Indigenous and Northern Affairs committee  There are two things. First of all, the territories are protected from about 70% of the economic decline because it's measured as the shrinking capacity. So they're exposed to 30%. But if they raised their taxes they would keep that, and it would help them offset any fiscal costs.

Indigenous and Northern Affairs committee  I don't have any information with me. I'd have to check whether the provincial economic accounts divide those up with the territories. I don't have any numbers in front of me, for example, for tax revenues from the territories. I have nothing with me, so I couldn't really answer that.

Indigenous and Northern Affairs committee  There are a couple of things. First of all, we do provide assistance through the larger block transfers. We have the territorial formula financing, which the territories have the flexibility to use as they see fit. We have the Canada social transfer, a portion of which is to cover post-secondary education.

Indigenous and Northern Affairs committee  In some sense, what we're giving is a block transfer to the territories based on our measure of need, which is a measure of expenditure need less our estimate of what revenues they could raise, similar to the revenue-raising measure we use under equalization. It then is up to the territorial governments to spend that as they see appropriate, targeting the priorities of their residents.

Indigenous and Northern Affairs committee  The GST would of course be included in inflation. Any inflation measures that would have increases, decreases, or changes in direct taxes are in there.

Indigenous and Northern Affairs committee  I wasn't aware that we weren't including the Norman Wells revenues.

Indigenous and Northern Affairs committee  I would have to look at that and get back to you. If you're talking about past revenues that have been accrued from different projects, I can certainly look into the situation.

Indigenous and Northern Affairs committee  I will have to look into that and determine what the question is there. We'll get back to you.

Indigenous and Northern Affairs committee  There are two questions there, so I'll try to answer them both. In the submissions, I think you're referring to the O'Brien panel, which was looking at equalization and the territorial formula financing. The government adopted many of the recommendations the panel made on the territorial formula financing.

Indigenous and Northern Affairs committee  If I understand correctly, that would be a matter for the governments of Nunavut and Quebec to debate. Are there any reciprocal agreements between the two? Our human resources development programs are in all the provinces. We give money to all the provinces and territories to fund all of the programs Mr.

Indigenous and Northern Affairs committee  I'll have my colleague, Mr. Keenan, answer that question.

Indigenous and Northern Affairs committee  We have a funding formula in place for the territories that recognizes, as I said in my notes, the unique circumstances of the north.

Indigenous and Northern Affairs committee  Those wouldn't change. Again, I couldn't commit to something, but obviously we have a situation where we do recognize their unique characteristics now.

Indigenous and Northern Affairs committee  First of all, the agreement would have to be between the Yukon government and the first nation as to what service is getting devolved. So I think from there you would have to look at what the financing implications are. It's hard to make blanket statements about those—

Indigenous and Northern Affairs committee  The $2.5 billion I mentioned is a transfer from the federal government to the territory. It has nothing to do with CanNor. The funding is sent to the territorial government; it is a block transfer. The territory decides how it will be spent.