Thank you, Mr. Roland. Please be seated. Good afternoon, colleagues. I wish to advise the House that I have received the following message from the Commissioner of the Northwest Territories:

Dear Mr. Speaker,

I wish to advise that I recommend to the Legislative Assembly of the Northwest Territories the passage of Supplementary Appropriations Act, No. 1, 2002-2003 during the Fifth Session of the 14th Legislative Assembly.

Yours truly,

Glenna F. Hansen, Commissioner

Colleagues, I would like to take this opportunity to welcome you back to the House, as well to the staff and the visitors who are here, for a short summer session of the Fifth Session of this Legislative Assembly. Sadly, since we last met, we have mourned the passing of Mr. Goo Arlooktoo, a former Member of this Legislative Assembly.

Mr. Arlooktoo was the Member for Baffin South from 1995 to 1999. After the creation of Nunavut he returned to Baffin Island to live and to work. During that time, he retained many family and business ties with the Northwest Territories.

Mr. Steen and I were able to travel to Iqaluit to attend Mr. Arlooktoo's funeral and to represent this Assembly. It was a very sad time, as he left us much, much too early. I know I speak for all Members when I pass along our deepest condolences to Mr. Arlooktoo's widow Dorothy and to their children and their extended family.

After a very late spring, we are now able to enjoy the Northwest Territories' wonderful summer session. I know that the Members of this Assembly have been hard at work in their constituencies since we last met and I would like to encourage you all to continue to enjoy the summer with your families when we are finished this sitting.

At this time, I would like to advise the House of a very important event occurring today. It is the silver anniversary of the Honourable Jim Antoine and his wife, Celine. Congratulations.

-- Applause

Item 2, Ministers' statements. The honourable Deputy Premier, Mr. Antoine.

Mahsi, Mr. Antoine. Item 2, Ministers' statements. The honourable Minister responsible for the Department of Finance, Mr. Handley.

Thank you, Mr. Speaker. Mr. Speaker, one of the goals this Legislature set for itself two years ago was the creation of a healthy and diversified economy. We wanted to see more businesses starting up and more businesses locating in the Northwest Territories. To keep our economy healthy, and to encourage businesses to grow and to create jobs, our tax regime must be competitive.

The Northwest Territories has long maintained a very competitive tax environment, with both personal and corporate tax rates among the lowest in Canada. These competitive rates have helped us attract individuals and businesses to the North. In fact, our competitive corporate tax rates have, in the last two years, resulted in several large revenue gains. These corporate tax revenues have allowed this government to make important investments in programs and infrastructure that would not otherwise have been possible.

Recently, however, a number of provinces and territories have announced significant reductions in their personal and corporate income tax rates. These changes have reduced the NWT's overall competitiveness.

In the Budget Address last February, I announced changes to the personal income tax system that lowered taxes for all NWT residents. Effective this July, NWT taxpayers will see these changes reflected in their payroll deductions.

I also indicated in February that this government would be monitoring the changes made by other provinces and territories in order to keep our tax structure competitive. Our position, relative to other jurisdictions, could have negative effects on our tax base, as companies look to do business where the tax climate is most favourable. Even existing businesses may re-examine their corporate structures to minimize their tax liability.

Mr. Speaker, I am announcing today our government's intention to make changes to the NWT corporate income tax regime. If the Legislative Assembly agrees, effective July 1, 2002:

The general corporate income tax rate will be reduced from 14 percent to 12 percent, that is a reduction of 14 percent in tax payable; and

The "small business" rate, that is, the rate applicable to the first $200,000 in income of Canadian-controlled private corporations, will be reduced from 5 percent to 4 percent. This represents a reduction of 20 percent in the small business tax rate.

The legislation required to enact these changes will be introduced later this session. We will be looking for an early indication of Members' response to this proposed change, in order to be able to confirm the effective date with the federal government, who administer the corporate income tax on our behalf.

These changes will send a message, Mr. Speaker, that the Northwest Territories welcomes businesses that want to locate here, to create jobs here, and to contribute to our bright economic future. Thank you, Mr. Speaker.

-- Applause

Thank you, Mr. Handley. Item 2, Ministers' statements. The honourable Deputy Premier, Mr. Antoine.

Mahsi, Mr. Antoine. Indeed, the House wishes Mr. Ootes a speedy recovery. Item 2, Ministers' statements. Item 3, Members' statements. The honourable Member for Hay River North, Mr. Delorey.

Thank you, Mr. Speaker. Mr. Speaker, it is a pleasure to be back in this House with yourself and the rest of my colleagues as we continue the Fifth Session of this 14th Legislative Assembly. Mr. Speaker, I had planned to make a statement full of good news and events that have taken place in Hay River. However, because of a situation that is unfolding as we speak, I feel it is imperative that I voice my concerns.

The issue I am referring to, Mr. Speaker, is the Business Incentive Policy and this government's intentions of cancelling the BIP in order to bring the construction costs of the correctional centre here in Yellowknife in line with projected estimates.

Mr. Speaker, I am not going to say that there are no problems with the BIP policy or that changes are not necessary. I might go as far as to say, Mr. Speaker, that the time may have come to do away with the BIP. The problem that I have with this situation is process.

This government should have learned by now that when they make decisions in isolation, with no input from impacted groups or all Members of this House, then they are guaranteed to receive nothing but a negative response from all concerned.

It is very frustrating, Mr. Speaker, when as a Member of this government, I get questioned about a major decision that has been made on such a big issue as cancelling the BIP and the people who are asking the questions know more about it than I do, simply because I happened to miss a radio news broadcast.

There are many reasons as to why this project's costs are in a runaway mode. Mr. Speaker, it is time to look at how this project was designed from day one and why the decision was made to build it in Yellowknife. It certainly was not from a cost-saving point of view. In my mind, it is another indication that the vacuum was in full operation.

It has been mentioned by some, Mr. Speaker, that living conditions for inmates in this facility will be far more glamorous than what most of our law-abiding citizens can afford. It will be full of recreational equipment that most of our communities can only dream about. Mr. Speaker, there is far more wrong with this project than what cancelling the BIP can rectify. Therefore, Mr. Speaker, I say this is not the time to cancel the BIP.

I suggest, Mr. Speaker, that if there are huge problems with this project, then maybe the government should get rid of the project manager and take control of this project and use the same approach that the Minister of Education used in Hay River when we tried to get changes made to the Princess Alexandra School project to better meet the needs of the community. His answer, Mr. Speaker, "You can make all the changes you want, but there is no more money." Thank you, Mr. Speaker, and happy birthday to you.

-- Applause

I knew there was a reason I let you run over your time, Mr. Delorey. Thank you, Mr. Delorey. Item 3, Members' statements. The honourable Member for Range Lake, Ms. Lee.

Thank you, Mr. Speaker. Mr. Speaker, since this government, without any notice or consultation with the Members from this side of this House, unilaterally decided to suspend the BIP policy on the construction of the new jail in Yellowknife, we have been inundated with phone calls and letters from an outraged public. The general consensus is that this decision seems to have been a simple knee-jerk reaction to a very complex problem, which will not do much to address the cost overrun, but add many more serious problems in the process.

Mr. Speaker, I want to make it very clear that this government must avoid further damage and embarrassment, reverse this decision immediately and work with the industry representatives to find better ways out of this situation.

Mr. Speaker, it is very difficult to understand what the rationale of this decision is. I have to wonder what kind of debate Cabinet went through when making this decision. I wonder if Cabinet really thought about the wide implications of this decision. Have they thought about the damage and the message they are sending, Mr. Speaker?

Mr. Speaker, this government, from the Premier on down, has spent the last number of years convincing mega resource companies that they must engage in northern hiring and northern purchasing because it has been saying it is good for the North and we want to maximize the benefits that resource development will give to our people. The companies have agreed to do impact benefit agreements on this basis even though, Mr. Speaker, in many cases, this drives the cost of doing business in the North.

They have had little choice but to comply with the government's position, but apparently, this is not the principle the government has to live under. With this BIP flip-flop, how can this government expect to have any legitimacy anymore to take this position, Mr. Speaker? How can it have the moral ground to ask for this from the industry after this decision?

Mr. Speaker, we are all aware that the economy is on a high and there are not as many bidders on some of these contracts, but these times come in between very lean times. We know this is how our economy works. It has a lot of ups and downs and we should not lose sight of that. Our northern contractors maintain their businesses and keep their employees in the North through these lean times while waiting for the boom times. Could the government not come up with better ways to deal with this situation other than exempting themselves?

Your time is up, Ms. Lee. Ms. Lee.

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

Thank you, Ms. Lee. The honourable Member is seeking unanimous consent to conclude her Member's statement. Are there any nays? There are no nays, Ms. Lee. You may conclude your statement.

Thank you, Mr. Speaker. Mr. Speaker, could the government not have come up with better ways to address this situation?

My last important point that I want to make is that this decision violates a very fundamental principle that we are supposed to live by in our society. No one, especially the government, should be above the law. We all have to follow the rules we set for ourselves. This is why we are here. If some rules do not work, we work to change them by building consensus and setting priorities. No one is free to declare itself exempt because it is inconvenient or costs more money or whatever. That is simply absurd and should not be tolerated, Mr. Speaker. I urge the government to reverse this decision immediately. Thank you, Mr. Speaker.

-- Applause

Thank you, Ms. Lee. Item 3, Members' statements. The honourable Member for Deh Cho, Mr. McLeod.

Thank you, Mr. Speaker. Mr. Speaker, youth involvement in the management of Northwest Territories forests is an issue that merits some attention. The forests of the Northwest Territories have sustained First Nations for thousands of years. They have fed, sheltered, clothed, transported and healed them. The transmission of knowledge about the land is the responsibility of the elders and the teaching begins when one is very young.

The youth learned how to live and care for the forest. The Department of Resources, Wildlife and Economic Development has expended some forest fire management dollars in the past to deliver fire ecology camps in some regions. Mr. Speaker, I believe that five such camps were run in the Northwest Territories last summer. The purposes of the camps, Mr. Speaker, appears to be to get the youth involved in seeing the effects of fire on the forest.

The camps ran ten days in duration and involved ten to 15 youth from selected communities, and usually they are from the same communities year after year. There does not seem to be any opportunity for the youth from my constituency to be involved in forest management education programs of this nature.

Mr. Speaker, while it is good to know that some interest is being paid to the issue of youth involvement and development by the department, I would encourage the government to look further than the current program. I have learned about the existence of an Aboriginal Junior Forest Ranger Program that was developed in Ontario by First Nations and the National Aboriginal Forestry Association. The program is designed to develop leadership skills and to introduce youth to career opportunities in forest management. There are other youth corps-type programs in Canada that allow youth to gain exposure and experience through work practicum in forestry and environmental management.

Mr. Speaker, I would encourage this government to look at all options for providing youth programming and to ensure that all youth in the Northwest Territories gain an equal opportunity to participate in working, learning and caring for the forests.

Mr. Speaker, I will be asking questions to the Minister of RWED during question period. Thank you, Mr. Speaker.

-- Applause

Thank you, Mr. McLeod. Item 3, Members' statements. The honourable Member for Great Slave, Mr. Braden.

Thank you, Mr. Speaker. At the invitation of the Minister of Finance, I had the opportunity to join Mr. Handley May 22nd and 23rd to visit Ottawa to pitch for the GNWT Strategic Infrastructure Proposal.

Sometimes we wonder about the value of Ministers traipsing off to Ottawa, but the reality is that, along with all other jurisdictions in Canada, we have to get ourselves in line to compete for federal finance dollars. We are handicapped here in the NWT with our small population and we are a bit of a question mark with the power elite and mandarins of Ottawa.

How we can get their attention though, Mr. Speaker, is to highlight the impact on the national economy of what we have going on here in the NWT. How does northern development affect the constituents and the economies in Alberta and Ontario? The major objective of the meetings that we had was to brief federal Ministers on this infrastructure proposal. It is a $240 million plan to advance the Mackenzie River bridge, to build better ice roads into the Mackenzie Valley and into the diamond corridor.

The message that we took to Ottawa, among other things, was that over 20 years, the work going on here in the NWT could contribute $65 billion to the country's gross domestic product. It could create 270,000 person years of employment and add $17 billion in royalties and taxes.

We met with seven Cabinet Ministers and the chair of the Liberal Caucus Economic Development Committee, Mr. Tony Valeri, and Eddie Goldenberg, the senior policy advisor to the Prime Minister.

Mr. Speaker, we need to work continuously to raise our profile in Ottawa and keep our agenda alive. We need to illustrate the benefits of our development for the rest of Canada and there needs to be a consistent message and a common agenda pursued by this government. Today and tomorrow, we know that the Premier and our colleagues, Mr. Dent and Mr. Krutko, are in Ottawa to help deliver that message to other Ministers. We need to stay on that federal radar screen and I encourage the Premier and the Ministers to continue their visits and to continue taking Regular Members along. It is one of the strengths of consensus government and it needs the backing of all the governments and leaders in this tremendously exciting time here in the NWT.

I look forward, Mr. Speaker, to the word that will come along, I am sure, that we will be seeing that $133 million from Ottawa that will make such a difference to Canada. Happy birthday.

-- Applause

Thank you, Mr. Braden. Item 3, Members' statements. The honourable Member for North Slave, Mr. Lafferty.

Mr. Lafferty, your time is up. Mr. Lafferty.

The honourable Member is seeking unanimous consent to conclude his Member's statement. Are there any nays? There are no nays. Mr. Lafferty, please continue.