Thank you, Mr. Chairman. Mr. Chairman, the mandate of the Department of Municipal and Community Affairs, or MACA, is to provide community governments with the support to deliver public programs and services essential to good community life, to assist with the development and maintenance of community governments, and to provide the resources necessary to achieve community goals.

The Standing Committee on Governance and Economic Development met with the Minister of Municipal and Community Affairs and his staff on Friday, January 18, 2002, to review the department's draft main estimates for 2002-2003.

The committee noted a $7,605,000 net increase in operations expenses from the department's 2002-2005 business plans. This net increase may be attributed to a $1,700,000 increase in other subsequent FMB approvals due in its entirety to extraordinary funding for the community of Fort Simpson; and a $5,905,000 increase in other adjustments due to the reporting of infrastructure contributions as operations expenses instead of capital expenditures.

The committee also noted a net decrease of $4,305,000 in the department's capital expenditures from its 2002-2005 business plans. This net decrease is due to $100,000 for the new Aklavik curling rink; $500,000 for the new Wha Ti community hall; $1,000,000 in new funding to address water treatment plants and system deficiencies; and a reduction of $5,905,000 as the result of a transfer of infrastructure contributions to operations expenses under a revised reporting process.