Minister of Education, Culture and Employment, Mr. Dent.

Thank you, Mr. Speaker. Mr. Speaker, we are not losing any of the federal contribution. The federal contribution is continuing to flow. All of the money that we are receiving in ECE from the federal contribution will be flowed through to the Literacy Council to continue on with their very important programming. I outlined yesterday, during Committee of the Whole, a number of the areas in which we are losing the funding. The biggest one is the one that the Member for Sahtu raised, and that is the language nests. That amounts for about $900,000 of the total that we would no longer have to put forward. I don't think anybody has said that this hasn't turned out to be a very good program. I have talked about it with my Cabinet colleagues and we are anxious to see if there's a way to fund these important programs, particularly ones like the language nests. But at this point, we haven't been able to find the money to free up to put into these programs. With all the priorities that we have to deliver just on the programs within Education, I don't have $1 million to move around that easily. So it has to be one that has to be found elsewhere, and we haven't found that yet. Thank you.

Supplementary, Ms. Lee.

Thank you, Mr. Speaker. I must say this has been a successful project, a tripartite partnership between the federal government, territorial government and an NGO of council, and now the territorial government is going to reduce its support just at a time when it's really gaining momentum. Mr. Speaker, it's really a crying shame, as the Member for Sahtu would say, that this Cabinet and government fights tooth and nail to protect every government position, every dollar in their other expenses, but not fight for a program that has been so successful for our children. So I would ask the Minister for his full commitment to see what he can do to restore this program. Thank you.

Minister of Education, Culture and Employment, Mr. Dent.

Thank you, Mr. Speaker. Mr. Speaker, I am more than pleased to be able to say again that if I could find some money to put to this program it would be the first priority within my department that would find the money.

Item 7, oral questions. Final supplementary, Ms. Lee.

Mr. Speaker, I have been here long enough to know that the Minister's commitment that he just gave really is not a commitment that would necessarily see a result, and a result that would translate into keeping this program or reinstating a program. So I believe one of the Members perhaps seeing that the Minister is engaged in an evaluation of this program, would he consider extending it on a short term until the evaluation comes and so he has time to find money before it expires? Thank you, Mr. Speaker.

Minister of Education, Culture and Employment, Mr. Dent.

Thank you, Mr. Speaker. Mr. Speaker, the only money that my department has to spend is within the budget; the budget that we've gone through in this House, and that budget did not include enough money to extend the programs. So I would be outside the authority I have under the FAA to agree to that. I commit to this House that I will do what I can to find the money to be able to allow the program to continue. But the Member is right, I can't promise that I'm going to be able to do that in time for these programs to continue on April 1st. It's my goal and I will do the best that I can, but it's not something that I can commit to. I can't say that I can do it, because I don't have the money right now, but I will continue to look for that money.

Item 7, oral questions. Member for Kam Lake, Mr. Ramsay.

The question is directed to the Premier, Mr. Handley.

Thank you, Mr. Speaker. When we face challenges like this, we can all learn a lot from Ghandi.

---Laughter

Mr. Speaker, he was very clear and I think there are some things we can learn from him. We have to have a very

clear message. We have to have a common message with industry and with other leaders. Second is that we have to be an example ourselves. If we want to ask Ottawa for more resources, more money, more of anything, then we have to show that we're using what we have here ourselves. We also have to show that to the business community, and to other leaders and other governments, as well. So that's something else we can do.

Mr. Speaker, respect for others. We have to go to Ottawa, we have to show respect for our partners in the North, we have to show respect for people in Ottawa. I am one who believes that a good logical argument, as Ghandi believed, carries a lot of weight and will bring us a long way. So we need to work with partners on that. Another is that you can't flinch in spite of what seems like overwhelming odds. We know we have a strong argument, we know we have Ottawa who has an agenda that may be different than ours at times, but we have to keep on with the message and not blink, not flinch simply because it seems overwhelming. Staying the steady course is particularly important.

I think, finally, one thing that Ghandi stood for, of course, was non-violence. By being straightforward, being honest, being sensible, having a clear message, working in partnership with other northerners, we can achieve a great deal in Ottawa over the next four years. Thank you, Mr. Speaker.

Supplementary, Mr. Ramsay.

Thank you, Mr. Speaker, and thanks, Premier, for that. The Premier talks of respect, and I think the people who aren't getting the respect are the folks who live in the Northwest Territories, Mr. Speaker.

---Applause

If I could add; diplomacy has failed us thus far. We have been talking about resource revenue sharing in this territory for the past 17 years; year in, year out, government after government. I hope the Premier has some answers for this question. What makes the Premier think that his government can help us deliver our message to Ottawa so that we can finally get the respect that we deserve? Thank you, Mr. Speaker.

---Applause

Order, order. Mr. Premier.

Mr. Speaker, there seems to be a lot of passion in here today. Mr. Speaker, I am very confident that we can deliver a good, solid message to Ottawa and get a good response back. In fact, that has been proven already in terms of the success that we've had and the cooperation we've had with Ottawa on the fiscal side. I think in terms of our formula, Mr. Roland and others who have been down there have carried the message and it has shown that Ottawa is listening.

We have set a course, Mr. Speaker, of working in partnership that shows us that it works. We recently signed a framework agreement with the Aboriginal Summit, and agreed to work with them on resource revenue sharing. Mr. Speaker, the Minister of DIAND was here last week and signed that agreement. So that's a first sign in the first three months or less of our government, and I think it bodes well for what is to come in the future. So I am confident that the path we're on will work. Thank you.

Supplementary, Mr. Ramsay.

Thank you, Mr. Speaker. It gets very difficult. I know two years ago, the corporate income tax rate was lowered from 14 percent to 12 percent in an effort to try to attract business in the Northwest Territories, and now the suggestion is that it go up again to 14 percent. How do we as ordinary Members, Mr. Speaker, communicate that absurd message to the business community? We need some serious reform on our financial relationship with Ottawa. I'm wondering, though you, Mr. Speaker, what leverage do we have to make Ottawa listen to our concerns. Like I said, diplomacy has failed. We have to get some surety on our financial situation. This is absolutely no way to run a government, the way we're doing it, Mr. Speaker. Thank you.

---Applause

Mr. Premier.

Thank you, Mr. Speaker. A few years ago we were able to lower the corporate income tax rate to give the corporate sector a break and to also use it as a way to stimulate our economy. We also lowered the tax rate for small businesses, which continues to be in effect. That worked a few years ago. It doesn't work any more because of the rebasing of the financing formula. I think Mr. Roland has explained how that works. In fact, it has become a perversity in our formula, so we have had to increase it in order to not lose money as our economy grows. It's not being done to punish the corporations, but simply because we would lose money with economic growth if we didn't bring the corporate tax rate up because of the way our formula is structured. Thank you, Mr. Speaker.

Final supplementary, Mr. Ramsay.