The committee heard unanimous opinion that the living cost will substantially be increased for residents living and operating businesses in communities that are not on the all-weather highway system.

The proposed Highway Investment Strategy provides funding for the reconstruction and maintenance for the existing all-weather highway system, but not for new highways.

Communities that are not on the all-weather highway system will not receive any direct benefit, but will still be required to pay for part of the strategy through the increased costs of goods and services. Goods including fuel, food and other essential supplies, are in most part shipped via truck to the nearest regional centre before being flown in to these isolated communities and costs will be recovered by every party in the transaction except for the final end-user, that being the residents in the isolated communities.

With the exception of the Food Mail Program, operated by Canada Post and partially funded by the Department of Indian Affairs and Northern Development, there are no other subsidized freight programs for isolated fly-in communities.

Mr. Kevin Diebold, the mayor of Norman Wells, which is a community that is not on the all-weather highway system, informed the committee that:

The council of Norman Wells opposes the imposition of a permit fee. The rational -- freight costs are already the greatest single impediment to the North.

It creates an additional burden for already high freight costs on our area residents for whom there is no direct benefit. That is not only Norman Wells, but I assume that if you were to hold your meetings in other communities in the Sahtu region, none of which are on the highway system, you would hear the same thing.

Additional costs for administration of the program would also be passed on to the consumer, both for trucking and retail. The cost for a kilogram of freight is greatest in the Sahtu, except for Wrigley. (Norman Wells Committee Transcript, October 15, 2001, page 3)

Most presenters and stakeholders recommend not passing the bills and exploring other options to expand and maintain the territorial highway system. However, if Bills 9 and 10 are implemented, significant numbers of presenters were of the position that exemptions or subsidies for essential goods be established for communities not on all-weather highway systems. The cost of living is expensive enough for fly-in only communities without them having to contribute to a program from which they do not receive a direct benefit.