Thank you. To the point of order. Agreed. What is the wish of the committee?

Thank you. We will take the point of order under advisement and report to this House. Mr. Kakfwi.

Do we agree, as suggested by the honourable Member that we will, at least, go into the opening remarks of the Department of Transportation. Agreed?

Agreed.

Thank you. Mr. Erasmus.

Thank you, Mr. Chairman. My mother is waiting to attend a supper for my birthday. I would like to move that we report progress.

-- Laughter

There is a motion to report progress and it is not debatable. All those in favour of the motion to report progress, please put up your hand. Opposed. With regret, Mr. Erasmus, I would like to advise that the motion is defeated. I would like to ask the Minister of Transportation, Mr. Antoine, to make your opening remarks on the Department of Transportation. Mr. Antoine.

Thank you, Mr. Chairman. Mr. Chairman, the department's budget for 1997/98 must be seen in the context of the government's larger priority to balance this budget and eliminate the deficit prior to division. It has been a difficult budget to prepare. It represents an overall 14 percent reduction in the Transportation portfolio. The department's budget dropped from $99 million in 1996/97 to $85 million in 1997/98. This is a combined capital and O and M reduction for the next year of $14 million.

In the transfer agreements, the Department of Transportation has negotiated since 1989 with the Government of Canada. It has taken on responsibility for the construction, operation, and maintenance of 45 public airports and 2,200 kilometres of public highways. The territorial system of transportation infrastructure represents a long-term public investment with a replacement value of approximately $2 billion. Mr. Chairman, despite the budget reduction, the Department of Transportation retains responsibility for the upkeep and maintenance of a much expanded public transportation system. Meeting the reduction in its 1997/98 budget will require the department to reduce its maintenance operations and levels of service across the system. We will not be able to provide the services to the public as we have in the past. The department's capital program has been reduced from $42 million in 1996/97, to $30 million in 1997/98. This is a substantial reduction. At this rate of capital spending, the department can meet only a third of its capital requirement, as identified in 1994 transportation strategy update. It no longer has the resources to make many needed improvements in the transportation system.

I would like the Members to know that in prior years, the Department of Transportation has moved capital from its highway programs to its airports and community marine programs. This was done principally to take advantage of one time cost-shared federal infrastructure agreements that came with the airport transfer in 1991, as well as the strategic transportation infrastructure agreement, or STIA, of 1993. As airport and marine projects are completed and cross sharing agreements come to an end I hope, in future years, to return capital to the highway program.

On other matters, I have more positive developments to report. The Department of Transportation is moving along well with the community empowerment initiative. All seven communities in the Keewatin region, as well as several more in other regions, have expressed interest in taking over responsibility for their airports. I fully expect several airport transfers will take place over the next few months. The department continues its work on the transportation agenda, to develop partnerships with aboriginal groups and the private sector for the construction of new northern roads.

The Department of Transportation is an active participant in the national program Vision 2001, to improve road safety in all the jurisdictions across Canada. Specific initiatives include: the national occupant restraints program to increase the use of seat belts and child safety seats, the strategy to reduce the impaired driving, aims to reduce highway fatalities and injuries through enhanced enforcement measures, and public awareness campaigns.

In closing, Mr. Chairman, I have heard the Members of the Legislative Assembly commenting on the government's budget reduction measures and calling for fairness and equity. I want to assure the committee that in deciding on the reductions detailed in this budget, I have done my utmost to achieve fairness in equity. The fairness in equity we strive for is the efficient operation and balanced delivery of programs across the territorial public transportation system. I hope the committee will agree that we have done this. With that, Mr. Chairman, I conclude my remarks. Mahsi cho.

Thank you. There was a consent of the membership of this committee to at least conclude the opening remarks of the Minister. Now what is the wish? Mr. Ootes. Mr. Erasmus indicated that he wanted to speak before Mr. Ootes did, so Mr. Erasmus.

I had my hand up for general comments.

Thank you. In order to go into general comments, we have to follow the procedures that we have been following. After the comment by the Minister, it is on the item, on the rules, that the committee which has reviewed the particular department will do the opening remarks. Agree? What is your wish now? Do we agree that the Member of the appropriate committee will make the opening remark? There was an indication earlier that we would at least do the opening remarks of the Minister of Transportation, that is why I asked what you wish to do. It seemed to be the consent that we will now go into the opening remarks of the chairman who will designate the appropriate committee. Mr. O'Brien.

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.

Thank you. With a couple of minutes to spare, I feel that we will not be making considerable progress. I will rise and report progress. Thank you. I recognize the clock. Thank you.

The House will come back to order. We are on item 20, report of committee of the whole.

Good evening, Mr. Speaker. Thank you, Mr. Speaker. Your Committee has been considering Bill 8, Appropriation Act 1997/98, and Committee Report 3-13(4) and Committee Report 4-13(4) and would like to report progress. Mr. Speaker, I move that the report of the committee of the whole be concurred with. Thank you.

Thank you, Mr. Ningark. Good evening to you. Seconded by Mr. Dent. The motion is in order. To the motion. Question has been called. All those in favour? All those opposed? The motion has been carried. Third reading of bills. Mr. Clerk, orders of the day.

Mr. Speaker, meeting of the Western Caucus immediately after adjournment this evening. Meetings for tomorrow at 9:00 a.m. of the Standing Committee on Social Programs as well at 9:00 a.m., of the Standing Committee on Infrastructure, at 10:30 of the Ordinary Members' Caucus and 11:30 of the Nunavut Caucus.

Orders of the day for Thursday, February 13, 1997:

1. Prayer

2. Ministers' Statements

3. Members' Statements

4. Returns to Oral Questions

5. Recognition of Visitors in the Gallery

6. Oral Questions

7. Written Questions

8. Returns to Written Questions

9. Replies to Opening Address 10. Petitions

11. Reports of Standing and Special Committees

12. Report of Committees on the Review of Bills

13. Tabling of Documents

14. Notices of Motion

15. Notices of Motion for First Reading of Bills

16. Motions

17. First Reading of Bills

- Bill 10, Supplementary Appropriation Act No. 3, 1996/97

- Bill 11, Loan Authorization Act, 1997/98

- Bill 12, Student Financial Assistance Act

18. Second Reading of Bills

19. Consideration of Committee of the Whole of Bills and Other Matters

- Bill 8, Appropriation Act, 1997/98

- Committee Report 2-13(4), Standing Committee on Government Operations, Report on the 1997/98Main Estimates

- Committee Report 3-13(4), Standing Committee on Infrastructure, Report on the 1997/98 Main Estimates

- Committee Report 4-13(4), Standing Committee on Resource Management and Development, Report on the 1997/98 Main Estimates

20. Report of the Committee of the Whole

21. Third Reading of Bills

22. Orders of the Day

Thank you, Mr. Clerk. This House stands adjourned to Thursday, February 13, 1997 at 1:30 p.m.

-- ADJOURNMENT