Thank you, Mr. Testart. Minister.

Thank you, Mr. Chair. Mr. Chair, we believe that if the wholesaler manages their inventory correctly then it should not put them at a disadvantage. Thank you, Mr. Chair.

Thank you, Minister. Mr. Testart.

Thank you. Thank you for that. In the consultation around this bill, was Territorial Tobacco Products consulted on this and did the business provide comment on the purchase method? Thank you, Mr. Chair.

Thank you, Mr. Testart. The Minister has indicated that Mr. Koe will fill this. Mr. Koe.

Thank you. Mr. Testart.

Thank you for that. I'm content that the government did conduct its consultations appropriately. I just raise this issue because often we aspire to very effective legislation that's based on examples drawn from other jurisdictions and sometimes we can forget that Northerners and northern districts may not be up to the same capacity as southern jurisdictions. I guess I'll just leave it with this. I think we're only affecting a small section of the economy, and if Mr. Walker did not raise those concerns, then I'm content that these concerns have been properly addressed through the legislative process. Thank you, Mr. Chair. Nothing further.

Thank you. Mr. Testart. No more comments. I see no further comments or questions. Does committee agree that we proceed to a clause-by-clause review?

Thank you, committee. We'll defer the bill number and title until after consideration of the clauses. Committee, please turn to page 1 of the bill. Bill 15, An Act to Amend the Tobacco Tax Act. I will read out the clause and, if committee agrees, just please respond within an "agreed." Clause 1.

---Clauses 1 through 15 inclusive approved

Thank you, committee. Committee, to the bill as a whole. Does committee agree that Bill 15, An Act to Amend the Tobacco Tax Act, is now ready for third reading?

Thank you, committee. Bill 15 is now ready for third reading. Does committee agree that this concludes our consideration of Bill 15, An Act to Amend the Tobacco Tax Act?

Thank you, committee. Thank you to the Minister and your witnesses. Sergeant-at-Arms, please escort the witnesses from the Chamber. Committee, we have next agreed to consider Bill 26, An Act to Amend the Revolving Funds Act, No. 2. I will turn to the Minister responsible for any opening comments that he may have. I believe that's Minister Schumann.

Thank you, Mr. Chair. I am pleased to introduce Bill 26, An Act to Amend the Revolving Funds Act, No. 2. This bill would amend the Revolving Funds Act and establish a new revolving fund for the Marine Transportation Services with an authorized limit of $35 million. The proposed revolving fund would meet the capital operating and maintenance requirements in providing marine transportation services to the communities on Great Slave Lake, Mackenzie River, and the Arctic Coastal Region. A business model for Marine Transportation Services is currently under development, which will help determine how Marine Transportation Services will be operated in the future.

The summer operations will inform the analysis as to which business model will likely be the most appropriate. We will return with options for the long-term structure of this entity in the fall. In the interim, segregating monies by means of this revolving fund will allow these marine operations to be self-financing. Costs associated with ongoing operations, maintenance, and capital expenditures in this manner will not require the government of Northwest Territories to fund these through appropriations as is required from normal program delivery. It will also prevent financial confusion and ultimately facilitate the transition to a long-term business model once it is decided upon.

Our purchase of the shipyard, terminals, and marine fleet is a strategic investment in transportation infrastructure that provides jobs, helps stimulate our economy, and will maintain the Mackenzie River as a primary route for safely and effectively moving essential goods to our communities. Bill 26 will facilitate a successful sailing season this summer as we consider options for the long-term business model of the Marine Transportation Services. This is a key step that will ensure a seamless transition to critical marine re-supply services for NWT residents and businesses now and into the future. Thank you, Mr. Chair.

Thank you, Minister. Do you have witnesses you wish to bring to the Chamber?

I do.

Thank you, Minister. Sergeant-at-Arms, please escort the witnesses into the Chamber. Minister, will you please introduce your witnesses?

Thank you, Mr. Chair. On my right, I have Deputy Minister Paul Guy of Infrastructure and on my far right is John Vandenberg, assistant deputy minister of programs and services, and on my left is Vince McCormick, director of corporate services.

Thank you, Minister. As we agreed to send this bill directly to Committee of the Whole, it was not reviewed by a standing committee, so we have no opening comments to go to but I will open up the floor. General comments and I have a list started. First, Mr. Vanthuyne.

Thank you, Mr. Chair. The Standing Committee of Economic Development and Environment in fact did have the opportunity to interact with the Minister on this bill. We did share with the Minister some items of concern. However, most of those have to do with the future of the marine transportation system. We certainly recognize the need for the amendment to the Revolving Funds Act so that the MTS, if we can call it that now, has the ability to function with the degree of fluidity much like a business and allowing the flexibility that it needs to react quickly, if need be.

We also want to take the opportunity to commend the government for stepping up and acting fast to make this acquisition possible as the Minister alluded to in his comments, the former provider had provided critical services to the territory for a long period of time and knowing that we could have possibly lost this critical service that the reliance on this service to the community was highly important and that the acquisition was necessary. We also want the department to know that the Standing Committee on Economic Development and Environment wants to work with the department going forward on the future of the evolution of MTS and we will be seeking to engage the public on that front, but in the meantime, we appreciate the department's resources, human and otherwise, are very focused right now on finishing up the transition but more importantly getting ready for the forthcoming sailing season and that's crucial to our communities.

I'm not sure that I have anything more to add at this point. I just want the department to know that by and large, there was no real opposition to the revolving funds amendment itself. Generally, we find ourselves in support. Thank you, Mr. Chair.

Thank you, Mr. Vanthuyne. Next I have Mr. O'Reilly.