Agreed.

---Agreed

Agreed.

---Agreed

Thank you, Mr. Chairman. Seeing we have a few minutes left, we will allow Mr. Todd to make his opening remarks for Transportation. Thank you.

---Laughter

Agreed.

---Agreed

Thank you, Mr. Chairman. Mr. Chairman, I am pleased to present the Department of Transportation's proposed O and M budget for the 1993-94 fiscal year to the Legislative Assembly.

In its O and M budget, the department proposed expenditures in 1993-94 of $45.8 million. The Members will notice that this is an increase of $5.8 million over the department's 1992-93 budget of $39.9 million.

The largest component of the increase is an internal $4.1 million transfer from the department's capital program to its O and M budget. This is an administrative procedure to account for routine, year-to-year expenditures which are necessary for the upkeep of transportation infrastructure and which are not new capital construction projects. Most of the transfer, $3.2 million, is within the airport operations program for the regular and systematic rehabilitation of airport runway surfaces.

The budget also includes an additional $750,000 necessary for the ongoing operation and maintenance of new infrastructure delivered under the department's capital program. The newly built or renovated air terminal buildings and equipment garages at Coppermine, Holman, Igloolik, Rankin Inlet and Tuktoyaktuk will require $255,000. The department has added four new airports to its system of community airports. These new airports are at Lac La Martre, Lutsel K'e, Paulatuk and Rae Lakes and involve O and M expenditures of $405,000.

Another new item in the department's O and M budget in 1993-94 is the assumption of responsibility for the administration and operation of the national safety code. Along with all other provincial and territorial jurisdictions in Canada, the Northwest Territories is signatory to the national safety code agreement. This is a national program to establish higher and more consistent safety standards in the trucking industry across Canada. Under the national safety code agreement, the federal government assumed the costs for the first five years of development, implementation and start-up of the program with the provinces and territories taking over the costs thereafter. The 1993-94 budget for the Department of Transportation therefore includes, $396,000 and five person years for the national safety code program.

As you know, Mr. Chairman, I have been and remain a strong proponent of "hire north" and "buy north" policies.

The Department of Transportation employs 222 people of whom 42 per cent are long-term northerners and 29 per cent are aboriginal. As the Minister, I will be encouraging the department to do better in attracting more northerners for managerial positions. The department will only recruit from southern Canada as a last resort.

The department also provides employment for a large number of northerners through its contracting. Negotiated contracts have been used to undertake maintenance operations on the highway system. In these cases, local development corporations can take advantage of the business opportunities and provide employment for residents who live near the area of work.

In addition, 36 of the department's 42 community airports are operated and maintained through contracts with the municipalities which hire their staff locally. The Department of Transportation has done much to "hire north" and I will be encouraging it to do even better in the future.

Most of the department's annual expenditures are made through construction, maintenance and purchasing contracts. In the first eight months of 1992-93, the department's contract awards came to $47.6 million. Almost $42 million or 88 per cent of these contracts went to northern contractors and suppliers. My goal as Minister is to see more local, community participation in the department's contract expenditures.

I have already made a statement earlier this session to say that I will update the transportation strategy. The system of transportation infrastructure we build in the Northwest Territories will have a major impact on the direction and the pace our economic and social future will take. Money is scarce and new roads, airports and sea ports are expensive to contract and maintain.

I want to be sure that the department's expenditures on infrastructure developments are taking us where we want to go. I will be going to the federal government in Ottawa for significant new transportation funding. I need to have an up-to-date, practical and compelling transportation strategy that Ottawa knows has the firm support and backing of every Member of this Assembly.

Mr. Chairman, the Department of Transportation's operation and maintenance budget is aimed at keeping our systems of transportation infrastructure operating safely, efficiently and reliably within the constraints of our government's reduced financial position. Through its expenditures, the department will aim at making the most of local and northern training, employment and business opportunities. Thank you, Mr. Chairman.

Question.

Mr. Chairman, I move that we report progress.

Before we proceed with item 19, I would like to wish, on behalf of all Members, a very happy birthday to Mr. Koe.

---Applause

Item 19, report of committee of the whole. Mr. Whitford.

Seconded by Mr. Koe. The motion is in order. All those in favour? All those opposed? The motion is carried.

---Carried

Item 20, third reading of bills. Item 21, orders of the day. Mr. Clerk.