Good afternoon. Item 2, Ministers' statements. The honourable Member for Weledeh, Mr. Handley.

Mr. Speaker, there have been a number of fiscal developments since I presented my budget speech in February, and I would like to provide Members with an update on the government's fiscal position and outlook. In February, I forecasted a $77 million deficit for 2003-04 and warned that we could hit our federally imposed borrowing limit of $300 million by the end of 2004-05. I also pointed out that solving our fiscal problems was not fully within our control as, ultimately, our fiscal health depends on federal investment and support and on equitable resource revenue sharing.

At the time of the budget speech, I also renewed our government's commitment to make the investments necessary to advance our economic and social goals and to ensure NWT residents benefit from resource development. At the same time we recognized that we were going to have to demonstrate that our government was operating as efficiently and economically as possible.

Mr. Speaker, we are still on track with our spending and our own-source revenue forecasts contained in the February budget. Our medium and long-term outlook has not changed. However, there are some issues relating to our funding from the federal government, in particular population, that have created additional uncertainty about our immediate fiscal situation.

A principal area of concern is with the final 2001 census results. The money we receive through our formula financing agreement with the federal government is adjusted for relative population growth and so census counts are extremely important to us. Equally important are the results of Statistics Canada's coverage studies - their estimates of the number of people missed in the census. At the time of the budget we did not have information on what Statistics Canada's census under-coverage adjustments would be, so we based our revenue forecasts on the best population numbers we had at the time. These were based on our own survey of census under-coverage, which indicated that the 2001 census missed over 10 percent of our population. Since we made that revenue forecast, Statistics Canada has published their initial under-coverage estimates for the Northwest Territories as only 7.25 percent. We think this is far too low and we are working hard to convince Statistics Canada to make changes needed to improve their study. There are many millions of dollars at stake over these census under-coverage numbers.

We have recently learned that there is even more uncertainty about the census coverage numbers. On May 29th we were informed that the preliminary coverage numbers released in March contain an error. At this time, Statistics Canada does not know the impact of this error nor when they will release corrected preliminary numbers.

Last month I identified another area of revenue uncertainty - one related to the calculation of tax effort in the formula financing agreement. This issue is being resolved with a positive impact on our fiscal situation.

Our revenue problems are compounded by the fact that the formula financing agreement, over the last 15 years, has been subjected to federally-imposed restraints, cuts and adjustments that leave it inadequate to meet our needs. In addition, the revenues from the formula financing agreement have become much more volatile and unpredictable, making planning extremely difficult and forcing us to rethink our plans every few months. This cannot continue.

Mr. Speaker, we live in a territory whose economy is strong. We have even more dramatic economic growth on the horizon. Jobs are abundant and unemployment rates are at an all time low. Despite all this, our territorial government is facing large ongoing deficits which, if not addressed in a timely manner, will lead to fiscal crisis.

To respond to these circumstances, we have a two-part action plan that we have already put in motion.

First, we have taken actions to address our need for more revenue. Our revenue actions started with the commitment the Premier obtained from the Prime Minister that the adequacy of the formula financing agreement would be addressed. On May 12th I met with Finance Minister John Manley as follow-up to the Prime Minister's commitment. Mr. Manley's understanding and support are essential if we are to solve our fundamental fiscal problems. I was extremely encouraged by the understanding of our issues that Minister Manley demonstrated and his willingness to review the situation. He also understands the need to address these revenue issues as soon as possible.

With the encouragement and understanding we have received from Minister Manley, we are moving forward with confidence that we can make substantive progress on improving our revenue outlook through a fair deal on resource revenue sharing and a more responsive and appropriate level of funding in a renegotiated formula financing agreement. Achieving positive results in these negotiations is absolutely essential. Without more equitable fiscal arrangements, we cannot meet our obligations to provide adequate programs and services to our residents while maintaining fair and competitive taxation levels.

But there is no easy fix to the fiscal problem.

We are continuing to press for appropriate adjustments to the census under-coverage numbers. We understand that Statistics Canada is examining a number of issues related to the preliminary numbers raised by the GNWT. Although we don't know what the ultimate result will be of the correction of the errors or the review of our proposals, there is a potential for good news in Statistics Canada's review, but there is also a possible downside. Until we know the final numbers, the population issue will make fiscal planning an uncertain science and this must be reflected in our fiscal management.

The longer-term issues I identified in my budget are still outstanding. It will take time to renegotiate and implement the formula financing agreement. It will take time to negotiate a fair deal on resource revenue sharing, and we must also take time to ensure we doing our part by having fair and competitive tax and fee systems.

Getting this time will be a challenge and leads us to the second part of our action plan.

The second set of actions we are taking concerns expenditures. We must do everything reasonable to manage our spending in both the short and long term, while making sure we do not compromise our fundamental social and economic goals and objectives. We must still protect those most vulnerable, we must assist those able to become more independent to do so, and we must invest in those who represent our future.

In the short term, we are constrained in the expenditure savings we can achieve by the fact that projects are underway and commitments have been made. We are also constrained by the time required to bring about substantive expenditure reform responsibly. But savings can be achieved. For 2003-2004 we have committed to save $20 million out of our existing budget. Ten million dollars of this will come from internal restraint measures each department is instituting in the areas of travel, administration, contracts and other discretionary services. These measures have been designated to minimize impacts on clients, employees and the general public. Members will also see these reductions reflected in the supplementary appropriations bill I will submit this session. A further $4 million will come from restrictions on supplementary appropriations and $5 million more from targeted restraint that is still in the process of being identified.

In the longer term we are committed to more substantive and structural reform to achieve efficiency and effectiveness gains in how we are organized, in how our programs are designed and delivered, and generally how we do business. Development of these reform measures has been underway for several months through the work of a number of internal task teams who have been looking at everything from how we are organized, to which programs we deliver, at what level of service, to how we approach capital planning and investing. Most of these task teams are reporting over the next few months. Their recommendations will be considered by this government as well as the new 15th Legislative Assembly.

This action plan is a reasonable and responsible approach to the fiscal uncertainties we face. These are fiscal issues that are not our making. The culprit is a fiscal arrangement with the federal government that has been eroded by unilateral federal actions over the years, a fiscal arrangement that is not responsive to the realities in the Northwest Territories, a fiscal arrangement that creates an imbalance between the government which bears the costs of resource development and the government which reaps the benefits.

It is imperative that the federal government respond proactively to us to address these fiscal issues. The problems and solutions have been, and continue to be, within federal control. We cannot expect NWT residents to deal with these issues alone. The Prime Minister and Finance Minister Manley have the opportunity to show us they share our vision of a strong and self-reliant Northwest Territories, and we are confident that they will respond. For our part, we must ensure that we are doing not only our fair share to address our needs, but are vigilant and aggressive in keeping our needs front and centre with our federal counterparts.

The economy of the Northwest Territories is strong and will only get stronger. Now we must rebalance how the federal and territorial governments share the costs and benefits of economic growth. Thank you.

---Applause

Thank you, Mr. Minister. Item 2, Ministers' statements. The honourable Member for Nahendeh, Mr. Antoine.

Mahsi, Mr. Antoine. Item 2, Ministers' statements. The honourable Member for Inuvik Twin Lakes, Mr. Allen.

Thank you, Mr. Speaker. Today I am pleased to provide an update to Members on the successful completion of the Sahtu youth trapper training program. This program was sponsored by the NWT Youth Secretariat through the youth corps program; the department of Resources, Wildlife and Economic Development; Indian and Northern Affairs Canada; the Sahtu divisional board of education; Sahtu Secretariat Incorporated; the Fur Harvesters Auction Incorporated; and the International Fur Trade Federation.

The Sahtu youth trapper training program was established to provide young people in the Sahtu with an opportunity to develop a traditional skill base and learn a number of important life skills. Participants undertook training and gained actual experience in trapping techniques, hunting, fish harvesting, first aid and pelt preparation. At the same time, they also received educational upgrading towards their high school equivalency diploma and participated in a number of activities designed to help develop personal wellbeing and self-esteem.

Mr. Speaker, today I am pleased to report that all but one of the original students remained in the program through to completion. They maintained trap lines, worked efficiently in teams, harvested a quantity of fur and earned high school credit for their work. The response from the community has been excellent. For example, Patrick Garrah, principal at Ehtseo Ayha School in Deline has noticed significant changes in the students who participated. They benefited from the opportunities that the program created for them, such as learning new life skills, travelling to Toronto and North Bay, Ontario and to Turton Lake, NWT and meeting new people. Most of the participants say they will continue their education. To honour this accomplishment this special graduation ceremony will be held in Fort Good Hope on June 5, 2003.

In addition, the Fur Harvesters Auction Incorporated is keen on the project and have indicated they are willing to provide training again. They offered glowing praise for Wilfred Jackson, the senior instructor who worked with them throughout the year.

Mr. Speaker, at this time I would like to formally recognize and applaud the accomplishments of these young people and properly thank those organizations and individuals who were involved in developing and implementing such a successful program. Thank you, Mr. Speaker.

---Applause

Thank you, Mr. Minister. Item 3, Members' statements. The honourable Member for Hay River South, Mrs. Groenewegen.

Thank you, Mr. Speaker. Mr. Speaker, the recently published New Testament in Dogrib is the result of many years of hard work and a unique collaboration between various institutions from within and outside the Dogrib community. The work on this edition of the New Testament started in earnest in 1995 under the then formed Dogrib Translation Committee, a board of directors in which the following institutions were represented part or all of the time: Mary Siemens from the Dogrib Divisional Board of Education; Father Jean Pochat of the Roman Catholic Church; John B. Zoe and Gabrielle Scott, Treaty 11; Rev. Lee Barry from On Eagle's Wings; Vic Monus and Jaap Feenstra, Wycliffe Bible Translators; and Jim Stauffer from Northern Canada Evangelical Missions.

The actual translation was done by: Mary Siemens, Marie Louise Bouvier-White, Alice Sangris, Margaret Rabesca, Sonny Zoe, Elizabeth McKenzie, Vic Monus, Jim Stauffer and Jaap Feenstra. This publication is historic because it is the first time in more than 100 years that a complete new testament has been published in one of the Dene languages. A Gwich'in new testament was published towards the end of the 19th Century.

Though the work on this first edition took less than eight years, the people who worked on this really built on years of language work invested by Dogrib people, elders, priests and missionary translators, educators and linguists. The publication of the Dogrib New Testament and the audio recordings currently being worked on are highly important, not just to make the Bible a more open book for the people, but also for the preservation and revitalization of the Dogrib language.

Currently, the Dogrib New Testament is already being used in church services and in the readings for literacy classes in the Dogrib communities. The decorative New Testament has even replaced the English Bible in the oath ceremonies concerning the Dogrib land claims agreement.

Part of the funding was provided through the Department of Education, Culture and Employment's aboriginal language and literacy funds. The other funding came from the Dogrib Community Services Board, the Rae-Edzo Band, the Roman Catholic Diocese of Mackenzie, the Hogarth Foundation, the Canadian Bible Society and Wycliffe Translators. The New Testament will be officially launched and dedicated as part of the annual Dogrib assembly in late August.

Mr. Speaker, although I am not a person who speaks an aboriginal language, I want to thank and congratulate the people who put the effort into this very unique work that is now at completion. Thank you.

---Applause

Thank you, Mrs. Groenewegen. Item 3, Members' statements. The honourable Member for Mackenzie Delta, Mr. Krutko.

Thank you, Mr. Speaker. Mr. Speaker, we talk about the vision of the Northwest Territories, we talk about the potential we have. Mr. Speaker, one of the most valuable assets is the people of the Northwest Territories and the people in our communities which make up some 27 small communities in the Northwest Territories. Yet, Mr. Speaker, those communities face challenges over and above the requirements of trying to accomplish capacity within our communities and having the authority to make decisions and also to be able to have the resources to build capacity in the communities.

Mr. Speaker, the approach that we take today is that someone comes into town, asks what your capital needs are then they tell you, well, sorry, you have to follow the rules. The rules are based on three criteria which the communities have to meet. The criteria are structured in such a way that they are solely to the benefit of government and government departments. They are not there to benefit communities by way of the community's wish list. For years we have heard of budget cuts, we have heard of how you cannot establish community infrastructure such as a skating rink, a ball diamond, and road improvements because of health concerns.

Mr. Speaker, the capital process we have today does not satisfy the needs of communities. The process we have is from the top down, not from the bottom up. Mr. Speaker, we as Members of the House from the small communities have to practically fight to prove to this government that a capital requirement is the result of water contamination, people telling our communities there is a boil water order. The environmental health officer has to address it or you have to bring in a fire marshal to prove that you have a building that is not safe.

I for one, Mr. Speaker, have fought for capital in my riding, in my communities, and I for one take the health of my constituents seriously. I for one, feel offended when government officials come to our communities...Mr. Speaker, I seek unanimous consent to conclude my statement.

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

Thank you, Mr. Speaker. Thank you, colleagues. Mr. Speaker, I for one take offence when public officials come to our communities and say, "You have to follow our rules. You have to ensure that your requirements meet the criteria that we give you." Yet we had a committee that went around to all 27 communities that were involved and found out that the system that we use is not adequate. Those were put forth to Cabinet in an interim report, yet to date very little has been done.

We have some of the highest poverty rates in the Northwest Territories. We have high statistical numbers that well exceed, in some cases, the national unemployment average and household incomes. Yet, Mr. Speaker, that has not been addressed.

I for one will continue to fight for the residents of the Mackenzie Delta to ensure that we receive our fair, equitable share of the wealth in the Northwest Territories so that we will also have a lifestyle that we can pass on to future generations. With that, Mr. Speaker, thank you very much.

---Applause

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

Thank you, Mr. Speaker. Mr. Speaker, following up on remarks by my colleague, the Member for Hay River South, I also would like to raise concerns that I have had brought to my attention by constituents about the proposed creation of a new territorial recreation and sport board. The concerns that I want to bring forward are from the territorial sporting organizations, Mr. Speaker, who have been grappling with this issue for at least a year now and are still not supportive of the creation of a new board.

I took the opportunity to attend their annual general meeting on May 24th and listened to the concerns of the volunteer board and the 27 sport organizations that comprise it. During the session on the proposed territorial recreation and sport board, Mr. Speaker, I was disappointed that neither the deputy minister nor the Minister were there for what is a very controversial issue and one that they are not taking seriously. It was a clear message sent from the Sport North group, Mr. Speaker, that this is something that they need to pay more attention to.

The message from Municipal and Community Affairs was that the Minister has said it will proceed with the creation of this board. Implementation is the issue, not whether it is the right thing to do. Well, the Minister has said his officials are prepared to meet and continue to meet. They are clearly not getting or understanding the message from sport bodies.

The core of sport and what makes it work in the Canadian system and here in the Northwest Territories are the volunteers who make contributions well in excess of any funding that might ever come from government. It is ironic that Municipal and Community Affairs, who have the responsibility for volunteer development and recognition - and they are doing a good job with it - is the focus of such concern and criticism from these sporting volunteers.

Much is accomplished by them across the Northwest Territories, Mr. Speaker. We get exceptional value from the volunteers and from the Sport North group and what we need to do is recognize their concerns at this time. What the government needs to do, Mr. Speaker, is to define the expectations it has for sport and recreation for all our communities and then work with the partners to find out how it can be achieved. Certainly the first thing, Mr. Speaker, is to at least defer the creation of this new territorial sport board. Thank you.

---Applause

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

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

Thank you, Mr. Speaker. Mr. Speaker, I would like to take a moment to remember and recognize an elder from my constituency who passed away on April 21st this year, Mr. Joseph Bonnetrouge. Mr. Speaker, in our communities our elders play a vital role in the preservation of our traditional lifestyles and values. When one passes away many teachings are often forgotten, but their legacies live on.

Mr. Speaker, although Mr. Bonnetrouge lived a humble life and was a very quiet person his smile was genuine and his words were comforting to those who were close to him. Joe Bonnetrouge was born on October 8, 1925 and in 1943 he started working for the Government of the Northwest Territories as a janitor for the health centre and then the school. With his new job he received a new title. The local residents of Fort Providence fondly knew him as Dr. Joe. He would go out of his way to help patients by escorting the elders, translating and assisting the nurse when needed. Joe married Melvina Gargan on January 12, 1959 and raised nine children and many grandchildren.

As part of Joe's work history he worked as a roughneck for an exploration company, trained as a surveyor on the construction of the Yellowknife Highway and was an alcohol and drug counsellor for the Fort Providence Dene Band. After many years of service to the Government of the Northwest Territories, Joe retired in 1985 and devoted time to his family, as well as to hunting and trapping.

Mr. Speaker, Joe was a friend, teacher and advisor who is loved and sadly missed by many. As an elder, Mr. Bonnetrouge contributed to the history of the Northwest Territories by promoting official languages for the benefit of generations to come. He served as an elder representing the Deh Cho in the Office of the Languages Commissioner advisory board.

Mr. Speaker, I would like to take this opportunity to pass on my condolences to his wife Melvina; his sons Gary, Noel, Clifford, Clinton and Travis; his daughters Phoebe, Darlene, Agnes and Cassandra; his grandchildren and his great-grandchildren. On behalf of the people of the Deh Cho I want to say to his family that our prayers and our thoughts are with them. Thank you, Mr. Speaker.

Thank you, Mr. McLeod. Our condolences do go to the family and the elder will be missed. Item 3, Members' statements. The honourable Member for Inuvik Boot Lake, Mr. Roland.

Thank you, Mr. Speaker. Mr. Speaker, today I rise to raise concerns about the memorandum of understanding that was signed with the Gwich'in regarding contracts in the Beaufort-Delta communities, especially the impact there would be on my constituency of Inuvik, all the more so, Mr. Speaker, in light of a correspondence I received that was sent to the president of the Gwich'in Tribal Council by the Minister of Resources, Wildlife and Economic Development laying out what contracts and what projects would be included in there. There is a list that shows about 133 projects and values approximately $29 million, Mr. Speaker.

But Mr. Speaker, as I go through that list, my concerns are highlighted and I am sure the constituents and the small business people in Inuvik, whether they are aboriginal people or non-aboriginal people, will be greatly concerned because included in this amount are such things as electrical power supply to the communities. That is not a private, small company. It is the Northwest Territories Power Corporation, NorthwesTel phone services, natural gas supply. Those things are huge in volume and high in dollar amounts and I do not even have how much they would total. But when I look at the list and see the value is approximately $29 million I have to ask where this money is coming from because as we went through the budget there is no $29 million figure that I can find in there. There are a few projects like the campus, some other small projects, some highway and airport stuff, but not $29 million worth.

So if you add in the Northwest Territories Power Corporation, the gas supply, if you put those into the picture and you say that the memorandum of understanding has a potential value of $29 million and that other bidders in the community can take half of that, well, you take out half that amount from there and you take out the Northwest Territories Power Corporation and the natural gas supply and the telephone services there will be peanuts left for anybody else trying to secure any work. Those are long established businesses, so I will have questions for the appropriate Minister later. Thank you, Mr. Speaker.

---Applause

Thank you, Mr. Roland. Item 3, Members' statements. The honourable Member for Frame Lake, Mr. Dent.

Thank you, Mr. Speaker. Mr. Speaker, not long ago the Minister of Municipal and Community Affairs distributed a report to Members called "N.W.T. Recreation and Sport Board Recommendations Report". It was dated March 31, 2003. Mr. Speaker, I have taken the opportunity to review the report and I have to say that I do not find in the report convincing arguments for the recommendations. The main one is the creation of a new 13-member board added to the existing five territorial organizations and the numerous individual sports bodies.

Mr. Speaker, I believe that following through with this recommendation will actually mean less money helping to promote sports and recreation in the Northwest Territories. Mr. Speaker, the recommendations suggest that there will be at least two meetings a year of this new body that will include representatives from all 32 communities and 30 sports organizations. But, Mr. Speaker, the existing sports organizations already spend a lot of money on travel for meetings. If this latest recommendation is implemented, even more is going to be spent on meetings, obviously making less money available to help develop sports and recreation opportunities in the North.

Mr. Speaker, I have not heard the Minister agreeing to put more money into sports and recreation to cover these increased costs. I know there were no extra funds in the budget we passed last session to cover those costs, so there has to be an overall reduction in what would be available to promote and develop sports and recreation in the North.

Mr. Speaker, another area in the recommendations that I am concerned about is accountability. The final recommendations report suggests that the board would be accountable first to the Minister and second to partners and communities. I find this problematic as well. Why have a board if they are told that they are accountable to the Minister first? You might as well have staff do the job. That is like telling a Member of this assembly that we are first accountable to the Premier and to the government. But we are not. We are accountable first to our constituents and that is what gives our comments in this House weight.