Thank you, Mr. Chairman. We have given copies of the opening remarks -- 42 copies -- to the Clerk. We have done that already.
I am pleased to be here today to present the proposed 1995-96 capital budget for the Department of Public Works and Services. The capital requests total $12.685 million.
This year the Department of Public Works and Services, along with the NWT Housing Corporation and the Department of Education, Culture and Employment, have implemented the building and learning strategy in 12 pilot communities; two in each region. The number of participants has increased to approximately 100 in the training programs this year.
Local people are involved in training that will advance them towards jobs as trades persons, project managers or foremen. In addition to the six community training committees established last year, committees have now been established this year in Baker Lake, Coppermine, Igloolik, Fort Providence, Lac La Martre and Snare Lake. These committees work with representatives of the three departments and identify priorities and trainees for the training opportunities associated with local construction projects.
In 1995-96, the department will manage approximately 600 capital construction projects worth $79 million. The department's objective is to maximize the northern employment and business opportunities associated with the GNWT construction program. In addition to the building and learning strategy, the department used a wide variety of delivery approaches to achieve this objective. As a result, there are increasing numbers of northern companies, based in the smaller communities, that can be counted on to carry out construction projects. Fossil Lake Enterprises Limited in Fort Good Hope is one example. This company has managed renovation and construction projects for the GNWT over the last two years, totalling more than $2.5 million.
Many other companies, such as Kawtak Construction Limited in Sanikiluaq, Qillaut Development Corporation in Pond Inlet, Qikiqtaq in Pangnirtung, Cap Mountain Ventures in Wrigley, Issatik in Whale Cove, Tetlit-zeh in Fort McPherson and Nakehk'o Koe Construction in Fort Simpson, to name only a few, have all benefitted from these approaches.
In January, I wrote to all MLAs outlining the delivery approaches for projects in their ridings. I will briefly outline some of these project delivery methods.
The many small road-site-land development projects are normally tendered by invitation to local companies only. If there is only one local company, the department will sole-source that contract. If there is no local company, the department will sole-source with the local council.
Contracted construction management services are sometimes used in communities where there is no local construction company able to manage a project. The construction manager must ensure the use of local labour, equipment and small businesses. This approach was used for projects such as the community centres in Nahanni Butte and Kakisa and the Snare Lake community office and school.
The department contracts with local development corporations and local councils to provide labour to general contractors. For example, Nakehk'o Koe Construction is providing labourers for Hovat on the Fort Simpson Bompas school project.
At my instruction, the contract for the Arviat tank farm construction was tendered by invitation only to NWT contractors. Before this project, construction contracts for tank farms and fuel storage facilities had traditionally gone to southern companies. A local firm, Eskimo Point Lumber, won the contract and is now completing its first year of work on this multi-million dollar multi-year project. The department has worked closely with the company to assist the owner to manage the largest contract this company has ever had.
In 1994-95, to date, four contracts for capital construction projects have been approved for negotiation, for a total value of approximately $1.3 million. The awards for these negotiated contracts have been within the budgeted estimates. I am confident, therefore, that the department is getting good value when these contracts are negotiated.
This year, the department contributed $1.4 million to the retrofitting of the Terry Fox ice breaker, as part of a joint initiative with the federal government. A new crane will be installed and tanks will be retrofitted. This retrofit will permit an annual sealift resupply of petroleum products and dry goods to Pelly Bay and will benefit the community significantly by reducing the costs of these goods.
For the 1995-96 capital budget, the department provides office space to government departments and is requesting $1.131 million so that space requirements can be met in eight NWT communities. I am pleased to report that one major undertaking, the Yellowknife office plan, is on target to reduce the total inventory of leased office space by 40,000 square feet in Yellowknife by the end of 1996-97 and to achieve an operations and maintenance savings of $1 million annually by 1997-98.
Under the building and works activity, the department is requesting capital funding to continue to upgrade the program for the Laing Building in Yellowknife and the Brown Building in Iqaluit. Ventilation systems in five schools will be upgraded to national building code standards as part of a multi-year project in which 20 schools will be upgraded over five years. This will provide a healthier environment for the students. The department will continue with the energy conservation capital program and proposes to commit $450,000 to those projects.
In the vehicles and equipment activity, $647,000 is required to replace 25 vehicles: 13 are for the Department of Public Works and Services, while 12 are for other departments.
Cabinet approved the transfer of the community dust control program, effective April 1, 1995 and the proposed capital main estimates for MACA and Public Works and Services have been adjusted accordingly.
The petroleum products division buys, ships and stores petroleum products for over 45 communities not served by private industry. Facilities and vehicles are required to keep pace with the growing community demand. As a result, major tank construction projects will occur in five communities. Projects in another five communities will proceed to design and warranty phases. The total capital request for the petroleum products activity is $7.83 million.
This year, under the systems and communications activity, the department is requesting $190,000 to fund the continued upgrading of mainframe hardware systems. This also includes starting a three-year project to upgrade computer room facilities in the regional centres.
Members will note that the funding requested for the delivery of the building and learning strategy has not been included in the department's 1995-96 plan. The 1994-95 program will be reviewed later in the year. Plans for 1995-96 will be developed and funding will be requested through a special warrant.
Finally, as Members know, the department will move quickly to undertake community consultation on the business incentive policy. We intend to take the revisions to the policy to Cabinet before the end of the fiscal year. Thank you, Mr. Chairman. That concludes my opening remarks. I will be pleased to answer any questions from the Members. Mahsi cho.