Good afternoon, colleagues. Welcome back to the House. Orders of the day. Ministers' statements. The honourable Minister of Finance, Mr. Roland.

Thank you, Mr. Speaker. I would like to provide an update on the fiscal position of the Government of the Northwest Territories. Since the Legislative Assembly approved the 2007-08 Main Estimates for the GNWT in March of this year, there have been significant changes to the government's financial picture. The changes are positive and with prudent decision-making will help to establish a solid foundation on which this Legislature can plan future activities.

As Members are aware, appropriate and predictable territorial formula financing, or TFF, arrangements and an increased GNWT borrowing limit have been key goals in this government's fiscal discussions with Canada. These goals have proven challenging to achieve, but I am pleased to report that we have been successful in resolving both issues.

The federal budget speech delivered on March 19th described a new TFF that will be used to determine the grant provided to the GNWT each year beginning in 2007-08. The new formula will be based in federal legislation that is expected to be approved in June 2007 and will result in predictable and stable fiscal arrangements with Canada.

The new TFF is based largely on the expert reports that were submitted to Canada over the past two years. The GNWT and many northerners were active in contributing to the development of these reports. I am pleased that many of these recommendations have been accepted and will become part of the revised TFF. Highlights of the new TFF include:

• • separate territorial financing arrangements for each territory;
• • improved certainty with respect to the calculation of the federal grant through the establishment of a single payment estimate in October prior to the next fiscal year;
• • use of the previous gross expenditure base escalator that measures population adjusted growth in provincial/local government spending;
• • an economic development incentive of 30 percent of adjusted own source revenues; and
• • an adjusted gross expenditure base that includes additional federal funding for fiscal years 2004-2005 and 2005-2006.

The GNWT borrowing limit has also been increased effective April 1 of this year, from $300 million to $500 million. This is a significant step in providing the GNWT with flexibility to make strategic investments in infrastructure to improve the lives of northerners.

Mr. Speaker, I must acknowledge the leadership of the federal Finance Minister in addressing these two priority areas. Mr. Flaherty promised to deliver predictability and stability to our fiscal relationship with Canada and he has done so in a timely and collaborative manner.

---Applause

Based on the available information regarding the TFF, we expect that the federal grant for 2007-08 will be just over $788 million. This is an increase of nearly $25 million from that shown in the 2007-08 Main Estimates. Additional increases to the grant of $25 million in 2008-09 and $23 million in 2009-10 are also expected over the amounts in the recently approved main estimates.

The federal budget also included announcements related to changes in the Canada health and social transfers, several program-specific trusts and a one-time payment to the GNWT that is related to an outstanding tax matter. The federal eco-Trust has been effectively linked to our energy plan and Greenhouse Gas Strategy allowing us to expand our efforts in this important area.

The federal budget included an additional $25 million per year for seven years for infrastructure activities in each territorial and provincial jurisdiction. Federal infrastructure initiatives related to P3s and high priority highway projects were also announced. It is worth noting the details associated with potential requirements or limitations on usage for this infrastructure funding have not been clearly defined.

As with TFF, these initiatives are contingent on the passing of federal budget legislation, likely this June.

The federal budget also indicated discussions on resource revenue sharing will continue as part of devolution negotiations. Natural resource revenues will be treated separately from TFF. To be consistent with equalization, 50 percent of these revenues will be excluded from the offset calculation against the TFF grant up to a yet to be determined overall cap.

I am pleased to report the government's overall financial situation at the end of the 2006-07 fiscal year is generally

consistent with previous projections. Our cash position is somewhat better than expected due to capital carryovers and one-time funding received from Canada.

When I presented the 2007-08 GNWT budget in February, I noted the uncertainty surrounding the government's revenue picture. I committed to consulting with Members on the allocation of any further revenues resulting from the federal budget, and to return during this session with a revised expenditure plan.

Because of our strengthened fiscal situation, and following consultation with the Standing Committee on Accountability and Oversight, the government will now advance a proposal for modest increases in spending on selected programs and services during the 2007-08 fiscal year. The proposal is based on key areas identified in the government's strategic plan established at the beginning of the 15th Legislative Assembly.

Mr. Speaker, I am pleased that the hard work of the past few years has been successful. We have appropriate territorial formula financing arrangements and an increased borrowing limit on which to base our fiscal planning.

During the term of this Assembly, we have successfully stabilized our fiscal picture while investing in key programs and services. The fiscal responsibility policy and an Aa1 credit rating from Moody's Investors Service are examples of our commitment to responsible financial management.

Government must continually examine activities, set priorities and make adjustments when necessary. As the term of the 15th Legislative Assembly comes to a close, we can be confident that we have achieved many of our financial goals and built a solid foundation for the legislators of the 16th Assembly. Thank you, Mr. Speaker.

---Applause

Thank you, Mr. Roland. Ministers' statements. The honourable Minister responsible for the Status of Women, Mr. Dent.

Thank you, Mr. Speaker. Good afternoon. At noon today, the Status of Women Council of the NWT just announced they have secured funding for a northern women in mining, oil and gas project that could have a significant impact on women's involvement in industry across the North.

The northern women in mining, oil and gas is a $1.7 million pilot project that uses a holistic approach while training women to work in trades and industry. One goal of this project is to prove that providing supports to women in trades training will increase the number of women successfully completing the training and achieving certification across the Northwest Territories. The courses offered in this project will be for women only and will provide participants with the skills required to enter into trades. Participants will work with mentors, receive life-skills and workplace culture training, safety training, as well as ongoing post-employment support.

Over 100 women will directly benefit by taking trades and industrial-based courses as a result of this project. As well, many more women will be assessed and through that process will be better informed of the possibilities offered through trades and industrial-based occupations in the mining, oil and gas industry.

The Department of Education, Culture and Employment has been a member of the Project Advisory Committee since its inception and has provided bridge funding to the Status of Women Council to allow them to develop their project proposal.

Mr. Speaker, ECE as well as Aurora College, will be providing cash and in-kind contributions such as classroom space, instructors, career counselling supports, marketing and program development. The department's participation will also ensure that the training provided during this research phase will lead to accreditation and certification under the Apprenticeship, Trade and Occupations Certification Act.

The department expects the research results will help to shape future trades training in the NWT and will assist both the GNWT and its industry partners in setting commitments and achieving targets pertaining to employment of women set out in various socio-economic agreements.

This initiative represents collaboration on the part of many sectors of government and education. The federal government, through the pan-Canadian innovations initiative, will be providing $1.3 million over the next three years to fund the research relating to this initiative.

This is an exciting project that will assist women to participate more fully in industry. This is good for women's equality in the Northwest Territories.

This project would not be possible without the vision of the Status of Women Council of the Northwest Territories and partners such as the GNWT, federal government and industry who share the goal of a fair and equitable northern society. I would like to thank all those involved in making this project a reality. We hope this project will be a model for other projects that increase women's ability to participate fully in economic opportunities in the Northwest Territories. Thank you, Mr. Speaker.

---Applause

Thank you, Mr. Dent. Ministers' statements. Members' statements. The honourable Member for Thebacha, Mr. Miltenberger.

Thank you, Mr. Speaker. Mr. Speaker, today I would like to touch briefly on tourism and Tourism 2010, which has been characterized in my constituency as being long on paper and short on cash and commitment as the government romances big oil. The concern, Mr. Speaker, is that it's not only underfunded, but we need to look at ways that we are going to be able to do a better job with tourism in the Northwest Territories. Specifically, I would like to make reference to the whole issue of eco-tourism and the accreditation and branding of

this particular type of delivery of nature-based tourism that has been developed in Sweden very successfully. It's been picked up in Australia, New Zealand and other European Union countries, as well as being looked at in the States.

It's a way that we can put a brand and a way of delivering a unique world-class product in the Northwest Territories that is not available any other place, especially, Mr. Speaker, when you consider the fact that the caribou numbers are affecting the sports outfitting and hunting sector of our economy. That type of switch would be a way to still bring people in who are willing to pay to look at the wildlife, to enjoy the natural wonders of the Northwest Territories, but in a different way. It requires an investment by the government to get involved with all the stakeholders. It's best driven from the bottom up. It has been successful in Sweden. They have some very successful websites and marketing. Once you have the accreditation, then you are able to put your name out there of your business and it allows you to access a whole new market segment.

So later today, I will ask the Minister responsible for tourism if he would consider looking at this particular area as a way to maybe improve the support in the small communities in the upcoming business planning process for '08-09. Thank you.

---Applause

Thank you, Mr. Miltenberger. Members' statements. The honourable Member for Inuvik Twin Lakes, Mr. McLeod.

Thank you, Mr. Speaker. Yesterday, the Premier mentioned there was an AIP reached between the government, the Inuvialuit, Metis, Sahtu and Gwich'in on a devolution and resource revenue sharing position. I would like to commend these groups for doing what's best for the Northwest Territories.

I would like today, Mr. Speaker, to pay tribute to one of the main players of these groups.

I recently had the privilege of attending the Aboriginal Achievement Awards in Edmonton to honour a man of great vision and passion. Fred Carmichael, Mr. Speaker, has been on a quest to get, not only for the people he represents but the people of the Northwest Territories, what is rightfully ours. Fred has been a trapper, pilot, businessman and, more recently, he's been the president of the Gwich'in Tribal Council. He has been there, he's done that. So when he speaks, we should listen and pay attention because he speaks from experience. He understands that while we can still live a traditional lifestyle, we have to be in a position to seize any opportunities that will come our way as a result of development and that it's our land's way of still providing for us.

Fred could be sitting on his deck out at Shell Lake. He could be relaxing and watching the ice melt, but he has a vision that the people of the NWT should be the primary beneficiaries of our resources and he's doing what he can, Mr. Speaker, to make that happen. That's the type of leadership I admire and we should also strive to provide that type of leadership and vision.

I was able, Mr. Speaker, thanks to Minister McLeod and his staff, to have university students from my riding and across the NWT as my guests. I felt it very important, Mr. Speaker, that these young people join me in honouring a true role model and a great northern leader. Thank you, Mr. Speaker.

---Applause

Thank you, Mr. McLeod. Members' statements. The honourable Member for Monfwi, Mr. Lafferty.

Mahsi, Mr. Speaker. (Translation) Today I will make a statement regarding something that's really important regarding the graduating of 12 students at the end of this month. There is going to be approximately 32 graduates this year. There are a lot of graduates from other communities, the communities of Gameti, Wekweeti and Behchoko. Once they graduate, a lot of them are carrying on into the colleges and universities, which is very important.

Not only that, but we have Chief Jimmy Bruneau School. Most of all of these teachers have been in these schools for many years, and they should be recognized for the work they have been doing for our school for many years that they committed to our school. So on May 26th, we are going to have a celebration for them. (Translation ends)

...celebrating an historic event. We are proud to announce that this year's Grade 12 graduating class of Chief Jimmy Bruneau Regional High School in Behchoko is the school's largest number of graduates ever, for a total of 32 graduates.

---Applause

Mr. Speaker, Chief Jimmy Bruneau Regional High School has produced nearly 200 high school graduates since the graduation class in June of 1993. Many of these students are from Wekweeti, Gameti, Whati and Behchoko. Mr. Speaker, we are proud to say the vast majority of Tlicho high school graduates do continue their lifelong journey of learning by moving on to post-secondary education programs at various post-secondary institutions across Canada. Upon completion of their higher education, many of these college and university graduates return to the Tlicho region and hold a variety of positions. These are our future leaders and decision-makers, Mr. Speaker.

The Tlicho Nation will also acknowledge long-term service education staff of the Tlicho Community Services Agency during this Chief Jimmy Bruneau Regional High School graduation ceremony. There will be five long-term dedicated community members that will be recognized for their endless efforts and tremendous contribution to the Tlicho school system. These are the individuals who have, over the last number of years, made a positive difference in the Tlicho region's education system.

Mr. Speaker, the Chief Jimmy Bruneau Regional High School graduation will take place on Saturday, May 26th,

in Edzo. I will certainly be there to speak to the graduating class and share with my constituents the truly memorable and special event. Mahsi.

---Applause

Thank you, Mr. Lafferty. Members' statements. The honourable Member for Kam Lake, Mr. Ramsay.

Thank you, Mr. Speaker. I am going to speak again today about the Deh Cho Bridge project. Having now had the opportunity to read through yesterday's Hansard, I am left even more confused today than I was yesterday. After listening to both the Premier and the Minister of Transportation, it would appear as though the decision to proceed has already been made. This decision has been made in the absence of any federal funding and, Mr. Speaker, the question was asked yesterday: Is the project contingent on P3 dollars from the federal government? The Minister of Transportation responded, "That is a good question." His response leaves me very uneasy about where the government is allowing this project to go.

As I mentioned yesterday, each and every time the loan guarantee to the Deh Cho Bridge Corporation was increased, the excuse was they were waiting for the federal government to come in and help the project. Here we are today, Mr. Speaker, with the government admitting that they really don't need the federal dollars to build this bridge. I am left wondering why all of a sudden the Government of the Northwest Territories thinks it is a good time to start construction on the bridge this summer which, coincidentally, Mr. Speaker, is just a few months short of the next territorial election.

Yesterday, the Premier told the CBC Northbeat that the government would be committing to the project the $2 million a year it spends on ferry operations and ice crossing maintenance at Fort Providence, plus an additional $2 million per year. What I am seeking, Mr. Speaker, is proof that this is what it will cost us and that we will get a clear understanding of what the tolls and the concession agreement will look like before any agreement is signed off.

Mr. Speaker, is this too much to ask of the Premier and of the government? I want to understand how it is that the government can say construction is going to start this summer without first providing this House the details of the project. Both the Premier and the Minister of Transportation suggested the bridge project would lower the cost of living. That might have been the case four or five years ago when the tolls on this project were pegged at $4 to $5 per ton and the bridge was estimated to cost 70 to 75 million. With the project now over $130 million and tolls looking like they are going to be over $6 per ton, what will that do to the price of consumer goods in the North Slave region and the city of Yellowknife?

In closing, Mr. Speaker, I just want some answers. I want the government to commit to providing this House every detail of this project before it proceeds. Again, I want my colleagues to understand that I do support the construction of a Deh Cho Bridge. However, as an Assembly, we have...

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

Thank you, Mr. Speaker. I seek unanimous consent to conclude my statement.

The Member is seeking unanimous consent to conclude his statement. Are there any nays? There are no nays. You may conclude your statement, Mr. Ramsay.

Thank you, Mr. Speaker. Thank you, colleagues. I just again want to reiterate I do support the construction of a Deh Cho Bridge. However, Mr. Speaker, as an Assembly and as stewards of public funds, we need to make an informed decision. Thus far, Mr. Speaker, I have not seen that. Mahsi.

---Applause

Thank you, Mr. Ramsay. Members' statements. The honourable Member for Hay River South, Mrs. Groenewegen.

Thank you, Mr. Speaker. Mr. Speaker, it has come to my attention that the Government of the Northwest Territories has recently made changes to the fuel tax regime that will have serious repercussions for businesses and consumers. I understand the Department of Finance has told fuel resellers who are also responsible for collecting the fuel tax on behalf of the GNWT, that as of April 1st they can no longer purchase heating fuel from their suppliers, only diesel and, further, that they can no longer sell heating fuel to their reseller customers. This has serious implications for residents of the Northwest Territories, and it is very recent. So I hope that other constituents and people involved in this business will certainly let their MLAs know of this concern.

The GNWT's fuel tax is currently 9.1 cents per litre for diesel. However, no tax is charged for heating fuel. The intent of the change is apparently to prevent people from trying to avoid the tax by purchasing heating fuel and then selling it as diesel. Unfortunately, Mr. Speaker, this new way of doing business will result in huge costs for northerners. The purchase price for diesel is higher than the price for heating oil. This increased cost will be passed on to consumers. Further, resellers will also have to pay the federal excise tax upfront for the diesel that they purchase and then apply and wait for a refund. This has placed a tremendous burden on small businesses with limited cash flow. Preventing tax evasion is clearly an important objective, but surely there are other checks that can be put in place that do not require increasing our already high cost of living or punishing the vast majority of businesses to operate honestly.

So, Mr. Speaker, I think this is a relatively new development. It is something that definitely requires our attention. It flies in the face of this government's commitment to address the issues of the high cost of living in the Northwest Territories. Maybe there had been some violators or some businesses that have not dealt with this the way they should have. But, as my constituency assistant said, we don't cancel the dance because two kids are drinking. So this is a very knee jerk, punitive, and draconian method of dealing with this. I will have questions for the Minister of Finance. Thank you.

---Applause

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

Mahsi, Mr. Speaker. I stand here today to applaud the signing of the agreement-in-principle on devolution and resource revenue sharing that was announced by the Premier yesterday.

---Applause

The years of effort, the strain and expense that was involved in this are certainly evident, Mr. Speaker, that these deals are not easily achieved. In the past decades of the political, social and economic evolution and struggle in the Northwest Territories, regrettably there are many more examples of failure than the success in negotiating joint action and commitment. So it is a mark of real leadership, vision and courage that the Gwich'in, Metis, Sahtu and Inuvialuit nations have joined with the GNWT in this quest. They all deserve our acknowledgement and our thanks.

Mr. Speaker, this AIP is, of course, awaiting other First Nations to come on board. I do not look at this as rejection. Rather, Mr. Speaker, it should be looked at as continuing opportunity that I hope they will be able to realize even as they continue to negotiate their own land claims self-governments agreements with Canada and the GNWT. Mr. Speaker, I hope that the signing of this agreement-in-principle will be at more incentive for those other northerners to join in and, of course, incentive for Ottawa to do their part in helping us realize our vision of a prosperous North, Mr. Speaker. Thank you.

---Applause

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