Agreed.

Thank you. We have an information item on page 4-34, active positions. Any questions on this page? It is an information item provided to you. Thank you. Detail of work performed on behalf of third parties, page 4-35, total department, $14.352 million. Do we agree?

Agreed.

Thank you. We have program summary, page 4-5. Municipal and community affairs, operations and maintenance, total operations and maintenance, $81.487 million. Do we agree?

Agreed.

Thank you. Capital, total capital, $24.651 million. Do we agree?

Agreed.

Thank you. Total expenditures, $106.138 million. Agreed?

Agreed.

Thank you. I would like to thank the Minister and the witnesses for appearing before the committee. Does the committee agree that we proceed with Public Works and Services?

Agreed.

Mr. Enuaraq, you had your hand up.

Thank you, Mr. Chairman. I just wanted to continue with the next department, which is DPW. Thank you.

We have agreed. Minister Antoine, are you prepared to make your opening remarks for your department?

Thank you, Mr. Chairman. Today, I am pleased to present the 1998-99 Main Estimates for my new portfolio, the Department of Public Works and Services. The department's proposed budget for 1998-99 shows the need for about $59 million in the operations and maintenance budget and about $1.7 million in capital funding. The department has a total of 370 positions. Fifty of these are associated with the nonappropriated activities of the revolving fund for petroleum products and the chargeback fund for computer services.

Public Works and Services has two priorities for the coming year. One is to work toward a smooth transition of departmental services when the Government of Nunavut is established. This requires particular emphasis on the activities of the petroleum products division because plans for privatization have changed and services are still very much needed in Nunavut and the Western Territory. As 1999 draws near, it is very important that our employees, suppliers and contractors communicate and work together at all levels within the department and the government so that critical services of the department continue to be well managed and well delivered. The department is also managing a number of the Nunavut incremental infrastructure projects and will ensure that they are ready, on schedule and within budget.

The other priority for the next year is to implement community maintenance agreements. Maintenance agreements are now operational in ten communities and are being discussed in 19 more communities. Public Works and Services continues to provide technical support for many of the services that are transferred to communities. The department is working with MACA to ensure that the process works smoothly. These maintenance agreements are a good way for the communities to gain experience in managing government infrastructure. That completes my opening remarks, Mr. Chairman. I will be pleased to answer the Members' questions.

Thank you. Who did the review of this department, which committee? We will take a moment to break here. Do you want to take five? I am told we are ready. Mr. Barnabas, do you have opening remarks on behalf of your committee?

Thank you, Mr. Chairman. Committee Members were concerned that some regions may have been receiving inappropriate amounts of fuel price subsidies. The department agreed to provide the committee with the appropriate price subsidy information. The committee recently received the fuel subsidy information as requested. The document outlines in detail positive or negative subsidy amounts by community and product. The committee looks forward to reviewing the data. The Minister informed the committee that he and his department concurred with the committee's recommendation that the privatization of POL be postponed until after division. The Minister also indicated that the privatization initiative would require the implementation of an alternative supply system. However, alternative supply system projects were also deferred upon the advice of the committees and residents of the affected region.

Aviation gas, or AV gas, is fuel specifically used by piston driven aircraft. There is no AV gas available for the smaller communities. Currently, piston crafts have to haul their own fuel, which decreases cargo space, increases operating costs and compromises the safety of the passengers and crew. The department stated that there was no need for AV gas to be available for small communities as turbo pumped aircraft, which do not require AV gas, will eventually replace most planes. However, the committee is aware that there are many piston driven aircraft currently in operation in the north and that there will continue to be so. Turbo propped aircraft are expensive to purchase and operate. The committee does not anticipate rapid change on the current situation. The committee further noted that the piston-driven aircraft forms a majority of aircraft being used in the north. Lack of available AV gas in many communities gives an unfair advantage to the limited number of airlines.

The committee feels strongly that if the fuel is available for turbo propped aircraft, fuel should be available to the piston driven aircraft as well. More importantly, the few airlines that do use turbo props serve only selected communities. The Minister recently wrote to the committee to comment on some of our initial concerns. He advised the committee that there are significant issues to consider regarding the supply of AV gas. These issues include the limited shelf life of AV gas, environmental issues related to its use and disposal and the special handling and storage requirements associated with AV gas. He has directed his officials to re-examine options to provide AV gas in isolated communities. The committee looks forward to reviewing the upcoming evaluation.

In Yellowknife, the department is working on a major office plan to deal with the downsizing associated with the creation of two new territories. Committee Members noted that the plan might result in large penalties or buyouts on long-term leases. The committee requested that the department provide a copy of the office space consolidation plan and that they provide an explanation of how landlords may be assured that they will be treated equitably in any office space consolidation initiative undertaken by the government. The committee recently received the office space plan as requested. The plan describes lease commitments and the consolidation of office space in the city of Yellowknife. Committee Members look forward to reviewing the document. Thank you, Mr. Chairman.

Before I give the committee Members the privilege of making general comments, I would like to ask if the Minister wishes to bring in witnesses and I will recognize the Member.

Yes, Mr. Chairman, I would like to bring in witnesses.

The Minister wishes to bring in his witnesses. Does the committee agree?

Agreed.

Mr. Minister, would you please introduce the witnesses to the committee?

Thank you, Mr. Chairman. Mr. Chairman, to my left is Ken Lovely, he is the deputy minister of this department, and to my right is Ms. Gay Kennedy, the director of corporate services.