Thank you, Madam Chair. I guess since this was announced or stated in the budget address, it might have some bearing to the process we are in. The MOU, first of all, does not commit us to any funding. It is one of sharing information, so there is no funding tie there. It does lock us down to the fact that we are working with the one company with a design. It started with the Housing Corporation having some preliminary meetings around this proposal, doing some investigation and it was felt, at that point, that it was worthy of some further investigation and work. Then when I became involved in looking at it from the FMBS side, not necessarily from the Finance side, was when we started to look at some of those numbers and look at the risk side of the equation. When I made the presentation in December to Members regarding this, I laid out the pros and cons about this. The risk side is there, as well. We are going to have to make sure we do our due diligence, as the Member stated, to ensure we don't get caught in a situation where we just can't afford this.

There has been a significant amount of work done, more along the lines with the Housing Corporation and the Canada Mortgage Housing Corporation, the CMHC, around the type of product and the compatibility of housing units in the Northwest Territories; for example, the R value of walls, the design, the conversion features, as well the types of furnaces, doing work around the communities, and the transportation. That is why we are only looking at three of the camp locations. There will be other camps, but we are looking at the locations where transportation would be more favourable for us. Indeed, more work needs to be done.

The milestones that need to be reached for this to proceed any further, one would be ultimately having the federal government continue with its support that they had given to us prior to the election. That would be critical. Without that, this project doesn't go. As well, the fact that we need to keep the savings of the final product at a target that we feel is acceptable in selling these units to citizens in the smaller communities. When we look at that and using year old numbers, of course, when you look at the square foot costs that the Housing Corporation was getting for stick-built construction versus this concept, from last year, we were looking at $161 a square foot on traditional northern construction methods, and the Novel concept or the concept we are looking at would be at about $100 a square foot. Of course, this still takes into the fact that CMHC needs to provide the necessary funding to make this work. Ultimately, as well, the pipeline project proceeding. There are discussions going on in the next few days about what involvement the pipeline partners would see in this process. Thank you.