Yes, I do, Mr. Chairman. I am pleased to present the Department of Public Works and Services’ main estimates for the fiscal year 2009-2010.
The main estimates propose a department operations and maintenance budget for 2009-2010 of $56.1 million which represents a 2.8 per cent decrease in O and M funding over 2008-2009.
Public Works and Services is an essential partner in the achievement of government-wide goals, and the department continually strives to deliver high-quality services to its clients, while achieving the best value for government, communities, businesses and residents. The department achieves this through support and leadership in the areas of:
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asset
management
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information and communication technology
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procurement
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records
management
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community fuel provision
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electrical and mechanical safety
The department also manages an additional $159 million for projects and services on behalf of its clients through revolving funds, chargebacks and capital transfers. These funds are used to provide:
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computer and data communications for
government offices; fuel services for residents, businesses and the NWT Power Corporation in 22 communities; and
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delivery of capital infrastructure for our clients.
PWS is working to improve how we do business. In response to the direction given by the 16th Legislative Assembly, and specifically the stated priority of achieving effective and efficient government, Public Works is leading a change in the way the GNWT approaches infrastructure. Under the guidance and direction of the Ministerial Subcommittee for Infrastructure, implementation of the revisions to the capital planning process will continue in 2009-10. Examples of changes include:
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planning
studies
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peer reviews of large capital projects
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value analysis of large capital projects
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development of standardized designs
In 2009-10, we will see the continued implementation of programs in one of the department’s key areas of focus: facility risk management and safety. Safe, reliable infrastructure is essential for the delivery of GNWT programs and services. The department maintains 760 buildings, of which 60 have an age of over 30 years. To date, assessments have identified over $387 million in deferred maintenance costs for GNWT facilities. It is expected that costs will continue to increase as PWS carries out assessments on the remaining facilities.
The two programs covered by funding in this area are the Deferred Maintenance Program and the Woodpile Remediation Program. In 2009-10, PWS will spend $8 million on the work plan for the Deferred Maintenance Program, dealing with the highest priorities identified in the latest GNWT asset assessments. The Woodpile Remediation Program has been extended into 2009-10 with funding of $550,000 to allow for completion of the inspection and remediation of woodpile foundations across the Territory.
The department has initiated several energy conservation projects to reduce energy consumption and greenhouse gas emissions in GNWT facilities over the last couple of years a wood pellet heating system in the North Slave Correctional Facility, Chief Jimmy Bruneau School, Kalemi Dene School, St. Joseph School; the
application of Eco-Energy Validation Program standards in the design of schools for Ndilo, Gameti, Tulita, Fort Good Hope and Inuvik; energy audits of GNWT and community buildings, and accessing surplus power from the Taltson dam to provide electric heat for three facilities in Fort Smith all in support of the GNWT Energy Conservation Action Plan. Subject to funding becoming available, we will be pursuing other opportunities across the NWT.
In addition to the facilities owned and maintained by the GNWT, Public Works currently manages a lease portfolio valued at $17.3 million with 58 leases across the Territory. Public Works reviews this portfolio regularly to ensure that occupied space meets the program needs of our clients.
Through the Technology Service Centre, the department provides information technology support and services to meet the business objectives of the GNWT. More and more, the ability of the government to provide services to NWT residents is dependent upon the availability of secure and reliable information and communication 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. Through the Fuel Management Services Agreement, the petroleum products division provides the Northwest Territories Power Corporation with all of its fuel requirements and manages and operates its tank farms in 20 communities across the NWT. Under this agreement, PPD maintains safe tank farms in many remote locations, as well as contracting with and training local fuel delivery agents to provide necessary 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 response to the challenge of rising oil prices and increased variability in the market, the petroleum products division is focused on exploring strategic partnerships and ways to stabilize the cost of fuel products for people in communities served by the program.
To effectively reduce the cost of transportation, the petroleum products division will maximize the volume of fuel transported to the GNWT by bulk marine tanker via the Alaskan “over the top” route, and reduce the volume of fuel transported via the traditional Mackenzie River route. In 2008-2009, this exercise saved approximately $2 million for the Beaufort-Delta communities served by the petroleum products division.
Market prices for fuel have dropped substantially since the summer of 2008. Unfortunately, many of our remote communities have yet to benefit, as fuel has not been purchased and delivered to these communities at the current lower prices. To assist these communities and help provide some financial relief from these higher fuel costs, on January 26th the retail prices of heating oil and gasoline were reduced by 16 cents per litre for all communities served by the petroleum products division. Fuel prices will be adjusted again for all communities after annual 2009 fuel supplies are delivered. If current petroleum market prices continue, additional reductions in the retail prices for petroleum products can be expected in 2009.
In order to achieve the department’s mandate and achieve our reduction target, PWS concentrated on looking for opportunities to become more efficient in the “administrative” side of our business through amalgamating positions where possible and eliminating those vacant positions whose duties could be absorbed by existing staff.
The proposed O and M reductions have been targeted at areas where savings could be achieved by improving operational efficiencies through procedural changes and better use of in-house and contracted resources in achieving the reductions without adversely affecting the delivery of our mandated programs.
As a part of the target reduction exercise, PWS has identified five positions for elimination. Of these five positions, only one will be laid off as two positions have employees who will be retiring before the 2008-09 year-end. One position is occupied on a term basis that will expire on March 31, 2009, and the last position is vacant.
While PWS eliminated five positions as part of the target reduction exercise for 2009-10, five trades positions, including one apprentice electrician, have been created in the South Slave in addition to the electrical inspector position being created in the North Slave. Overall, Public Works will show an increase of two positions in 2009-10.
Public Works and Services continues to be responsive to its many clients and strives to provide high-quality services 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 and I would be happy to answer any questions Members may have. Thank you, Mr. Chairman.