Thank you, Mr. Speaker. Mr. Speaker, I am pleased to present the report of the Standing Committee on Infrastructure on the review of the 1998-99 main estimates.
The departments in the infrastructure envelope fall within two categories. The Department of Public Works and Services and the Department of Municipal and Community Affairs which provide services to the government, to municipalities and to individuals.
Other departments in this envelope include the Executive, Aboriginal Affairs, Finance and the Financial Management Board Secretariat. These last four departments are central organizations which serve the entire government and provide central direction.
The issues that were of most concern to Members include matters relating to division, block funding to regional bodies and the public/private partnership proposal. A major concern and recurring theme of the committee's review was that the government should wait until division is implemented prior to any large commitment or significant change, such as the privatization of the Petroleum Products Division and the Keewatin Resupply Project. Both have been understandably postponed until after division. These projects may be addressed by the next Legislative Assemblies, as recommended by Members of this committee and other concerned Members. Overall, the committee was concerned with the incremental and transitional costs of division and until there is definite political direction by the affected parties, there should be a halt on any further commitments unless they are absolutely necessary.
Committee Members have examined the proposal for block funding to the Keewatin Regional Airport Authority. The block funding comprises both capital and operations and maintenance monies. This proposed transfer represents a profound change in the way government conducts its business. There has never been a block transfer of capital and operations and maintenance funding to a regional authority. After further discussion, the committee feels this proposal should be postponed until after division.
Revenue generation is a significant challenge for departments within the infrastructure envelope. There are many infrastructure deficiencies that need to be addressed by the government, and funding sources are dwindling. The government recently proposed the public/private partnerships initiative, which is intended to address some of these deficiencies through partnerships with the private sector and to reduce the government's potential financial burden. Other possible sources of revenue generation were discussed, including a highway commercial truck tax and an increase in corporate income tax. The committee will provide more detailed comments in relation to the main estimates for each department in committee of the whole.
Finally, the committee appreciates the assistance of the departments within the infrastructure envelope during its review of the main estimates, especially given the tight timelines and the requests involved in this process. Mr. Speaker, this concludes the introductory comments of the Standing Committee of Infrastructure on our review of the 1998-99 main estimates.
THEREFORE, I MOVE, seconded by the honourable Member for Yellowknife South, that the report of the Standing Committee on Infrastructure on the review of the 1998-99 main estimates be received by the Assembly and moved into committee of the whole.
