Thank you, Mr. Chairman. As a department, I do not believe any of the provinces know exactly how the federal government intends to divide the $150 million they have for the national highway system.

We are not sure how much we would get out of that at this point. However, the Member is right in that it will allow us to redirect some of our funding towards other areas in our transportation infrastructure. Thank you.

Thank you, Mr. Minister. General comments? Mr. Bell.

Thank you, Mr. Chairman. I would like to speak specifically about new money for highways. I am obviously interested in the speed-up of Highway No. 3.

Of course, we understand the reason this cannot be sped up is primarily a matter of money. It would cost additional money to speed this project from ten years to three years.

In light of some of the discussions Premier Kakfwi had with Paul Martin and Prime Minister Chretien, where he received assurances from them that there would be some economic development money available to the GNWT in the form of ADA agreements, likely for specific types of things.

I am wondering if the Minister has had a chance to sit down with Mr. Kakfwi and discuss the possibility that some of these highway projects, like Highway No. 3, could be considered project-specific, considering they have a few diamond mines that specifically rely on that upgrade and construction.

We know the traffic is going to get heavier. We know the use is going to get heavier. Obviously, citizens are concerned about that, and I think it is hampering economic development. I am wondering if the Minister has taken some of these things into account in light of the recent meetings Mr. Kakfwi has had, and use that as a possible approach for getting new money for these highways? Thank you.

Thank you, Mr. Bell. Mr. Steen.

Thank you, Mr. Chairman. I have not had an opportunity to sit down with Cabinet and discuss the approach we will use to try to obtain our share of the $150 million in funding that has been allocated for highway infrastructure.

However, as a department, we have taken on the initiative of trying to obtain the support of the smaller provinces, such as Prince Edward Island, and try to work out a strategy together as to how we can approach the larger provinces for support.

For example, have everybody agree on a base formula for dividing up the $150 million. A base amount to each province or territory, and from there divide up the rest based on either populations or length of the highway in specific jurisdictions.

We are still waiting for a response from Prince Edward Island, but that is the approach we are using at this time. No doubt I will be sitting down with Cabinet as to how exactly we are going to do this, once we receive some kind of response from the provinces as to how they intend to approach this as well. Thank you.

Thank you, Mr. Minister. Mr. Bell.

Thank you, Mr. Chairman. I think I can speak for most of the Members of this House when I say that the amount of money that was presented in the new federal budget for infrastructure was disappointing.

I think we realize that by the time that $150 million filters down to this level, no matter what statistics we use for dividing this up, it is not going to be enough money to go around and develop infrastructure the way we need to see it develop in the North.

I am suggesting that we make a plea to the federal government and let them know that highways, roads and infrastructure are going to be critical for economic development.

If there is economic development money available to us on a project specific basis, maybe we can appeal to them on this basis. Just a comment. Thank you.

Thank you, Mr. Bell. It was more of a comment than a question, but if the Minister would like to respond, he may.

Thank you, Mr. Chairman. Mr. Chairman, the Member is quite correct in that the amount of money, regardless of how much it is, is going to be minimal compared to what we actually need just for our own portion of the national highway system.

We have identified the need for this Territory to be $256 million, just to bring our portion of the highway up to standards. I know the Premier has been giving some thought to putting his support behind this suggestion of having some way of getting Mr. Coronet identify where the money is in this budget, either this year or next year. We can address the needs on a more realistic scale.

Thank you, Mr. Minister. General comments? Mr. Nitah.

Thank you, Mr. Nitah. Mr. Minister.

Thank you, Mr. Chairman. If the committee will bear with me, it will take a few minutes here. First of all, Fort Simpson, mobile equipment, airports, includes $186,000, capital carryover from 1999-2000.

The rehab of the terminal building in Fort Simpson, there was $400,000 deleted, deferred one year. The rehab of the apron in Fort Simpson, $10,000 deleted. Some of these projects I am showing as either deferred or carry over has happened. The deferred is only for a year. That is what we are planning at this point. If they are deleted, they are gone, for whatever reason. They may have been done, or they are done through another process.

In Fort Smith, we have a sewer system expansion at the airports. That project has been deferred to 2004-2005. In Fort Smith, we have expanded the terminal building. That has been increased with the thought that some of that is going to be recovered from Nav Canada. It was increased from $400,000 to $570,000. Fort Smith mobile equipment, that is a go ahead. Fort Smith replaced the rails. That project is deferred to 2004-2005.

Hay River, Highway No. 2, West Channel Bridge, increased from $1.6 million to $2 million. That is with the carry over of $400,000 from last year. Then Hay River Mobile Equipment has been reduced from $249,000 to $34,000 and it is going to be deferred to 2004-2005 for replacement.

Hay River Rehab Air Terminal Building, we will put that ahead $540,000. Previous budget had $5,000. It includes a $65,000 capital carry over from 1999-2000 and a budget adjustment to revised scope of work. The Rehab Hay River Maintenance Garage, $260,000. We put it up to $450,000 and post-interim appropriation includes $45,000 capital carry over and a budget adjusted reflects a wider scope of work.

The next one is a project of mobile equipment for Lutsel K'e Airports, showed $25,000. We have the project completed in 1999-2000. Lutsel K'e trail to Austin Lake, that is a community access road. That one is a proposed carry over of $45,000, so the total is $99,000 carried over from last year's $45,000.

Rae Lakes, to replace the air terminal building was $200,000 reduced it to $5,000 and that project is complete. It was advanced due to CARS project and Nav Canada recoveries. Rae Lakes access road, that one stays. The next one down for change is Fort Smith region Highway No. 3, kilometre 243 to 333. That is a project from $5.8 million to $6.1 million. With that, there is a carry over of $300,000 from last year.

The next one is Highway No. 4. We had a plan in there of $2.5 million, but we reduced it $494,000. It reflects a 2006 reduction to meet the requirements of this year's budget.

The next project down, Fort Smith region, and it is regarding ferries. There was a $50,000 expenditure there and then we deferred it to meet the budget requirements.

The next one is in Colville Lake airport parking garage; and that is $197,000 from the previous year. We had zero in the budget. That is a carry over of $157,000 with an estimated $40,000 for additional funding to offset the costs of the construction delays. The project was not done last year, so we just carried it over. We estimate a $40,000 increase in expenditures there.

The next one is Holman, replace air field lighting, was $35,000 previous, $250,000 now. It was to reflect cash flow of $35,000 in 2000 to $500,000 in 2001-2002 and $10,000 in 2002-2003. But we refined the project and adjusted to a total of $559,000 with $250,000 this year and $300,000 next year. Finally, $8,000 in 2003.

The next adjustment is in Inuvik airport. There was $1 million there in the previous budget. We put it up to $1.3 million and it reflects Transport Canada airport capital assistance policy, but we are hoping to get some recovery there of the whole project.

Inuvik air terminal building, we put that up from $100,000 to $110,000 and it was a minor project adjustment. We had also Inuvik replace (inaudible) and it was $10,000. The project has disappeared. I presume it was wrapped into another one. Replace airport maintenance garage, we had zero there before, but we put in $75,000.

Construction schedule for 2000-2001, in accordance with the December 1999 highway capital plan. We designed the project, but not this year. It was supposed to have been done last year.

Mr. Chairman, if somebody has run down the clock, I am not aware of it here. Would you like me to finish? It takes me a little while here.

I think, Mr. Minister, that was the document that we were asking for a copy to be circulated to the Members.

Mr. Chairman, if the Members want to be project specific, we can do that. We can provide a summary to the committee now. Mr. Handley will be presenting another summary next week.

Would it be possible, Mr. Minister, to get a hard copy of that document today or at your earliest convenience? Would that be satisfactory to your question, Mr. Nitah?

Mr. Minister, could you supply a copy of that?

Yes, Mr. Chairman, we have a copy here we could supply to the Members.

Thank you, Mr. Minister. General comments. We will go to Mr. Krutko.

Thank you, Mr. Chairman. A concern I had last year and it is probably going to arise this year, is for roads that are not paved or chip-sealed that we have a lot of problems with. Especially in the summer season, with dust and trying to have some sort of a dust control system in place. It is usually calcium that we use on our highway systems to maintain the problem with dust.

Also, trying to ensure the roads that have gravel and not hardtop, we try to find a safe way of dealing with the problem of dust control. I would like to ask the Minister, I am not too sure where in the budget if there is any money or money made available to be allocated to the other highway systems which do not presently have hardtop or are paved.

Last year I received a commitment from the department that they were going to do a calcium project on the Dempster Highway. I also asked at the time to ensure that it was ongoing. That it was not just for the one year, and that it would be built into the budget. I do not see it in here, so I would like to ask the Minister, where in the budget are the funds available for the calcium project for the highways which are presently graveled and not a hard surface with pavement or chip-seal?

Thank you, Mr. Krutko. Mr. Steen.

Thank you, Mr. Chairman. Mr. Chairman, I do believe that calcium is under operations and maintenance, so I will ask the deputy minister to respond to the Member as to whether calcium application to Highway No. 8 is ongoing or not.

Mr. Vician.