Mr. Speaker, the restructuring is department wide. We are beginning with positions at headquarters, and down the road with consultation with the rest of Cabinet, there will be further changes in regional offices also.

Mr. Speaker, the Department of Public Works, like all government departments, is participating in delayering of management positions and efficiency movement. At the present time, here at headquarters, we have eliminated two ADM positions. We've reduced the number of directors from eight to five, and there are further reductions proposed.

(Translation) The question the Member is posing regarding article 24 is one of the most important clauses in the Nunavut agreement. I would like to inform the Member that we are talking about article 24, which is being recognized by this government. We will be following all our agreements and honouring all our contracts. When Nunavut Caucus is meeting after the session, I will be informing them further and update them on information regarding this matter.

Mr. Speaker, I have been informed that agreements between the NWT Housing Corporation and CMHC for both capital and ongoing maintenance costs are partnership agreements that have been in place for many years and will continue for up to 40

more years until there is mutual agreement to change. To answer the Member's question further, I do not believe CMHC has simply and unilaterally made the changes that they outlined, so I've asked the NWT Housing Corporation to seek a formal legal opinion on the existing social housing agreements.

Mr. Speaker, it is true that on March 29th, CMHC advised the NWT Housing Corporation that they will no longer include the costs of the electricity to tenants and administration costs for local housing organizations ... They will no longer share those costs between our two governments. Mr. Speaker, when this happened, it caused great concern to myself and to Cabinet. As the Member said, this could mean a loss of up to $10 million on top of what we are already losing. This was effective on April 1st, the next business day.

Upon receiving this notice, I immediately directed our corporation to meet with CMHC to try to work things out. So this past Monday, April 29th, the president of the NWT Housing Corporation, Joe Handley, met with senior officials of CMHC in Ottawa on this issue. I also travelled to Ottawa and I was able to speak personally to the federal Minister responsible for CMHC, the Honourable Diane Marleau. We have agreed that our officials will begin meeting in Yellowknife on the 22nd of this month, and will continue until this matter is resolved. Ms. Marleau and I are optimistic that this matter can be resolved without substantial increases in costs to the NWT Housing Corporation.

CMHC has also agreed to postpone the implementation of their proposed changes until at least June 30th, to allow time for these issues to be resolved.

Mr. Speaker, I will keep the Member informed of the progress. I will also sit down with the Member and experts in the field to see how we can avoid this problem in the future.

Thank you, Mr. Speaker. The Department of Public Works and Services cleaned the two key wells and flushed out the distribution system earlier in April. The chemical feed systems have been adjusted to reduce some of the colour in the water. On April 16th, Public Works and Services was informed by the hamlet that the water quality had improved. Further, Mr. Speaker, the department is having a consultant travel to Fort McPherson for further study.

Mr. Speaker, as I mentioned earlier, the way it looks is that the GNWT will have a limited role in infrastructure and construction management. However, we will be making our case to the Minister as soon as possible, by letter and also through a meeting with the Minster on May 10th in Arviat. I will keep the Members informed.

Mr. Speaker, that has been the position of the GNWT from the beginning. We have said all