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.