Thank you, Mr. Chairman. Yes, I do have some opening comments.

Mr. Chairman, I am pleased to be here today to present for your consideration the Department of Transportation’s proposed main estimates for the 2010-2011 fiscal year. For the 2010-2011 fiscal year, the department is requesting a total budget of $104 million, including amortization, which is a 7 percent increase from the current year’s budget of $97 million. Excluding amortization, the increase is 3.5 percent.

This budget proposes increases of $4.6 million to cover forced growth and $1.8 million for strategic initiatives. It also includes two major structural changes to the department’s operations expenditures in the areas of amortization and utility and building maintenance budgets. This year the department has, on the advice of the Auditor General’s office, adjusted the way it accounts for the amortization of assets. This change realizes a 5 percent or $5 million increase to the department’s budget for amortization of capital assets. The budget before you also highlights the consolidation and transfer of utility and maintenance budgets to Public Works and Services including two maintenance positions at Yellowknife Airport. Overall, this change transfers $4.3 million from the Department of Transportation to Public Works and Services.

One important forced growth item is a new regulatory environmental analyst position. In recent years, the department has become subject to a much stricter regulatory environment which is taking more and more time to respond to and manage. Having an additional position that is dedicated to these efforts will help the department meet the various licensing, permitting and reporting obligations that NWT and federal regulators require. Observing these requirements will also minimize potential environmental liabilities and related litigation risks.

While we will continue to invest in the day-to-day routine of operating and maintaining the transportation system throughout the Territory, I would like to highlight for committee a number of strategic initiatives we plan to implement. These strategic initiatives will allow the department to

develop and deliver a number of projects that have a direct and positive impact on the lives of Northerners. Over time, Mr. Chairman, these initiatives will create lasting benefits and deliver on the needs of the people.

One area of significant focus for the department is the Reducing the Cost of Living Strategic Initiative. For next year, Mr. Chairman, the department is proposing an additional $250,000 to continue the seasonal construction of the Wekweeti winter road, and $150,000 to accelerate the Fort Simpson region ice bridge construction. Along with these new initiatives, the department continues to undertake a large number of capital projects including relocating airports in Trout Lake and Colville Lake and runway extensions in Fort Good Hope, Tulita and Fort McPherson. We will also be busy continuing the reconstruction, widening and surfacing of highways all across the NWT and improving winter roads to Trout Lake, Deline and Colville Lake. These capital investments were approved as part of the 2010-2011 acquisition plan last October.

Mr. Chairman, the department has also proposed funding under the Refocusing Government Strategic Initiative, including $500,000 in funding for the commercial transportation and Licence Plate Program. This will focus the department’s highway traffic officers on enforcement activities. It will also fund the launch of a new licence plate for the Territory. It is expected that the cost of this initiative will be fully offset via user fees. We are also proposing an additional $677,000 for the Community Access Program. This is an important expansion of the Community Access Roads Program and with this increase in funding we will be able to broaden the number and scope of community access projects and we can expand the scope of the program to consider contributions for local boating facilities and winter gravel access roads.

Next year, Mr. Chairman, the department will continue our progress on the Mackenzie Valley Highway to Tuktoyaktuk. Last month, Indian and Northern Affairs Canada and the department announced $7 million in federal funding to complete project description reports – PDRs -- for the highway from Wrigley to the Dempster. This work should take the next two years to complete. A project description report for the northern most section of the highway from Inuvik to Tuktoyaktuk has been underway for a number of months and will be completed soon. These PDRs represent the next step forward in the development of an all-season highway. They will allow the government to make a submission to regulators to start the environmental assessment for this project. Finding the significant resources to construct the highway will still remain as a challenge and we will continue

to present the need for the road to the federal government when we have the opportunity.

While we continue to pursue an all-weather Mackenzie Valley Highway, the department has continued to improve the winter road. Work to date includes the completion of many grade improvements and construction of 34 of the 40 bridges along the road. We will continue with the construction of the Blackwater Bridge, which is currently underway and will undertake grade improvements. These projects help to extend and maintain the operating season by removing the dependency on ice bridges. This year the department will also be installing a number of road signs between Norman Wells and Fort Good Hope to make the road safer and to better inform travellers.

Under the Maximizing Opportunities Strategic Initiative, the department will partner with P3 Canada to study the feasibility of the construction of a seasonal overload road in the Slave Geological Province. Mr. Chairman, this project, if built, could stabilize resupply operations into the Slave Province and related costs and operational difficulties. This road could also create increased economic opportunities in the mineral resource sector.

Mr. Chairman, very briefly, these are the highlights of the Department of Transportation’s proposed main estimates for the 2010-2011 fiscal year. There are many other positive and exciting projects and initiatives that the department expects to accomplish. I am confident that the proposed budget will provide for the continued safe and reliable operation of the NWT transportation system. I would now be happy to answer any questions, Mr. Chairman. Mahsi cho.