I think the challenge is in this capital infrastructure acquisition plan, we don't reflect the proposed expenditures off in the future beyond the three years here. We have prior years; we have the next three years. We also don't go back a number of years to see funds that have been expended on, for instance, the North Arm Park. What we do here is have a snapshot of a four-year period. There are some future years identified and that does give some sense of future expenditures proposed, but nothing more specific than that. I really think we get back to the issue of not enough money to go around and the ranking exercise that we have to engage in in the department obviously resulted in these other priorities coming to the floor at the expense of some of the other parks, which also need additional infrastructure funding. Again, I go back to the fact that we don't have enough infrastructure money to go around and other competing priorities. Thank you, Mr. Chairman.

Thank you, Mr. Minister. Mr. Zoe.

Thank you, Mr. Zoe. Mr. Minister.

Thank you, Mr. Chairman. I think that's a very good point and we could certainly be consistent. We could certainly make that adjustment that would reflect our investments long term if we were to include all of them or, as the Member says, we could take those future years out and not report on them. We will look at some consistency in this process and I appreciate the Member's point. We will move to do that. Thank you.

Thank you, Mr. Minister. Page 9-6 and 9-7, economic development, tangible capital assets, total tangible assets, $1.736 million.

Total activity, $1.736 million.

Total department, $1.736 million.

Does committee agree that the Department of Industry, Tourism and Investment estimates are concluded?

Before I go to thank the Minister and his witnesses, what is the wish of the committee? Mr. Minister, do you have the same two witnesses for ENR? No. Okay. First of all, I would like to thank the Minister and Mr. Vician and Mr. Kennedy for being with us this afternoon. Committee is calling for a break, so let's have a 15-minute break and then we will come back with Environment and Natural Resources

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I call Committee of the Whole back to order. We are going to deal with the Department of Environment and Natural Resources. Is committee agreed?

Okay. Then we will have the Minister, for the record, please read his opening remarks.

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.

Thank you, Mr. Bell. At this time, I would like to recognize Jane Groenewegen to make the opening remarks on ENR.

The Standing Committee on Governance and Economic Development met with the Department of Resources, Wildlife and Economic Development, RWED, on January 13, 2005, to review the 2005-2006 Draft Main Estimates. The restructuring of RWED into two new departments will occur in the new fiscal year but had yet to divide as of this report. In this unique year, the main estimates of the departments of Industry, Tourism and Investment, ITI, and Environment and Natural Resources, ENR, were reviewed simultaneously by the committee and defended by the Minister of RWED.

The mandate of the Minister and Department of ENR is to promote and support the sustainable use and development of natural resources and to protect, conserve and enhance the NWT environment for the social and economic benefit of all NWT residents.

Working Relationship

As the days of the Department of Resources Wildlife and Economic Development come to a close, the committee would like to commend the Minister and the department for considering and implementing many of the committee's recommendations.

The committee has also appreciated the briefings and updates provided by the Minister throughout the restructuring process. The sharing of information has been appreciated and contributes greatly towards forming a strong working relationship.

The committee looks forward to having the same rapport with the two new departments of Industry, Tourism and Investment and Environment and Natural Resources.

Cost Of Restructuring

The committee appreciates that the government restructured RWED into the two new departments to improve program delivery. The committee also appreciates the difficulty in trying to quantify the cost of restructuring versus the cost of lost opportunity. However, the fact remains that the creation of Environment and Natural Resources alone will cost the government $1.074 million in ongoing costs. The committee is concerned about this expenditure.

The committee recommends that the government investigate how to further mitigate this expenditure as well as the ongoing restructuring costs for Industry Tourism and Investment. Thank you, Mr. Chairman.

Thank you, Mrs. Groenewegen. At this time, I would like to ask the Minister if he would like to call in witnesses.

Yes, I would. Thank you.

Does the committee agree?