Thank you, Mr. Chairman. The Department of Transportation provides for the safe, accessible and reliable movement of people and goods throughout the Northwest Territories. The Standing Committee on Governance and Economic Development met with the Minister of Transportation and his staff on January 15, 2002 to review the department's main estimates for 2002-2003.

The standing committee noted a net $518,000 decrease in operations expenses for the department from their 2002-2005 business plan. This decrease resulted from:

• • An $887,000 increase in amortization expense;
• • A $1,750,000 decrease for approved strategies and priorities resulting from a funding reduction for the Highway Investment Strategy from $1,850,000 to $100,000; and
• • A $345,000 increase in other subsequent Financial Management Board approvals to fund required enhancements to small airports and airfield security.

The standing committee also noted a net decrease of $16 million in the department's overall capital expenditures from its 2002-2005 business plan. This adjustment was attributed to a $1,100,000 reduction in funding for the Mackenzie winter road bridges, and a $14,900,000 decrease in funding for highways that resulted from a revision of the original Highway Investment Strategy.