Mr. Chairman, I recommend that we continue with consideration of Bill 33, reviewing the Department of Transportation budget next.

Yes, Mr. Chairman.

Thank you, Mr. Chairman. I am pleased to bring before the Legislative Assembly the proposed 1992-93 main estimates for the Department of Transportation. These estimates provide the funding required to ensure that our existing transportation infrastructure is maintained to an adequate level of safety and service.

The O and M budget proposed a total expenditure for 1992-93 of about $40 million. This is about half a million less than the main estimates and subsequent approvals for 1991-92. The department's establishment has also been reduced by 9.3 person years.

Despite these reductions, the department has achieved a number of significant objectives during the year thus far.

For the first time, the main estimates for 1992-93 show the $7.8 million in O and M expenditures that the Department of Transportation now spends annually on the 38 territorial airports transferred from the federal government in 1991.

Another important initiative, is the department's highway dust control program. Through this program, over half of the gravel surfaced roads on the territorial highway system are now dust free. Dust control provides better driving visibility, and is an important factor in increasing highway safety.

As a result of the Department of Transportation's efforts, and the cooperation of the Canadian hydrographic service and the Canadian Coastguard, charting of a safe marine access channel through the ice to the community of Pelly Bay has been completed. Marine re-supply of fuel to Pelly Bay could begin as soon as the 1993 shipping season, followed by dry cargo re-supply in 1994. This will have a significant impact on supply costs to the community.

The Departments of Transportation, and Energy, Mines and Petroleum Resources, are participating with the federal government, and several transportation and resource sector companies, in a study of marine shipping possibilities in the Kitikmeot's Coronation Gulf area. This may lead to major economic developments in the region, provide employment and business opportunities, and reduce supply costs for communities in this region.

In summary, the department is pursuing the objectives of the transportation strategy through improvements to the operations of N.W.T. road, air and marine transportation systems which are so important to the social and economic well being of northerners.

Those are my opening remarks, Mr. Chairman.

---Applause

Yes, Mr. Chairman. I will ask two of my department officials to be at the witness table with me.

Thank you, Mr. Chairman. As is the usual case, the comments from the Standing Committee on Finance come before preamble to the motions. The first has to deal with the transportation strategy. Transportation infrastructure Canada historically has been a joint federal provincial effort to enable people to move, be it east and west, or north and south. For example, the Queen Elizabeth Way was not paid for by Ontario, and the cost of the Newfoundland ferries is not borne solely by Newfoundland. The federal government also has a large role to play in the Northwest Territories transportation strategy. However, discussions at the political level need to be revitalized.

Therefore, Mr. Chairman, I move that this committee recommends that the Department of Transportation increase the political priority to negotiate a significant federal presence in funding new transportation infrastructure, and report by March 31, 1993.

Thank you, Mr. Chairman. Our next resolution has to do with make work projects. The committee supports highway initiatives, if they create jobs, economic development and community access.

Therefore, Mr. Chairman, I move that this committee recommends that the Department of Transportation work with the Departments of Social Services, Justice, Education, Economic Development, Employment Canada, and communities, to develop creative approaches to transportation infrastructure projects, to put people to work and open up the north.