Thank you, Mr. Speaker, and good afternoon. Mr. Speaker, I rise today to announce that the government has decided to roll back the fuel price increase in the 16 communities served by the petroleum products division.

-- Applause

The division's mandate is to provide a secure supply of fuel products in communities where no private company sells fuel. Typically these communities are isolated and only accessible by barge and winter road.

We try to provide fuel on a break-even basis. Costs are recovered through the price charged for fuel. Last summer's fuel prices were higher than the previous year. This increase prompted the government to raise prices in communities by 4.5 cents per litre.

Mr. Speaker, the government made the decision to raise prices last December, but implemented the increase effective February 1, 2002, to avoid increasing people's costs during the Christmas season.

In January, however, the petroleum products division tendered for supply and delivery of petroleum products to communities on the winter road system. Prices received for this resupply reflect the current market price for fuel and are substantially lower than those of last summer. In recognition of these lower prices and in response to discussions with concerned communities and Members of the Assembly, the government took a second look at the situation and agreed to rescind the scheduled increase.

The communities that we serve are small and isolated. The cost of providing fuel is much higher compared to communities located on our highway system. In recognition of this, we will not be increasing fuel prices at this time. Thank you, Mr. Speaker.

-- Applause