Thank you, Mr. Chairman. The committee met with the Minister and his officials on September 25, 2006, to review the draft business plan of the Department of Transportation.

The committee considered the department's draft main estimates on January 16 and 17, 2007.

Committee members made note that the department is proposing to spend $88.3 million in operations expense and $47 million on capital projects in fiscal year 2007-2008.

Committee members offer the following comment on issues arising out of the review of the 2007-2008 Draft Main Estimates and budget-planning cycle:

Highway No. 3

After 23 years and $200 million, the committee is disappointed by the poor condition of Highway No. 3 between Yellowknife and Behchoko.

Highway No. 3, in certain places, is more suited to a roller coaster than regular traffic. The department states the roller coaster effect, or heaves and dips, are a result of melting permafrost in the area. Repairs have had to be made on an ongoing basis. The department has no mechanism to go back and have the repairs made under warranty because the time period has lapsed. A longer warranty would have increased the cost of the road.

Although a considerable amount of federal dollars went into completing Highway No. 3, the committee is concerned continued repairs for Highway No. 3 will drain the budgets of other highways also in much need of repair.

Recommendation

The committee recommends the department supply them with a projection of future repairs and the costs that will be required to make Highway No. 3 safe to drive. The committee would also like a report on all of the challenges encountered in building and repairing Highway No. 3.

Those are the committee's comments, Mr. Chairman.