Thank you, Mr. Speaker. As you may recall, previously I had commented on the Department of MACA and the Hamlet of Rae-Edzo coming to agreement regarding the take over of the water and sewer system. This is going to take place possibly April 1, 1997. However, we do have concerns. These talks have been in the process for approximately 10 years and over the period, MACA and Public Works and Services have investigated the system of both Rae and Edzo many times, all coming to the same conclusion, that both systems need repairs. Over the same period, these departments have hired two different consultant groups that each have produced reports showing there are deficiencies in the system and what suggested solutions could be made, and all associated costs.
What we have in Edzo is the system that was installed when the community was built back in the late 60s and the early 70s. This system is all underground and is now getting close to the end of its lifespan. The system in Rae is a combination of underground pipe and truck delivery. This system is also getting fairly old and needs major repairs annually. The problem that keeps coming back, is what is classified O and M versus what is capital.
According to the hamlet water and sewer policy, all O and M charges are billed to Public Works and Services to be recovered from the hamlet. This has been the practice since 1987 when this policy came into effect. In most cases, the NWT is not a problem in those communities where lines are in surplus from their sewage and water sections. However, in Rae-Edzo due to the high cost of repairs associated with the system, all charges go back to the hamlet.
The hamlet is not getting ahead of the game. The system needs some major repairs and will cost thousands of dollars. It has now been identified that the Rae-Edzo system is too small to adequately supply the growing community. To date, all expenditures have been through O and M, which, of course, adds more financial burden to the hamlet. There is still no move by the department to have these major repairs recognized as capital. What must be done to convince this department that these are capital requirements, not O and M. All work is presently being done as emergency solutions to the problem, not to plan to see what areas need work, and those have as capital lines to ensure it is not too overwhelming a burden to the hamlet, as it is at the present time. Thank you, Mr. Speaker.
--Applause