Thank you, Mr. Speaker. I'm pleased to see that the Minister of Justice sits today because his return to oral questions certainly puts my question into proper context. On October 30, 2003, an interesting bill called Bill C-48 was reviewed under the Natural Resources of Canada Senate Committee on Banking, Trade and Commerce. The intent of the bill was to attract industry on private lands and further allow deductibles by industry on Crown lands, Mr. Speaker. So my question is to the Minister of Finance. Would he be willing to have his department do further studies to see if this form of taxation can be implemented in the Northwest Territories so that aboriginal groups or companies can use this type of taxation to invest into social and economic programs? Thank you, Mr. Speaker.

Thank you, Mr. Speaker. I will remain consistent with the theme of my Member's statements for this week, using wording that is complimentary to the federal budget address. Although the document acknowledges that much of the funding will not be administered through the Government of the Northwest Territories, this still gives my constituency much relief; the federal government will, once again, make a large investment in supporting a social economy in the North. It is nice to read that the federal budget provides new pilot program funding for the social economy and community economic development organizations for capacity building, financing and research. Although the plan for the projected $90 million in economic development funding has not been established, we feel that this investment is nothing short of a plus for northern economic development programs.

Mr. Speaker, it is encouraging, as well, to see that northern oil and gas development will also see an investment of $75 million over three years to increase federal and regional environmental assessment capacity and streamline the regulatory process. It is exceptionally beneficial for my region of the Northwest Territories as it provides for more research for work associated with development in the Mackenzie Delta/Beaufort Sea area.

Mr. Speaker, this funding announcement is crucial to the ongoing commitment to support the oil and gas activity in the North. I am pleased to have read the observations provided by the Minister of Finance this morning. Thank you, Mr. Speaker.

---Applause

Thank you, Mr. Chairman. Just for the record, I'll read into the record, it's dated February 2004, the Fraser Forum, a Fraser Institute review of public policy in Canada. It's on pages 27 and 28. There are a number of references, notes to the issue of new health reform policy in Slovakia. It reminds Canada of a lesson it has yet to learn. Just for the record I'll read into it. Again, I think it's an important article in that it shows that there is, as I stated earlier, from a global perspective, concepts of global reform being introduced and trying to meet the ever-increasing costs of health care across the world. Certainly I found this article very interesting in the context of it articulating some reforms that are cost shared through both a patient and the health care system. I just wanted to raise this article in the context of this sector of page 6 of 17. There's no real question to that, Mr. Chairman, just to point out to the Minister that there are further reforms occurring in the world. Thank you.

Thank you, Mr. Chairman. I am not going to take too long on this, but I want to reference a few points I made earlier about a letter I received from Finance Minister Roland on the delivery of essential programs and services in the most effective, efficient and economical way. In another one, he speaks to resource revenues and also to protecting low-income residents. With that in mind, especially in the health services program, Mr. Chairman, I've read with intense interest from the Fraser Forum a new health reform policy in Slovakia reminds Canada of a lesson it has yet to learn, and it speaks to a number of interesting initiatives that small Slovakian country had taken in terms of reforming its health care. I see a number of interesting sectors that we could take as excerpts from this article that the department may want to look at in the longer term to see if that would fit some of our own recommended reforms here in the Northwest Territories. I certainly believe that it also has some very interesting methodologies it could employ here. In the context of what the Minister said earlier about the vulnerability of our health care system, should we not be looking at something that would be more of a cost-sharing program for health care? I'm going to ask the Minister if he would look at some of the transitions that this European country had made in terms of addressing its health care program. Thank you.

Thank you, Madam Chair. To the Minister, I don't think anybody likes to be put into an insolvency position, but I think unfortunately you have been forced into one and that is my point. It is my deepest regret that if you look especially at the health reform policy that is introduced globally, we take a somewhat different approach. I think this is an opportune time to review where we are. As my reply to the opening address stated very emphatically, we need to look at some comprehensive reviews to look at some of the inefficiencies and remove some of those inefficiencies. I can refer back to many of your reports in the last four years that really indicate that there is a need to look at some policy reform, as well as an expenditure reform. I think that will be something that we need to really emphasize at this level.

I think politically speaking, from a constituency perspective, we have to deal with that issue otherwise we are going to continue, but not in terms as your statement says here at a 5.6 percent increase over last year's estimate. We must look from 1999-2000 and we are now in excess of $50 million in real dollars. So that is a contentious issue amongst your patients--if I may just use the word patients--across the North, and I think we need to look at where we can assist you by suggesting that we have to look at certain reform, and that is what we are trying to advocate here. I just wanted to express to you, Mr. Minister, that I understand perfectly well the deficit situation of this government, but if we are looking at an overhaul of our fiscal strategy, we need to have a look at the impacts that the health care costs have upon our residents. Certainly, as we go through your main estimates, I want to emphasize that as my critical point. With that, Madam Chair, I thank you.

Thank you, Madam Chair. I wasn't particularly going to make any comments, although I think

I'm compelled to now in a similar context as Ms. Lee. Certainly it's specific to the issue of the federal government's failure to meet its responsibility, as the Minister has stated. I just want to cross-reference a number of articles and correspondence I've had with the Finance Minister, as well, trying to interlay it with your replies on March 18th, pages 137 through to 143 inclusive. I was beginning, Madam Chair, through just reading an area that I expressed concern on behalf of my constituents and that was to look at capping or suggest to cap the Department of Health and Social Services as a way to mitigate the increased costs in respect of the vastly growing costs. Again, to me it is important that when we have accruals, the non-insured health benefits and the other component you expressed here, I still think if the federal government is capping the department, then obviously they should really consider capping as well an index to that cap to those annual increases. Thus, I think you would prevent yourself from going into some insolvency on a number of the program components. Certainly, the area that intrigued me was the fact that the Member for Range Lake asked you a question in regard to launching some legal action, and although you inferred, Mr. Minister, that there was a court case initiated in the past, the federal government went back to its old ways of just dealing with you on a number of legal fronts. Again, I think this goes back to the very essence of my initial questions about the constitutionality of our North and how we deal with various federal departments, and being somewhat at their beck and call when it comes to delivering the expensive part of our programs, and obviously health is one of them.

Madam Chair, I think it is important, as well, in the overall context that we must look at further articles that the Minister says, and I am going to quote from March 22nd, he states, "Delivering a program on their behalf is putting us in the poorhouse, it is not a good deal for anybody to be carrying the fiscal can for the federal government." We certainly want to support the Minister in trying to convey that very important message to our federal colleagues, because we are at a point in our fiscal situation that requires us to take a more stringent approach to see if we can somehow alleviate some of those increased medical costs. Again, I want to look at whether the northern leaders meeting will resolve this issue. We don't believe so. My constituents believe that the experience we had with the social committee gathering in Hay River is that we are probably going to end up with the same net result, whereas we have no political strategy to approach the federal government in trying to resolve that critical issue of health care costs. Certainly, I don't know if it is in their vested interest to pursue that, other than saying that we need to work with Ottawa in the dispute over what is owed to the Government of the Northwest Territories. I want to assure the Minister that I want him to look at methodologies, so we can support your objective in trying to resolve this. Certainly we feel that the ultimate resolution to this is to return it back to the federal government under either the Department of Indian and Northern Affairs or else Health Canada. I think that is the only way to resolve this issue and show that we do need to protect our sovereignty and that we would have the capability of working with the federal/territorial relations on the matter before us, and the various other matters before us.

I want to perhaps pay a bit of attention to what we suggested to the Finance Minister and the fact that I think we need to really work towards finding a result to not only this situation, but to all the situations that are confronted to the Assembly, especially the 15th Assembly, and deal with it in the context of our fiscal outlook. It is regrettable that health is always being tackled on a number of frontal issues, but again I think the indicator is the fact that we have to ensure that the federal government acknowledges that we have to work in the context of viability and sustainability.

So with that, Madam Chair, I just wanted to convey to the Minister that there is a vast knowledge out in the public that we need to deal with the major concerns that you have expressed in this House, and some of the responses you have made to the ongoing questions. We certainly look forward to working with you in terms of trying to see if we can resolve some of these outstanding issues with the federal government, in particular with how we deal with trying to develop some legal instruments in doing that. Madam Chair, that concludes my remarks to the department. Thank you.

Thank you, Madam Chair. The committee recommends that we review the Department of Health and Social Services with the intent of concluding the department today. Thank you, Madam Chair.

Thank you, Mr. Chairman. Committee suggests we review the Department of Health and Social Services with the intent of concluding that department today. Thank you.

Thank you, Mr. Speaker. I certainly respect that response. I recognize that our political system in the Northwest Territories is not always conducive to the approach of economic business development. I am going to ask the Minister if he is willing to enter other regions of the Territories to help promote the prospects of a Mackenzie Valley gas pipeline to see if we can somehow influence some of the political institutions that come onside. I think that is one of the systematic problems we are having in the Territories. Again, I am going to ask the Minister if he is prepared to go into other regions and see if he can influence the political process at this point. Thank you.