I am pleased to present the proposed 2005-2006 Main Estimates for the Department of Environment and Natural Resources. These estimates propose total operational expenses of $52.1 million. This represents a net decrease of $200,000, or less than one-half of one percent, a .4 percent, decrease over last year's budget of $52.3 million. This decrease is a net effort of sunset and expenditure reductions of $2.6 million and offset by an increase in new initiatives and forced growth of $2.4 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 the proposed new department, Madam Chair, links directly to the strategic plan developed by Members of the 15th Legislative Assembly. The priority of environmental stewardship including the protection of our air, water, forest resources and land aligns directly with the mandate of the new Department of Environment and Natural Resources.
The Northwest Territories has experienced an unprecedented level of economic growth over the past several years and, with that, increased demands on our resources. The creation of this new department is timely. Not only has there been a perception of conflicting mandates within the Department of Resources, Wildlife and Economic Development, but we must continue to strive to develop optimal organizational structures to effectively serve our clients. The creation of the Department of Environment and Natural Resources will assist in addressing these important issues.
Today I bring forward the main estimates. In order to ensure we have the capacity to meet our targeted April 1, 2005, implementation date. I would like to highlight some of our plans for the Department of Environment and Natural Resources that relate to the core values of the strategic plan. These core values include respect for our natural environment and working with all stakeholders to maximize the responsible use of our resources.
As mentioned, the rate of resource development is increasing in the Northwest Territories. The Department of Environment and Natural Resources will need to focus its resources in areas where they will have the most impact. The Government of the Northwest Territories will continue to play a key role in the environmental assessment process of major developments. The Department of Environment and Natural Resources will coordinate our government's input, analysis and positions on development applications made to federal agencies. We also believe that all regions of the NWT being directly impacted by development, must have the capacity to manage our environmental responsibilities. Accordingly, we are planning to establish new regional environmental protection officers' positions in Inuvik and the North Slave. This is in addition to the environmental protection officer already established in the Deh Cho region. This investment will ensure we continue to work closely with communities and industry as development proceeds.
The government's strategic plan speaks to the importance of environmental stewardship and the high value our residents place on the importance of our wildlife. The Department of Environment and Natural Resources will continue important research to gather baseline data, in every region, on the health and status of various wildlife populations. One important wildlife management initiative highlighted in the main estimates is an investment in the Bathurst Caribou Monitoring Program. This program will include working with communities to get direct input from harvesters and elders. This important program will use scientific and traditional knowledge to gather information on her movements, range, use, reproduction rates and calf survival rates.
In response to the increasing pace and scale of development within the NWT, the NWT Protected Areas Strategy partners developed a Mackenzie Valley five-year action plan. We believe that implementation of the action plan is critical and, as the Minister of Finance indicated in his budget address, we are investing $1.5 million over the five-year plan with $300,000 proposed for 2005-06.
I would like to assure the committee that the plans for implementation of a Beverage Container Recovery Program continue. As I have previously advised the Standing Committee on Governance and Economic Development, we have experienced some challenges that will delay full implementation of the program by April 1, 2005. We are still in the process of finalizing options and plans for the required depots and the optimal approaches for this territorial program. However, once in place, the Beverage Container Recovery Program will be funded through the modest non-refundable handling fee that will be applied to most beverage containers sold in the Northwest Territories.
In conclusion, I would like to thank you for the opportunity to provide these remarks on the main estimates for the new Department of Environment and Natural Resources. I want to assure the committee that your input and suggestions are reflected in this set of main estimates. This feedback is very important to the business planning process. I look forward to the committee's comments today and I am prepared to answer any questions that you may have. Thank you, Mr. Chairman.