Thank you, Mr. Chairman. It is my pleasure today to present for your consideration the Department of Transportation's proposed main estimates for the 2007-2008 fiscal year.
Our core business is the operation of the territorial public transportation system. The overall proposed budget for 2007-2008 is $88.3 million, including amortization, up from $83 million in the current fiscal year.
The larger portion of the department's proposed main estimates for 2007-2008, $62.8 million excluding amortization, is committed to funding O and M activities; that is, the day-to-day routine of operating and maintaining the system. This represents an 8.5 percent increase compared to the current year's main estimates.
The increase to the O and M budget is primarily a result of forced growth initiatives approved as part of the main estimates process. If approved, the department will receive an additional $4.8 million to cover things such as the increasing costs of fuel, construction materials and maintenance contracts for highways and airports, Collective Agreement increases, preventative maintenance and rehabilitation and repair of airport facilities, and the reorganization of marine services.
Of the $4.8 million for forced growth initiatives, $1.2 million will address the costs associated with the reorganization of marine services and the regulatory requirement for first mates onboard the Merv Hardie, Lafferty and Louis Cardinal ferries. The reorganization was necessitated by a number of issues including the need to better manage the aging ferry infrastructure, the repatriation of ferry workers at Fort Providence and Fort Simpson, and federal transportation safety, security and environmental regulation governing ferries.
In response to an increasing workload and recognition of a shortage of skilled trade workers in the Northwest Territories, the Department of Transportation will receive additional funding to hire apprentices. A total of $320,000 was approved for 2007-2008 for seven apprentices. This includes two electricians and five heavy-duty mechanics.
A total of $890,000 in ongoing supplemental O and M funding was approved for two airport projects. The first for $430,000 will cover the cost of implementing a building maintenance program at the Norman Wells, Inuvik and Tuktoyaktuk airports. This will ensure that the buildings are maintained to industry standards and prevent premature deterioration that has resulted in an increasing requirement to carry out emergency repairs. The second for $460,000 will increase funding available to address the rehabilitation and repair of airport infrastructure. This will help ensure that safety and Transport Canada certification standards are maintained. Increasing air traffic due to economic development, cost escalation and population growth are driving this initiative.
As part of this forced growth spending, the Department of Transportation will add 23 new positions in the 2007-2008 fiscal year. This includes 10 positions for ferry operations, including six first mates and four ferry workers in Fort Simpson. This also includes the seven apprentice positions just noted, four highway equipment operators required for the implementation of the 84-hour per week winter operations, and two in airport operations. The new workers will make a significant contribution to the operation and maintenance of our transportation system, enhance our response to resource development pressures and improve the overall level of service we provide to the travelling public.
The Department of Transportation's capital acquisition plan is focused on investments to improve the useful life and upgrades to existing infrastructure. For the 2007-2008 fiscal year, the plan has a total budget of $47 million, which is approximately the same amount as the current fiscal year. The level of funding remains high due to ongoing federal infrastructure initiatives.
Non-renewable resource development including oil and gas exploration and development, the anticipated construction of the Mackenzie gas project, and diamond mining and other mineral exploration activities will continue to have a significant impact on the NWT transportation system. We are entering the fifth of six years of the Canada strategic infrastructure fund program. A total of $24.5 million is budgeted in 2007-2008 for ongoing highway projects to address the pressures of resource development. Investments include $2 million each for the Mackenzie highway and Ingraham Trail, $2.5 million for the Liard Highway, $5 million for the Dempster Highway and $13 million for the Mackenzie Valley winter road bridge program.
The majority of the highways in the NWT were constructed in the 1960s and '70s and are nearing the end of their lifecycle. The department is rehabilitating and replacing aging infrastructure as capital funds are made available. In 2007-2008 the department proposes to invest $10.5 million to continue with the fundamentally important programs of bridge repair, culver replacement and chipseal overlay.
The Department of Transportation proposes to expend $9.1 million on airport infrastructure investment. Four million dollars is for the overlay of Yellowknife Airport runway 15-33. This project is being proposed with federal funding under the Airport Capital Assistance Program. An additional $3.7 million is proposed for the Yellowknife Airport Combined Services Building to replace the existing structure, which is now 45 years old.
We are eagerly anticipating an announcement by the federal government of additional funding allocations under the renewed Canada strategic infrastructure fund and the new highways and border infrastructure fund. The additional investment will fund new capital projects as laid out in Corridors for Canada II to respond to both the pressures of resource development and to promote economic diversification. The Department of Transportation will continue to pursue the federal government to complete the Mackenzie Valley highway to the Arctic Coast as proposed in Connecting Canada.
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Very briefly, these are the highlights of the Department of Transportation's proposed main estimates for the 2007-2008 fiscal year. There are many other positive and exciting projects and initiatives that the department expects to accomplish. I am confident that the proposed budget will provide for the continued safe and reliable operation of the NWT transportation system. Thank you.