Mr. Speaker, this afternoon I would like to inform the House of the steps the Department of Transportation has taken to prepare for construction of a pipeline along the Mackenzie Valley and its impacts on the territorial transportation system.
The Department of Transportation will bear a direct and significant burden associated with the proposed Mackenzie gas project. Since its inception, the Mackenzie gas project has assumed it would have access to the territorial public transportation system for its logistical needs. Indeed, a significant volume of equipment, material, personnel and supplies involved in this $7 billion project will move through our airports or over our roads. While the Department of Transportation will do its utmost to accommodate the requirements of the Mackenzie gas project, the department will also ensure that any disruptions to the transportation system are kept to a minimum.
The Department of Transportation and the proponents of the Mackenzie gas project started working closely together on the details of the transportation logistics involved. A joint working group has inspected the transportation system firsthand to identify the potential trouble spots and choke points that could constrain operations. Of particular concern are the sections along the main corridors of highways No. 1, No. 7, No. 8 and the Mackenzie Valley winter road, that will require improvements to carry the anticipated heavy traffic. There is also concern for intermodal exchange points between rail-barge and road traffic in Hay River, the highway-barge transfer at Fort Simpson and aircraft parking space at the Fort Simpson, Norman Wells and Inuvik airports.
All told, the department has identified a requirement for $104 million in improvements to our airport and highway infrastructure to respond to the impact of the Mackenzie gas project. While the planning and foresight of the department and the timely assistance of contributions from various federal programs and funds including the Canada strategic infrastructure fund, the department has been able to schedule $76 million in infrastructure improvements over the four fiscal years 2004-05 through 2008-09. This leaves an outstanding shortfall of $28 million that, for the present, remains problematic.
Beyond the short and medium term of the Mackenzie gas project and its relatively brief period of construction, the department is engaged with Transport Canada and the territorial Bureau of Statistics to identify the long-term demands on the transportation system the pipeline is likely to generate. Once a pipeline is in place and capable of delivering oil and gas from the Northwest Territories to market, it will stimulate the development of a permanent oil and gas exploration and production sector similar to those today in Alberta and northern British Columbia. We need to look ahead at the transportation requirements of a mature and flourishing hydrocarbon energy industry in the Northwest Territories.
With the long term in mind, the Department of Transportation has proposed a number of legacy transportation projects for consideration in the negotiation of a socioeconomic impact benefits agreement.
In conclusion, Mr. Speaker, the scale of the Mackenzie gas project is huge and, for a short time, it will put an enormous strain on our transportation system. We are doing our best to foresee the difficulties and to prepare for them. We are also pursuing opportunities to improve the transportation system for the benefit of all residents. Thank you, Mr. Speaker.
---Applause