Thank you, Mr. Chairman. I am pleased to present Supplementary Appropriation No. 2, 2009-2010 (Infrastructure Expenditures). This document outlines an increase of $69.835 million for operations expenditures, and an increase of $101.669 million for capital investment expenditures in the 2009-2010 fiscal year. To clarify the document, of the $172 million in the total additional appropriation being requested through this supplementary appropriation, $112 million is for the carry-over of funding for infrastructure project, funding for which was approved and lapsed in 2008-2009. The carry-overs in this supplementary appropriation represent about 34 percent of the revised 2008-2009 capital budget. It declined from 48 percent and 43 percent for the two previous fiscal periods. I, therefore, encourage that some of the initial steps of the new capital planning process such as the fall approval of the capital estimates have had a positive result in helping lower this request. As we move to fully implement the other steps in the process including ensuring that the scope of project is more clearly defined and therefore project budgets based on more stringent estimates,. I anticipate the level carry-over threat will be lower.

Other major items include:

1. $43 million for the acceleration of projects

identified under Building Canada Plan Amended and Restated Agreement;

2. $3.2 million for projects identified under the

Canada-Northwest Territories Infrastructure Stimulus Fund 2009-2010 and 2010-2011 agreements;

3. $3.1 million for the Department of Education

Culture and Employment for the replacement of the Western Arctic Research Centre in Inuvik. The total estimated cost for the centre is $11 million which is fully funded under the new

federal government’s Arctic Research Infrastructure Fund;

4. $3.1 million for the Department of Education

Culture and Employment to advance the Diamond Jenness Secondary School renovation project in Hay River.

If approved, the revised capital plan for 2009-2010 will be $425 million. We do not have the capacity within the NWT to deliver this plan in one year. Ensuring successful timing and delivery of this substantial investment will require this to be in our capital plan for the next one or two years. There is no capacity within the system to do more. People may therefore ask if this level of investment is appropriate now. I would say yes that is it for several reasons. Lack of deferred maintenance has resulted in significant deterioration of government and community infrastructure. Previous reductions to capital budgets has resulted in an aged infrastructure that needs replacing. In 2008, capital spending in the resource sector was $1.3 billion. In 2009, it was $721 million, a decline of over $600 million, or over 45 percent. The NWT economy is experiencing a downturn due to mining, oil and gas activity slowdowns. These capital projects will help stimulate the economy. Construction costs are also lower than they have been for several years.