Mr. Lafferty.

Thank you, Mr. Lafferty. Mr. Steen.

Thank you, Mr. Chairman. Mr. Chairman, if I understand the question is related to water and sewer agreements with Public Works. Is that correct?

Thank you, Mr. Steen. Mr. Lafferty.

Thank you, Mr. Lafferty. Minister Steen.

Mr. Chairman, we can't change the agreements from Public Works to MACA because MACA is funding the community to do the work. It is up to them at that time whether they want to sign an agreement with Public Works or whether they want to do the job themselves or whether they want to contract it out privately. It's entirely up to them. It's that type of arrangement that they have. Thank you, Mr. Chairman.

Thank you, Mr. Steen. Mr. Lafferty.

Thank you, Mr. Lafferty. Mr. Steen.

Thank you, Mr. Chairman. Mr. Chairman, we did take into consideration the recommendations from the standing committees in relation to what percentage of administration fees they should be paying Public Works. Those communities that have existing agreements with Public Works would continue because of the existing agreements which are dated, I believe, 1988 show an administration fee of nine percent. Public Works reduced their administration fee proposal to nine percent, which is what is in existing agreements. In the case of Rae, we don't have an agreement anymore. Public Works doesn't have an agreement because we turned the whole facility operation back to Public Works. A new agreement would have to be negotiated and we are in the process of negotiating with the community. MACA is involved, as well as Public Works and we are bearing in mind what the committee is recommending. However, we have to keep in mind that other communities are paying an administration fee of their own. In other words, every community receives money from us, MACA, to cover these administration fees through its water and sewer grants. If we remove that from some communities, we would then be unfair to the other communities. That is our only hang-up with the recommendation from the standing committee, Mr. Chairman. At this point in time, Public Works is still in the negotiating process with Rae. Thank you, Mr. Chairman.

Thank you, Minister Steen. Mr. Lafferty.

Thank you, Mr. Lafferty. Mr. Steen.

Thank you, Mr. Chairman. Mr. Chairman, I am speaking as the Minister of MACA. It is my understanding that as Minister of MACA, that FMB gave direction to Public Works not to charge anything over nine percent. That's the understanding I have as the Minister of MACA. So I understand that's what Public Works has been working on. I also appreciate the recommendation from the Member that we have these meetings with the communities and we are planning that meeting already, so I really appreciate the suggestion and support from the Member. Thank you.

Thank you, Mr. Steen. We will call out total department. Municipal and Community Affairs, total department, $8.053 million.

Does the committee agree that consideration of the Department of Municipal and Community Affairs estimates is concluded?

I would like to thank the Minister and witnesses for appearing.

We'll go on to the Department of Transportation. Does the Minister have any opening remarks? Mr. Handley.

Department Of Transportation

Mr. Chairman, it is my pleasure to put before the Committee of the Whole the proposed main estimates budget for the Department of Transportation for the 2003-2004 fiscal year. The total operations budget for the fiscal year 2003-2004 is $76.521 million, an increase of seven percent from the 2002-2003 main estimates.

For the most part, the proposed main estimates for 2003-04 project the Department of Transportation carrying through on its present course in the delivery of its transportation programs and services. The operations and maintenance component of the budget proposes a modest increase of about $2 million. More than half of this increase comes as a result of the new collective agreement ratified with the Union of Northern Workers.

The present rate of growth in the territorial economy is having decided impacts on the Department of Transportation. Positively, the increase in industrial traffic has led to higher revenue projections of $500,000 for licence and permit fee collections. On the operations side, a forced growth adjustment is aimed at sustaining our standards of highway maintenance in the face of the greater traffic volumes.

The proposed budget for 2003-04 includes an additional $370,000 in anticipation of new legislation to amend the Motor Vehicles Act. The proposed amendments have been introduced and, modeled on programs developed in the southern provinces, are aimed at discouraging the incidence of impaired driving in the Northwest Territories.

Mr. Chairman, the department intends to continue its work in 2003-04 on developing an airport investment strategy that will lay out the critical improvements we need to make across the territorial airport system over the next 20 years. The department also intends to continue exploring the commercial opportunities that transcontinental polar air routes might have to offer the Northwest Territories, such as intercontinental air cargo handling and the promotion of international tourism.

Continuing changes in air regulations, procedures and practices, are not only likely but also for certain. Over the next few years, for instance, Transport Canada intends to phase in the physical inspection of every piece of passenger baggage boarding airplanes at major airports in Canada. The imperative for strict airport and airline security has put new demands on our airport system both for current operations and future planning.

The limited availability of new capital dollars leaves a modest budget for new infrastructure projects. The proposed main estimates show a capital program of $27.3 million in the 2003-2004 fiscal year; $10.8 million of this comes from federal sources.

The Department of Transportation continues to pursue third-party sources of capital investment. The department has secured $4.2 million in 2003-04 under the federal airport capital assistance plan for improvements to our airport infrastructure. It has also obtained $2.25 million from the federal strategic highways infrastructure program.

In May of last year, the Government of the Northwest Territories submitted a plan, Corridors for Canada, to the federal government for funding through its strategic infrastructure fund. Over the past several months, the Government of the Northwest Territories and our private sector partners have lobbied the federal government vigorously to get what we consider our fair share of the strategic infrastructure fund. Although it falls far short of the investments proposed in the Corridors for Canada plan, the department has received a commitment from the federal government of $20 million for new infrastructure projects over the next four years.

Last year, with the help of a $3.8 million contribution from the federal Department of Indian Affairs and Northern Development, the Department of Transportation was able to accelerate the completion of its Mackenzie Valley winter road bridges program. The program installed seven permanent bridges along the winter road system to the Sahtu region and its five off-road communities. The new bridges have added almost a month to the operating season of the Sahtu winter road network. We have recently submitted a new proposal to DIAND for further improvements to the Mackenzie Valley winter road system. We believe the federal department will respond positively over the next few months.

The Transportation budget proposed for 2003-04 includes a one-time $1 million program for the improvement of the access roads that link communities to the all-weather public highway system. This continues the $2.5 million that the department allocated to these access roads last year. This one-time program should help to upgrade these essential community links.

Smaller scale projects for building and improving community marine facilities and local access roads have been positive initiatives for developing community transportation infrastructure. The budget for 2003-04 proposes an increase of $100,000 for the community marine program to $315,000 and a $250,000 increase for the community local access road program to $837,000. These programs provide communities with short-term economic benefits that deliver better local transportation for the long term.

The Department of Transportation will continue to work in partnership with the Deh Cho Bridge Corporation Ltd. for the construction of a bridge across the Mackenzie River at Fort Providence. Last year the department worked with the Fort Providence Alliance Group to confirm the viability of the original proposal and to refine it into a practical partnership arrangement.

There is $250,000 in this budget proposed for the Deh Cho Bridge project. It will enable the department to retain the technical-professional advice it will need as it works toward a binding agreement. We plan to conclude an agreement by the third quarter of 2003-04.

The growing volume of traffic generated by the North's economic activity affects all modes of transportation. The greater frequency of ferry crossings, more aircraft landings, higher passenger volumes and a record level of commercial vehicle traffic presents the department with tremendous challenges. This budget proposal strives to match the public's demands for transportation services with the government's requirement for fiscal discipline.

In closing, Mr. Chairman, in these proposed main estimates, the Department of Transportation sets out how it intends to maintain and, even more, to improve the safety and reliability of the public transportation system. This budget achieves a careful balance in its allocation of limited public funds amongst many pressing transportation objectives. Thank you, Mr. Chairman.

Thank you, Mr. Handley. I will call on the chair of the standing committee for comments. Mr. Roland.