Thank you, Mr. Speaker. Mr. Speaker, I wish to report that the Standing Committee on Social Programs has reviewed Bill 7, Personal Directives Act, and we choose to report that Bill 7 is now ready for consideration in Committee of the Whole. Thank you, Mr. Speaker.

Thank you, Ms. Lee. Item 12, reports of committees on the review of bills. Item 13, tabling of documents.

In accordance with Section 21 of the Retiring Allowances Act and Section 11.1 of the Supplementary Retiring Allowances Act, I hereby table the Pension Administration Report - Retiring Allowances Act and Supplementary Retiring Allowances Act as at March 31, 2005.

Item 13, tabling of documents. Item 14, notices of motion. Item 15, notices of motion for first reading bills. Item 16, motions. Item 17, first reading of bills. Item 18, second reading of bills. Item 19, Consideration in Committee of the Whole of bills and other matters: Minister's Statement 24-15(4), Sessional Statement; Bill 3, An Act to Amend

the Access to Information and Protection of Privacy Act; Bill 4, An Act to Amend the Education Act; Bill 5, An Act to Amend the Judicature Act; Bill 8, An Act to Amend the Revolving Funds Act; and Bill 9, Municipal Statutes Amendment Act, with Mr. Pokiak in the chair.

Mr. Chairman, the committee wishes to consider Bill 8 and Bill 9.

Please repeat that, Mr. Menicoche.

Thank you, Mr. Chairman. The committee wishes to consider Bill 8, An Act to Amend the Revolving Funds Act, and Bill 9, Municipal Statutes Amendment Act.

Does committee agree?

At this time, can we take a short break?

Good afternoon and welcome back to Committee of the Whole. Right now we are going to review Bill 8, An Act to Amend the Revolving Funds Act. Would the Minister responsible introduce the bill please, Mr. Floyd Roland.

Thank you, Mr. Chairman. I am pleased to introduce Bill 8, An Act to Amend the Revolving Funds Act. The petroleum products division of the Department of Public Works and Services was established in 1972 to provide fuel sales dispensing and delivery services in those communities not serviced by the private sector. The petroleum products division currently provides these services in 15 communities across the Northwest Territories.

The petroleum products division administers the petroleum products revolving fund under the authority of the Revolving Funds Act and the Financial Administration Act. The revolving fund provides the resources to purchase and distribute the fuel consumed annually in the communities we serve. In accordance with the Revolving Funds Act, the petroleum products division is required to recover advances from the revolving fund through retail sales.

There is also a petroleum products stabilization fund that is intended to protect consumers from fluctuations in costs and minimize the need for frequent adjustments to retail fuel prices. Operational surpluses or losses at the end of each fiscal year are credited or charged respectively to their stabilization fund. Currently the maximum balance in the stabilization fund cannot exceed plus or minus $5 million at the end of any fiscal year. Should the balance at the end of any fiscal year be above the surplus of $5 million, the excess surplus is credited to the consolidated revenue fund. Deficit balances exceeding $5 million are charged to the Public Works and Services appropriation.

The maximum limit of the stabilization fund was established well before division of the Northwest Territories on April 1, 1999, when the petroleum products division served over 40 communities and had annual sales revenue of approximately $60 million.

Today, Mr. Chairman, only 15 communities are served with annual sales revenues of approximately $14 million. This is approximately an 80 percent reduction over pre-division levels. There is no longer a rationale for the stabilization fund to accommodate $5 million in profits or losses as the petroleum products division no longer has a customer base to service this level of debt without imposing undue hardship on consumers through drastic price increases.

Mr. Chairman, this fact was recognized in the 2002-03 fiscal year when the Legislative Assembly approved the write-off of $4.191 million deficit balance of the stabilization fund.

The current balance of the stabilization fund is a surplus of $472,000. The petroleum products division is projecting a loss of approximately $230,000 for the fiscal year 2005-06 which will be charged to the petroleum products stabilization fund resulting in a projected surplus of $242,000 as of March 31, 2006.

A new maximum limit of plus or minus $1 million will still fulfil the intent of the stabilization fund and more accurately reflect the maximum accumulated debt level that the petroleum products division can service without imposing drastic price increases on its customers. That concludes my opening remarks. Thank you, Mr. Chairman.

Thank you, Minister Roland. At this time I would like to ask Mrs. Groenewegen for opening comments on Bill 8. Thank you.

Thank you, Mr. Chairman. The Standing Committee on Governance and Economic Development met on October 11, 2005, to review Bill 8, An Act to Amend the Revolving Funds Act. Following the clause-by-clause review, a motion was carried to report Bill 8 to the Assembly as ready for Committee of the Whole. This concludes the committee's general comments on Bill 8. Individual committee members may have questions or comments as we proceed. Thank you, Mr. Chairman.

Thank you, Mrs. Groenewegen. At this time we would like to ask the Minister if he would like to bring in any witnesses.

Yes, Mr. Chairman.

Can the Sergeant-at-Arms please bring in the witnesses? Thank you.

Thank you. Minister Roland, can you introduce your staff, please? Thank you.

Thank you, Mr. Chairman. Joining me this afternoon from the Department of Justice is Mara Heder, and with me is the director of the petroleum products division from the Department of Public Works and Services, Mr. Mike Aumond. Thank you.

Thank you, Mr. Minister. General comments on Bill 8. Mr. Braden.

Thank you, Mr. Chairman. I want to speak in favour of this amendment. I think the proposal to adjust the fund is prudent business management on the part of the FMBS. From the information provided, I think the new ceiling or floor of $1 million, given the scale and the size of accounts in the number of communities we serve, is a good piece of work. I am happy to see this and I will be voting for it.

In the midst of such a volatile petroleum pricing environment as we have right now, I would want to ask the Minister or his officials if there is any extra concern. There are some forecasts given here, Mr. Chairman, that at the end of the current fiscal year we will still have a bit of projected surplus of about $250 million. Is that forecast still a good one, considering the current volatility of prices? Thank you.

Thank you, Mr. Braden. Mr. Minister.

Thank you, Mr. Chairman. Mr. Chairman, the estimates we have given there are based on the refuelling that has been done recently, so we have had our final communities refuelled through the barging system, and this already incorporates the new prices we paid for the winter resupply that had occurred previously. We feel that we are fairly close with that number.

The reason we are projecting the loss in the stabilization fund is to offset some of the increases on home heating oil. We are dipping into that stabilization fund so that we don't have to bring the price up as far as we would if we did not have that fund there. Thank you.

Thank you, Mr. Minister. Mr. Braden.