Thank you, Ms. Lee. Mr. McLeod.

Thank you, Mr. Chairman. Madam Chair, the New Deal initially started as an initiative

to bring smaller, non-tax-based communities up to a point where they can make decisions and become municipal authorities. At that time, the largest centres were not included as part of the package. Having to do a review of all our communities in order to start looking at the needs, we quickly realized that all the larger centres also needed some investment over and above what we are providing to the smaller communities. So we decided to include dollars, especially in the area of capital, to the larger centres.

We also were able to do an infrastructure evaluation and recognize also that there needed to be more money put into the pot for non-tax-based communities and also larger tax-based centres. Over the last while, we also took the opportunity to review the operations O and M funding. The Water and Sewer Subsidy Program was reviewed and a new formula was developed. It's, for the most part, resulted in more funding all across the board for most communities.

In the case of Yellowknife, as the Member has requested, we are looking at an increase of $382,000 for O and M funding for the City of Yellowknife. We are also going to be providing $1.783 million, the actual amount, in new money for capital. We have to remember that the larger centres such as Yellowknife, Hay River, Inuvik historically never received capital from this government. That was built into their block funding. So this is over and above that. The city is also realizing and receiving $1.795 million in gas tax funding for this year. So the city is receiving a lot of new money that they haven't received historically. That's the case for most of the communities. We try to put more dollars into the communities so they are able to govern themselves and make decisions that affect the communities. Thank you, Madam Chair.

Thank you, Mr. McLeod. Ms. Lee.

Thank you. I would assume that that is in addition to normal block funding then. I want to ask a question about the issue that came about earlier and that has to do with the public transit program. There is money that the federal government suggestion to enhance the public transit program. There is some among the municipal leaders in the previous government anyway that that money was something that was earmarked for the City of Yellowknife in that there are not too many other places with a public transit program. The public bus system in Yellowknife is something that has struggled to make it economical. I know the Minister wanted to revisit that to see how other communities could benefit also. Could I get the Minister to give us an update on where he is on that file?

Thank you, Mr. Lee. Ms. McLeod.

Thank you, Madam Chair. The budget for the public transit system is $1.7 million. We are in the final stages of our negotiations. We expect to sign an agreement before this fiscal year end. We expect to be rolling these new dollars out soon after that. It will be on an application basis with the condition that no one community get no more than up to half of it. There will be some flexibility in the criteria that allows some of the smaller communities to be able to access handy-vans and things of that nature.

Thank you, Minister McLeod. Ms. Lee.

Thank you, Madam Chair. When the Minister mentioned that he's in the final stage of negotiating this, is he suggesting that the negotiations are with the federal government, or is this something that's been worked through the NWT Association of Communities or municipalities that have shown interest in accessing these funds? Also, in order for the smaller communities to access, they may need some assistance in coming up with ways and means to take advantage of the program to introduce some kind of public transportation program. I am hoping that at the same time, the public transit system may be one sure way to reduce the use of fuel or the use of private vehicles or encourage less vehicles on the road, especially in busy times.

Also, in the smaller communities, we constantly hear of the need for special vehicles for the elderly or people with disabilities. Could we have a community vehicle in communities that could take advantage of this? Of course, this idea may turn into trouble with taxi companies or something in some communities that have taxi services. I guess I am looking for an idea as to how expensive this idea is; because I would think you would have to think of new ways in order for some of the smaller communities to take advantage of this program. Thank you.

Thank you, Ms. Lee. Minister McLeod.

Yes, Madam Chair, the intent is to try to create a criteria that will allow some of the smaller communities that are in need of systems to help the elderly or some of the disabled people to come to and from medical services or other facilities. We are also including community vans. Madam Chair, we are running all this through the Association of Communities. They have approved our process and we are negotiating directly with the federal government. It's an agreement we have to sign with them. We should be in a position to do that right shortly. I think we have dealt with all the issues that we had to iron out and are ready to sign an agreement fairly shortly, in the next little while.

Thank you, Mr. McLeod. Mr. Pokiak.

Thank you, Madam Chair. I just have a few quick general comments with regard to the Minister's opening remarks. I think one concern that I have heard from my constituents, especially in Tuk, and Mrs. Groenewegen brought it up before, is the Water and Sewer Services Program. They do see some flaws with it. They are running short of funding to operate especially when you are looking at 30 or 40 kilometres to transport the CEAA program in my community.

The other concern I have is with regard to the New Deal, the one-time funding. I appreciate the money that's going to the communities, but I think, Mr. Chairman, the concern I have is with non-tax-based communities especially in a small community like Sachs Harbour, they just don't have the amount of people to raise the taxes required of them to operate. It's going to be very difficult in a place like Sachs Harbour and maybe even Paulatuk. Maybe Tuktoyaktuk can get by, but again to raise funds like that it's going to be very difficult in terms of trying to get capital and capital infrastructure.

I appreciate the department and the School of Community Government. I think that's one way to work and try to get people trained in terms of us coming up with a new deal. Again, I think a lot is going to depend on the people you have working inside the communities that's going to operate the New Deal that's coming up. If you don't have the resource people in there, the expertise, Mr. Chairman, you are looking at probably coming up for failure. I think it's important that you do get these people trained in these communities.

The Minister indicated that in the 2006-2007 fiscal year, that it's the last year that MACA will play a lead role in capital planning and development. Again, it's important. Like I say, we have to get these people in line when they do take over.

The other comment I have heard in the past in the hamlets is with regard to the municipal insurances. Costs are coming up and they are concerned about that.

I just hope that MACA will be sure that all the supports that are required by the smaller communities are there, the support and the resources available to them because we are talking about so many self-government-type operations. When they take over their responsibilities, especially for capital projects, if they don't have the funding to operate these and can't raise the taxes for it, they will have difficulty. If that's the case, Mr. Chairman, I hope MACA will somehow be able to help them out so we can move forward.

There are no questions I have, Mr. Chairman. These are just general comments to the Minister for now. Thank you.

Thank you, Mr. Pokiak. Any more on general comments?

Okay. We will defer the operations expenditure summary until the end. We will start on page 4-10, revenue summary.

Page 4-13, activity summary, directorate, operations expenditure summary, $4.775 million.

Page 4-15, activity summary, directorate, grants and contributions, grants, $225,000.

Contributions, $390,000.

Total grants and contributions, $615,000.