I strongly urge this government to see the strength and balance in diversity, urban and rural, renewable and non-renewable, broad based mega-projects and small community-friendly activities. In closing, the future of the North may look bright, but it is only relevant to our people as it translates into fair access to many different types of opportunities. Thank you, Mr. Speaker.

-- Applause

Thank you, Mrs. Groenewegen. Item 4, Members' statements. The honourable Member for Deh Cho, Mr. McLeod.

Mr. McLeod, your time for Member's statement is finished.

Mr. Speaker, I seek consent to conclude my statement.

Thank you. The honourable Member is seeking unanimous consent to conclude his statement. Are there any nays? There are no nays. You may conclude your statement, Mr. McLeod.

Thank you, Mr. Speaker. Mr. Speaker, I must also thank the Members for their encouragement and support. I look forward to a positive response to this proposal. I look forward to successful conclusion to negotiations and an agreement to proceed with this exciting project.

Most of all, Mr. Speaker, I look forward to crossing the Deh Cho on a permanent bridge in the spring of 2005. Thank you, Mr. Speaker.

-- Applause

Thank you, Mr. McLeod. Item 4, Members' statements. The honourable Member for Great Slave, Mr. Braden.

Thank you, Mr. Speaker. I would like to address a couple of aspects of the budget that we just heard this afternoon. It is, indeed, at this time, a good news budget. The original intent, the strategy that was adopted at the beginning of this Assembly was to take some chances, invest in the future, given that we did not really know what was going to be coming up. We went out and put some money and energy into areas such as training and infrastructure. Those are working and paying off to our benefit.

Mr. Handley outlined a couple of areas where we are seeing double digit improvements in a lot of critical areas of our economy. Exports up 19 percent, retail sales up 10 percent. Our unemployment rates are down 14 percent. These are numbers, these are results that would have any other part of Canada, and probably do, turning just a little bit green with envy.

There are a couple of aspects in here, Mr. Speaker, that as a government, as a society, as a very thriving part of Canada we have to take into account. One of them, Mr. Speaker, is that the volatility of our income stream, our revenue stream, is very unpredictable.

We are, as Minister Handley has I think tried to underline here and emphasize, things that are essentially out of our control, that is why we are in this surplus situation right now. We cannot and should not count on it in the future, and we have to look at our spending and investment strategies with great care for the next couple of years at least to make sure that we do not slip too far into that deficit and that debt wall.

Finally, Mr. Speaker, I would like to point out that there is one area here that really stands out, an increase of 20 percent in our exports to a value of $1.375 billion. Mr. Speaker, those are revenues and revenue streams that this government and the people of the North do not have control of. We should have it. I can only express my optimism and my support for the Intergovernmental Forum process to resolve how we are going to get control of that revenue stream into the hands of Northerners. Thank you, Mr. Speaker.

-- Applause

Thank you, Mr. Braden. Item 4, Members' statements. The honourable Member for Mackenzie Delta, Mr. Krutko.

Thank you, Mr. Speaker. Mr. Speaker, my statement today is around the employment opportunities that this government has to offer and the people who have made a choice to make a career with this government. They have put 20-odd years in working in all sectors of the government. I have a real concern when it comes to the makeup of our government in the senior management areas and the different sectors of our economy where we are not the employer of choice now. We have other sectors out there who are offering employees of this government the option for, in most cases, a better salary, benefits and an opportunity to succeed.

Mr. Speaker, this issue has been raised time and time again. We have policies in this government in regard to affirmative action. We have looked at the area of promoting people to ensure that the government reflects the geographical make up of the North and the population of the North. In senior management positions, there are very few, if not a handful, of aboriginal people in the senior management of the government, from deputy ministers to assistant deputy ministers to directors -- even superintendents at the regional level.

We have to do more to ensure that we do not lose these people to the other sector because of frustration, to realize that we do not have a monopoly on the people of the North anymore. We are not the employer of choice and we should not take them for granted. We have to do more to assist the employees in this government and ensure that they do have a workplace that they feel comfortable in.

To ensure that they feel that at the end of the day they are happy to go back into that workforce, knowing that they have an alternative to the Government of the Northwest Territories.

We talk about Maximizing Northern Employment; we talk about opportunities in the oil and gas and diamond industry; the federal government is talking about expanding. We have lost a lot of good people from this government to those different sectors already.