Thank you, Mr. Chair. Many issues raised very interesting comments and some of these issues, of course, are going to be discussed further in our budget.
I do want to quickly respond to a number of things that were raised today. First of all, the comments made by Mr. Menicoche regarding Highway No. 7 and Highway No. 1. We certainly agree; most of our roads across the Territories need to be considered for reconstruction. Most of our highways are at their mid-life cycle and need to have some significant investment. Mr. Chairman, I also have to point that we have to recognize that there was an inability for some time within our government to attack some of these deferred maintenance issues and deferred reconstruction projects that we are now trying to play catch-up on. We are investing significant money in Highway No. 1 and Highway No. 7. In the long term our plans are to chipseal it at some point but, of course, priority has to be right now to have safe, reliable highways that our residents and our tourism traffic can drive on and be quite comfortable.
We also recognize that there is going to be capacity challenges in the communities as we move forward trying to do the many projects that are on our drawing board to try and accelerate the Building Canada Fund. Mr. Chairman, I have to point out the fact that we haven’t totally been at the point where we are in a position to agree to the two-year acceleration or disagree. That is still being debated and we are awaiting the outcome of that. We are quite interested to hear what would be the next steps in terms of investment if we’re going to agree to accelerate everything under a two-year plan.
We are, and have been quite up front in trying to have a working number for all the bridges across the Territories. There are five major bridges that will probably need to be done at some point. They’re not in our capital plan at this point and that includes the Liard River Bridge. We do have a working number and we try to keep that fairly current but we have to recognize that these are based on conceptual design and fairly early estimates and working estimates. I’m glad Mr. Menicoche is happy that the changing of the ferry systems to on-demand rather than schedule is working for his communities.
Mr. Jacobson has indicated that he’s pleased with the outcome of accelerating or the proposed acceleration of the Tuk highway. There are still some approvals that are required to move this forward. We have some money in the supp that has to be dealt with and we’d need approval to ensure that this continues. I would certainly agree with the Member; I think we would all share the enthusiasm to see this as a long-term investment for the start of the Mackenzie Valley Highway.
We recognize the Member has raised today in the House and again tonight that there is quite a concern from the aircraft carriers that have contacted him about being able to operate in this environment where we are seeing companies move in. Mr. Chairman, the industry designed for very little market disruption abilities from us as a government, especially as a Minister. I would probably be in a very potentially libellous situation if I did take any kind of protection measures. I am trying to be very careful so we don’t end up as a government with legal challenges from the industry.
The airport manager is a position that has been look at for some time now in the community of Tuktoyaktuk. It is part of our sponsor reductions, but it was also recognized that traffic volumes have been decreasing. It is an area and the position that can be covered off by the person in Inuvik and handle all the different issues that are of need in that area. I also want to state that, as and when and if things pick up, this would be a position also that would be reconsidered for re-instatement, but at this point it is really difficult to make a case to continue this position.
Mr. Hawkins raised and pointed out that we had potentially a printing problem, Mr. Chairman. There is really no typo in this document. The need for airport expansion has been brought to the table many times by this Member and has been working really hard to make a case that there is a lot of potential to increase in the Yellowknife Airport. We are looking at a $20 million-plus project to do that if that was going to be the case. We really don’t have it anywhere in our capital budget and can’t really see it as part of our foreseeable capital investments
until we can identify a source of revenue. That includes additional dollars to provide O and M to maintain this facility. The study that ITI did looked at accommodating the desire from the community and from the MLA to attract lower flights and large aircrafts to increase and stimulate the tourism economy. Mr. Chairman, that still could be accommodated as was mentioned in this study. There was a desire to do what they call a double drop, which is basically to land a large aircraft in Yellowknife, but in order to leave when they did leave the community, they would have to use two smaller planes to connect back in Edmonton. That is an issue. I think that is going to be ongoing as we try to find ways to accommodate the many needs. This is one of them. Mr. Yakeleya has raised once again the options and the desire to see some discussion move forward. Mr. Chairman, we are regrouping, trying to package up and discuss with our colleagues and that will include the standing committee at some point to see where we could go with this.
Mr. Chairman, we have recognized that the Mackenzie Valley Highway would be a project that would be an economic stimulus. Yes, of course, but there would be a lot of preparatory work in the event that the federal government did agree to backstop it. We have probably several years of permitting that would need to take place at a fairly high cost. There has been, as the Member mentioned, $4 billion in economic stimulus mentioned in the budget. Our understanding, and although it hasn’t been finalized yet, it is going to be based on a per capita allocation. If that is a reality, our per capita amount would probably not be much more than $5 million. We can’t build a whole lot of Mackenzie Valley Highway with that. The Members pointed out that the Bear River Bridge is ready to go. We agree. We need money to be able to move any further on that and we would need committee and Members in this House to support it.
Mr. Chairman, we are working on the Oscar Bridge. The engineering for that project is being done right now. We would expect, all things considered, that we would be able to start on the realignment next year.
The communities of Fort Good Hope and Tulita have been approved in the communities that will have their airport runways extended to 4,000 feet. There is still a desire from both Fort Good Hope and Tulita along with Deline that we look at extending it further. We had agreed with one of the communities to sit down and talk about some of the actual technical requirements that really never transpired. We need to be able to look at that before we can come back to this House for further dollars. It will be probably $2 million-plus just to look at the actual physical capital investment. It would be more than that. We would have to add the
operation and maintenance on top of that. We are quite reluctant and we have indicated to all the communities that going past 4,000 feet is a new standard. It has new additional requirements that are involved. I would want to make sure we are all on the same page while we discuss this and consider this and look at maybe being creative or look at ways. I am not sure there is an answer there but, at this point, it is not in our budget. We need to be convinced that there is a way to do it.
The winter road, of course, is still a work in progress. We continue to invest on the grade improvements, the bridge approaches. I think this year we have in this budget $20 million for investment in the Mackenzie Valley Highway in the Sahtu region. We do not have and will not have plans right now, Mr. Chairman, to look at the extension. It is actually the first time I am hearing it, that we consider extending a winter road to the Dempster and it is not in our budget. We would anticipate it is probably $2,000 a kilometre to invest in this stretch of winter road. I think it would be very difficult to put a business case together. It is a 300-kilometre stretch. We would need more than $600,000 to do that.
Mr. Chairman, Mr. Bromley raised a number of issues. Sorry, Mr. Chairman, you raised a number of issues.
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A number of these things are issues that we have been working on, have been discussing at the national level regarding targets for some of the new vehicles, some of the new planes or the type of planes that can be used. The federal government, I know, has been working with the auto industry and the carriers to discuss that. I would have to get a better understanding of that with our officials to see where it is at. Certainly I can commit to coming back to committee to have further discussion on that. I am very much interested to look at how we can do things and share that information of what we are doing on greenhouse gas reduction. I really appreciate the comments made by Mr. Bromley for us to stay on budget. As we move forward and traffic volumes increase and costs of doing business increases, it is a difficult target to meet. Our carry-overs have gone down, but I guess I should qualify that and state that it has gone down because we have introduced a negative supp, so it is really not a fair picture. I do want to offer and take up the offer to make a presentation on any of the initiatives and issues that committee would like to see.
Mr. Ramsay has raised a Yellowknife bypass road. The project is on track. We have awarded the contract and we should have that piece of infrastructure in service in the next couple of years.
Mr. Chairman, the Member also raised the issue of the Deh Cho Bridge. The Deh Cho Bridge is, as I indicated in the House, behind schedule. All the parties are working to bring it back on target. There are a number of things that need to be done before the temporary bridge is pulled out and all the piers have been poured and it is the pier vents that we need to be in place. It is going to be a challenge if we don’t have them before the ice bridge goes out or before we have to take the temporary bridge out. It is causing some stress. There is some concern between some contractors and the contractor. Still, we have a guaranteed maximum price, so unless things really go wrong, that’s within the realms of that. We have to remember, we still are the guarantor of this project so we do have the ultimate liability at the end.
Mr. Chairman, Mr. Ramsay also asked about how this lessens the cost of living. Mr. Chairman, the idea behind the bridge was to see how we can remove the bottleneck that prevents year-round access from the Yellowknife, Behchoko, Fort Providence communities and mines through to the South. Right now, the trucking industry and all the residents have to wait twice a year; in the fall when the ice is forming and in the spring when the ice is breaking up and we’ve had long waits. It’s not every year, but some years we’ve had 30, 40 hours’ waiting time. Those costs are incorporated in the freight costs right now. Right in the times when the ferry is not running, the freight is brought across by chopper. Those are passed on to us. So even the rolling in the toll, at the time it was going to be considered a cost-savings. Now the price has gone up considerably since then and I am not sure if we’ve done another additional study to see what it is right at this new price level, but that’s probably something we could look at. We are also anticipating the cost of incorporating a toll collection system at around $300,000. That’s what we had budgeted for and this has not been designed as of yet.
Mr. Chairman, the Member for Hay River South raised the procurement policy and it was raised as a question to the Premier during question period. There has been some concern. It’s been raised by both MLAs from Hay River who are quite concerned that a contract went out for a gravel haul and it was significantly higher than what we had budgeted. We did look at the ability to negotiate, Mr. Chairman, the difference between what the tender price comes in and what our budget is, and there is really little ability to negotiate down to what we can afford and it’s not something that we embark on. In this case, it was quite a bit higher. We did consider then to cancel the project and we did cancel the project and decided to retender based on a different season, a different time of the year. That’s allowable under the rules, Mr. Chairman. We are
anticipating that because it will be a summer haul versus a winter haul, that we will have a better response and better price.
Mr. Chairman, I certainly recognize also the other issue that was raised by the Member regarding negotiated contracts. We have to be very careful to ensure that we have balanced investment in all the areas of the Northwest Territories. Some areas are more, there is more desire to have negotiated contracts than others. Mr. Chairman, there are land claims agreements that we try to follow. We have MOUs that are part or are supporting the land claim documents, in some cases, that we try to abide by. We also have interim measures agreements that we have to also accommodate, and a lot of times these projects are right on the doorstep of an aboriginal community, small community or right in their traditional lands.
Mr. Chairman, there is also the reality at some points within our system when we go for permitting, we are also directed by the Mackenzie Valley Environmental Review Board to negotiate or ensure that there is significant benefit to the communities.
So I certainly agree and I am trying, along with our staff and our government, to be very mindful that we follow and support the balance investment in the Territories. Also, that’s the same as we move forward. We try very hard to balance or present our budget where it’s looking at all areas of the Northwest Territories. But, Mr. Chairman, there are occasions where need comes first. There are times when our road collapses or unexpected challenges come forward, so we really have to fast track some of those, but we are always trying to be mindful that we need to invest in all the different areas.