Thank you, Mr. Chairman. The proposed 1997/98 budget for the Department of Transportation has been outlined as $85,16 million. Of this amount, $55,631 million will be spent on O and M and $29,885 will be spent on capital. This represents an overall budget reduction of over $16 million from the previous years, revised forecast in the account of some 29.5 positions.

The Rankin Inlet marine resupply terminal; while reviewing the 1996/97 main estimates for the Department of Transportation, Members questioned the Minister regarding a $1.05 million capital project entitled Rankin Inlet Marine Resupply Terminal and asked if the project was related to the proposed Rankin Inlet tank farm. Members were told that the community of Rankin Inlet needed these docking facilities, regardless of whether or not a tank farm was established, and that the project could be cost-shared with the federal government. The committee was also told that the Rankin Inlet tanker mooring project for $900,000 was directly linked to the proposed tank farm.

Based on this, the committee recommended that all projects related to the tank farm be removed from the budget until a final decision was made by the Keewatin resupply steering committee. The department responded by removing the $900,000 tanker mooring project and redistributing the funds within the department. While reviewing the 1997/98 business plan and the subsequent main estimates, however, Members noted an $820,000 allocation for the Rankin Inlet Marine Resupply Terminal Project. After questioning the Minister about this expenditure, Members were told that this expenditure was in fact linked to the proposed tank farm. Members were very disappointed with this move and noted that the proposed expenditure of $820,000 in 1997/98 went against the standing committee's earlier recommendation. Based on this, the committee requested that the Department of Transportation provide, in written form, detailed information on the Rankin Inlet Marine Resupply Terminal Project, including the following:

One, a year to year expenditure break down;

Two, a detailed description of what exactly this project entails;

Three, the criteria used by the department to substantiate both the 1996/97 expenditure and the proposed 1997/98 expenditure;

Four, an update on the current status of this project.

The Standing Committee went on to make the following recommendation.

The Standing Committee recommends that the Department of Transportation remove any and all capital projects related to the Rankin Inlet tank farm, until such time as the final report of the Keewatin resupply steering committee is made available.

Under staffing positions, the proposed '97/98 main estimates suggests the elimination of 29.5 positions. Upon closer examination, Members noticed that 14.5 of these positions are currently filled by staff. Members were not supportive of the department's plan to eliminate these 14.5 staff positions and felt that this move would only further demoralize a now already devastated public service. It was therefore recommended the Standing Committee on Resource Management and Development recommends that the Department of Transportation not removed the 14.5 staff positions during the 1997/98 fiscal year. It was further recommended that the funding required to maintain these positions to be found in other departmental areas, or that the funding be taken out of the projected 1997/98 budget surplus. Further to this issue, members were disappointed that the Minister had, at the time of the meeting already provided notice to these employees of the government's intent to eliminate these positions. Members felt that this notification was premature as it did not allow for committee approval.

Under airport lighting. the Arviat airport:

Members know that this project had been scaled back by the department from an overall expenditure of $530,000 to only $50,000 from 1997/98. This reduction had taken place without the involvement of the local MLA. Based on this the committee made the following recommendation: The Standing Committee on Resource Management and Development recommended that the funds originally scheduled for the airport lighting project be re-directed to other projects within the same riding. Thank you, Mr. Chairman.