Thank you. Page 3-17, activity summary, treasury, operations expenditure summary, $5.225 million.

Thank you, Madam Chair. In this section, I may be wrong on this, I'd like to know more about what these economists, those new PYs that we are approving are going to be expected to do in their jobs. Thank you

Thank you, Ms. Lee. Mr. Roland.

Thank you, Madam Chair. Madam Chair, this area where we show an indication of the positions going up, it's in the area of the taxation and the collection. The fiscal policy section would deal with the macroeconomic policy work that needs to be done.

This area here is just to ensure with all the activities going on -- and the file is growing as there is more activity in the North -- we need the ability to ensure people are paying their taxes in the North. Thank you.

Thank you, Mr. Roland. Ms. Lee.

Thank you, Madam Chair. Aren't we on page 3-22?

We are on page 3-20 and 3-21. Thank you. Information item, treasury, active positions. Any questions?

Agreed. Thank you. Page 3-23, activity summary, fiscal policy, operations expenditure summary, $1.213 million. Mr. Braden, Mr. Hawkins, Mr. Ramsay. Mr. Braden.

Thank you, Madam Chair. To follow through on my general comment to the state of affairs that we might anticipate after this panel delivers its views on our funding mechanisms, does the Minister have any forecasts or anything that he could advise us on to the process, I guess? You know, it will be one thing to see what they have to say about us, but the next thing is then what do we do, and that's where I'd like to see if the Minister could offer any information or any insight, Madam Chair.

Thank you, Mr. Braden. Mr. Roland.

Thank you, Madam Chair. Madam Chair, as the Member stated, the expert panel report has been delayed and we're waiting for the new federal Finance Minister to receive the report. At that point, we expect that there will be some engagement between federal Finance, the territorial Finance Ministers and provincial Finance Ministers on the sections of the report that pertain to their jurisdictions. As well, there is a confederation of, the Council of the Federation Panel that was established as well by the Premiers, and they had their work around fiscal policy and responsibilities, as well. Their report will be coming out in the near future. We expect to be using both the reports. We're hoping that Finance Canada will use the expert panel's report. There's some question as to how that will be dealt with as it was started under a previous government. We're hoping that they will use that report along with what we will use, the COF panel report, and start our negotiations from those reports. Hopefully they will identify our concerns, as both the panels travelled to the North and heard our concerns. I think that we'll get some favourable mention in those reports about the North, and it will be from those bases that we will begin our discussions with federal Finance about the need to change how formula financing works in the Territories. So it will all come down to the new Finance Minister for the federal government and how and when he accepts that report, and then the work between the jurisdictions from that point on. Thank you

Thank you, Mr. Roland. Mr. Braden.

Thank you, Madam Chair. Does the Minister feel or understand that we'll be able to count on the delivery of this report on time or as promised, and then a reasonably quick turnaround for its recommendations? One of the larger frustrations of this job has been to try to absorb and keep track of and keep pace with the various fluctuations in our financial situation, Madam Chair. The Minister and his staff, I think, have done a good job over the few years that I've been in this Assembly, of trying to keep us appraised of what's going on. But our situation can fluctuate so quickly from sort of comfort and some wiggle room to one where our backs are against the wall, we're painted into a corner, most often not for reasons that are within our control. So the volatility just makes it a very frustrating environment in which to do some planning or some really strategic thinking. So I would hope, and I'm sure along with the Minister and everybody else around here, that when this report is delivered that it gets a reasonably quick turnaround, because the environment that we're operating in now just doesn't lend itself to good governance. I don't feel that I can really deliver on the expectation and the mandate that I have as an MLA when we're so boxed in by the rules that are set by our fiscal masters outside of Ottawa. Perhaps more of a comment and expression of frustration and expectation. If the Minister has anything to add to it, that's great; but otherwise, I think I put my message on record now. Thank you, Madam Chair.

Thank you, Mr. Braden. Mr. Roland.

Thank you, Madam Chair. I guess we share something in common, and that's the frustration of dealing with a system that can fluctuate quite rapidly and from one extreme to another. To be able to announce one start of a budget cycle that we will actually have a fairly healthy surplus to help with our capital program side of the program, and then as we come into later on in the year to say, well, we are now looking at a deficit situation is not something I think Finance Ministers look forward to making those types of announcements. It is going to take work and we're going to have to push and work aggressively in getting the new Finance Minister and his department to make some decisions, to look at the report, and respond and work with jurisdictions. I say that more from looking at our own picture, and we look at the environment we have to operate in.

We have, just over a year before we start to run into some real problems because of the repayment on the corporate tax situation that occurred in 2002-2003 and when we make that repayment, that changes our landscape drastically. We're going to need some decisions in the very near future that lie within the authority of the federal government. At minimum, we need to remove the borrowing limit that was placed upon us. As well, how that ties into our formula financing situation and ultimately have a settlement on a fair deal for resource revenue sharing for all northerners. It is frustrating. That is why my tone has changed as well in how I think we need to proceed forward and get our message down to Ottawa, and be using all avenues possible to get other jurisdictions to work with us and support us, and we have had their support in the past. I'm sure at that table they will continue to give us a helping hand when it comes to delivering the message. A lot of it, as I see, will come down to the fact that since, in the past anyway, we've built our business case around their formula situation and have

not had much success for one reason or another, ultimately it's going to come down to the fact that we need the rest of Canadians, we need the academics of Canada to look at our situation and either agree with the business case we've put forward and help us send that message. So we've got to get down to work and, as I see it as Finance Minister, after we pass this budget, we're probably going to be looking for a window of one year to start getting some decisions made by the federal government. Thank you

Thank you, Mr. Roland. Mr. Braden. Are you done? Okay. Thank you. Next on the list I have Mr. Hawkins.

Thank you, Madam Chair. If the Minister could provide some information, I believe it's reflected on this page or very close I'm sure, as to what headway we've made on dealing with the $300 million debt wall. The areas I'm looking for some detail on is what type of movement we've had on this problem. What support do we have with working towards a solution? I've heard the Minister's solutions and I like them very much, but the problem is we can come up with all the best solutions and all the best policies on how to deal with this problem. Unfortunately, at the end of the day, it's the Government of Canada that has the final say on this. So what movement have we had on this? Have we sent a letter to Finance Canada or the appropriate office? Have we got a response? Has the Minister solicited support from other Finance Ministers or had our Premier seek other Premier support? Have we got anything in writing from anyone? Let's start with that. Thank you, Madam Chair.

Thank you, Mr. Hawkins. Mr. Roland.

Thank you, Madam Chair. Madam Chair, the borrowing limit that is placed upon us, the $300 million cap, is by Order-in-Council. So it would take an Order-in-Council to remove it as well. That's, I guess, the one positive thing about it. It's not a matter of running some legislation through Parliament.

What we have done to date is presented our proposal to the past Minister of Finance and we received some correspondence requiring some further information. We were preparing to deliver that when the election was called. So we've got the information together and we're prepared to meet with the new federal Minister in this regard. Thank you

Thank you, Mr. Roland. Mr. Hawkins.

Thank you, Madam Chair. Was there any type of response from our federal counterparts as in their support of this, they just want to see our plan to map this out, or is there any indication on which way they're going to fall on this matter? Thank you