Thank you, Mr. Speaker. Mr. Speaker, higher fuel costs are a concern for northerners and a concern for this government. As Minister of Finance today, I would like to provide some detail about how our tax system affects fuel pricing.

The GNWT does not set or regulate the price of gas or other fuel products. The petroleum products division supplies 15 NWT communities on a full-cost recovery basis but does not set the initial price.

There is no GNWT tax on home heating fuel.

There is no GNWT tax on natural gas.

There is no GNWT tax on propane, whether it is used to heat homes or power vehicles.

The GNWT tax on aviation fuel is less than half the national average.

Only three Canadian jurisdictions have on-highway fuel tax rates lower than the NWT.

Only two Canadian jurisdictions have lower diesel tax rates than the NWT.

The GNWT fuel taxes are set at a fixed rate per litre. We receive no extra revenue when fuel prices increased. The government does not intend to increase the tax on fuel, but we will not be decreasing or eliminating it either.

Reducing taxes on gasoline and diesel fuel will not help residents conserve energy; however, a reduction in taxes could result in decreased funding for much needed programs and services for our residents. The GNWT does not directly benefit from the royalties of oil and gas production and doesn’t receive any financial advantage from higher oil and gas prices.

Our government believes the most effective approach to higher fuel costs is each northerner's commitment to reduce consumption. During this session, we will be introducing a supplementary appropriation bill requesting funds to be directed towards a conservation and education campaign designed to help residents cope with the increases in the fuel bills they will experience this winter. The federal government has recently announced that Natural Resources Canada will establish an office of petroleum price information, or OPPI. The OPPI will provide information on how markets work through ongoing analysis of the factors affecting petroleum supply and demand.

In mid-October, representatives from the Department of Industry, Tourism and Investment will attend the federal/provincial/territorial workshop to discuss the terms of reference and rules of engagement for the office of petroleum price information. We will have some general discussion on the role of the OPPI.

It is the intention of this government to work closely with the OPPI.

It is the intention of this government to work closely with the OPPI as a single-window access to consumer information and federal government programs in areas such as energy efficiency. Thank you, Mr. Speaker.

---Applause