Final supplementary, Mrs. Groenewegen.

Thank you, Mr. Speaker. Mr. Speaker, the tax initiatives that were referred to in the budget address by the Minister have sort of grabbed the attention of the public here, and that is why we are getting questioned about it and it will be necessary to talk to people about this. So thank you for that explanation and I think that definitely does put it in context that this is probably not a short-term thing. I think it will generate a lot of response from the public and I am hoping that the Minister will make himself or his officials available when we return to our constituencies to get out and about and talk to people about these fiscal realities because it is difficult to understand. Does he have a plan or program to consult, communicate even after the fact on some of these revenue raising initiatives that he is proposing? Thank you.

Minister of Finance, Mr. Roland.

Thank you, Mr. Speaker. Mr. Speaker, I would be glad to arrange with Members of this House meetings and trips into their communities to try to lay out what we have put in place, to explain the reasons why. There is a lot happening in this area and we need to get that across to Members and their constituents. When we took office and I took on this responsibility, it wasn't my intention and a target that I would automatically go after taxes of our own people in the Northwest Territories.

The unfortunate reality is we have to come up with some new revenue to maintain the existing level of programs and services. We have already heard from Members in this House of the need to try to continue some of the programs that are being sunsetted, that were already planned to be sunsetted. When we come forward with reduction scenarios in the future years there is going to be a request to have some more of these programs in place, and we are just unable to do that at this time. We have to come up with our program to match our situation. So that is why it has come forward. I will gladly arrange to go into communities with Members to try to explain through our process. Thank you.

Item 6, oral questions. The Member for Hay River North, Mr. Delorey.

Minister of Finance, Mr. Roland.

Thank you, Mr. Speaker. Mr. Speaker, on the territorial formula financing side, of the amount that was identified, the Northwest Territories over the five-year period would see approximately $74 million. That, Mr. Speaker, is already built into our budget estimates and forecasting, and we are still falling short. For example, the other one of $90 million over five years, split, if you use the existing formulas that have been in place, we might see $6 million a year coming North, not through the GNWT but through DIAND as we expect it will flow, and we are waiting to see the initiatives, the criteria that will be attached to that. The health funding that was identified as part of the formula, in fact as I stated, is part of the formula. The agreement that was agreed to with the Prime Minister and the three Premiers of the territories, on the $20 million split between the three territories, there is a commitment to extend that beyond 2006-07. So the $60 million is in there over three years, again split by each territory. So ongoing beyond 2006-07 we might be netting in the area of approximately $8 million. So the numbers do break down differently as we see it and we'd have to get more details to see the final numbers and how they fall out. Thank you.

Supplementary, Mr. Delorey.

Thank you, Mr. Speaker. Mr. Speaker, I suspect then that the way our MP laid out the figures this morning, she is probably stealing a couple of other MPs' thunder because when she speaks of northern Canada, or when the federal government talks about monies coming to northern Canada, what area are they talking about? Is the Finance Minister aware of what area they talk about? Is it just the three territories, is it northern BC, northern Ontario, northern Quebec, how big is northern Canada? Thank you, Mr. Speaker.

---Applause

Minister of Finance, Mr. Roland.

Thank you, Mr. Speaker. I know when I go south I think northern Canada is our territory, but as well we know when we meet with our federal colleagues they have northern jurisdictions as well. So it is difficult to pinpoint that, and as I said, we will have to wait to see what criteria is attached in those dollars and how they roll out in the North. Thank you.

Supplementary, Mr. Delorey.

Thank you, Mr. Speaker. There is one thing we are getting good at and that is to wait and see. We have played that game before and I guess we will continue to do it for some time now. Mr. Speaker, in the budget it was addressed. If there was a positive one, it was the $50 million to deal with our tax effort. How long will it be, Mr. Speaker, before we know how the federal government is going to treat that, whether it is going to be just a one-time thing, whether they are going to adjust the thing on an ongoing basis? When could we expect to find out how the federal government is going to go on that? Thank you, Mr. Speaker.

Minister of Finance, Mr. Roland.

Thank you, Mr. Speaker. Mr. Speaker, in the correspondence I received from the federal Finance Minister, Minister Goodale, he states it is a one-year break. The rebasing exercise will not happen for 2004-05, and there is direction that we have our people get together and work out the tax effort portion of what we would say is rebasing. We will have that in place by 2005-06. So it is a one-year break and that is why we have the $50 million for this year that would have been taken out, and we'd already built our budgets around that money being taken out. So he has given us one year to get an agreement in place with them around the tax effort and rebasing. Thank you.

Final supplementary, Mr. Delorey.

Thank you, Mr. Speaker. Mr. Speaker, on that line, when we say we are going to review our tax effort, they are giving us one year off and giving us time to review it or they are willing to look at it. If they decide to readjust that what can we expect? Would it be $50 million a year if they decided to do away with the tax effort and if it did, what are the possibilities that these new revenues could maybe replace some of the reductions that the Minister has talked about for the next following two years, the $20 million each year for the next two years? Could that affect those reductions? Thank you, Mr. Speaker.

Minister of Finance, Mr. Roland.

Thank you, Mr. Speaker. Mr. Speaker, without knowing if we are getting close to an agreement stage, I couldn't tell you if we would benefit $1 million more, or $50 million more. We just know that the existing exercise is costing us $50 million a year ongoing if it doesn't get fixed. We feel we have a good example that it is not working properly, and feel that the federal Department of Finance has recognized that. That is why he has agreed to forego the rebasing exercise for 2004-05. If I stood here today and said if it is $20 million, let's match that in reductions. If it doesn't happen I would have given you the wrong information. We are too early in that stage. Right now as things are going on, it depends on what year they measure our tax effort on. It could impact those negotiations, so that is one of the reasons why on our side of safeguarding our revenue base through one of the initiatives I put forward in the budget address. So I couldn't give the Member an accurate figure going forward. All I know is I have one year to come up with a new tax effort situation. They will not get rid of tax effort, it is a matter of how it works out in the system, and what numbers will be used, and how they will be weighted. Thank you.

Item 6, oral questions. Member for Nahendeh, Mr. Menicoche.

Thank you, Mr. Speaker. With regard to my Member's statement, I would like to ask the Minister responsible for the Business Credit Corporation a question for the benefit of my constituents who received legal notices that their loans have been called. What steps are followed after being given these notices that the BCC is calling in their loans? I am interested in the process that is followed after being legally contacted. Thank you.

Minister of RWED, Mr. Bell.

Thank you, Mr. Speaker. I will have to get the Member more specific detail as to the steps that follow our contact with a client, and notification that we are pursuing legal means. I would say legal means are a last resort, we are not trying to be overly litigious. We work very closely with clients to try to help them through rough spots. I know the BCC makes every effort to look at temporarily allowing interest-free payments and withholding the requirement that interest be paid. There are even times when a stop payment is made on principal if businesses are in a truly difficult position. So we try to work with the clients and recognize the difficulty that they're in before we move to legal means. Thank you.