Thank you, Mr. Chairman. Mr. Chairman, as deputy chair of the Governance and Economic Development committee, I'm pleased to report our committee's report on Deh Cho Bridge Act, Bill 13.
Mr. Chairman, the Standing Committee on Governance and Economic Development conducted public hearings on Bill 13, the Deh Cho Bridge Act, on April 30, 2003, in Fort Providence; on May 28 in Rae-Edzo; and on April 24, May 16, and June 5 in Yellowknife. The committee would like to thank the witnesses who appeared before us and the Minister and his staff for presenting the bill.
The committee heard broad support for the Deh Cho Bridge from witnesses including representatives of the NWT Motor Transport Association, the Dogrib Rae Band, Dogrib Treaty 11 Council and members of the public, and was made aware of resolutions of support from the NWT Association of Communities, the Dene leadership and the Fort Providence Combined Council Alliance. The committee is also supportive of the Deh Cho Bridge project, and applauds the work of the government and the Fort Providence Combined Council Alliance to make this project a reality.
Members and witnesses did, however, have a number of questions and concerns about how the bridge will be built, operated and financed.
The bridge is expected to be a $55 million project that will be amortized over 35 years and financed in large part by tolls on commercial vehicles. The viability of the project, as currently envisioned, depends on there being enough traffic to provide sufficient toll revenues. Members and some witnesses had a number of questions about the government's and Bridge Corporation's traffic projections. The Minister and Bridge Corporation indicated that in their opinion the risk of the bridge losing money over the 35-year period is minimal. The Minister advised that even with half of the current traffic to mines, the project would still be viable.
Committee heard that in spite of the proposed tolls on commercial traffic, the bridge will, for the most part, lower overall freight expenses, in particular by eliminating costly delays caused by break-up and freeze-up, and line-ups at the ferry. For example, information provided by the Deh Cho Bridge Corporation estimates a savings to the Yellowknife Direct Charge Co-op of about $300,000 per year. However, some Members and witnesses are concerned the tolls will result in increased costs to fly-in communities north and east of Great Slave Lake. The Minister advised committee that the estimated cost increases to fly-in communities are one-third cent per pound of freight, or about $10,000 total per year for all these communities together. Some Members suggested a subsidy should be put in place to compensate residents of these communities.
The Minister was asked about whether the bridge would foreclose the possibility of government support for other potential routes. The Minister indicated that the GNWT would still be open to other routes if there is good public reason and they can be shown to be viable.
The committee heard that there may be opportunities to use the bridge to carry utilities such as pipelines, power lines or communications cables. The bill is silent on who would decide whether the bridge could be used for these additional purposes. Members would have preferred this issue be addressed in the bill, however, the Minister advised that it is currently being negotiated with the Bridge Corporation and that including provisions in the bill would interfere with the negotiation process. The Minister did indicate that in his view the GNWT should retain final say on what the bridge could be used for.
Mr. Chairman, because the bridge will be the only route for motorists and will be operated by a private corporation, Members had a number of questions about how the public interest will be protected. It is the committee's understanding that regardless of who operates the bridge, it will be considered a highway and, therefore, subject to legislation such as the Motor Vehicles Act. There is also provision in the bill for the GNWT to take over operation of the bridge as a last resort if this is necessary to protect the public interest. Questions were asked about who will be liable for any accidents that might happen on the bridge, or any damage to the bridge. The Minister's staff indicated that as this is a public/private partnership, risk and responsibility will be shared between the GNWT and Bridge Corporation. Provisions on indemnities and insurance will be negotiated between the parties.
One witness informed the committee he was concerned about how the people currently employed by the ferry operations and ice road construction will be affected by the bridge. The committee was made aware that no GNWT employees will be affected, and that no assistance is planned by the GNWT for contracted employees as it is anticipated there will be a net increase in jobs as a result of the bridge.
The Deh Cho Bridge Corporation was asked what the process would be for awarding work contracts for construction of the bridge. The corporation indicated that the major contract will go to a bondable, reputable contractor, and that because of the specialized nature of the project there are some components of the construction, such as steel fabrication, that no northern company would be able to do independently. The corporation advised that it will try to separate out as many small contracts as possible, such as concrete, fuel, earthworks and camp/catering, so that northern contractors have an opportunity to bid on them.
The Minister and Bridge Corporation advised committee the initial toll will be between $5 and $6 per tonne. The NWT Motor Transport Association has suggested the tolls should be on a per axle basis, that vehicles of less than one ton should be exempt, and that fines for failing to pay tolls should be set at five times whatever the toll would have been. The committee does not have any position on these recommendations, but would urge the department to continue its consultations with the association in order to arrive at a mutually satisfactory agreement.
One member of the public suggested the tolls should apply to passenger vehicles as well as commercial vehicles. The Minister indicated this is not being pursued because the cost of collecting small fees from each passenger vehicle would likely exceed the revenue generated. The majority of committee agreed that passenger vehicles should not be tolled.
The committee had lengthy discussions on who should set the bridge tolls. The bill provides for the tolls to be established in regulation by the Commissioner in Executive Council. Members were not satisfied that the annual reporting requirement in the bill would provide an adequate check on the government raising tolls unfairly. The committee's initial suggestion was that tolls be set by act of this Assembly, or in regulations made on the recommendation of the Legislative Assembly as a whole. The Minister advised this would be unworkable as it would create an unacceptable level of uncertainty and risk for the project if the government did not have clear authority to set tolls.
During clause by clause review of the bill, the committee made four motions to amend the bill to protect the public interest by placing conditions on the government's ability to set tolls. One motion would have required tolls to be "fair and reasonable". The Minister did not concur with this motion as there was concern it could open up the door to legal challenges which would undermine the toll system.
The committee and the Minister did agree to two motions to amend the bill which will require toll revenues to be paid into a separate Deh Cho Bridge Fund. These amendments address some of the Members' concerns as they will prevent the government from using tolls to pay for programs or projects other than the bridge.
The committee and Minister also agreed to amend the bill in order to require the government to give 90-days' notice of proposed changes to tolls in the NWT Gazette and newspapers, and to hear representations from any interested parties. Members will be supporting an additional motion today to amend the bill to strengthen this provision so that 90-days' notice of changes to toll rates will be given to representatives of the trucking industry, businesses, aboriginal and municipal governments, and Members of the Legislative Assembly.
A minor technical amendment to the French version of the bill was also agreed to during the clause-by-clause review.
Following the committee's review, a motion was carried to report Bill 13, Deh Cho Bridge Act, to the Assembly as ready for Committee of the Whole. This concludes the committee's opening comments on Bill 13. Individual Members may have additional questions or comments as we proceed. Thank you, Mr. Chairman.