Thank you, Mr. Speaker. Mr. Speaker, I am pleased to provide the House with an update on the Mackenzie gas project. On April 27, 2005, Imperial Oil Limited, on behalf of the Mackenzie Gas Producers Group, announced a shift of attention from engineering studies to an increased focus on the pressing regulatory issues associated with the proposed Mackenzie gas project. The producers group also expressed the view that the economic demands in access and benefit negotiations were beyond the scope of what properly constitutes those agreements.

The producers group also made it clear that they expected the federal and territorial governments to address socioeconomic impact requirements along the pipeline route. Mr. Speaker, we are in the process of doing that. GNWT and aboriginal leaders have asked the federal government to provide funding to deal with socioeconomic needs in the Mackenzie Valley. We have received a commitment from the Deputy Prime Minister and other federal Ministers that they will provide funding to do this and we are now working to determine an appropriate amount.

Mr. Speaker, we have also taken steps to support communities in this process. The GNWT is sponsoring three regional social impact workshops in Fort Simpson, Norman Wells and Inuvik in late May and June.

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The workshops will allow residents to discuss socioeconomic concerns and help identify the best ways to deal with impacts.

Mr. Speaker, we are optimistic that the successful resolution of the socioeconomic issues surrounding this project will allow aboriginal organizations and the Mackenzie Gas Producers Group to work towards a successful conclusion of the access and benefit agreements.

While the proponents did defer some work on the project, the regulatory process continues and so do our efforts in this area. Through the Mackenzie Valley pipeline office, our departments are working together to identify impacts and solutions. The GNWT is also fully engaged in the regulatory review. Our departments are working together with both the National Energy Board and the Joint Review Panel processes to ensure the interests of the Northwest Territories are protected.

The GNWT also recently announced $1.3 million to help communities plan for the Mackenzie gas project. My colleague, the Minister of Municipal and Community Affairs, will provide the House with more details on this initiative later today.

Mr. Speaker, the GNWT has taken a number of important steps to facilitate the effective development of the Mackenzie gas project. We continue to believe the project will provide many positive benefits for the territory, but most importantly this project will benefit our residents and provide opportunities that would not otherwise exist. Thank you, Mr. Speaker.

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