Thank you, Mr. Speaker. My question is for the Minister responsible for Resources, Wildlife and Economic Development. Mr. Speaker, Resources, Wildlife and Economic Development is responsible for environmental protection and for resource management and economic development. At times, there is no doubt there are some very interesting and constructive dynamics within the department as they are compelled to balance views and principles between these two mandates. No doubt there is also a continuous tug of war for resources of money and staff within the department depending on the issue of the day between those with a mandate to protect and those with a mandate to promote. My question, Mr. Speaker, how does the department balance these sometimes contradictory mandates? Thank you.

Thank you, Mr. Speaker. I would like to reinforce the remarks of Mr. Miltenberger. I was pleased to hear remarks by the Minister responsible for the Power Corporation on Tuesday regarding the national recognition the Northwest Territories Power Corporation has received for reducing greenhouse gas emissions. It is an excellent example of what can be done.

I am particularly interested in how we will be able to expand on this good work. Our own greenhouse gas emissions in the Northwest Territories are about 0.2 percent of Canada's, but on a per-capita basis, we are one of the highest emitters of greenhouse gases in the industrial world.

Today, Mr. Speaker, we have a fine spring day. But a check with the weather office shows that our minimum daily temperatures for this week are about ten degrees above normal.

From 1988 to 1998, Great Slave Lake is breaking up an average of three weeks earlier and freezing later in the year. As well, the late opening of the Mackenzie ice bridge is one of the most evident indicators of what is going on in our environment.

Whatever the cause, we will encounter enormous positive and negative effects in the upcoming decade in our northern environment and way of life. The impact on our economy and how we develop our non-renewable resources in our own interests and for the world is something that we are compelled to pay very close attention to.

Mr. Speaker, on a related issue, the National Roundtable on the Environment and the Economy is an independent agency of the federal government. They are providing decision makers and opinion leaders with reliable information and objective views on the current state of the environment and the economy.

Today, in Yellowknife, the aboriginal communities and non-renewable resource development issue is having a workshop, which is being co-chaired by Cindy Kenny Gilday, well known for her work in the Northwest Territories, especially with the people of Deline. I am pleased to hear they have chosen to meet in Yellowknife. I wish them well in their deliberations.

Mr. Speaker, I believe we have to develop a co-ordinated energy and environmental strategy in conjunction with stakeholders, which recognizes our obligation to the reduction of greenhouse gases. These are complex issues and I intend to seek more information on how our government will be demonstrating leadership. Thank you, Mr. Speaker.

Thank you, Mr. Chairman. One more question as I see my clock running out. What would be the department's preference as it sees that $5 million threshold coming up? Would it be to go to the customer or would it be to come back to the Assembly for an appropriation? What is the preference? Thank you, Mr. Chairman.

Thank you, Mr. Chairman. What is the department's ability to pass these additional costs, if they are incurred, to the customer? In the answer to the previous question, I understand if it tips over the $5 million threshold, then an appropriation would be requested, but is there a provision within the way the fund is managed to actually go to the customer and treat this more as a user pay situation? Is that an option? Thank you, Mr. Chairman.

Thank you, Mr. Chairman. The department also advised us of the petroleum revolving fund and we have some information on how that works. The essential purpose of this, as I understand, is to protect customers from spikes, particularly the customers and the government from spikes in fuel costs and give everyone some certainty of a price regime. Given the price shock we have just recently seen, can the department give the committee some indication of how it is managing this, such as cost increases that are passed on to customers. Will that kind of thing be done in good time, to make sure that the funds are not threatened? How is the department going to go about managing this situation? Thank you.

Thank you, Mr. Chairman. In the area of managing petroleum services, the department looks after the petroleum revolving fund in providing petroleum services to communities that are not presently served by the private sector.

One of the things that is of concern to everyone around the world is the uncertain and escalating price of fuel. I am wondering if the Minister could provide us with a picture on what the department might estimate the impact of the increasing cost of fuel products would be for the government as a whole? Would the Minister be able to help us out there? Thank you, Mr. Chairman.

Thank you, Mr. Speaker. This is good news that the various parts of the permitting are going along, but as the people of this Territory experienced in the last process the clock is ticking, Mr. Speaker. Can the Minister provide any assurance that we will, indeed, see a clearance of these land leases by the end of March? Thank you.

Thank you, Mr. Speaker. My question this afternoon is in regard to the Diavik project and I would direct it to the Minister responsible for Finance, who has been designated as the government's lead Minister on this project. Just recently, Mr. Speaker, the mine cleared one of the permitting requirements for a land use permit, but another deadline looms for another important part of their permitting and that regards land leases, which are in the jurisdiction of the Department of Indian Affairs and Northern Development.

A new regime comes into effect at the end of March, Mr. Speaker, whereby this kind of authority would go over to the Mackenzie Valley Land and Waters Act, if I have my information correct. The consequence for Diavik could be considerably more overlap, duplication and cost. My question for the Minister is whether he can advise the Assembly of the status of these land leases now before the Minister responsible for DIAND. Thank you, Mr. Speaker.

The committee met with the Minister and his staff on March 16, 2000, to review the proposed 2000-2001 interim appropriation for the department. The committee made note of the following issues.

Short Term Interest Expense

Committee members were concerned with the cost of short term interest expense. The department replied that some funding requirements are more economically met with short term financing. This methodology would result in more savings than, for example, a long term borrowing obligation to meet a short-term need.

Insurance Costs

The committee was also concerned with the high cost of insurance and the very high deductible of $1 million. The department replied that our insurance costs are ours alone and do not reflect any obligations from Nunavut and, further to the committee's concerns, the department explained that the Department of Finance, under the Financial Administration Act, had to increase economies of scale, is responsible for purchasing insurance for all government departments. The department responded that the current deductible is the most cost-effective, especially given our severe loss record.

Committee members asked the Minister if there are initiatives under way to improve security in schools and other large capital assets to help bring down our insurance costs. The Minister replied, that the government's insurance policy covers all our assets and schools only represent a portion of the total portfolio. He agreed to look at other alternatives for reducing insurance costs, but insurance costs will most likely decline in the short term.

He further added that departments, including Municipal and Community Affairs, Public Works and Services and Education, Culture and Employment are working together to come up with more alternatives to reduce insurance costs.

Tangible Capital Assets And Insurance Costs

The committee asked the Minister if the proposed tangible capital assets reporting program would entail problems for the government's insurance coverage in corresponding premiums payable. The department replied that if valuations made by the reporting system based on amortized or depreciated value are more substantial in more than the insurance company's, which is based on replacement value, the department may drop the asset from the list of insured assets. Part of the tangible capital assets program entails the amortization of an asset over a prescribed time period or depreciation. If insurance only covers the depreciated value of an asset, then the government may most likely not receive enough insurance reimbursement to replace the asset. Currently, this hypothetical situation is avoided, as the government's insurance policy is based on replacement value.

Mr. Chairman, that ends the committee's report.