Mr. Chairman and Committee of the Whole, I would like to present for your review the Department of Transportation’s main estimates for 2011-12.

The main estimates before you detail the funding requirements to carry out the plans outlined within the department’s 2011-12 business plan. This plan will ensure the protection and enhancement of the Territory’s transportation infrastructure and supports our primary mission of proving for the safe, secure, accessible and reliable movement of people and goods, while looking towards the future at the needs of individuals and businesses.

For 2011-12, we are proposing an operating budget of $110.7 million, including amortization. This is a 6 percent increase over the 2010-11 main estimates. In addition, as approved in the fall session, we plan to deliver an additional $62.7 million in capital investments in 2011-12.

The most significant change to the O and M budget is forced growth. Funding increases of approximately $5 million are included in the budget to cover Collective Agreement changes, increases to highway maintenance contracts, winter road contracts, information technology system maintenance and the repatriation of vehicle registration and driver licensing services in Fort Smith and Inuvik.

The department also plans to continue to address the strategic initiatives of the 16

th

Assembly. Under

the Reducing the Cost of Living initiative, we have proposed a number of new projects focused on strengthening our connections with smaller communities. These new activities are in addition to many activities already underway, including ice crossing acceleration on the Dempster Highway and the expanded Community Access Program. The proposed new initiatives in 2011-12 include:

•

$170,000 to extend ferry operations on the

Dempster Highway at both the Peel River and the Arctic Red River crossings. This will improve access to Fort McPherson, Tsiigehtchic and Inuvik in the early winter period, while the ice crossings are being constructed; and

•

$250,000 to accelerate ice crossing

construction at Tulita, and on Great Bear Lake near Deline, which will enable the ice crossings to reach full strength sooner. Additional funding is also available for watering at select locations of the winter road to provide a more durable road surface.

The department has made significant progress on the planning for the Mackenzie Valley Highway from Wrigley to Tuktoyaktuk. The highway has

been a priority in departmental plans for decades and is a priority of this Assembly. In the past year the department completed the project description report for the Inuvik to Tuktoyaktuk portion of the highway. This project is currently within the regulatory process and the environmental impact statement will be submitted very shortly.

For the portion of the highway between Wrigley and the Dempster Highway, we are working with Aboriginal groups in the Mackenzie Valley to complete the project description report. We have signed memorandums of understanding with Aboriginal groups representing the entire Mackenzie Valley and work is underway to complete the project description reports for all segments. This work will provide the necessary environmental and engineering information required to submit applications to regulators for preliminary screening of the Mackenzie Valley Highway Project.

Mr. Chairman, the 2011-12 planning cycle marks the final construction push and opening of the Deh Cho Bridge.

---Applause

Mr. Chairman, the opening of the bridge is an event we are all looking forward to. The 2011-12 main estimates begin to include the bridge’s finances once it comes into operation. The main estimates before you today include $2.772 million for interest expense and $96,000 for community contributions related to the Deh Cho Bridge. However, they do not yet reflect the revenue or cost savings that will accrue once the bridge is in operation. The department will return in 2011-12, once the exact timing of the bridge opening is known, with a negative supplementary appropriation request to account for the savings from the ferry operation and ice crossing construction, and to report on the estimated toll revenue. The 2012-13 planning cycle, representing the first full year of bridge operation, will include the full annual expenses and revenues for the bridge.

Our team is working closely with the contractor, who is continually improving his operation and finding ways to regain time lost due to the steel fabrication delays. This contractor is making good progress with launching of the truss from the north end of the bridge. It is expected that construction materials, including the steel truss, towers and concrete deck panels, will all be on-site prior to the spring breakup. This critical milestone will facilitate the next stages of work once the river is clear of ice. We continue to plan and work towards a November 2011 completion date.

Mr. Chairman, very briefly, these are the highlights of the Department of Transportation’s proposed main estimates for the 2011-2012 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. Thank you, Mr. Chairman. Mahsi.