The mandate of the Department of Transportation is to provide safe, accessible and reliable movement of people and goods to serve the social, economic and political needs and aspirations of the people of the Northwest Territories.

The Standing Committee on Governance and Economic Development reviewed the 2000-2003 business plans and draft main estimates for the Department of Transportation on Wednesday, May 31, 2000. The committee noted a $2,942,000, or 4 percent decrease in total operations, or O and M expenditures between the 1999-2000 main estimates and the 2000-2001 draft main estimates. This projected decrease in O and M expenditures may be greater than it appears, as it may be offset by the transfer of capital assets valued under $50,000 from capital expenditures as required by the new tangible capital assets reporting process. The committee also noted a $9,334,000 or 30 percent decrease in total capital expenditures between the department's 1999-2000 main estimates and the 2000-2001 draft main estimates. Committee members also noted a decrease of six staff positions for an overall two percent decrease in the number of staff since the presentation of the 1999-2000 main estimates.

The committee's main concern is the government's ability to maintain and expand our transportation infrastructure despite continuing reductions in funding. Eventually the committee concluded public safety will be compromised. Access to resources and linkages between communities with southern markets require an extensive and well-maintained transportation system.

Furthermore, if any reductions in funding are to be made, they should be implemented equitably across the board. This recommendation was also made in the committee's review of the 2000-2001 interim appropriations, which stated that if any funding cuts are considered in any programs or services within government, they should be made equally across the board.

The committee concluded that our transportation system could no longer incorporate further cuts in expenditures. Further reductions will lead to increased repair and replacement costs in the future as well as compromising public safety in the immediate and long term.

The committee pointed out that the federal National Highway Programs that will be initiated in 2002-2003 might provide funding for major highways. Should it be based on the current transportation funding formulas, the territorial government will have to match funds with the new federal funding. The territorial government is in a difficult fiscal position and new monies will remain difficult to procure. The committee stated that this government should not be penalized for developing our highway system, and furthermore, the committee is concerned that the federal program will not provide funding for secondary highway systems. The committee urged the government to lobby the federal government vigorously to ensure that any new funding formulas include adequate funding for all major highways, including secondary systems, to ensure our road system remains safe and reliable.

The Standing Committee on Governance and Economic Development recommends that the government not make any further reductions in funding for the NWT transportation system and further, that the government increase pressure on the federal government for additional funding for the NWT transportation system.

Winter roads are an important component of our highway system. These roads provide increased and cost-effective access to resources. Committee members encourage the department to look for options to increase the window for winter road usage. The department agreed.

The committee noted that the Community Access Roads Program has been totally allocated. This program not only provides seasonal employment but expands a community's road system to include recreation, cultural and heritage sites. This program is an important component of a community's ability to attract increased tourist dollars. The department agreed and replied that funding for next year is available upon application.

Committee members noted that in many cases, ferries are not only facing low water levels but also increasing operational costs due to more stringent regulatory regimes. The use of ferries in some operations may no longer represent good value for money. Increased expenditure requirements combined with a reduced window of usage may eventually see bridges as a more cost-effective alternative. The committee remains open to bridge and other proposals that will contribute to a more efficient, effective and economical transportation system.

Committee members are concerned about the number of impaired driving and accident statistics on our highway system. As funding reductions appear to be the norm for at least the short term, safety on our highway system may be further minimized. The department agreed and is preparing a legislative proposal to more effectively address the number of impaired and reckless driving incidents. This concludes the committee's report on the department. Thank you.

Thank you, Mr. Nitah. I would like to ask the Minister if he wishes to bring in witnesses.

Does the committee agree?

Agreed.

I would like to ask the Sergeant-at-Arms to bring in the witnesses. Mr. Nitah.

Thank you, Mr. Chairman. Mr. Chairman, we are scheduled for a break at 12:30 p.m. I recommend the Minister bring in his witnesses after the break at 1:30 p.m. for general comments. Thank you, Mr. Chairman.

Thank you. What is the wish of the committee?

Agreed.

We will break now and return at 1:30 p.m.

-- Break

I will call the committee to order. Would the Minister like to call in any witnesses?

Sergeant-at-Arms, would you please escort the witnesses in. Mr. Minister, please introduce your witnesses for the record.

Thank you, Mr. Steen. General comments on the departmental estimates. Mr. Dent.

Thank you, Mr. Dent. Minister Steen.

Thank you. Mr. Dent.

Thank you, Mr. Dent. Minister Steen.