Mr. Speaker, the lack of transportation infrastructure in the Northwest Territories is impeding our economic growth. This fact has been consistently noted in the Fraser Institute's survey of the mining industry, and was highlighted in our own Non-Renewable Resource Development Strategy and in Common Ground. It has also been a major concern expressed by many, if not all, of the Members of this Assembly. The Standing Committee on Governance and Economic Development noted that limited funding is impairing our ability to repair, maintain and expand our transportation system to meet current and future demands.

I am pleased, therefore, to announce major transportation initiatives this government intends to begin in the coming year. The Department of Transportation has been working for the past two years on a highway strategy initiative. The report Investing in Roads for People and the Economy was tabled by the Honourable Vince Steen, Minister of Transportation, in this Legislature last November. The report lists the next steps to be taken. One of these steps is to improve the existing highway system so that it can cope with the ever-increasing demands being placed on it by development.

We must make investments now. I am announcing today that, over the next four years, this government will be investing an additional $100 million in the existing highway system, over and above the current capital plan. We will begin with an additional $11 million in the coming fiscal year. Over the next four years, investments will be made on Highways No. 1, No. 3, No. 4, No. 5, No. 6, No. 7, and No. 8. At the end of the four-year period, the highway between Rae and Yellowknife will be reconstructed and paved; significant reconstruction will be completed on the Mackenzie Highway, the Dempster Highway, the Ingraham Trail, and the Liard Highway; and the highways to Fort Smith and Fort Resolution will be paved.

-- Applause

We will likely have to borrow a significant portion of the additional $100 million to finance these highway investments. I do not think there are many people in the Northwest Territories who would argue against investing in our highways to improve public safety and promote economic development. However, many may ask how we will pay the interest costs and repay the debt, given our limited fiscal resources.

We are proposing, therefore, the introduction of a highway user toll on commercial trucking in the Northwest Territories. We estimate that, when fully implemented, such a toll could generate up to $15 million annually. We propose that the revenues generated from the toll would go into a dedicated highway trust fund, and would be used to finance the borrowing costs.

We recognize that a highway user toll will result in higher costs for consumers. In order to reduce the negative impact of the toll on Northwest Territories consumers, we are proposing that the cost of living tax credit be increased.

We will be announcing the details of the proposed road toll and tax credit changes by May. We intend to introduce the necessary legislation to implement these measures during the June session of this Assembly.

Winter roads are also an integral part of the northern transportation system and need additional investment to cope with increased resource activity.

The Mackenzie Valley winter road bridges acceleration program, announced last November, is funded jointly by this government and the federal Department of Indian Affairs and Northern Development. We have allocated almost $2 million to this project in the current fiscal year, and have included an additional $700,000 in this budget for 2001-2002. This project, which has already resulted in the completion of permanent river crossings along the Mackenzie Highway's winter road extension north of Wrigley, is an example of the types of investment needed and of the collaborative approach needed among governments -- federal, territorial and aboriginal governments and industry. We will continue to identify projects and programs where federal investment is called for.

This budget also includes the continued operation of the winter road between Colville Lake and Fort Good Hope, supporting the emerging gas development activities in the region.

Airports are a lifeline to northern communities. This budget proposes to invest in critical airport needs throughout the Territory. Over $11 million will be spent on airport capital improvements in 2001-2002. Some of these investments again are the result of partnerships working with the federal government, particularly through the Airports Capital Assistance Program. Runway work will begin at Inuvik and Tulita and continue at Sachs Harbour. New terminal improvements will proceed at Wha Ti, Fort Simpson, Aklavik and Tulita.

Overall, this is a significant change in our investment pattern in transportation. It will provide a better system but will also create opportunities for northern contractors to build these projects and create many new jobs in the construction sector. This budget challenges northern business and workers to invest their resources to build a better transportation system for the future.