All those opposed to the motion, please stand. All those abstaining from the motion, please stand.

Thank you. I would like to call Committee of the Whole to order. In front of us today are tabled documents 4, 30, 38, 62, 75, 103, 133, 135; Bills 4, 14, 15, 17, 18, 19, 20; and Ministers’ statements 65 and 88. What is the wish of the committee? Mr. Beaulieu.

Thank you, Mr. Chairman. The committee wishes to consider Tabled Document 133-16(5), NWT Main Estimates, 2011-2012, and do the departments of Public Works, Executive and, time permitting, hear some remarks from Finance.

Thank you. Does committee agree?

Agreed. With that, we will take a short break and return with Tabled Document 133-16(5), NWT Main Estimates, 2011-2012.

---SHORT RECESS

I call the Committee of the Whole back to order. Prior to going on break, we had agreed to Tabled Document 133-16(5), NWT Main Estimates, 2011-2012. We were going to go with Public Works, and then we were going to go with the Executive and, time permitting, Finance.

We will go to Public Works. Minister of Public Works, do you have some general or opening comments you would like to make?

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.

Thank you, Minister McLeod. Would you like to bring witnesses into the Chamber?

Yes I would, Mr. Chairman.

Thank you, Minister McLeod. Does committee agree that we allow the Minister to bring his witnesses into the Chamber?

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

Thank you. Mr. McLeod, if I could please get you to introduce your witnesses for the record.

Thank you, Mr. Chair. On my left I have Paul Guy, deputy minister of Public Works and Services, and on my right I have Ms. Laurie Gault, director of the Technical Services Centre.

Thank you. As with other departments, we’ll go through the Members and have them do opening comments and then we’ll go to the Minister at the end for his responses. Are there any general comments? Mr. Jacobson.

Thank you, Mr. Chair. I’d like to start off with thanking the Minister in regard to getting the maintainers positions in Sachs Harbour and Ulukhaktok and I hope that it’s five out of the six, I hope it’s not the sixth person in one of my communities I represent that has been hired and they’re still looking for who will provide the support to the settlement maintainers.

Getting back to the PWS with the digital communications network contract, it expires in September 2011. The highlight of the importance and how we need the high speed Internet in the communities for the schools, for the nursing stations, for the community itself and all communities, I just hope they can reach that prior to it expiring and having the old blackout days in regard to Internet. The health centres really do need that and we utilize the program with telehealth.

The remote water quality monitoring treatment plants for Sachs Harbour and Paulatuk, I thank the Minister and we look forward to completing the infrastructure. The review for Sachs Harbour water supply system I hope we can get that sorted out if it’s not been sorted out already. Reviewing aviation fuel facilities and policies for the airports for Sachs and Ulukhaktok and Paulatuk is a good start and then replacement of the maintenance shop up in my hometown of Tuktoyaktuk, that’s probably been since the 1960s and it’s good to see that we have our money in the capital plan to replace that building, because the worker there... That building is so old it’s almost in the ocean.

Getting back into establishing of the gasoline that you’re selling to the Northern Stores, is that going to be directly from the government, PWS to the Northern Stores and is it going to affect the people directly as per litre, per gallon of fuel or heating fuel or gasoline in all communities? Because gasoline in the community of Tuk is $1.56 a litre and that’s unacceptable for the pricing. I’m hoping the Minister can help us that way if it’s directly to the Northern Stores or Co-ops or whoever’s selling the gas that we could, it impacts the people directly.

Thank you for letting me speak to the opening comments. I look forward to the page by page.

Thank you, Mr. Jacobson. Next on my list is Ms. Bisaro.

Thank you, Mr. Chairman. I have a couple of comments. I’ll start with the Minister’s statement that we’ve changed how we plan and acquire public infrastructure and made changes to the capital planning process. I think I said last year, and possibly the year before, that I’m really pleased that we’ve made these changes. I look forward to hearing from the Minister in this second year of the new capital planning process whether or not he thinks that it was a beneficial move. I know that was his opinion last year, but we had a hugely busy

construction season in 2010-2011 so I’d be interested to know whether or not he’s as positive about these new changes as he was last year.

I was really pleased to hear about the settlement maintainer positions. I think this is absolutely the way we need to go and I would hope that this would be a path that we’re going to continue on and that we’re going to try to get settlement maintainer positions in more than just the six that we’ve already targeted. In looking after buildings, whether they be government buildings or otherwise, it certainly is a huge advantage to have a maintainer in the community and not have to bring somebody in.

I was really pleased to see the numbers about the reduction in our deferred maintenance costs. We’ve gone down a great deal and I’ve told the Minister before, and I will say it again, but I think attacking our deferred maintenance deficit is absolutely the way that we need to go. I think from this I see that it’s paying off.

We were advised last year, and I guess that it has been accomplished in the 2010-2011 budget year, that we’re going to consolidate payment and tracking for utilities. I guess I would like to know from the Minister whether or not it seems to be working. I know it’s really on, but I imagine there’s a bit of a sense of whether or not it’s going to be a beneficial change.

I’m pleased to see that we are continuing to invest in energy conservation and efficiency projects. Again, I think that’s the way we should be going. I was particularly pleased to see that it looks as though, because of the energy efficiencies that we’re putting in place, the Capital Asset Retrofit Program is going to be partially self-funded, if not this next budget year then the one afterwards. That to me is just another indication that we’re on the right path.

I am concerned about the bandwidth and the IT requirements that we have within the government. Two departments particularly are increasing their requirements probably daily. Education and Health and Social Services are two huge users of IT and are adding more all the time. I’m interested in hearing, when we get to the page, how the department is handling the increased demand on our IT services and particularly on our bandwidth.

As usual, I think PWS does a good job and I’m pleased with what I heard from the Minister and look forward to the detail.

Thank you, Ms. Bisaro. Next on my list is Mr. Menicoche.

Thank you very much, Mr. Chairman. I just wanted to make a few comments with regard to Public Works and Services, especially the settlement maintainer position. When I did my last tour of Wrigley in January, that position

had still not been staffed. I see that almost 90 percent have been staffed, so if the Minister could let me know if the one in Wrigley was successful in being staffed. It’s something important to the community of Wrigley -- it always has been -- and I’m glad the department has returned that position to Wrigley. The importance of it, as the Members have already explained, is we had a freeze-up of I think it was the water truck two or three weeks ago and that’s something that could have been prevented had the settlement maintainer been there. A role like that is not just for the settlement; it’s fire trucks and anything else that requires at least some level of expertise to look at. The hope is that this person will find in getting something running or maintaining it is just for the betterment of the community. I think one of the words that the Minister used in his opening remarks was being proactive. I certainly look for that position to be staffed and it will certainly be a positive move for the community of Wrigley.

I only want to bring up one other thing. I wrote the Minister on a couple of occasions about the Public Works and Services office in Fort Simpson. They do get their vehicles maintained by the Department of Transportation. I’m thoroughly against that. I oppose that. I do believe we have a policy in utilizing local businesses. There is an automotive business in Fort Simpson that can maintain light vehicles. I would urge the Minister to review that and look at it and say, yeah, okay, Public Works and Services is going to have to use and support local businesses. It’s a proud policy that we have and I’m not too sure why they’re not implementing that in Fort Simpson. If the Minister has some legitimate reasoning for it he can also explain to me how it works in other regions, because I’m certain that’s not the case in other regions. We have to be consistent in delivering our policy. I believe that this department’s got to do the same as well.

Public Works and Services has been instrumental in maintaining a lot of infrastructure in the communities. I just want to say kudos to the staff, as well, because when I do my travelling to the communities, I see the staff travelling to the communities, providing the maintenance work to the schools and health centres and keeping our small communities up and running. That’s just my brief opening remarks.

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

Thank you, Mr. Chairman. I want to start off by saying that I appreciate this department’s achievement in keeping their budget on track. Having said that, I disagree with the Minister’s Department of Transportation going up 6 percent when the government’s only going up 3 percent, especially given the proven track record of Public Works and Services achieving reductions in

costs and actually saving this government money. That is where we want to be investing, and aggressively. We know full well what’s happening to the cost of fuel and it looks like we’re on an accelerated rise again here. The window of opportunity we know is almost certainly brief and we can’t afford to miss it. This department had an opportunity here to act more aggressively, given the considerable expertise and accomplishments they’ve developed in this area.

I want to say that I appreciate the consolidation of maintenance for GNWT buildings and the developing and further improvement of the delivery of maintenance services. I am curious about how in particular will the benefits of this consolidation be realized.

I am very supportive of the settlement manager positions. An electrician seems like a great score for Inuvik. I’m very curious about the 11 apprenticeship positions established by the department over the last four years. I’m wondering how long an apprenticeship is. If we’ve had these for four years, does this mean that some of them have completed their apprenticeship? Where have they settled? I’m interested in what their areas of skill are. I’m interested in what this translates to in numbers of apprentices we’re able to train. I think that’s a great program. I’ve said the same thing about the Housing Corporation. I’d like to know what skills are represented in our apprenticeships and what the turnover is on them and whether they’re actually staying in our communities.

The investment and infrastructure that’s reduced our deferred maintenance I think is an accomplishment that needs to be recognized and applauded. The consolidation of utility payments within this department is probably a good piece of work, but again this will allow for accurate tracking and feed into current energy conservation projects. I’m curious how, again, you expect to achieve this. What are the possibilities there?

It’s no surprise that I think it’s great that we got the electric boiler conversion done in Fort Smith, in the schools in Hay River and so on. These, of course, are old technology that we’re finally getting onto, but this department has shown the initiative to actually get out and do it. All kudos for that.

The numerous other projects are small, but not only are they gaining us but they’re developing the trades and skills to do these sorts of things and spreading that knowledge to our communities. I think the same thing in our Housing Corporation when they take this on, biomass heating capacity in Fort Simpson and so on. I’m wondering if it’s possible for this department to share their expertise and approach that they’ve developed with, for example, the NWT Power Corporation, recognizing that we’re talking heating and not electricity, but it’s the can-do, let’s-get-it-done attitude that pays

dividends here. That’s what we need from our Power Corporation. Again, old technology that’s being used in many areas in Europe.

I think it’s great that we start capturing those. The Minister of Finance has promised that we would start a revolving fund capturing the savings and perhaps it’s actually going to happen here finally, in the last gasping breaths of our Assembly. I’m happy to see that.

Finally the Minister mentions that he’s going to explore opportunities for further investment under this program. That certainly should not be a difficult task.

We certainly have a big need for enhanced and improved bandwidth services, so I hope the department really does get after that. I’m not at all knowledgeable in this area but I recognize the need. I ask the department to indeed do what needs to be done.

The petroleum products division operational efficiencies, we’ve been hearing about that now for a while and I’m glad to see that’s become operations. If the Minister’s really looking to help our residents and service our communities, and I thought he had actually committed to doing this, I don’t see it in his remarks, perhaps it’s happening. I ask again: what about the expansion of the petroleum products division to the PPPD, the petroleum and pellet products division, and start supplying pellets to our communities?

The Green Procurement Policy remains a hollow document and I know this department knows what needs to be done there. I’m hoping that they’re getting after it. I’m hoping the Minister will tell me that good work has been done there and they’re about to come out with a real Green Procurement Policy and explain how it will be spread throughout the Government of the Northwest Territories.

I’ll leave it at that. There’s lots of potential in this department. I’ll be exploring some of these things in detail, but I’ll be looking forward to the Minister’s remarks.