Item 2, Ministers' statements. Minister of Finance, Mr. Roland.

Thank you, Mr. Speaker. Yesterday the Minister of Finance for Canada, the Honourable Ralph Goodale, tabled the 2004 federal budget. I am pleased to report that this budget contained some good new for the Northwest Territories.

Among the issues addressed in the budget were the territorial formula financing agreement, a northern strategy for economic development, northern oil and gas development and health care. Also, there are provisions in the budget for environmental cleanup of contaminated sites and seabed mapping of the continental shelf. Although more detail is required on some of these initiatives, I believe that they will contribute positively to the overall situation in the NWT and we can be pleased with these initial positive signals from the federal government.

Mr. Speaker, the territorial formula financing agreement is the largest single source of GNWT revenues, and its adequacy is critical to our ability to provide health care, education and other essential services. I met with Mr. Goodale last month to discuss renewal of this agreement. At that time, he indicated he was prepared to increase funding under our formula financing agreement by $7.6 million in 2004-05. This amount would increase to $17 million in 2006-07 as the funding currently provided by Canada under the three-year territorial health fund is made permanent. These amounts were included in the revenue forecast I provided last Wednesday in my budget address.

In the budget address last Wednesday, I outlined a number of concerns with the federal proposal. The first was the need for additional funding to restore the adequacy of our formula to meet our expenditure needs. I noted that the federal proposal to address adequacy, while welcome, still fell short of the full restoration of the cut to our expenditure base made in 1996.

The second concern related to the calculation of the GNWT's tax effort in the formula, more commonly referred to as rebasing. The tax effort factor measures the GNWT's revenue raising capacity compared to the provincial average. Although Mr. Goodale's budget does not meet all our concerns, it does go part way and provides an important opportunity for us to continue to make our case on tax effort.

During our discussions about the renewal of the formula, we argued strenuously that initial calculations to rebase our formula made no sense to us. We have been unable to reconcile the numbers we were seeing with what we have observed about our own tax increases over the past 10 years compared with the provinces. Furthermore, rebasing would have a very large negative effect on our revenues. It would have offset any federal initiatives on adequacy, and would reintroduce perversity into the formula.

During discussions with Mr. Goodale, I proposed postponing rebasing for at least a year, to allow our officials to review the calculations, methodology and concept behind the tax effort adjustment factor.

Mr. Speaker, I am very pleased that the federal Minister has responded positively, and has agreed to postpone rebasing for one year, to 2005-06. More importantly, he has also agreed that officials should review the tax effort adjustment factor and report back to us so that a decision can be made for 2005-06.

The delay of one year in rebasing our formula will have a significant positive, one-time impact on our fiscal situation. The revenue forecast I provided last week for 2004-05 has now improved by approximately $50 million.

---Applause

This money will be used to eliminate the deficit for 2004-05.

Welcome as this news is, Mr. Speaker, I must insert a note of caution. This is a one-time improvement that affects only the upcoming fiscal year, 2004-05. The long-term fiscal outlook does not change. In order to meet our target of a balanced budget by 2006-07, it is critical we maintain the fiscal strategy laid out in my budget address last week. We still need to identify an additional $20 million in expenditure savings and cost avoidance in each of 2005-06 and 2006-07 and we must increase our own-source revenues.

Mr. Speaker, the federal budget also announced a number of other measures for the North. These measures will not directly impact the GNWT's revenues, as they will be delivered through federal programs. We will need to get more specifics about how this money will be allocated, and how the Northwest Territories will be affected.

The budget contained an announcement of $90 million in funding over the next five years to implement a northern development strategy for the three northern territories. I understand that the Parliamentary Secretary to the Minister of Indian and Northern Affairs, Mr. Bagnell, will have responsibility for developing this strategy in conjunction with Minister Mitchell. We are anxious to learn how this funding will be allocated across the North,

and what the criteria will be for its investment. It is important that this money be invested directly in the North, in areas that reflect northern priorities. My colleague, the Honourable Brendan Bell, Minister of Resources, Wildlife and Economic Development, will be following up on this issue.

The $75 million over three years that the federal government is allocating internally to northern oil and gas development will increase federal and regional environmental assessment capacity and streamline the regulatory process.

The budget also set aside $3.5 billion over 10 years for the cleanup of contamination on federal lands. It is estimated that 60 percent of this funding will be spent in the North. This funding will be used to clean up contaminated sites such as Port Radium, Giant Mine and the DEW Line sites.

Mr. Speaker, an important part of our fiscal strategy is a better deal from Canada. The changes to the formula will also help us meet our short-term needs, but do not address our longer-term requirements. We must continue to work with the federal government to address the adequacy of our fiscal arrangements on a long-term basis in order to ensure a solid fiscal foundation for the NWT. Thank you, Mr. Speaker.

---Applause

Item 2, Ministers' statements. Minister of Health and Social Services, Mr. Miltenberger.

Thank you, Mr. Speaker. Today is World TB Day. I would like to take this opportunity to recognize the work that is being done to fight this disease, and the need for continued vigilance.

Mr. Speaker, the tuberculosis rate in our territory has remained five to 10 times above the national average over the past decade. Since the beginning of this year, five new cases have already been diagnosed, all in elders. The disease spreads through the air and can infect anyone. As Members know, this is very serious.

This morning we were launching a new video called Stop TB. The video is available in all of our health centres and we've also translated it into French, Gwich'in and Dogrib. It includes interviews taped in Lutselk'e, Rae Edzo, Wekweti, Aklavik and Yellowknife. I trust it will be a valuable resource and help people to recognize the early symptoms of TB. They can get tested in their own communities.

The department and authorities are working very hard to encourage people to get tested and to go for treatment if they need it.

• • We have new clinical practice guidelines and are developing new hospital standard regulations.
• • We are providing community profiles and training to identify TB patients.
• • We have a new Tuberculosis control manual.
• • We are developing proactive screening programs, because some people can carry the disease without getting sick.
• • We report on the number of TB cases regularly.
• • We are providing training and orientation to health care workers at all levels, including doctors, nurses, community health representatives and TB workers.

Mr. Speaker, I'm very proud of the work that's been done, but it's clear that we still have a long way to go. I hope we can continue this work and lower our TB rates to zero. Thank you, Mr. Speaker.

---Applause

Item 2, Ministers' statements. Minister of Resources, Wildlife and Economic Development, Mr. Bell.

Thank you, Mr. Speaker. Mr. Speaker, the American Gem Society Laboratories is one of the major polished diamond grading laboratories in the world. The American Gem Society grades polished diamonds for colour, clarity, carat and cut. It is one the world leaders in developing grading certification processes and was the first major laboratory in the world to grade for cut, based on its own cut grade system.

I am pleased today to host a delegation from the American Gem Society Laboratories, and at the appropriate time I will recognize my guests who are present in the gallery.

The American Gem Society currently operates one lab in Las Vegas, Nevada, and the United States is the primary market for their certificates. Some polished diamonds produced in the Northwest Territories are graded by the American Gem Society, primarily the higher quality and best cut diamonds, Mr. Speaker.

This visit is an opportunity for us to promote and explore Northwest Territories business opportunities with the American Gem Society Laboratories. These include the potential development of a coordinated certificate that includes the GNWT's certification of origin and the American Gem Society Laboratories' certification for quality. We will also explore opportunities to work together on research, development and technology with respect to new diamond cuts and rough diamond tracking.

The Government of the Northwest Territories looks forward to ongoing discussions with the American Gem Society Laboratories, and other prominent members of the international diamond industry, with the goal of ensuring that the NWT diamonds reach a broad market base and that our diamond industry develops to the maximum benefit of the Northwest Territories. Thank you, Mr. Speaker.

---Applause

Item 2, Ministers' statements. Item 3, Members' statements. Member for Sahtu, Mr. Yakeleya.

Thank you, Mr. Speaker. Mr. Speaker, today I would like to acknowledge the volunteers of the Sahtu region. It has been brought to my attention that the community of Fort Good Hope in the Sahtu region will be hosting a volunteer awards dinner tomorrow at noon. Mr. Speaker, these volunteers will be recognized for their efforts in the search and rescue of the fatal plane crash last year that took the lives of some precious people that we dearly loved and are missed by our people.

Mr. Speaker, there are many volunteers who make huge contributions to our communities. With the region pulling together to help one another, this shows that as northern people we are unstoppable when we pull together for a common cause.

Mr. Speaker, I am proud to say that approximately 25 individuals in the Sahtu region will be recognized, and I would like to personally say thank you very much to all these individuals for making a difference in the Sahtu. Thank you.

---Applause

Item 3, Members' statements. Member for Kam Lake, Mr. Ramsay.

Thank you, Mr. Speaker. Mr. Speaker, it gives me great pleasure to rise in the House today to share with my colleagues an issue that is very important to my constituency and to the city of Yellowknife. The issue is that of an access road being constructed to connect Highway No. 3 to the Kam Lake Industrial Park.

Mr. Speaker, this access road from Highway No. 3 is necessary to lend our attention to for a variety of reasons. As most Members are aware, Airport Road in Yellowknife is a very busy thoroughfare. In fact, during rush hours at 8:30, noon and 5:00 p.m., it can be congested to the point where some residents are avoiding it. Businesses along the route suffer as a result.

Residents who live in the area have no choice. They just have to put up with the situation. The number of large trucks and service vehicles can create a safety problem along the route for residents who bike, run or walk. The City of Yellowknife would like to pursue the construction of this road, Mr. Speaker. The question is the availability of the land to construct this much needed strategic piece of road infrastructure. As I understand it, the Department of Transportation applied for this land to facilitate future airport initiatives, while at the same time working on a joint engineering study with the City. Where is this study?

In order for the City of Yellowknife to be able to afford the construction of the access road, it would need to sell lots along the route. This would be the only way the City could afford to undertake such an endeavour. Industrial lots are at a premium in Yellowknife. This initiative would certainly help open up additional land. Mr. Speaker, I would hope that this government is not getting in the way of the City of Yellowknife and their ability to get this initiative started. We must do whatever we can to help facilitate this project. I would like to mention that I will have questions at the appropriate time on the order paper for the Minister of Transportation and the Minister of Municipal and Community Affairs. Thank you.

---Applause

Item 3, Members' statements. Member for Inuvik Twin Lakes, Mr. Allen.

Thank you, Mr. Speaker. I will remain consistent with the theme of my Member's statements for this week, using wording that is complimentary to the federal budget address. Although the document acknowledges that much of the funding will not be administered through the Government of the Northwest Territories, this still gives my constituency much relief; the federal government will, once again, make a large investment in supporting a social economy in the North. It is nice to read that the federal budget provides new pilot program funding for the social economy and community economic development organizations for capacity building, financing and research. Although the plan for the projected $90 million in economic development funding has not been established, we feel that this investment is nothing short of a plus for northern economic development programs.

Mr. Speaker, it is encouraging, as well, to see that northern oil and gas development will also see an investment of $75 million over three years to increase federal and regional environmental assessment capacity and streamline the regulatory process. It is exceptionally beneficial for my region of the Northwest Territories as it provides for more research for work associated with development in the Mackenzie Delta/Beaufort Sea area.

Mr. Speaker, this funding announcement is crucial to the ongoing commitment to support the oil and gas activity in the North. I am pleased to have read the observations provided by the Minister of Finance this morning. Thank you, Mr. Speaker.

---Applause

Item 3, Members' statements. Member for Hay River South, Mrs. Groenewegen.

Thank you, Mr. Speaker. Today, I would like to provide this House with my early observations on the performance of our Premier and Cabinet Ministers. Not so many weeks ago, we gathered here to choose from amongst ourselves people to fill various positions of leadership in the 15th Assembly. Some of us are returning Members, but we also have six new Members; almost one-third of us brand new to the territorial level of government.

Over the past few days and weeks, we have gotten to know each other a little better. We have had a chance to observe old colleagues in new roles, such as yourself, Mr. Speaker, having had to make the transition to the Speaker's role, which is a very unique role. Of the seven

Cabinet Ministers, four have some experience in Cabinet and three do not; committee chairs are new to the role; and, we have a new Clerk. We are all getting down to work, many with some degree of a learning curve but, for now, I am on the subject of the Cabinet.

Let's start with the Premier. I know that when the economy is booming in Yellowknife, it might be hard to get excited about a vision for the whole Territories. I know we are planning to get together with other northern leaders in April but, with 50 participants and only a few days, the topics we explore will probably be fairly broad. I am personally disappointed that we didn't hear a sessional statement as I think the people of the North are awaiting a clear message in terms of direction and goals. The Premier has to be our point man on that front.

We could say that this session was the Finance Minister's dance because it was the budget session, but our people are waiting to see what kind of a government we are. They want to hear what we are collectively thinking, regardless of whether they agree or disagree. They want to hear something. It is not good enough to give our message once. We need to keep repeating it over and over.

A while back, I discussed with our mayor the subject of continuity in Cabinet assignments; for example, Mr. Miltenberger and Mr. Dent both have prior experience in their respective portfolios. I have no doubt that both are hard workers who keep themselves apprised of the issues in their departments. But, I must say, I don't see a lot of enthusiasm there. Granted, our government isn't flush with cash for new ideas and new initiatives at this moment, but I would really like to see a little more passion for the issues in their departments. I don't want to feel like I had to wake someone from a deep sleep when I get up to ask questions in this House.

---Laughter

---Applause

If we were just looking for good managers, we would let the deputy ministers run the departments, but we are looking for leaders with ideas and passion for the challenges that are facing our constituents.

Mr. McLeod and Mr. Zoe haven't floated enough material for me to form an opinion yet. They are getting up to speed with their departments, so I am very much looking forward to seeing what they are going to come out with.

To Mr. Bell and Mr. Roland, I give an early vote of confidence. I see new ideas...Mr. Speaker, I would like to seek unanimous consent to conclude my Member's statement.

The Member is seeking unanimous consent to conclude her statement. Are there any nays? There are no nays. You have unanimous consent.

Thank you, Mr. Speaker. Thank you, colleagues. To Mr. Bell and Mr. Roland, I give an early vote of confidence. I see new ideas, well-thought-out and well-spoken responses to Members' issues. They have obviously taken the effort to become well informed of some very complex issues. I have seen good interaction with Regular Members. They seem responsive and engaged. I applaud them for that.

Mr. Dent may be the longest-serving Member on the Cabinet side, but I am the longest-serving Member on this side of the House. I hope that a little constructive criticism in the form of observations on occasion will be received in the spirit in which it is offered. I don't want this to be known as the "status-quo government." The clock is ticking. Let us get a little fire going here. Thank you, Mr. Speaker.

---Applause

Item 3, Members' statements. Member for Range Lake, Ms. Lee.

Thank you, Mr. Speaker. I should take a few moments to offer some response to the federal budget delivered by the federal Minister of Finance, Hon. Ralph Goodale. Mr. Speaker, as is the case with all government budgets, the devil is always in the details; I do appreciate Mr. Roland for providing some and I look forward to getting more into the details in the days to come. Nevertheless, I do like what I am hearing in the budget.

Mr. Speaker, most importantly, I believe we can say that the North is now definitely on the radar screen of the people who control our purse strings in Ottawa, including Prime Minister Martin. He has been to the North, I know personally, a number of times in the last 10 years, in the time that he was working to become the Prime Minister. I believe that he is more aware of the northern issues than any other Prime Minister we have had. I really think that we have to take note of the way the aboriginal issues and northern issues now hold a prominent place in this budget which is seen by most analysts as a low-spending/status-quo budget

Mr. Speaker, I also believe that the credit should also go to the Premiers and the Finance Ministers of this Legislative Assembly, including the new Finance Minister Roland and Premier Handley, who also was the Minister of Finance under Premier Stephen Kakfwi for four years. We have worked hard to push our northern agenda into the forefront of the federal government. As our federal MP said in the media, in our business the work never ends.

Sometimes we forget to recognize when we win; I think this is definitely on the winning side. Mentioning Ms. Ethel Blondin-Andrew, I do want to recognize her involvement in this. She has spent 16 years in Ottawa educating all of the players about our economic, social and cultural potential. I do believe that she plays an important role in advancing our agenda.

I look forward to seeing more about how the $90 million in northern economic development, $75 million in oil and gas and extra money that we are going to get will have...what sort of detailed implication that is going to have. Mr. Speaker, may I seek unanimous consent to conclude my statement?

The Member is seeking unanimous consent to conclude her statement. Are there any nays? There are no nays. You have unanimous consent to conclude.

Thank you, Mr. Speaker. Thank you, colleagues. Mr. Speaker, I do understand that these monies that were announced by the federal government on economic development, oil and gas and many other issues are not coming directly to the GNWT, but they are monies that will come to the North. I do believe it is incumbent on this legislature and the Cabinet to jump on every penny coming to the North and find the leakages so that we maximize our benefit.

There were lots of other areas, such as student financial support, where we know our GNWT program is under great strain. Any additional assistance that the federal government provides would lessen the impact and the pressure on our system, such as the $50 million one-time expenditure that Minister Goodale had announced. I think it gives breathing space and I know that we are looking at a $20 million deficit cut in the next two years, but you never know. If we keep working as a group and the Minister of Finance and the Premier keep working with the federal government, we may be able to get a break on that. I urge the Legislature to build on what we heard yesterday and keep going and to advance our agenda. Thank you, Mr. Speaker.

---Applause

Item 3, members' statements. Member for Great Slave, Mr. Braden.

Mahsi, Mr. Speaker. I was pleased last night to host an information session for Great Slave constituents and Yellowknife residents on the Tlicho land claim and self-government agreement. I was gratified to see on a cold evening, here in Yellowknife, an audience of about 30 people who came out representing a diversity of views and opinions. I would like to acknowledge the support, Mr. Speaker, of the Tlicho First Nation and James Wah-Shee, a former Member of this Assembly and now a senior advisor to his people, for his presentation and response to questions. As well, I would like to recognize the participation and involvement of the Honourable Joe Handley in his capacity as the Minister of Aboriginal Affairs. Staff from the ministry also came out and helped with the presentation. Our colleague, the Honourable Henry Zoe, the MLA for North Slave, was also present. I appreciate and thank them all for their contributions.

When the 14th Assembly passed the Tlicho Land Claim and Self-Government Agreement Act last October, there was concern among many about the awareness and lack of public input and the lack of time for a process that we would normally undertake to pass legislation. I undertook then to provide an opportunity for people to be better informed about the Tlicho agreement and the next two bills that this Assembly will be considering.

Mr. Speaker, these bills will propose the establishment of community governments in the four Tlicho communities, and the establishment of service agencies to help implement the agreement and provide for services by the Tlicho for their own people. The federal government also has to pass enabling legislation, which we learned is to be introduced in Parliament at the end of March. Hopefully, we will see passage before the anticipated federal election call.

Land claims and self-government are complex issues. They affect us all, Mr. Speaker. One of the points that was made at this meeting is that process is important. There are not easy or simple answers to many of the questions that were asked. We heard points of view and questions of the North Slave indigenous Metis, mining and resource development, the impact of boundary issues, community governments, land tenure and resource harvesting, to name a few of the issues. It was a lively exchange of views, Mr. Speaker. I should ask, at this time, for unanimous consent to conclude my statement.

The Member is seeking unanimous consent to conclude his statement. Are there any nays? There are no nays. You have unanimous consent to conclude.