Thank you, Mr. Chairman and thank you, Members of the committee. I am pleased to submit for your review today the Department of Transportation's main estimates for 1998-99. The department's total proposed budget for 1998-99 is $86 million. This total includes an operations and maintenance budget of approximately $56 million and a capital program of approximately $30 million. The transportation budget for 1998-99 remains essentially the same as the past fiscal year.

The single greatest challenge for the department has been adjusting to the reduction in its funding base. The department met its overall budget targets this year through large reductions in its capital program. This was a deliberate decision to maintain the existing levels of service that the public has come to expect of the transportation system in the day-to-day operations of our airports, highways and our ferries. Under the circumstances, I believe the decision to minimize the short-term impact on the transportation system was the best decision to make. However, as the comments from the Standing Committee on Resource Management and Development clearly recognize, the department's capital program does not support our aspirations for sustained economic growth and development in the long-term.

This is the larger context that I would ask the Members to keep in mind as we go through the department's budget in detail. We are in difficult times and they are not without their consequences. This budget does not let us do many of the things that we would like to do and that we know should be done.

With these few remarks, Mr. Chairman, I look forward to the Members' comments and questions. Mahsi, Mr. Chairman.