Thank you, Mr. Chairman. Yes, I have opening remarks for the committee, Mr. Chairman.
Mr. Chairman, members of the committee, it is my pleasure to be here this afternoon to consider the Department of Transportation's Main Estimates for 2001-2002.
Mr. Chairman, the report of the Economic Strategy Panel, Common Ground, the Non-Renewable Resource Development Strategy, and the Department of Transportation's Investing in Highways for People and the Economy all emphasize the necessity of seeking federal and private sector investments and contributions in order that we can build the new transportation infrastructure that is needed to develop a strong territorial economy. While we pursue this funding, we will continue to invest in these strategies to the greatest extent possible.
Mr. Chairman, as we examine the Department of Transportation's Main Estimates for 2001-2002, I think it is worthwhile to point out the extent of federal and third party contributions contained in the department's budget and that help to make our territorial appropriation go that much further in operating and building the territorial transportation system.
The Department of Transportation operates 17 community aerodrome radio stations, CARS, on behalf of Nav Canada. Funding received from Nav Canada goes principally to wages, salaries and training for observer-communicators at our community airports. Nav Canada pays the department $3.5 million annually for delivering the CARS program.
The main estimates identify $11 million in capital improvements planned for our airports in 2001-2002. These include runway improvements at Sachs Harbour, Inuvik and Tulita and territorial terminal improvements at Aklavik, Fort Simpson, Tulita and Wha Ti. Some of that budget comes from Transport Canada's airport capital assistance program.
Public Works Canada delivers the Canadian Coast Guard's capital projects on federal docks, wharves, breakwaters and landings across most of Canada. In the Northwest Territories, however, the Coast Guard's marine infrastructure program is effectively delivered by the Department of Transportation with a contribution of $500,000 annually.
This year, the Executive Council approved $195,000 for the construction of a winter road to Colville Lake so that the community could participate beneficially in the oil and gas exploration programs taking place nearby. Two exploration companies agreed to contribute to the project, enabling the department to double the amount of work on the road it could have done with territorial money alone.
In fiscal year 2001-2002, the department will install seven bridges on the Mackenzie Valley winter road as part of the bridges acceleration program agreed to this past December with the federal Department of Indian Affairs and Northern Development. The federal contribution of $3.8 million represents two-thirds of the cost of the project.
In a recent meeting with Transport Canada Minister David Collenette, I was told we would soon be advised of the Northwest Territories share of the $600 million National Transportation Investment Strategy announced by the federal Ministers of Finance and Transport last year. The Department of Transportation will invest whatever funding is received towards Highway No. 3 and Highway No. 1.
Mr. Chairman, the members of the committee should know that the Department of Transportation is constantly looking for new sources of transportation funding to enhance its programs and make its budget go further. In this, we have been remarkably successful. Individually, the individual items may seem small. Considered together, they are an important piece of the department's budget.
Mr. Chairman, as the Minister of Transportation, I am very pleased with the Highway Investment Strategy that the Minister of Finance announced in his budget address. The investment strategy will make possible badly needed capital improvements across the territorial highway system. The investment strategy proposes to add $100 million of new money to the Department of Transportation's highway construction program over the next four years. As the Finance Minister pointed out, the territorial economy is on the verge of expansion on an unprecedented scale, yet our highway infrastructure was never built to a standard to support that level of economic activity. Over the next four years, the investment strategy will go a long way towards improving the standards of our roads.
In the first year of the program, the department's construction budget will increase by a relatively modest $10.6 million to $22.3 million. This will double the present pace of reconstruction on Highways No. 3 and No. 8. In years two, three and four, the construction program is projected to exceed $40 million a year. By the end of the fourth year, the department will have completed three times the amount of highway construction it would have at present budget levels.
When the program is finished, Highway No. 1 from the Liard River at Fort Simpson to the junction with Highway No. 7 will have a chip-sealed surface. The reconstruction and paving of Highways No. 1 and No. 3 that began in 1989 at the Alberta border will be complete to Yellowknife.
-- Applause
Highway No. 4 will be reconstructed and paved from the junction with Highway No. 3 to the Detah access road. The entire length of Highway No. 5 from its junction with Highway No. 2 at Hay River all the way to Fort Smith will have an asphalt surface. Similarly, Highway No. 6 will have a continuous asphalt surface to Fort Resolution. Highway No. 7 will have pavement from the British Columbia border to Fort Liard, as well as selected improvements to meet the needs of resource traffic. On Highway No. 8, selected locations along its length will be improved to meet the heavier traffic demands of the resource industry activity in the Beaufort-Mackenzie Delta region.
Mr. Chairman, in four years' time, the investment strategy will have dramatically improved the quality of the territorial public highway system. Not only will our roads be in better physical condition to carry the increased traffic of the resource industry, the highway system will be in a safety condition.
In announcing the investment strategy, the Finance Minister also talked about how we intend to pay for a $100 million expansion in highway construction. Later this year, this government will introduce a commercial traffic highway toll that will raise approximately $15 million a year in toll revenue. The toll revenues will be paid into a dedicated highway investment fund rather than the government's general revenue account. In this way, the toll revenues collected from commercial traffic using the highway system will go directly to paying for the investment strategy's highway improvements.
Mr. Chairman, at this stage, the details of the commercial highway traffic tolls are being worked out. The toll will require legislative authority. I expect the Standing Committee on Governance and Economic Development will have a legislative proposal to examine in May and I will be in a position to answer detailed questions at that time.
Mr. Chairman, the department is requesting a total operating budget of $70,140,000. Under capital acquisitions, this plan is to invest $39.139 million in highways, airports, ferry, marine and motor vehicle infrastructure.
Mr. Chairman, transportation plays an essential role in the long-term development of the territorial economy and I welcome the committee's comments and questions on the department's budget. Thank you, Mr. Chairman.