Thank you, Mr. Speaker. I appreciate the concern over what is happening in the Mackenzie Valley. Certainly the developments occurring in the Sahtu region are significant and substantial. The Economic Opportunities Strategy Advisory Panel has held several meetings where the developments occurring in the Sahtu have been raised. I’ve been assured that the panel will be bringing forward a number of recommendations for consideration by this government, which may include a discussion regarding the establishment of a special economic zone.

As industry moves forward to a positive decision to produce oil in the Sahtu, the GNWT will continue to be diligent and position ourselves to respond to ensure the greatest benefits possible come to the residents of the Sahtu and the NWT. The government has directed significant resources to enhance our programs and efforts in the Sahtu region, and if the current exploration program becomes a significant long-term development, we will be ready to step in and support the region as required.

We will continue to work with the federal government to ensure they are aware and ready to assist us in whatever means necessary for this development to move forward. The level of government response in the long term will, of

course, be in alignment with decisions by industry on possible production scenarios in the Sahtu. Recent discussion with industry have indicated that if drilling occurs in a timely manner, no production decisions could be made before at least three years from today and no production in the Sahtu with concurrent sustainable activity would be possible before 2020.

We do not want to get ahead of ourselves. While the exploration program that is happening in the Sahtu is significant to the region, it is the tip of the iceberg that may be coming at us. When the time is right, as signaled by industry investment and decisions to produce, then we’ll be looking at even more significant response by this government that will allow us to gain the most benefit from this opportunity.

If I could, just a few comments on the Mackenzie Valley Highway Project from Wrigley to Tuktoyaktuk. This has been identified as a priority of the 17th Legislative Assembly and remains a

priority of this government. An all-weather highway up the Mackenzie Valley to Tuktoyaktuk support Canada’s sovereignty goals and territorial aspirations for resource development and other economic opportunities. The Mackenzie Valley Highway is expected to help reduce the cost of living, improve health care and education opportunities, support families in communities in the region, and provide significant long-term employment and contracting opportunities to residents of the NWT. The construction of the Inuvik to Tuk portion of the road is an important first step to realizing the vision of the Mackenzie Valley Highway from Wrigley to Tuktoyaktuk. We are, at the same time, working to move forward on the southern portion of the highway.

The Department of Transportation recently submitted an application to the Mackenzie Valley Environmental Impact Review Board related to the Wrigley to Dempster portion of the highway. This is the official start of the environmental review process and marks an important milestone for an all-weather road through the valley. The federal government, through CanNor, has committed $600,000 of the $8 million estimated cost of the environmental assessment for the southern portion of the proposed highway. The completion of the EA is the first step towards the completion of the highway and we will continue to look for opportunities to fund this work, including seeking out additional federal funding.

Over the past 10 years, working with our federal partners, the GNWT has invested $120 million in incremental improvements that will contribute to the eventual construction of the highway. We will continue to work with the federal government and industry partners to advance the project and support the interests of NWT residents.

The Mackenzie Valley Highway Project is important for economic development in the Northwest Territories. It is being planned so as to maximize business opportunities, training and employment. This requires a strategic, incremental approach, which we are pursuing.

The Department of Transportation is currently developing an update to the 2005 proposal Connecting Canada Coast to Coast to Coast. This document will update the progress we have made in moving the Mackenzie Valley Highway Project forward and identify proposed next steps to continue to advance the project. At the same time, and in anticipation of a new federal infrastructure program, the Department of Transportation is also developing a new strategic investment proposal titled Corridors for Canada: Building for Prosperity, which sets out our priorities for federal transportation infrastructure funding. Opportunities for continued investments into the Mackenzie Valley will be considered. We are also investigating opportunities for collaborations and partnerships using successful, proven models to emphasize local training and employment as well as ongoing benefits for communities.

This government has taken many steps to continue on the path toward achieving the goal of a Mackenzie Valley Highway. The government will be abstaining from voting on this motion.