Yes, I do, Mr. Chairman.

I am pleased to present the Department of Public Works and Services’ main estimates for the fiscal year 2011-12.

The main estimates propose a departmental operations and maintenance budget for 2011-12 of $93 million which represents an increase of $224,000, or 2 percent, in O and M funding over 2010-11. In addition, the department has an approved infrastructure investment plan of $14.3 million for 2011-12.

Public Works and Services is an essential partner in the achievement of government-wide goals, while achieving the best value for government, communities, businesses and residents. The department achieves this through support and leadership in the areas of:

• asset

management,

• information and communication technology,

• procurement,

• records

management,

• community fuel provision, and

• electrical and mechanical safety.

The department also manages an additional $196 million for projects and services on behalf of its clients through revolving funds, chargebacks and capital transfers. These funds are used to provide:

• computer and data communications for

government offices;

• fuel services for residents, businesses and the NWT Power Corporation in 20 communities; and

• deliver capital infrastructure for our clients.

In response to priorities set by the 16th Legislative

Assembly, and specifically the stated priority of achieving effective and efficient government, Public Works and Services has led a change in the way the GNWT approaches how we plan for and acquire public infrastructure. The department has implemented changes to the capital planning process with all major projects subject to a more rigorous and detailed review before being considered for approval in the GNWT’s infrastructure acquisition plan. As a result of these changes, we are seeing new projects moving more consistently through design and construction on time and on budget.

In support of the Refocusing Government Strategic Initiative and the government’s direction to establish financial shared services centres, Public Works and

Services’ main estimates include $300,000 in funding in 2011-12 to assist the Department of Finance in the implementation of this initiative. The funding will be used to provide accommodations for financial shared services. Additionally, to support and complement the overall shared services initiative, Public Works and Services is taking a lead role in developing a model for shared procurement services.

Public Works and Services completed the consolidation of maintenance for GNWT building assets in 2010-11. The department now has direct responsibility for the operation and maintenance of 795 buildings in 33 communities on behalf of client departments, boards and agencies.

Looking forward, the consolidation of maintenance provides Public Works and Services with the opportunity to focus on developing and further improving the delivery of our maintenance services, in particular in the small remote communities.

In 2010-11, PWS established indeterminate settlement maintainer positions in the communities of Ulukhaktok, Sachs Harbour, Wrigley, Fort Resolution, Behchoko and Tulita as well as one new electrician position in the community of Inuvik. I am pleased to report five of the six settlement maintainer positions are now full and recruitment for the remaining position remains a priority. These positions, together with the 11 apprentice positions established by the department over the past four years, will enable the department to better manage the maintenance activities and availability of resources at the community level, while having more control over the cost and quality of the services provided. It will also allow PWS to be more proactive in completing its mandate of building maintenance and better support the department in complying with code mandated checks and repairs and completing deferred maintenance requirements.

In 2011-12, facility risk management safety and the Deferred Maintenance Program will remain a key area of focus in the department. Through this initiative, PWS is addressing the maintenance requirements to improve the useful life of our existing government buildings.

In the GNWT’s main estimates, Public Works and Services has identified $3 million for deferred maintenance for 2011-12. Including the $5 million in capital approved for this program, this brings our total investment in addressing deferred maintenance to $34 million over the past four years.

As a result of this investment in our infrastructure, the GNWT will have reduced its $470 million deficit in deferred maintenance to $325 million by the end of this fiscal year. This represents a reduction of $145 million since this program was initiated in 2008-09. PWS has accomplished this through coordination of deferred maintenance projects with

major and minor capital projects, regular operations and maintenance funding and projects managed under the Capital Asset Retrofit Fund.

In 2010-11, responsibility and funding for utility payment and tracking for GNWT owned buildings transferred from program departments and was consolidated in Public Works and Services. This will allow for active tracking of utility expenses government-wide and feed into current energy conservation projects.

The department has invested in several energy conservation initiatives to reduce the GNWT’s energy consumption and dependence on fossil fuels. Through the Capital Asset Retrofit Fund, Public Works will invest $3.4 million in energy conservation and efficiency projects on GNWT infrastructure throughout the NWT in 2011-12. Examples of the projects completed to date under this initiative include the electric boiler conversions in Fort Smith, installation of central biomass heating plants for schools in Hay River and numerous energy-efficient lighting and building retrofits throughout the NWT. These projects are in full operation and generating ongoing savings for the GNWT as well as reducing our greenhouse gas emissions. For 2011-2012, PWS plans to invest in energy initiatives through projects such as the addition of a biomass heating capacity to the central steam plant in Fort Simpson.

I am pleased to report that the department has already seen the benefits of energy conservation initiatives. PWS is projecting a savings of $775,000 in energy costs in the 2010-2011 fiscal year. With the proven savings resulting from sound energy investments with solid payback potential, Public Works and Services anticipates that in 2011-12 the GNWT will be in a position to establish a capital asset retrofit program as partially self-funded through realized savings on an annual basis. The department will continue to monitor the performance of completed energy conservation and biomass projects and explore opportunities for further investment under the program.

In keeping with our ongoing efforts to improve the information technology support and services provided by the Technology Service Centre, the department is in the final stages of completing the DCN contract renewal process. With a resulting network implementation, the GNWT will be in a position to benefit from improved services and cost savings. Some of the key benefits anticipated with the new contract include:

• lower costs per unit for bandwidth access;

• service delivery improvements in satellite

served communities;

• new technology will provide increased

bandwidth to meet client demands to support delivery of programs and services;

• improved performance in terms of network

speed and capacity for all communities served by the network.

Finally, Mr. Chairman, I would like to mention the provision of essential fuel services through the Petroleum Products Revolving Fund. Public Works and Services funds a provision of heating fuel and gasoline in communities where self-sufficient commercial operations do not exist. In doing so, the department is helping to develop independent small businesses to distribute fuel within our communities. In the response to the challenge of rising fuel prices, the petroleum products division is pursuing operational efficiencies along with supply and transportation alternatives to stabilize the cost of fuel products in the communities served by the program.

To that end, the petroleum products division has contracted the summer 2011 supply and transportation of petroleum products to a northern marine carrier and has established three-year contracts with local northern companies for the resupply of petroleum products by road. Public Works and Services continues to be responsive to its many clients and strives to provide high-quality services to departments and the people of the Northwest Territories. The budget that we will be reviewing today will contribute to achieving this objective.

Mr. Chairman, that concludes my opening remarks and I would be happy to answer any questions the Members may have. Thank you.