We are moving along to page 13-36, information item, work performed on behalf of others, continued, total $3.980 million. Are there any questions?

Okay, committee. We will go back to page 13-7, which is the departmental summary for the Department of Environment and Natural Resources, operations expenditure summary, $60.849 million. Are there any questions?

Does committee agree that we have concluded the Department of Environment and Natural Resources?

Minister Miltenberger.

Thank you, Mr. Chairman. I agree. Just for the record, yesterday we indicated that our little bags that we are handing out for recycling to replace plastic were 50 cents. They cost 50 cents, but with the logos put on they were $1.07 per bag, just so that it is clear and on the record. Thank you.

Thank you for that update. If I can thank the witnesses for coming in today and if I can get the Sergeant-at-Arms to please escort them out, that would be great. Thank you.

Since we have concluded the Department of Environment and Natural Resources, the next was the Department of Transportation. Does committee agree that we move on to the Department of Transportation?

Minister McLeod, I believe you have some opening comments you would like to make.

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.

Thank you, Minister McLeod. Do you have witnesses you would like to bring into the chamber?

Yes, I do, Mr. Chairman.

Does committee agree to permit the witnesses into the Chamber?

Sergeant-at-Arms, if I could please get you to escort the witnesses into the Chamber.

Thank you. Thank you, Minister McLeod. If I could introduce your witnesses to the committee, that would be great.

Mr. Chairman, I have with me today Mr. Russell Neudorf to my right, who is the deputy minister of Transportation; on my left, I have the assistant deputy minister, Mr. Daniel Auger.

Thank you, Minister McLeod. We will proceed to general comments from committee. Are there any general comments? First on my list is Mr. Menicoche.

Thank you, Mr. Chairman. I am pleased to be reviewing the 2009-10 main estimates for the Department of Transportation. I am glad to see that highways No. 1 and No. 7 will be getting some investment dollars. Once again, it was a huge concern of the constituents and the communities that I represent -- Fort Liard, Nahanni Butte, Fort Simpson, Jean Marie River -- that are really impacted by the failures that occurred last year. I’m glad to see that we’re able to work the concern into the budget and the ministry has addressed them.

The long-term initiative for Highway No. 7 and Highway No. 1, for me -- we call that the Dehcho Connection -- is to move towards eventually chipsealing that loop and it will provide many benefits to the Deh Cho region and the Northwest Territories, much like we talked about the other day how the Mackenzie Valley Highway towards Tuktoyaktuk will increase and stimulate the North. This type of investment in Highway No. 1 and Highway No. 7, I always like to see it part of the strategy that it can and will increase tourism and tourism development of our region. I cannot say it enough on behalf of our constituents that tourists and tourist operators and people with motor homes want to come up here, but word of mouth spreads very, very fast when the roads collapse and they just turn around and go the other way.

One of my constituents has always said, he has contacts in Europe and he said even those guys knew about Highway No. 7 collapsing and it impacted the way they do their business and address their tourists and the directing of tourists to Canada and the Northwest Territories. That’s something that we have to be very mindful of and continue to invest those dollars into reconstructing and rebuilding those sections of our highway.

Most particularly it would be Highway No. 7. I know there were some interim measures done last year and I’m really looking forward to the type of investment that we’re going to do in Fort Liard and Highway No. 7. The community is quite excited that there are additional dollars this fiscal year to address those concerns. I think the key thing here, too, is to ensure that we do have the workforce to complete the work that’s done. I know in other infrastructure projects with our government that we often get challenged by enough contractors and professionals to complete the work that we have laid out for us. I’m hoping the department has a good strategy in place to spend as much of our investment dollars on our highways and get them completed during the construction season of the spring, summer and fall months.

I also spoke this week and last week about the business planning cycle and capital planning process about getting a bird’s eye view cost of the Liard Bridge at Fort Simpson. I think that’s something that has been put off for a while. I know there were some cost estimates from the ‘60s or ‘70s, maybe even ‘80s. I think I requested the Minister to provide those to me. I’ll be very glad to see those. At the same time we have to do at least Class D estimates. That’s going to cost and take some resources. My experience is out of a $100,000 commitment we’ll do that, but I would certainly urge the department to kind of look towards that.

As well, I’d like to commend the department for taking care of the needs of the smaller communities like Nahanni Butte and Jean Marie River. They don’t have highway systems, but they have seasonal roads. We continue to invest in those. That’s something the communities depend on. That’s their road out of the community. The little work that we do replacing the odd culvert here and there on those access roads is a huge stimulus package for them. A culvert program of $50,000 goes a long ways in a small community like Jean Marie River by providing income and revenue for local companies. I would continue to urge that with respect to Jean Marie River. As well as the Nahanni Butte completion of the access road there. I believe that you can do a lot of work this coming summer with regard to that.

I’d just like to maybe touch a bit on our ferry situation. Last summer the ferry being on the demand system worked out well for the benefit of constituents. They didn’t feel pressured that they had to make an increased speed and make it to the ferry’s schedule on an hourly basis. It really alleviated that. I’ve always said, I don’t know if we can prove it, I always said if we could prove it, I would gladly produce some documents that showed an increase of accidents as a result of going to an hourly ferry schedule. That’s something I would urge, I know there may be some pressures again this coming summer, but I would urge the department to stay away from that. There are some studies. In fact, the people who deliver fuel know that it wasn’t actually saving that much fuel, which was one of the key deciding factors of that program. At the same time, for public safety and efficient transportation system, I believe that staying on the demand system is the best for the Fort Liard ferry crossing.

I’ll just conclude my opening remarks with that.

Thank you, Mr. Menicoche. Next on my list is Mr. Jacobson.

Thank you, Mr. Chairman. For the opening remarks regarding Transportation I’d just like to thank the Minister. On December 23rd we

signed the MOU in Tuk for the Access Road 177 and it’s under construction now. It is employing at least 40 local people in the community and it’s a good stimulus to the community of Tuk and, I hope, the start of the Mackenzie Valley Highway. Moving on to, again, just to thank all his staff, Mr. Neudorf and Mr. Auger. Thank you for all the work you’ve done making this possible. Over the years it was 13 years since my uncle Vince Steen was working on it, so it was good to finally get it in motion.

Now, in regard to our local businesses at the airports, such as Canadian North and First Air, and making sure that we facilitate our northern carriers

where we can support local and northern businesses and good corporate citizens of Yellowknife. I think Canadian North here in Yellowknife has 8,200 staff in the city. I know the flight crews fly through here steady to support the local businesses: the hotels, the taxi companies, restaurants. It’s a big part of the community. So is First Air. The same capacity. I just want to make sure that we’re giving I wouldn’t say preferable treatment to our local carriers, but treated fairly and if they need a new kiosk, they can put it under the belt at the airport under that polar bear.

In regard to the one position in Tuk, the airport manager. I know we’ve talked about it last year. I put a motion forward to get it reinstated. I’ll be doing the same again in regard to keeping that position. The Minister quoted a few times of the safety of everyone in regard to the airline business, especially up in the North. Making sure that everybody is properly maintained on the aprons and nobody gets hurt. Making sure the runways and lighting systems are working. In my riding our manager takes care of three or four of my airports in Nunakput. He’s persistent and he does his job. I really think it should be looked at in regard to saving that position due to the oil and gas industry being able to land 737s the last two years now in Tuk. It was always good to see them in the community and an active role in making sure everything went safely and smoothly at the airport. I think the department should really take a look at that. I always say that’s where all the oil and gas is. It’s true. And I just really want to support my constituent. It’s the only one on the budget this year that’s to be cut. I am going to be bringing forward a motion in the House to get that reinstated. I hope the Minister steps up to the plate with me and makes it happen.

Overall, that’s all I have to say about that.

Thank you, Mr. Jacobson. Next on my list is Mr. Hawkins.