Question is being called. All those in favour? All those opposed? The motion is carried.

---Carried

Bill 10 has had second reading and is referred to committee. Item 18, second reading of bills. Item 19, consideration in Committee of the Whole of bills and other matters: Bill 2, Supplementary Appropriation Act, No. 4, 2004-2005, with Mr. Ramsay in the chair.

I call Committee of the Whole to order. We have one item before us today, Bill 2, Supplementary Appropriation Act, No. 4, 2004-2005. What is the wish of committee? Mr. Menicoche.

Thank you, Mr. Chairman. The committee wishes to consider Bill 2, Supplementary Appropriation Act, No. 4, 2004-2005.

Thank you, Mr. Menicoche. Is the Minister prepared to entertain Bill 2, Supplementary Appropriation Act, No. 4, 2004-2005?

Yes, Mr. Chairman, I am prepared to proceed. Shall I start with opening comments?

Thank you, Mr. Minister. Please proceed with your opening comments.

Thank you, Mr. Chairman. I am here to introduce Bill 2, Supplementary Appropriation Act, No. 4, 2004-2005. This bill requests authority for additional appropriations of $20.520 million for operations expenditures for departmental over-expenditures in the 2004-05 fiscal year.

The request is being made to comply with the authorization process for over-expenditure of appropriations as provided for in the Financial Administration Act. Details of the over-expenditures are as follows:

1. $620,000 for the Department of the Executive, Financial Management Board Secretariat, that represents the over-expenditure caused by accruing an additional $3.5 million loss allowance on the loan guarantee agreement with Sirius Diamonds NWT Ltd. and Sirius Diamonds Ltd., and,
2. $19.9 million for the Department of Resources, Wildlife and Economic Development that represents the over-expenditure caused by accruing a $23.75 million liability pursuant to the cooperation agreement between the GNWT and the Government of Canada respecting the Giant Mine remediation project.

I am prepared to review the details of the supplementary appropriation document.

Thank you, Mr. Chairman.

Thank you, Minister Roland. I'm just wondering if the Minister wishes to bring in witnesses.

Yes, I wish to.

Thank you, Mr. Minister. I will ask the Sergeant-at-Arms to please escort in the witnesses. Thank you.

Thank you. Committee, we will go to general comments from committee. Sorry; introduction of witnesses, Minister Roland, please.

Thank you, Mr. Chairman. Mr. Chairman, with me I have the secretary to the FMB, Mr. Lew Voytilla.

Thank you, Minister Roland. Welcome, Mr. Voytilla. We've got Mr. Hawkins first on the list for opening comments.

Thank you, Mr. Chairman. As I see this appropriation, one element has to do with the funding with regard to Sirius Diamonds Ltd. One concern I had, I guess looking at this situation, is first and foremost my first question to the Minister will be will there be a public disclosure, if there hasn't been already, on the bottom line sale of Sirius and the costs associated with the repossession of Sirius through its process? Thank you.

Thank you, Mr. Hawkins. Mr. Minister.

Thank you, Mr. Chairman. Mr. Chairman, yes, when you add this amount that we're accounting for through the supplementary appropriation to the initial amount that was recorded, we're totalling a $6.5 million loss to the GNWT. Thank you.

Thank you, Minister Roland. Mr. Hawkins.

Thank you, Mr. Chairman. At this time are we able to say what the sale of Sirius was to the company buying it? So the sale price. Thank you, Mr. Chairman.

Thank you, Mr. Hawkins. Mr. Minister.

Thank you, Mr. Chairman. Mr. Chairman, we would be able to supply information to committee members with the breakdown of it. It's not just one number, there are a couple of factors thrown in there that make a difference for future years. There is an offset to that loss of future sales of diamonds that are marked with the polar bear trademark, as through this process we have entered into an agreement that would see the GNWT receiving a fee for each diamond that is solely under the polar bear trademark. Thank you.

Thank you, Mr. Minister. Mr. Hawkins.

Thank you. I know the Minister did answer the question there, but maybe if he could narrow it down to would we get an actual dollar amount and, if so, when? If the Minister is able to provide that actual dollar amount, taking into consideration the polar bear fees, if he's able to give that today, I'd like to hear and, if not, I'd like to hear when we would be able to hear that number in a public context. Thank you, Mr. Chairman.

Thank you, Mr. Hawkins. Mr. Minister.

Thank you, Mr. Chairman. Mr. Chairman, when you look at the total proceeds outside of the estimates fees we had received for the polar bear trademark, up front dealing with the number, we're about $4.5 million.

Thank you, Mr. Minister. Mr. Hawkins.