Thank you. Mr. Clerk, would you please ascertain if His Honour, the Commissioner of the Northwest Territories, is prepared to address the Assembly.

Please be seated. Good afternoon, colleagues. Welcome back to the Chamber for another session. Welcome also to our distinguished guests and visitors who have joined us in the gallery today for the opening of the Fifth Session of the 15th Legislative Assembly.

I would like to take this opportunity to acknowledge and thank, on behalf of all Members, individuals who have contributed to making the opening of the Fifth Session a memorable one. In particular, I would like to thank the Honourable Anthony Whitford, Commissioner of the Northwest Territories, for opening our session. A special thank you to the Sir John Franklin High School Choir for the singing of O Canada; the Hay River Handbell Choir for their unique performance, and the very talented Nahendeh Fiddlers from Fort Simpson and Wrigley for their performances over the lunch hour and our Honourary Reverend Peter Chynoweth today who lead us in prayer.

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Colleagues, on Friday, May 26th, the Legislative Assembly hosted a National Day of Healing and Reconciliation event in conjunction with the Dene Nation and the NWT Status of Women's Council. The Assembly recognizes this day as the result of a motion moved by the Member for Sahtu, Mr. Norman Yakeleya, during the last session. The event was a great success and I would like to thank Mr. Yakeleya for his initiative and drive.

This week, we will be served by Pages from Yellowknife and they will become eye witnesses on how we do our work on behalf of the people of the Northwest Territories. I hope that they enjoy their experience and I am confident that they will do a great job for us.

I would like to draw your attention to the visitors' gallery and I would like to recognize some special guests. First of all, the Legislative Assembly Conflict of Interest

Commissioner and Ethics Councillor to the Public Service, Mr. Gerald Gerrand, is with us.

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Also, Justice Ted Richard who is a former Member of this House.

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And Katherine Peterson, a former Law Clerk to the Assembly.

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Thank you for joining us. Later today, at the rise of the House or at break, I would ask you to join us at a reception in the Great Hall for some refreshments and more entertainment by the Hay River Handbell Choir and the Nahendeh Fiddlers.

The Fourth Session of the 15th Legislative Assembly ended on March 2nd. I know that since that time all Members have been very busy attending various functions, doing committee work and getting caught up on constituency issues. Although this session is scheduled to be a reasonably short one, I look forward to some very lively debate and a very productive session as you address the issues and concerns of the residents you are here to represent. I ask only that you do so respecting each other and respecting the dignity of this House. Thank you for your attention, colleagues.

Orders of the day. Ministers' statements. The honourable Deputy Premier, Mr. Floyd Roland.

Thank you, Mr. Speaker. Mr. Speaker, I would like to take this opportunity to provide an update on the government's fiscal position and outlook.

Since February, a number of events have occurred that will impact our fiscal outlook, the most important being the federal budget on May 2nd and the release of two key reports on federal-provincial-territorial fiscal arrangements. We expect a third report to be released very shortly.

The federal budget included some good news for NWT residents and for the Government of the Northwest Territories (GNWT). The reduction in the GST from seven to six percent, along with a number if income tax measures, will decrease the tax burden and help lower the very high cost of living faced by our residents.

The federal budget's proposal to increase the small business income threshold to $400,000 will encourage our small business sector. This increased threshold will also apply to the NWT small business tax rate. The immediate repeal of the 10 percent excise tax on jewellery is a positive signal for the diamond industry in Canada and for the development of our secondary diamond manufacturing industry in the NWT. Finally, the budget's confirmation of support for the $500 million socio-economic impact fund for pipeline communities was welcome news.

With respect to the GNWT, the federal budget provides for up to $50 million for affordable housing for the NWT. This money meets the federal commitment references in my budget address in February and, when matched with an equivalent investment from this government, will allow for the construction of approximately 530 much needed new homes across the NWT over the next few years.

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The budget also included up to $3.6 million for other infrastructure programs and $1.9 million in additional funding through territorial formula financing in 2006-07. The final amounts to be provided for housing and other infrastructure will be known when the 2005-06 federal public accounts are finalized this fall and the size of the final federal surplus for the year is known.

Finally, the federal budget contained a commitment to consult with the Territories to put in place long-term fiscal arrangements that will support "transparent, principle-based territorial formula financing transfers that recognize the unique circumstances of the North."

This commitment is critical, Mr. Speaker. In the past few months, two important reports have been released on the issue of fiscal arrangements. On April 3, the Council of the Federation Advisory Panel on Fiscal Imbalance submitted their report to provincial and territorial Premiers. This report concluded that there is a fiscal imbalance in Canada, an imbalance that favours the federal government. It also concluded that the three northern territories face enormous difficulties in providing basic public services to our residents and that we face important social issues. The Council of the Federation Advisory Panel on Fiscal Imbalance supported this government's position that current territorial financing arrangements should be replaced with a formula-based approach tied to the expenditure needs and eligible revenues of each territory. The "fixed pool" approach currently being used is not appropriate.

The report also recommended that negotiations between Canada and the territories on devolution agreements be expedited. Northern governments must become the "principal beneficiaries of revenues and royalties" derived from northern resources. We welcome this support.

On May 2, along with his budget, the federal Minister of Finance released a report entitled "Restoring Fiscal Imbalance in Canada: Focusing on Priorities." This report recognizes the issues created by the existence of large, unplanned federal surpluses. For the territories, the paper is a positive step in that it acknowledges territorial concerns about the cuts to formula financing made by Canada in the 1990s, and notes our consistent position that these cuts must be restored. Perhaps the most positive aspect of the paper is the commitment of the federal government and, in particular, the federal Minister of Finance, to engage the provinces and territories in discussions on the issues identified in the paper.

Mr. Speaker, we expect that within the next week or so the federal Minister of Finance will release the Report of the Expert Panel on Equalization and Territorial Formula Financing. This panel has a mandate to undertake an independent review of these two programs. The publication of this report sets the stage for formal discussions between Canada, the provinces and territories to address the outstanding fiscal issues. I will be updating Members on the report once it is released.

In this regard, the federal Minister of Finance, the Honourable James Flaherty, has laid out a process for reviewing federal-provincial-territorial fiscal arrangements. Minister Flaherty has committed to meet with his provincial and territorial colleagues, following the release of the report of the expert panel, to begin discussions. This meeting has been tentatively scheduled for the end of June. A number of other intergovernmental meetings will be held over the summer, with a First Ministers' meeting to be held this fall. The 2007 federal budget will lay out the new fiscal arrangements. I look forward to meeting with Minister Flaherty to begin these very important discussions.

We have also raised another critical issue with the federal Minister of Finance. That issue is the lifting of the arbitrary $300 million limit that the federal government has imposed on our authority to borrow. Mr. Speaker, as I stated in February, this government is committed to fiscal responsibility. We have adopted and adhered to our fiscal responsibility policy, which sets clear guidelines and a responsible definition of acceptable borrowing limits.

Moody's Investors Service has reviewed the fiscal plan we laid out in February, and has recently reconfirmed our Aa3 credit rating. At the close of this fiscal year, we are required to repay $290 million in corporate income tax to reflect an overpayment of taxes we received from Canada in 2002. We need to have the flexibility to meet our cash requirements and to borrow in a fiscally sound manner. The current borrowing limit goes against the principle of territorial political autonomy.

The budget I presented in February projected an operating surplus of $31 million for the current fiscal year. We are still on track to achieve this. However, the fiscal situation of the GNWT remains challenging. Resolution of the key issues of territorial formula financing and the borrowing limit are critical in order for us to effectively plan for the future. Until these matters are resolved, we will need to continue to be very cautious in our spending and our expectations.

Mr. Speaker, we will continue to follow the path outlined in the budget. We will continue to make our case for adequate and appropriate fiscal arrangements with Canada and we will continue to pursue the fiscal tools and authorities that will allow us to achieve the goals we have set for ourselves. Thank you, Mr. Speaker.

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Thank you, Mr. Roland. Before I go on to the next Minister's statement, I would like to draw your attention to the gallery again. As you can see, there's a number of dignitaries here today that will be introduced in due time; however, I would like to give a special welcome to Grand Chief George Mackenzie from the Tlicho Government who is here with us.

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With him is Mr. James Rabesca, a former Member of the 7th and 13th Assemblies.

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Ministers' statements. The honourable Minister responsible for the Housing Corporation, Mr. Krutko.

Mr. Speaker, today I rise to address the recent announcement of the affordable housing plan that will provide a $100 million investment in affordable housing in the Northwest Territories over the next three years.

As Members are aware, the 2006-07 Main Estimates of the Northwest Territories Housing Corporation were prepared on the basis of commitment by the previous federal Housing Minister to provide $50 million over three years for new affordable housing. At that time, Members were informed that the comprehensive plan set out by the Housing Corporation to provide 530 units over three years was conditional on formal approval of this commitment by the incoming government.

I am pleased to inform Members that the announcement of this funding in the recent federal budget means that our plan will proceed as proposed.

Mr. Speaker, I have worked closely with my colleagues in the Yukon and Nunavut to convince the Government of Canada to make additional investments in affordable housing north of 60. The result of these efforts in the recently announced Northern Housing Trust, $500 million of which will be delivered to the Northwest Territories.

Mr. Speaker, this investment is the result of a concerted effort to lobby the federal government for additional funding. The Housing Corporation sent a series of proposals to the federal government outlining a plan to deliver 530 units over three years with a $50 million contribution from the federal government to be matched by existing GNWT resources.

Mr. Speaker, this investment will allow us to make major improvements to housing conditions in communities where core need remains high. With this funding, every community in the Northwest Territories will see additional units constructed over the next three years.

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Conditions in our public housing units will be improved, and more eligible clients will be able to become homeowners. But we must keep in mind that delivering an investment of this magnitude will require commitments from several key stakeholders to ensure that it is completed successfully.

Land development will be a key component of this strategy. The Housing Corporation will be working together with the Department of Municipal and Community Affairs and community governments to meet the goals of the affordable housing plan. All avenues will be considered to ensure "on-the-ground" housing for NWT residents over the next three years of this funding commitment. The formation of partnerships and community support will be key factors in achieving the plan.

Mr. Speaker, in partnership with the federal government we have renewed our commitment to building new affordable housing in the Northwest Territories and across Canada. This investment represents a new beginning in our efforts to lower core need and to ensure that every resident of our territory has an adequate and affordable

home in which to live and raise families. Thank you, Mr. Speaker.

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Thank you, Mr. Krutko. Ministers' statements. The honourable Minister responsible for Health and Social Services, Mr. Miltenberger.

Thank you, Mr. Speaker. I would like to take a moment to acknowledge the contributions that persons with disabilities provide to our communities. This year, Disability Awareness Week is recognized in the NWT from May 28th until June 3rd. The theme for this year is Living, Working and Educating Together - Include People with Disabilities.

Disability can affect all of us directly or indirectly at any point in our lives. The onus of responsibility is upon us all to include people with disabilities in every aspect of life. The important message that comes with this is that we focus on people's abilities, rather than define them by their disabilities.

The Department of Health and Social Services, in partnership with other social program departments and agencies, continues to work at improving services for persons with disabilities. Partnerships with non-government agencies and the disability communities are critical if we are to better meet the needs of persons with disabilities.

For example, the NWT Council of Persons with Disabilities is expanding the Community Outreach programs to include Wekweeti, Gameti, Fort Simpson, Inuvik, Hay River and Behchoko, as well as the existing office in Fort Smith. The department has committed funding for the next three years to support the development of Community Outreach programs.

Recent developments in the creation of accessible housing, transportation and recreational facilities have improved the quality of life for persons with disabilities in our communities.

On June 5th, there will be a Disability Awareness Week celebration in the Great Hall of the Legislative Assembly at noon. I will be presenting Ms. Rae Celotti with an award for her work on behalf of persons with disabilities. Ms. Celotti has been a visible supporter for this cause for over 30 years. Since 1997, she has worked as the program coordinator for EmployABILITY, an employment program for individuals with disabilities.

Mr. Speaker, during Disability Awareness Week, let us recognize people like Ms. Celotti who make a different in our territory. I would also like to ask Members of this House to applaud persons with disabilities throughout the NWT as a gesture of thanks for their contributions and the strength they provide to our friends, families and communities. Thank you, Mr. Speaker.

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Thank you, Mr. Miltenberger. Ministers' statements. The honourable Deputy Premier, Mr. Roland.

Thank you, Mr. Speaker. I wish to advise the House that the Honourable Joe Handley will be absent from the House today and tomorrow to participate in the Western Premiers' Conference and the Leaders' Summit on North American Relations in Gimli, Manitoba. Thank you, Mr. Speaker.

Thank you, Mr. Roland. Ministers' statements. Members' statements. The honourable Member from Range Lake, Ms. Lee.

Thank you, Mr. Speaker. Mr. Speaker, on this, the very first occasion to speak in this Fifth Session of the 15th Assembly, I'd like to take this opportunity to speak about something that has been at the forefront of my mind over the least seven weeks, and that is the labour dispute between Ekati diamond mine and its bargaining unit, the Union of Northern Workers.

Mr. Speaker, I believe I join everyone else in the House when I say how encouraged we are that the parties are back at the negotiating table as we speak, and how much we wish, in the interest of all parties involved, that they will reach an agreement that will bring an end to this labour dispute that has gone on for too long.

Mr. Speaker, the emergence and prosperity of the diamond mine industry have benefited our city and many surrounding communities enormously. However, if this labour dispute continues for much longer, more workers may choose to leave the city, as some have done already, and we will lose much of what we have gained. We will lose not only the skilled tradespeople, but also their spouse, many of whom are employed in many important sectors in our economy, whether they be teachers, nurses or small business operators. Goodness knows, Mr. Speaker, we cannot afford to lose any of them from our community.

Mr. Speaker, I could tell you that this strike has been unbearably difficult for all parties concerned, especially for the members of the bargaining union, no matter on which side they sit on the picket line. I have talked to many of them for long hours on the phone or in face-to-face meetings. The workers do have legitimate claims for job security, wage parity and fairness, and the company agrees that these need to be addressed. It is for this reason I'd like to take this opportunity to call upon all parties involved once again to set aside their differences or obstacles they cannot overcome at the moment, and work on what can be agreed and come to a resolution.

Lastly, Mr. Speaker, I do hope that the latest round of negotiations will result in a settlement. But if it does not, I'll again be calling upon the Premier to show his leadership, to use his power and influence to keep the parties talking, to become more involved than he has done so far, including his influence to call upon the federal Minister of Labour to intervene to bring this dispute to a close as soon as possible. Thank you, Mr. Speaker.

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Thank you, Ms. Lee. Members' statements. The honourable Member from Nunakput, Mr. Pokiak.

Thank you, Mr. Speaker. Mr. Speaker, I rise today and welcome my colleagues on their safe journey to attend the Fifth Session of the Legislative Assembly; also to the Nahendeh Fiddlers, Sir John Franklin High School and Hay River Handbell Choir on their fine performance to open the session.

Over the last two months I had the opportunity to travel to a number of special events in the riding of Nunakput. Mr. Speaker, the residents of Ulukhaktok invited me to celebrate an historic event to commemorate their official name change from Holman to Ulukhaktok on April 1, 2006. I am proud of the residents of Ulukhaktok in their determination and hard work to find their identity in the language and culture of Ulukhaktok.

Unfortunately, Mr. Speaker, there was disappointment from the residents of Ulukhaktok when there was no one from the departments of Education, Culture and Employment and Municipal and Community Affairs to help celebrate this special occasion.

Mr. Speaker, on two other occasions I travelled with Parks Canada and the Inuvialuit Regional Corporation personnel to Paulatuk and Sachs Harbour to celebrate the opening of two of Parks Canada's new culture and language centres respectively. These two offices reflect the diversity of the culture, wildlife and environment in the Tuktut Nogiat and Aulivik national parks. I encourage the people of the Northwest Territories and Canada and internationally to visit these two offices, and also prepare to spend time in the national parks. The establishment of these two parks stem from the Inuvialuit Final Agreement. Mr. Speaker, many elders and government personnel were involved in the preparation of these two offices. I would like to thank and congratulate the people of Paulatuk and Sachs Harbour for their warm welcome and friendly hospitality, and to Parks Canada for the invitation to the opening of these two offices. Thank you, Mr. Speaker.

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Thank you, Mr. Pokiak. Members' statements. The honourable Member for Great Slave, Mr. Braden.

Mahsi, Mr. Speaker. It's been estimated that here in the Northwest Territories some 8,800 people have or will experience some form of mental illness or addiction disorder in their lifetimes. Further, Mr. Speaker, it's been predicted that the number and complexity of these disorders will increase significantly, with service demands up by 50 percent. This was an estimate made eight years ago, Mr. Speaker.

For those individuals and their families, a sad reality is that our government services have actually been badly eroded over the past decade. Here in Yellowknife, Mr. Speaker, we've seen agencies like Northern Addictions Services, Structured Success Program for Kids, NWT Family Counselling, and the Somba K'e Healing Lodge shut down for a variety of reasons since 1997. The latest in this regrettable legacy was the surprise decision by the Minister of Health and Social Services a year ago to cancel an approved building renovation project and move the Territorial Treatment Centre from its 15-year-long roots here in Yellowknife. The idea was that a recently vacated building in Hay River could also be renovated and the whole continuum of about 15 staff, the involvement of schools, hospitals, and other service agencies, could all be transplanted successfully, economically, and seamlessly. As we now know, Mr. Speaker, this decision was made in contravention of rules set up by the government's own Financial Administration Act; and more to the point, we know that through the admission of the deputy minister at the time that this was all being done for political purposes.

I'd remind the Assembly, Mr. Speaker, of the petition tabled last fall signed by 707 residents demanding that this program be continued in Yellowknife. Since then the issue has become even more clouded with the decisions, more snap decisions made in secret when the government changed the program from a renovation to a demolition of the building and a new project, all projected to be completed within the next 15 months for a September 2007 opening at the original budget of $3.1 million. Mr. Speaker, this just does not compute. I come back to the demand of the 707 people who signed the petition to continue the service here in Yellowknife, Mr. Speaker, not for politics, not for money...

Mr. Braden, your time for Member's statement has expired.

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Thank you, Mr. Braden. Members' statements. The honourable Member for Nahendeh, Mr. Menicoche.