Thank you, Mr. Speaker. Mr. Speaker, I would like to speak today about some of the activities of the Department of Finance over the past four years.

The department's mandate is to obtain the financial resources needed to implement the GNWT's policies and programs. This includes negotiating major financial agreements with the federal government, making recommendations on tax and fiscal policy, collecting the GNWT's taxes, and managing our cash and debt requirements.

Fulfilling this mandate has been particularly challenging over the last four years, as the GNWT faced growing expenditure needs in critical areas such as health care, education, and infrastructure, and in responding to the demands placed on our government by our rapidly growing economy.

We now anticipate that total government revenues over the last four fiscal years, 2000-01 to 2003-04, will exceed total operating expenditures by more than $100 million. However, much of this was in the form of one-time revenues, and the ongoing fiscal outlook is for expenditures to outstrip revenues, requiring continued strategies to close the fiscal gap.

A number of issues relating to the calculation of formula financial grant entitlements were resolved in favour of the GNWT, resulting in adjustments to grant payments of more than $150 million. In addition, several large, one-time corporate income tax adjustments contributed significant amounts to addressing the government's fiscal shortfalls.

Over these four years, the Department of Finance has also played a major role in intergovernmental fiscal arrangements. Discussions with Finance Canada on renewal of the formula financing agreement and on the transfer of nonrenewable resource revenues to NWT governments are ongoing. Together with other government departments, Finance advanced the NWT case to federal officials with respect to funding for resource development, infrastructure and health care. We have made considerable progress in advancing the arguments why per capita funding allocations are not appropriate for the Territories.

In the 2001 budget, I announced that the GNWT would change the way we levy personal income tax. The move to a tax on income approach increased our flexibility to set tax brackets and rates. Acting on the recommendations of the Minister's Advisory Committee on Personal Income Tax, the department undertook to develop legislation that introduced a minimum cost-of-living tax credit for low-income NWT residents; reduced the tax burden for low-income tax payers; and increased tax support for seniors and persons with disabilities. These changes were approved by the Legislative Assembly for the 2002 tax year.

The Department of Finance is responsible for protecting the government's assets through appropriate risk management and insurance programs. The cost of property losses to the GNWT has declined substantially over the last five years and, in an increasingly difficult worldwide insurance market, the GNWT has been able to maintain affordable coverage.

The Department of Finance also includes the NWT Bureau of Statistics. The bureau is the government's central statistical office and has done an outstanding job of ensuring we have current, consistent and accurate data about our economy, our social conditions and our population. The bureau's 2002 population survey, as well as its detailed methodological review of Statistics Canada's census and coverage results, contributed significantly to the improved NWT population figures released by Statistics Canada in late September.

The NWT Liquor Commission and the administration and enforcement of liquor licensing also falls within the mandate of the department. Over the last four years, the focus has been on responding to community preferences.

Of course, Mr. Speaker, in the time available, it is only possible to touch on a few of the department's activities. I would also comment that much remains to be done to ensure we achieve our goal of fiscal sustainability and the department remains focused on that task.

Finally, I would like to take this opportunity to express my appreciation for the hard work and dedication of the staff of the Department of Finance in pursuing the goals set by this Assembly. Thank you, Mr. Speaker.

---Applause