During the Main Estimates review, the Department of Transportation introduced its proposed Transportation Strategy to the Standing Committee on Governance and Economic Development. The strategy would introduce a user fee of five cents per tonne per kilometre for commercial traffic on territorial highways and is projected to generate 15 million dollars in revenue that would be directed specifically for the territorial highway system. A user fee would not affect federal funding transfers to the territorial government. The strategy is expected to cost 100 million dollars over the next four years. User fees would be managed from a dedicated highway investment fund trust and leveraged to meet initial capital requirements.
Due to the significant impact of this initiative upon our northern economy and cost of living, the committee referred this issue to the Standing Committee on Accountability and Oversight in order to extend discussion to other Members of the Legislative Assembly. The Department of Transportation and the Department of Finance has recently given a presentation on the proposed Transportation Strategy and cost of living tax credit for NWT residents to the Standing Committee on Accountability and Oversight.