Thank you, Mr. Chairman. It is my pleasure to present the 2012-2013 Main Estimates for the Department of Transportation. The main estimates itemize the department’s requirements to carry out activities detailed in our annual business plan. This plan will continue to protect our transportation infrastructure as we work toward our primary mission for providing for the safe, secure, accessible and reliable movement of people and goods, while looking toward the future and responding to the needs of the communities and industry.
The department’s main estimates propose an operations expenditures budget of $120.4 million, which is an 8.7 percent increase from the 2011-12 Main Estimates. The increase is largely due to the debt service payment associated with the Deh Cho Bridge which will be part of the operations budget once the bridge is complete.
In 2012-13 the department will continue to champion partnerships with Aboriginal and northern governments toward improving the transportation system, such as the Mackenzie Valley all-weather highway. The partnerships we foster along the valley and to the Arctic Coast are instrumental in moving the project forward. As indicated in the Commissioner’s opening address, this government is committed to doing things differently, which is evident by the Department of Transportation reaching out to involve Northerners in project development right from project inception. The project description reports for the southern portions of the highway, completed with Aboriginal groups along the valley, are being combined into one document that could be submitted to regulators for initial screening, pending future funding. The department is continuing to work on potential next steps, including seeking additional funding to advance this project through the environmental review process. The added bonus of the Mackenzie Valley Highway project is the common transportation corridor that may be shared with the Mackenzie Valley Gas Project and the Fibre Optic Link Project, supporting these two other strategic infrastructure priorities of this Assembly.
The department will continue working on required planning for the Inuvik to Tuktoyaktuk highway. The environmental review is underway and is currently in the technical review phase. The draft environmental impact statement has been subjected to detailed scrutiny by the review board and interested parties. The assessment examined the impact of the proposed development, the significance of those impacts, proposed mitigation measures, and follow-up and monitoring programs. This technical review identified a number of information gaps and commitments for additional follow-up work that will be addressed this summer. We will continue to keep Members informed as the department moves forward with project planning activities.
A sustainable future for our territory includes responsible stewardship of the land and environment. The Department of Transportation’s O and M budget includes $142,000 in incremental funding from the Building Canada Plan for continuing research to address infrastructure challenges due to climate change. Various best research initiatives related to climate change are currently underway and a Climate Change Adaptation Plan will be completed this summer. The Department of Transportation has also
partnered with Transport Canada to help lead two national networks of expertise on climate change, one focusing on permafrost and the other on Arctic waters. These networks bring together researchers, scientists and practitioners to develop adaptation strategies and technologies to help mitigate the impacts of climate change. These activities will return dividends with valuable information leading to best practices for mitigating and adapting infrastructure to a changing climate.
In 2012-13 the department will continue construction of the Deh Cho Bridge. The bridge is the largest piece of transportation infrastructure in the NWT and the first to span the Mackenzie River. The historic opening will herald a new era of all-season access for people and goods into the North Slave region while increasing the reliability of access into the Slave Geological Province, thereby supporting the NWT economy and communities. The bridge is now in the final phase of construction, with the installation of the second tower and cables nearing completion. The bridge decking, grouting, paving and abutments and approaches are planned to be completed during the warm weather this summer and fall. The construction schedule remains a critical risk factor and the contractor has deployed extra workers over this next period to help meet critical milestones. The department is monitoring construction progress and costs very closely and is working with the contractor toward achieving the fall completion date.
Forced growth accounts for $1.198 million of the increase to the department’s O and M budget. The additional funding covers increasing fixed costs to deliver programs in various NWT regions. Much of the department’s forced growth is attributed to operation and maintenance contract increases in the airport, highway and marine activities, as well as additional operational pressures related to a more rigorous regulatory environment. Such investments are critical to maintain public safety and the integrity of the NWT highway system.
To increase employment opportunities where they are needed most, the department will continue in delivering the Marine Training Program, the Aviation Career Development Program and apprenticeship positions, with the goal of increasing the number of Northerners training and working in transportation-related fields.
The department has also made significant gains in the area of prevention. The Northwest Territories has been fatality-free on our roads, trails and waterways for more than 15 months and counting. I sincerely hope this unprecedented safety streak continues. Drive Alive, the department’s education awareness program, continues to advocate for individuals to make safer choices, including wearing seatbelts, helmets and personal flotation devices. Recent legislative changes that prohibit the use of
hand-held devices are now in effect and should help to reduce incidents of distracted driving and help keep our roads safer.
As a department which provides a broad range of services to the public, I also wanted to note that the main estimates are forecasting an increase in general revenues for the 2012-13 year of approximately $500,000. The revenue increase is representative of the modest traffic increase projected on our highway and air systems and the resulting revenues related to user fees such as landing fees and commercial vehicle registrations. The department is currently conducting a rigorous review of all service fees to ensure they are fair, equitable and reasonable.
Thank you for the opportunity to provide a short update on the Department of Transportation’s main estimates. I look forward to discussing them with you in detail. Mahsi.