We will go back to page 06-7, department summary. Capital expenditures, $154,000.

Agreed.

---Agreed

That concludes the Department of Justice. Do Members agree that we have concluded this item?

Agreed.

---Agreed

Thank you very much, Mr. Kakfwi, and your witnesses. Mr. Dent.

Are Members agreed?

Agreed.

---Agreed

Mr. Minister, do you have any opening comments?

Department Of Transportation

Minister's Introductory Remarks

Thank you, Mr. Chairman. Yes, I have some opening comments. Mr. Chairman, and Members of the Legislative Assembly, I am pleased to put before you, the Department of Transportation's proposed capital budget for 1995-96.

I am encouraged by several positive statements Members have made about some of the Department of Transportation's major capital projects this year: the highway reconstruction and paving program; airport improvements under the strategic transportation infrastructure agreement; community access roads; and, the Mackenzie Highway extension to Wrigley.

I want to thank the Members for their kind comments. It's nice to hear that we can get things right once in a while. More than that, I want to return the compliment and thank the Members for their helpful assistance and cooperation -- let me stress, cooperation -- both inside and outside the House. As the Minister of Transportation, I have received a lot of advice and support from the Members in making our transportation programs work well.

At $36.3 million, the budget before you today proposed to spend $1 million less in 1995-96 than we are spending this year.

With a smaller budget, we have had to consider each and every capital project to decide on those which should go forward and those which we have to defer. These are difficult decisions to make but, in view of our financial position, they are decisions which have to be made.

As we go through the capital programs, I hope the Members will see that we have applied our limited capital dollars to achieve the greatest advantage in pursuing our economic objectives.

The 2,200 kilometre highway in the Northwest Territories is our largest asset in the transportation system. With proposed expenditures in 1995-96 of $19.8 million, highway construction accounts for the largest portion of the department's capital budget.

The highway reconstruction program has made substantial progress over the last several years in improving the main corridor between the Alberta border and Yellowknife.

Including this past year's reconstruction program, now almost two-thirds of the 526 kilometre route has a paved, asphalt surface.

For 1995-96, the department plans to continue with the reconstruction of Highway 3 between Fort Providence and Rae-Edzo. Consultations with the North Slave communities will take place on the planning and alignment of the remaining section between Rae-Edzo and Yellowknife. The proposed expenditures in 1995-96 on Highway 3 amount to $7.7 million.

Boo.

Agreed.

The 1995-96 budget allots a total of $4.6 million for improved airport electrical and lighting systems, mobile maintenance equipment, equipment garages and air terminal buildings.

Most prominent is $3.4 million for new air terminal buildings at Cape Dorset and Rankin Inlet along with terminal renovations and enhancements scheduled at Chesterfield Inlet, Clyde River, Repulse Bay, Sachs Harbour and Sanikiluaq.

One of my primary goals as the Minister of Transportation is to develop more local transportation infrastructure in the communities. Last year, we increased the community access road budget from $300,000 to $650,000. The community transportation facilities contributions policy has been successful in involving communities in the design and construction of local access roads. Work on local road projects proceeded this year in Jean Marie River, Baker Lake, Arviat, Igloolik, Pelly Bay, Taloyoak, Broughton Island, Resolute Bay and Arctic Bay. The 1995-96 budget proposes to increase the community access road program again to $750,000. This will support continued work on the projects under way this year and contribute to the proposals the department has received from Gjoa Haven and Whale Cove.

The community access road program has generated growing community interest. With the participation of more communities, I am confident that the program will achieve the target I set for it of delivering $1 million worth of local roads by 1996-97. I am similarly pleased with the progress made under the community wharfs program in building local marine infrastructure. The breakwaters, wharfs and landings the program delivers involve modest capital expenditures compared to most infrastructure projects, but they achieve marked improvements in the safety and security conditions for local small craft.

The budget allocates $2.3 million to the community wharfs program in 1995-96. The program will continue in the third of a four-year project to build a breakwater and harbour in Pangnirtung. Work will be completed on the new landing areas and wharfs in Pelly Bay, Rankin Inlet and Whale Cove. 1995-96 will begin the first of a three-year project of harbour improvements in Coral Harbour.

In summary, these are the highlights of the Department of Transportation's 1995-96 capital budget. On the whole, I believe the budget presents a balanced program of capital initiatives in highways, airports, community roads and wharfs. As I mentioned at the beginning, it is a reduced budget from 1994-95. Nonetheless, the projects included in the budget represent substantive improvements and further progress in the development of our transportation infrastructure. Thank you.

Ohh.

---Applause

Thank you, Mr. Todd. People seem very pleased, Mr. Todd. Can we hear from the deputy chair of the Standing Committee on Finance, Mr. Ng.

Standing Committee On Finance Comments

Thank you, Mr. Chairman. The most important aspects of this department's presentation to the committee were briefings on the planned transfer of Arctic A airports from the federal government to the GNWT, and on marine resupply options for the eastern Arctic.

Arctic A Airport Transfer

The GNWT has already negotiated the transfer of responsibility for smaller B and C airports from the federal government, and is now concluding negotiations to transfer the larger A airports. These are the nine largest airports in the NWT: Cambridge Bay, Fort Simpson, Fort Smith, Hay River, Inuvik, Iqaluit, Norman Wells, Resolute and Yellowknife. When this transfer is complete, every airport in the NWT will be owned and operated by the territorial government.

The standing committee supports the principle of transferring responsibility for airports in the NWT from the federal government. Some concern was expressed, though, regarding the details of negotiations. The federal government appears to be trying to save money by devolving responsibility for all airports in Canada, other than the profitable ones, to other authorities. Committee Members urge the government to ensure that the final transfer agreement includes adequate resources to permit the continued operation of NWT airports at acceptable levels of service.

Eastern Arctic Resupply

In the committee's review of the 1994-95 capital estimates, serious concern was expressed about a proposal to build a marine resupply terminal in Rankin Inlet. At that time, committee Members refused to accept the project until such time as all available options had been explored. The $50,000 budgeted for the project for 1994-95 was eventually directed towards a full study of the issue.

The department presented its case for the terminal in a briefing to the committee. While resupply issues relating to the Baffin and Kitikmeot were also discussed, the committee's attention was focused on the Keewatin issue. Of the four options presented to the committee for Keewatin resupply, the department still recommended the original option of having dry goods continue to be shipped through Churchill, but with petroleum products now being shipped directly to Rankin Inlet and then redistributed by barge from there.

The presentation suggested that the direct resupply option would involve the lowest annual costs. The department explained that this option was not acceptable for a number of reasons. However, the committee did not feel that the explanation was adequate. Specifically, the briefing did not include any numbers supporting those reasons. Committee Members have asked the department for a more detailed report on the numbers surrounding the department's reasons for not choosing the direct resupply option.

The committee was also curious as to the division of responsibilities in the eastern Arctic resupply issue. It appears that the Minister of Transportation has taken responsibility for the Keewatin resupply issue, while the Minister of Public Works and Services has responsibility for resupply options in the Baffin and Kitikmeot regions. The committee's recommendation on this issue can be found earlier under capital expenditure issues.

Mr. Chairman, that concludes the Standing Committee on Finance review of the 1995-96 capital estimates for the Department of Transportation.

Thank you, Mr. Ng. Mr. Minister, would you like to invite your witnesses in?

I would, Mr. Chairman. May I?

Is the committee happy with that prospect?

Agreed.

---Agreed

Mr. Todd, please take the stand and bring your helpers in.

Thank you, Mr. Todd. Perhaps for the record, you could introduce your witness please.

Thank you, Mr. Chairman. On my immediate right is Mr. Gamble, who is the deputy minister of Transportation.

Thank you, Mr. Todd. Do Members have any general comments or general questions about the Department of Transportation? Are you ready to go into detail?