Thank you, Madam Chairperson. Madam Chairperson, it is my pleasure this afternoon to present for the committee's review the Department of Transportation's main estimates for the fiscal year 1999-2000. At the beginning of this session, the Premier announced the government's Agenda for the New North with its five essential elements: governance, fiscal capacity, building our economic potential, sharing control of northern resources and improving social conditions. The agenda sets out where we must concentrate our efforts to guide our new territory towards a secure and promising future. The Department of Transportation's main contribution to accomplishing this agenda will be in building our economic potential.
Now that the division of the Northwest Territories is behind us, it is time to give careful thought to the requirements of our new territory and to make sure that our transportation system: our airports, highways and ferries, meet those requirements. I am happy to tell the committee that the timing seems to be working out very well. Two weeks ago, I went to Ottawa to meet with the federal Ministers of Finance and Transport, along with my provincial and territorial counterparts. The purpose of the meeting was to discuss the economic, political and financial practicalities of a federally-sponsored and cost-shared National Highways Program.
For many years, the provincial and territorial governments have pleaded the case for a substantial federal commitment to the restoration and development of our national highway infrastructure. At long last, Ottawa appears to be taking a serious and favourable interest in these proposals. At this stage, nothing is firm. But, over the next several months, the federal, provincial and territorial governments will try to work out the details of a financially sound National Highways Program that enjoys broad support as a national priority.
The timing could not be better. At the same time that we in the new Northwest Territories are having a fresh look at our transportation priorities, the federal government is giving serious attention to supporting a new National Highways Program. If new federal money should become available in the next while, it will come at exactly the time when we have given careful consideration to how we should best apply it.
In the air transportation portfolio, access to cost-shared national programs has been an important source of capital for making improvements to our transportation system. The Department of Transportation has recently received confirmation from Transport Canada that it is eligible for capital projects under the federal Airports Capital Assistance Program.
The department has worked closely with NAV Canada as it has developed its plans to rationalize the air navigation system in northern Canada. For many years now, the Community Aerodrome Radio Service has been a successful, made-in-the-north program for the delivery of observer/communicator services at our northern and remote community airports. By making full use of the CARS program, Nav Canada's rationalization plan will establish 22 new local jobs at our airports. The flight service stations at the Fort Smith, Hay River and Fort Simpson will be converted to enhanced CARS operations. Two new CARS stations will be added to the system this year at the Rae Lakes and Lutselk'e airports. Madam Chairperson, the 13th Assembly has had the difficult and unpleasant task of paring back important public programs to put our national and territorial finances in order. The Department of Transportation's capital program is roughly half what it was last fiscal year.
Madam Chairperson, for the budget the committee is reviewing today, the government's financial position remains tight. The department's proposed budget of $66 million consists of an operations and maintenance component of approximately $43 million and a capital program of some $23 million.
In adapting to our financial realities, the Department of Transportation made a policy decision to maintain the ongoing levels of transportation services the public expects of it by scaling back its capital program for improvements to the transportation system. This budget reflects that policy. Many worthwhile projects that might have improved the efficiency, comfort and convenience of our transportation system have been deferred until better financial times.
Still, Madam Chairperson, as the term of the 13th Assembly comes to an end, I have reason to be optimistic. The public can count on the safe and reliable operation of its airports, highways, ferries and winter roads. As we go through the department's budget, I would ask the committee to keep these larger perspectives in mind. Our goal is a safe and efficient transportation system. I think the Members will agree that with this budget, the Department of Transportation sets off with a good start in the right direction for our new Territory. Thank you, Mr. Chairman.