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.