Thank you, Madam Chair. The Member raises a number of ideas and points of discussion, and I would agree with him on a number of them. Our formula financing agreement is a very difficult process in terms of trying to have the federal government agree with our arguments and situations. We have continued to work and put our best-case scenarios and business cases forward.
What seems to be becoming more of a norm now is to have any movement require political decision, and we need to continue to do that. I think that's how we can work with our northern leaders; if we can get everybody understanding and working with the numbers that we have available to us, they can help us when it comes down to making our arguments in Ottawa and going forward on that basis. So, yes, to establish the understanding with the northern leaders as to our fiscal situation is critical in building our argument. It not only impacts on the delivery of existing programs and services, but it also impacts on what they would like to see growth in, or to see expand or support their initiatives.
Right now we're having a very difficult time just keeping what we have going. In fact, we're having to now make those decisions of what areas we can look at foregoing in the sense of continuing on, and then put that money into higher-placed priorities. That exercise will continue.
As I stated earlier, we will begin the next budget process in the very near future. I will be counting on Members as well as northern leaders to try to help find ways of using the dollars we do have in a more effective and efficient manner. That would require looking at all our existing programs and services and having to make some tough choices. But if we're going to meet our goals and become more sustainable in the future and have something for our children, we're going to have to make those choices. Building a team to do that, going forward with all the leaders and people in the Territories, is going to be critical to that.
On the tax initiatives, I'm looking for areas that we can improve our tax system. When I took this job, I didn't take it with the idea that all I would do is go after existing resources and the people in the Territories and tax them. That wasn't the goal that I had stepped into the job with, but unfortunately it is the reality with the short time frame that we have available to us.
Again, looking at what we have available to us under taxation and the authority we have, we will continue to investigate those. We will be looking at alternatives in the future if our estimates or our assumptions don't pan out with formula financing, then we will have to start expanding and broadening our vision in where we might be able to get new revenues from. But that is something we're going to have to go into and go into cautiously and make sure we have the right tools and the right agreements in place.
As the Member stated, using the Yukon as an example, we have to ensure that if we continue down that path of devolution and get an agreement on resource revenue sharing, we must get the best deal possible for NWT residents. We don't want to get into a deal where we can stand up and wave a deal we have in the air, but it really means nothing to the resources that flow to the North. We have to continue to work with that in mind: what benefits the future of northern residents. That would require having a solid effort coming from all fronts in the Territories. I think gone are the days that we can go it alone and take that stance. Self-governments are becoming more and more a reality, they are emerging, we have to find ways of working together. After all, we are all working together for the benefit of 43,000 people in the Northwest Territories. Thank you.