Thank you very much, Madam Chair. I will just read that excerpt from our standing committee report. 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 February 23, 2004, to review the Department of Transportation's draft main estimates for 2004-2005.
Corridors For Canada Funding Proposal
The committee had some concerns with regard to two components of the Corridors for Canada funding proposal: the proposed improvements to Highway No. 4 -- the Ingraham Trail -- and funding for the Bear River Bridge project. They are both being paid for through a 50/50 cost-share funding arrangement between the GNWT and the federal government under the Canada strategic infrastructure funding program.
The Minister advised that the Ingraham Trail was chosen because of the traffic volumes on the road, the number of accidents, and the high traffic from resource development. The Ingraham Trail has the third highest traffic volume in the NWT, exceeded only by Highways No. 2 and No. 3.
On the Ingraham Trail, Transportation has identified $3 million a year for the next five years, for a total of $15 million. This year, it is proposed that the $3 million will be spent on reconstruction of the section of road that goes from the Yellowknife River Bridge to just past the Detah access road, and also on another section a few kilometres further down the highway.
The committee is concerned that other roads have just as high traffic patterns as the Ingraham Trail, meet all the same criteria and yet are not receiving the same level of funding. The committee asked the department why they prioritized the Ingraham Trail over the Liard Highway. The Department of Transportation reports that $12 million over the next five years will be spent improving the structural capacity of the road and the driving surface on the Liard. The improvements will start at the BC border and work northwards.
According to the department, the need to invest further in Highway No. 1 is being addressed in a number of ways, and a study is underway by Transport Canada to project increases to traffic volume as a result of the proposed pipeline. The Department of Transportation hopes to use that study and obtain more funding.
Highway No. 2 has the second highest volume of traffic in the NWT and only received $400,000 in funding last year.
The committee has also inquired as to whether or not the Ingraham Trail is intended to eventually become the long discussed all-weather road into the slave geological province. The Department of Transportation stated that this is not their decision to make.
The committee is concerned that a lot of money is being committed to this road when the future of it is uncertain. The committee would like to recommend that the department determine the long-term plan for this road for the next business planning session.
Bear River Project
The Bear River project is a part of the Mackenzie Valley winter road bridge program in the Corridors for Canada proposal.
The department states that the plan of the Mackenzie Valley Winter road bridge program is to construct
permanent structures on all stream crossings between Wrigley and Fort Good Hope.
The committee asked the department why the Bear River crossing has been chosen over the Peel River crossing. The department replied that the Bear was not chosen over the Peel. The Bear River crossing is one of the major bottlenecks on the winter road. Although a bridge across the Peel River would improve the level of service, there is no anticipated increase in economic development associated with its construction so long as a bottleneck exists on the Dempster Highway at the Mackenzie River. Also the Fort McPherson Gwich'in council is investigating the feasibility of constructing a bridge under a public/private partnership arrangement.
Finally, the committee inquired of the department if it was their intention to construct an all-weather road and what the long-term plan of this project is. The department replied that the winter road season has steadily decreased. Over the last 10 to 15 years, the season has shrunk from 12 to as little as seven weeks. The reduced access has caused problems for the oil and gas companies, local businesses and the mobility of individuals.
In preparation of the 2005-2008 business plan, the committee recommends that the department indicate more clearly how the Mackenzie Valley winter road route was chosen. The committee would also like to see how decisions were made between the federal and territorial governments to choose this particular route and provide a justification of costs given that the winter road season is only 12 weeks maximum.
Airport Projects
Norman Wells Airport
The standing committee noted that the cost of repairs to the Norman Wells airport, originally projected at $3.6 million, has increased to $7.7 million, and requested an explanation from the department. The department replied that the $3.6 million was a Class C estimate performed early in 2003 during the development of the initial airports capital assistance program application. The $7.7 million was estimated for the final application and was a Class B estimate which included widening and lengthening of the existing taxiway, airport access road improvements and new floodlighting.
The committee remains concerned about the cost increase.
Perimeter Fencing
The committee also asked about the cost difference between the perimeter fencing projects at the Hay River Airport and Norman Wells airport. The Norman Wells project is almost three times the cost of the Hay River project. While the committee understands that there is a difference in the scope of the work between Norman Wells and Hay River, they are still concerned that the total estimate for this fencing has gone from $182,000 to $ 410,000. The committee would like the department to consider if the most economical means are being used to construct the fence.
Yellowknife Airport
The standing committee asked about the tentative plans to move the Yellowknife airport terminal building and runway from their current locations to the west on the other side of the sandpits for an estimated cost of $120 million. The committee is also concerned about the businesses that had established themselves in their current locations with the intention of being close to the airport and how the move would affect them.
The department replied that the Yellowknife airport development plan has reviewed the existing traffic and the future demand over a 10 to 20-year horizon period and reached the conclusion that the existing Yellowknife airport is reaching the limit of its capacity. The apron is congested and the level of safety is compromised as a result.
With regards to the committee's concerns about what the move of the airport would do to the businesses who have built around the airport, the Department of Transportation replied that there would be a steering committee made up of the various air carriers' representatives and industry themselves would be asked to nominate representatives. The City of Yellowknife is also part of this committee.
The committee is concerned both about the funds that have already gone into renovations of the existing airport terminal and of the funds being spent on the studies and plans to move the airport to another location.
The standing committee has asked to be kept informed of any plans to move the Yellowknife airport and has asked the department to keep all of the stakeholders informed and engaged in further planning.
Delayed Project Funding
The standing committee was also concerned that the money scheduled for 2005-06 for the rehabilitation of the Yellowknife Airport runway surfaces was pushed back to 2007-08. The department replied that the $3.7 million expenditure to resurface the Yellowknife airport runway has been pushed back because of the realigning of priorities around the arctic airport projects. Extension of the runway is not in the five-year capital acquisition plan, but is part of the longer-term plan to expand the services of the airport.
Repatriation Of The Licensing Function
From the 1970s to 1997, driver and vehicle licence issuing was facilitated for Yellowknife by Department of Transportation staff and issuing in regional communities was administered through contracted issuers, usually bands and hamlets. From 1997 to 2002, the issuing service in Yellowknife was privatized and a new fee structure based on user pay was implemented.
In 2002, the licensing function was taken over again by the department. Given that one of the department's goals is to increase northern business employment opportunities in the public and private transportation sectors, the committee was concerned that businesses appear to have been dissuaded from taking on the operations of motor vehicles licensing. The department replied that in the interest of consistency in delivery of the service to the public, the DOT resumed the licensing function because qualified contractors could not be found in Yellowknife or in the regions.
The committee was concerned that perhaps the department was not offering enough money and was insisting on hours of operation that made it difficult for a small business to afford to run the licensing operation.
The committee was further concerned that it is more expensive for the government to hire staff for licensing than it would be for a private contractor. The committee asked to see a breakdown of figures to privatize the licensing function and then repatriate the function under the department again.
The department hired three issuing agents at no additional costs for the GNWT. The operations and maintenance costs were $174,000, and the revenue from the service fee is $183,000.
The committee would like to recommend that given the high cost of registering vehicles, if fees for licensing must be collected, that the department find a way for them to be specifically designated for road improvements and not disappear into the consolidated revenue fund.
Commercial Development Officer
The department is proposing to hire a third commercial development officer to negotiate, update and terminate approximately 300 airport leases that are currently outstanding. Once these leases are up to date the department expects to see an $800,000 increase to revenues. The committee suggested that this job might be done more efficiently by a private agency and asked the department to consider this matter before staffing the position. The department committed to review this issue.
Commercial Vehicle Regulations Road Weight Restrictions
The committee was concerned about the inequitable application of regulations and sporadic enforcement without prior notice to the community. A specific example of this is with regard to the weighing of gravel trucks hauling locally. The committee has also been advised that now sewer trucks and water trucks will also be weighed. Often this enforcement can contribute to higher costs of services in the community. The committee asked that the department work with the communities to make them aware of enforcement changes. The committee would also like to recommend to the department that more communities have self-weigh stations installed so that these regulations can be applied consistently across the NWT.
Seasonal Positions
The committee wished to reinforce how important seasonal positions are to the regions. Seasonal work provides much-needed training and hands on experience that is not available elsewhere. It also helps to support a traditional lifestyle by supplementing incomes from hunting and trapping.
Airport Security
The committee discussed with the Minister the current lack of inspection of carry-on luggage in Hay River and Inuvik prior to southbound flights. Members were pleased to hear the department is working with the Canadian Air Transport Security Authority to address this issue. Mahsi cho.