Madam Chair, I am here to present for the committee’s consideration the 2012-13 Capital Estimates of the Government of the Northwest Territories.
The estimates outline appropriations for government and community infrastructure investments of $124.2 million in the 2012-13 fiscal year.
The estimates do not include appropriations for housing infrastructure proposed by the NWT Housing Corporation in 2012-13, totalling $13.2 million. The appropriation for these investments will be sought during the review of the 2012-13 Main Estimates. The NWT Housing Corporation’s proposed 2012-13 Capital Plan, however, has been included in the estimates document as an information item for review and comment.
Including the proposed housing investment, the total planned infrastructure investment in 2012-13 will be $137.5 million. This reduced level of investment returns the GNWT to a more fiscally sustainable level of capital investment, as required by the current Fiscal Strategy.
Although smaller than previous years’ budgets, the 2012-13 Capital Estimates still provide a stable source of funding for community governments, and permits the completion of many of the projects begun during the 16
th Assembly.
This level of funding, however, will not address the GNWT’s growing infrastructure deficit, which is currently estimated at $3 billion over the next five years. This does not include deficits also accruing in our municipal and housing infrastructure needs.
The GNWT is facing the difficult challenge of maintaining existing assets, improving housing stock and meeting legislative requirements, with limited fiscal resources. Our ability to meet these needs is further constrained by a borrowing limit whose definition is broadening while the limit remains restrictive and does not reflect the debt carrying capacity of the territory. Under the current limit, there is limited opportunity for the GNWT to make investments to improve our territory’s essential infrastructure base to deliver programs and services, to respond to slowdowns in the
NWT’s economy or to make the required investments in strategic infrastructure that will better position the territory and all of Canada to maximize economic opportunities of the North.
Major highlights of the 2012-13 Capital Estimates include:
•
$25.6 million for highways and winter roads
across the NWT;
•
$11 million for school replacements and
renovations;
•
$28 million to continue to fund community
governments for infrastructure;
•
$30 million for health facility replacements and
renovations;
•
$11.9 million for small capital projects across all
departments;
•
$1 million to complete the required planning for
the Inuvik to Tuktoyaktuk all-weather road;
•
$4 million for the Deferred Maintenance
Program; and
•
$654,000 to continue the Capital Asset Retrofit
Fund Program for energy efficiency upgrades to upgrade existing GNWT buildings. The energy savings resulting from these investments will be used to enhance the program.
We are prepared to discuss the 2012-13 Capital Estimates with the committee. Thank you.