I am pleased to present the proposed 2005-2006 Main Estimates for the Department of Industry, Tourism and Investment. These estimates propose total operational expenses of $34.9 million. This represents a net increase of $1.7 million, or a five percent increase over last year's budget of $33.2 million. This increase is a net effect of sunset and expenditure reductions of $2 million and offset by an increase in new initiatives of $3.7 million.
These main estimates reflect the commitment of this government to the implementation of our strategic plan. These estimates relate to our collective vision of creating a territory that has self-reliant individuals, sharing in the rewards and responsibility of healthy communities and a prosperous and unified territory.
The mandate of this proposed new department links directly to the strategic plan developed by Members of the 15th Legislative Assembly. The priority of this government's commitment to diversify our economy, enhance access to markets and maximize benefits from resource development, including the proposed Mackenzie gas project, aligns with the mandate of the new Department of Industry, Tourism and Investment.
The Northwest Territories has experienced an unprecedented level of economic growth over the past several years and, with that, increased demands on our resources. Not only has there been a perception of conflicting mandates within RWED, but we must continue to strive to develop optimal organizational structures to effectively serve our clients. The creation of this new department will assist in addressing these important issues.
Today, Mr. Chairman, I bring forward these main estimates in order to ensure that we have the capacity to meet our targeted April 1, 2005, implementation date. I would like to take a few moments to highlight some initiatives in the main estimates for the Department of Industry, Tourism and Investment, which link to the strategic goal of diversifying our economy.
The tourism industry is critical to the NWT economy. It is a sector that can be an important wealth generator for every region of our territory, for communities both large and small. We are pleased to see that our tourism numbers are rebounding from geopolitical events over the past several years. The department will continue to work closely with the Standing Committee on Governance and Economic Development through the chair to see how best to plan for an NWT theme week at Expo 2005 in Aichi, Japan. We have developed a planning process that fully engages private sector stakeholders with an interest in Japanese and Far East markets. The private sector is showing a keen interest in participating with us in Expo 2005.
The government's strategic plan also identifies several key priorities related to the development of the Mackenzie gas project, such as maximizing northern benefits. To accomplish this, the Government of the Northwest Territories announced the creation of the Mackenzie Valley pipeline office. The additional proposed investment of $1.988 million will significantly increase our ability to support regions, communities and businesses to realize economic benefits from natural gas development. Staffing is currently in progress and we expect the office to be operational by the beginning of the new fiscal year.
I would like to thank the members of the Joint Cabinet/ AOC committee for their work and guidance on the Mackenzie gas project. Having members from the Standing Committee on Accountability and Oversight has provided important insight and direction in assisting us in moving forward with planning. We recently held a committee meeting in Norman Wells and it was a success by all accounts, Mr. Chairman. I look forward to our next committee meeting scheduled for April in Fort Simpson. I believe we have made much progress since this committee was created. We have much more work to do to plan for the Mackenzie gas project, which will ensure that all northerners benefit from this development.
Mr. Chairman, legislation has been introduced to create a new Northwest Territories Business Development and Investment Corporation. The new corporation will combine the operations of the Northwest Territories Development Corporation, the Business Credit Corporation and the department's business programs under a single board and administration. This one-window approach will substantially improve business support services to clients in all regions of the NWT.
In conclusion, Mr. Chairman, I would like to thank you for the opportunity to provide these remarks on the main estimates for the Department of Industry, Tourism and Investment. I want to assure the committee that your input and suggestions are reflected in these main estimates. This feedback is important to the business planning process. I look forward to the committee's comments
today and I am prepared to answer any questions you may have. Thank you.