Thank you, Mr. Chairman. I'm pleased to present the Department of Public Works and Services main estimates for the fiscal year 2006-2007. The main estimates propose a department operations and maintenance budget for 2006-2007 of $47.1 million and an infrastructure investment of $9.3 million. This is a 6.4 percent increase over the 2005-2006 Main Estimates.
The Department of Public Works and Services provides support services to departments and communities, including:
- • the management of capital construction projects,
- • operation and maintenance of infrastructure,
- • technical support in the provision of community drinking water,
- • leasing of government offices, and
- • records management services.
The department also manages an additional $112 million on behalf of its clients through a number of revolving funds, chargebacks and capital transfers. Through the use of these funds the department provides:
- • computer and data communication services for government offices throughout the territory,
- • fuel services for residents, businesses and the Northwest Territories Power Corporation in 22 communities, and
- • renovation and construction of territorial and community infrastructure.
Public Works and Services provides necessary technical and professional support to government departments. In this way, Public Works and Services contributes to achieving government-wide goals and an appropriate balance between the expectations of our residents for high quality services, the practical constraints of operating in our difficult northern environment, and the limitations of our current budgets.
The strong economic growth in the NWT has resulted in a dramatic increase in the number of large industrial, government, commercial and residential projects across the NWT. At the same time, similar activity increases are occurring across the country in many jurisdictions. Skilled tradespeople are at a premium, resulting in higher labour costs. Material costs are also on the rise due to sharp increases in demand from planned projects and unplanned events, such as hurricanes and other natural disasters in other parts of the world. Public Works and Services is currently projecting construction costs to increase a minimum of 10 percent in 2006-2007 and five percent in each of the fiscal years 2007-2008 and 2008-2009.
While these cost increases are, to a large extent, out of the department's control, it is incumbent upon Public Works and Services and all client departments to do what we can to keep costs within budget through better management of capital projects. Public Works and Services has incorporated higher energy-efficiency standards into our building designs that result in immediate and long-term savings in building operating costs.
I would like to take a moment to mention some of the more recent building and infrastructure projects served by Public Works and Services:
- • the new curling rink in Aklavik,
- • the new college student housing in Fort Smith and Inuvik,
- • Ecole Boreale - the new French school in Hay River,
- • the new tank farm in Gameti,
- • repairs in Fort Good Hope to seven flooded houses, and
- • the extensive Mildred Hall school renovations in Yellowknife.
All of these are important community, regional and territorial facilities that contribute in a positive way to achieving the government's long-term objectives.
The department also provides information systems and communication services for use by the government. More and more, the ability of the government to provide services to northern residents is dependent upon the availability of secure and reliable information and communication systems. Consolidation of the Technology Service Centre and the systems and communications division has enhanced the department's ability to provide IT services to government departments. This centralized service will play a key role as we make the necessary investments to upgrade outdated technology equipment and systems.
Another important role for this department is to be a key member of the GNWT team responsible for ensuring the quality of community drinking water, working closely with the departments of Health and Social Services, Municipal and Community Affairs, and Environment and Natural Resources. The Department of Public Works and Services provides technical support for the design, construction, operation and maintenance of community water systems.
Finally, I would like to mention the provision of essential fuel services. Through the petroleum products revolving fund, Public Works and Services funds the provision of heating fuel and gasoline in communities where a commercial operation does not exist. This includes providing safe tank farms in these remote locations, as well as contracting with and training local fuel delivery agents to provide the services. These agents have an important function in their communities and Public Works and Services works with them to carry out this important service.
In December 2005, the petroleum products division was contracted by the Northwest Territories Power Corporation to supply required fuel volumes and manage its tank farm facilities in 20 communities across the NWT. This additional business will increase the economies of scale of the operations of the petroleum products division and provide for some savings to both Public Works and Services and the Northwest Territories Power Corporation that would otherwise not be available.
Public Works and Services continues to strive to be responsive to its many clients and to provide a high level of support to departments and the people of the NWT. The budget that we are reviewing today will contribute to achieving this objective.
That concludes my opening remarks. I would be happy, at the appropriate time, to answer questions Members may have. Thank you.