With that, I’d like to thank the Minister. Thank you, witnesses. Sergeant-at-Arms, could you escort the witnesses out, please.

What’s the wish of the committee? Mrs. Groenewegen.

Mr. Chairman, we would like to proceed now with the Department of Transportation Ministerial remarks.

Thank you, Mr. Chair. It’s my pleasure to present the Department of Transportation’s Main Estimates for the fiscal year 2008–2009.

The Department of Transportation operates and maintains the territorial transportation system, including 27 community-based airports; 2,200 kilometres of all-weather highway; 1,450 kilometres of winter roads; and five ferries connecting the highway system at river crossings. The department also administers road licensing and safety programs as well as the local community access road program.

We are proposing an operating budget of $95.9 million for 2008–2009, including amortization to operate the territorial transportation system. This represents an 8 per cent increase from the $88.3 million budget for 2007–2008. This forced-growth funding will help cover increased contract costs for construction materials, maintenance of highways and airports, and ferry operations. The increasing cost of fuel, gravel and other construction materials, as well as collective agreement increases, contribute to the rising operational costs that are beyond our control.

We have listened to Members, communities and the transportation industry. These Main Estimates represent our commitment to address priority transportation system needs across the Northwest Territories, improving safety and stabilizing rising maintenance costs. This is a result-orientated plan that will advance the vision, goals and priorities of this Assembly and make significant improvements to the northern transportation system that our communities and our economy rely upon.

I’m confident that this plan is strategic and balanced and that we’re making the most appropriate investments given our funding limitations.

Significant exploration and efforts have gone into finding more efficient and effective ways to deliver essential transportation programs and services across the NWT. The department has proposed O&M reductions of approximately $2 million, or 2 per cent, of the 2008–2009 budget. These budget reductions were difficult to determine. They were carefully selected to minimize the impact on program service levels while also being accountable to the impact on our employees. The department is confident that the operational adjustments can be implemented with a minimal impact on the level of service provided to the public. A number of initiatives involve adopting new business and program delivery approaches, providing additional contracting opportunities and maximizing the capacity of regional management.

As a strategic initiative to reduce the high cost of living in the North, accelerating the construction of icebridges across the Mackenzie and Peel rivers has been proposed to extend the operating season of the Dempster Highway. The proposed use of ice-spray technology to construct the Dempster Highway icebridges is forecasted to open the crossing to full-load capacity three to four weeks earlier than using the conventional ice auger flooding technique. The resupply of goods can shift from expensive air transportation to more affordable ground transportation for a longer period of time and reduce warehousing, storage and logistic constraints for retail operations and industry. We continue to examine other ways to help reduce the high cost of living in our communities.

Under the Managing This Land Strategic Initiative the department is also continuing to work to mitigate and to adapt to climate change. The department proposes research in a number of areas to better understand and assess the impact of climate change on the NWT transportation system. These studies will help us to perfect existing infrastructure assets, maintain transportation service levels, direct infrastructure needs into the future, and develop innovative approaches to better service our transportation system.

One of the major challenges faced by the department is the recruitment of marine engineers. Under the Maximizing Opportunities Strategic Initiative the department has proposed a made-in-the-North training program to address this critical issue. The department’s long-term goal is to provide all required training, from entry level to Master, in the Northwest Territories and to have all the marine positions filled by Northerners.

The department’s capital plan has a total budget of $56.4 million for the 2008–2009 fiscal year, a 20 per cent increase from last fiscal year. The capital plan is focused on investments to meet increasing traffic demands and to improve connections to

communities. The proposed investment will reduce the cost of living, improve safety throughout the Northwest Territories and provide business opportunities in our communities.

We are entering into the last year of the Canada Strategic Infrastructure Fund Program. Significant improvements to the transportation system have been achieved through this partnership with the federal government. A total of $15 million is budgeted for 2008–2009 for ongoing projects. Investments include $2 million each for the Mackenzie Highway, Ingram Trail and the Liard Highway, $5 million for the Dempster Highway and $4 million for the Mackenzie Valley Winter Road Bridge Program, including a bridge over Blackwater River.

Major strategic infrastructure investments are proposed under the Reducing the Cost of Living Strategic Initiative. Winter roads connecting in the Nahendeh and the Sahtu regions will be improved to better withstand the challenges of climate change. The Tu Nedhe and the Thebacha region will be better connected through the proposed chipsealing programs on the Fort Smith and Fort Resolution highways.

The improvements proposed across the airport system will help stabilize the cost of air travel and community resupply and satisfy regulatory requirements. Runway extensions at the Fort McPherson, Fort Good Hope and Tulita airports are included in the proposed projects.

As Members know, this government recently signed the Building Canada Plan Framework Agreement. Negotiations are now underway on the funding agreement. This funding will help address the pressures of resource development, promote economic diversification across the NWT and allow us to continue making progress toward the goal of completing the Mackenzie Valley Highway to the Arctic coast. Important new capital projects such as the Kakisa River Bridge, the Yellowknife bypass road and the Tuk Gravel Access Road could be constructed under this program. We will also undertake planning studies on proposed projects like the access to gravel supplies west of Aklavik.

The growing volume of traffic generated by the North’s economic activity, estimated at an average of 7 per cent per year, affects all modes of transportation. The greater frequency of ferry crossings, more aircraft landings, higher passenger volumes and record levels of commercial vehicle trucks present the department with tremendous challenges. This budget proposal strives to match the public demands for transportation services with the government’s vision and requirements of fiscal discipline.

Those are just some of the highlights of the Department of Transportation’s proposed Main Estimates for the 2008–2009 fiscal year. There are many other positive and exciting projects and initiatives that the department expects to accomplish. This includes, among others, a gateway and trade corridor through the Mackenzie Valley, which has potential to rearrange logistics for major resource development in western Canada and the North and can add increased opportunities for construction of the Mackenzie Valley Highway. The plan reflects the importance of the transportation system to our quality of life and the government’s strategic initiatives. It has incorporated the advice of Members, standing committees, communities, aboriginal leaders and industry. I look forward to continuing to working with you to address the vision of the 16th Assembly and

truly see that as Northerners we can build the North by working together.

Mahsi cho, Mr. Chair.

At this time I’d like to introduce the Chair of the committee that’s responsible for overseeing the department’s Main Estimates, Mr. Ramsay.

Thank you, Mr.

Chairman. The

committee met with the Minister and his staff on April 10, 2008, to consider the department’s 2008–2009 Draft Main Estimates. The committee noted that the department is proposing to spend $95.947 million in operating expenses for the fiscal year 2008–2009. The proposed budget for the department’s capital plan is $56.437 million.

Committee members offer the following comments on issues arising out of the review of the 2008–2009 Draft Main Estimates. For those comments I’m going to pass the floor over to the committee’s deputy chair from Nunakput, Mr. Jackie Jacobson.

Mr. Jacobson.

Thank you, Mr. Chair.

Contracting Out of Own-Force Labour

In an effort to meet its reduction targets, the department is proposing to reduce costs related to highway maintenance, culvert replacement and chipsealing by using its own forces rather than using contractors to carry out a portion of the work. At the same time, they are proposing to contract out airport operations maintenance services in Fort Simpson. Members were not convinced that in either case the cost savings would be achieved. There will be additional costs that were not factored into these proposed reductions, including casual staffing and equipment leasing and service costs for laid-off employees. There are also no

guarantees that the private sector can deliver services on behalf of the government for less.

Climate Change Adaptation and Mitigation

Committee members were concerned with the lack of initiatives to address climate change issues. The Department of Transportation accounts for more than half of the NWT’s greenhouse gas emissions, and the impacts of climate change are already apparent in the degree of damage to the NWT roads and runways as a result of melting permafrost.

Members understand that research is currently being conducted to study the effects of climate change on the NWT transportation infrastructure. The committee looks forward to the results of the research and requests that a detailed action plan be developed to establish transportation options that would reduce impacts of greenhouse gas emissions.

Mr. Chair, that concludes the committee’s review of the Department of Transportation Main Estimates. I’d like to thank the committee, committee staff, Ms.

Patricia Russell and Ms.

Cate Sills. That

concludes the economic development infrastructure report.

Thank you, Mr. Jacobson. At this time I’d like to ask the Minister if he’ll be bringing in any witnesses. Mr. Minister?

Yes, Mr. Chairman.

Does the committee agree that the Minister brings his witnesses?

Sergeant-at-Arms, escort the witnesses in. Mr. Minister, for the record, could you introduce your witnesses, please.

Thank you, Mr. Chair. On my right is Deputy Minister Russell Neudorf, on my left Assistant Deputy Minister Daniel Auger.

Thank you, Mr. Minister. Welcome, witnesses.

We can turn to page 9-7, Operations Expenditure Summary for the Department of Transportation. We’ll defer that to the end. We can move to 9-8, Active Positions by Region. Mr. Abernethy.

Thank you, Mr. Chair. Once again I’m going to sound like a bit of a broken record here. I see that your department is going down by three positions. I was wondering if the Minister could give me a bit of a breakdown on the processes they used in order to identify which

positions would be targeted for elimination within the department. Of the three positions it looks like you’re going down, I’m curious if you could also tell me if these positions are vacant or filled and whether or not three is actually right. I kind of get the sense there might be a few more down and then you might be adding some back. Could you give me a bit of a history on your process and your status?

Minister Yakeleya.

Thank you, Mr. Chair, and thank you, Mr. Abernethy. I’d like to state that we were given a direction as a department to meet our target base in terms of the reduction. I instructed the department to look at the best possible way in terms of how we will maintain our level of service and the positions that would be affected. I’ll ask Mr. Neudorf if he would provide the details of the process and how we came to the conclusion you’re reading today.

Deputy Minister Neudorf.

Thank you,

Mr. Neudorf. Mr. Abernethy.

Thank you for that, Mr. Minister and Mr. Neudorf. As we’ve noticed with a couple of the other departments, there seems to be a bit of an anomaly in the number of staff who have actually been notified that their positions are

affected. I’m under the impression that there is actually a significantly larger number of employees within the Department of Transportation who have been told their positions are being eliminated. After we did a bit of digging, it appears that a bunch of these are actually ’09–10 positions. Can you give me a bit of an idea of how many positions are actually going to be laid off in ’09–10? Of those positions that are being laid off in ’09–10, how many are in fact filled, and how many are vacant?

Thank you,

Mr. Abernethy. Mr. Yakeleya.

Thank you, Mr. Chair. In ’09–10 there will be 14 positions laid off. The number of vacancies in ’09–10 — sorry; I stand to be corrected there. Mr. Chair, 14 positions are going to be reduced; layoffs will be 13.