Yes, Mr. Chairman. Thank you.

Mr. Chairman, it is my pleasure today to present for your review the Department of Transportation’s main estimates for fiscal year 2009-2010.

We are proposing an operating budget of $97 million for 2009-10, including amortization, to operate and maintain the territorial transportation system. This represents an increase of almost 1 percent from our 2008-2009 budget. The department continues to plan, improve and expand

highway and airport infrastructure. In 2009-10 we will deliver a capital program valued at about $77 million. While these investments were already approved in the fall, I want to quickly highlight a few of these to provide some insight into the type of work the department will be doing across the Territory.

The approved highway system investments will help to reduce the cost of living and better connect our communities. Reconstruction on almost every highway across the NWT is underway or planned. Winter roads, connecting in the Nahendeh and Sahtu regions, will be improved to better withstand the challenges of climate change. The Tu Nedhe and Thebacha regions will be better connected through the chipsealing projects on the Fort Smith and Fort Resolution highways. The department will continue our active role in the Deh Cho Bridge project which will improve services to the North Slave region. In the Beaufort-Delta and Nunakput regions construction of the Tuktoyaktuk to Source 177 Road is well underway as is the research and engineering work to assess options for Aklavik access to gravel. The Tuktoyaktuk Gravel Access Road marks another major step towards our long-term goal of a Mackenzie Valley Highway, as does the continuing Mackenzie Valley winter road grade and bridge investments. We are currently finalizing an economic analysis of the route which we hope will strengthen the basis for movement on this priority. Substantial environmental baseline and socio-economic work is also planned between 2010 and 2012.

The improvements proposed across the air system, including runway extensions at the Fort Good Hope, Tulita and Fort McPherson airports, will help facilitate lower cost of air travel and community resupply and satisfy regulatory requirements.

These major capital projects spread across the Territory will help to provide jobs, businesses and training opportunities and stimulate the NWT economy. As you are aware, the 2009 federal budget speech promised additional infrastructure dollars to further stimulate the national economy. I will keep committee informed as the details of this funding become known.

Mr. Chairman, the volume of traffic growth generated by the North's economic activity has averaged about 7 percent per year across the system. The greater frequency of ferry crossings, more aircraft landings, higher passenger volumes and record levels of commercial vehicle traffic has been the department’s major challenge over the last 10 years, especially as our infrastructure is aging. It is expected that the economic situation will curb the level of traffic growth and provide an opportunity to gain some ground on rehabilitation and maintenance efforts across the system. The

economic downturn may result in increased competition and cost decrease for capital and maintenance contracts. Lower commodity prices, including fuel and steel, may also provide an opportunity to reduce costs. The department’s ability to attract and retain skilled transportation professionals, such as engineers, may be increased. These factors will help maximize the economic stimulus that infrastructure investment provides.

Mr. Chairman, the department has implemented a number of innovative changes to improve transportation services within our existing structure, staff and resources. To address the maintenance and rehabilitation challenges, operational improvements to the Highway Structures Management Program have been implemented. We can now take a more proactive approach to ensuring that rehabilitation work is properly prioritized and that structural integrity is maintained. We plan to continue expanding the use of the mobile issuing station to improve driver’s licence and identification issuing in remote communities. The department has also implemented a number of operational changes to maximize limited resources, like optimizing the location of granular stockpiles to minimize travel times, and using own forces to deliver chipseal projects when regular maintenance levels allow.

The department will be continuing with major strategic infrastructure investments approved under the Reducing the Cost of Living Initiative. The department proposes to reduce the cost of living in the Tlicho by commencing the preliminary work required to connect Wekweeti to the public highway system through an annual winter road.

The safety of the travelling public is, of course, at the core of all our activities. It is the central reason for the implementation of our airport safety management system, airport emergency response plans and training facilities, Highway Reconstruction Program, ongoing improvements to the winter road network and increased commercial vehicle inspections and enforcement. We have begun preparatory work to implement improved road weather information. Improved road weather information will allow for more focussed maintenance efforts where it is required most, improved salt management and energy savings. We will also continue to focus on public safety education through the Drive Alive Transportation Safety Program. We are always mindful that safety is everyone’s business.

Mr. Chairman, the department has focussed on finding innovative ways of doing business. These program and operational adjustments will enable the department to do more without spending more; an essential goal during these times of economic

restraint. The department will improve the operation and maintenance of 2,200 kilometres of all-weather road, including five ferries, 1,400 kilometres of winter road, 27 airports as well as plan, design and manage the delivery of $77 million in infrastructure investment within our proposed budget of $97 million.

Mr. Chairman, the 2009-10 plans will ensure the continued protection and enhancement of our over $1 billion in transportation assets while carrying out our primary mission of providing for the safe, secure, accessible and reliable movement of people and goods. Our goal is to make our transportation system safer, more secure, more accessible and more reliable. Thank you, Mr. Chairman.