Thank you, Madam Chair. At the witness table we have deputy ministers Mike Aumond, Finance; and Mr. Paul Guy, Public Works and Services.
I’m here to present the 2013-14 Capital Estimates of the Government of the Northwest Territories.
The estimates outline appropriations for government and community infrastructure investments of $123 million for the 2013-14 fiscal year. This amount includes $75 million for GNWT capital projects, $12 million for projects funded through the federal government’s Building Canada Plan, $28 million for contributions towards community infrastructure projects, and $8 million to continue the GNWT’s Deferred Maintenance and Capital Asset Retrofit Program.
The estimates do not include appropriations for housing infrastructure proposed by the NWT Housing Corporation in 2013-2014, totalling $14.5 million. The appropriation for these investments will be sought during committee’s review of the draft 2013-2014 Main Estimates in January 2013. The NWT Housing Corporation’s proposed 2013-2014 Capital Plan, however, has been included in the estimates document as an information item.
Including the proposed housing investment, the total planned infrastructure investment in 2013-2014 will be $137.8 million. Although the 2013-2014 Capital Estimates are the second year of reduced capital spending, the estimates still provide a stable source of funding for community governments and permit the completion of many of the projects begun during the 16th Assembly.
As Members are aware, this level of funding 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.
However, the increase to our borrowing limit and adherence to our fiscal strategy will provide us with an opportunity to start addressing this deficit by planning to increase the GNWT’s share of capital investment from $75 million to $125 million for two years, starting in 2014-2015.
The short-term increase in our capital spending will provide the GNWT the opportunity to make investments to improve our territory’s essential infrastructure base to deliver programs and services and to allow the GNWT to participate in future federal infrastructure programs.
The increase, however, is not sustainable without new revenues from devolution or further expenditure constraints or reductions.
Major highlights of these estimates include:
• $29.6 million for facility replacements and
renovations, including funding for the upfront planning for the upgrades that will be required at Stanton Territorial Hospital;
• $28 million to continue to contribute to the
community infrastructure needs;
• $23.3 million for highways and other winter
roads across the NWT;
• $12 million for small capital projects across all
departments;
• $5 million to continue the GNWT’s Deferred
Maintenance Program;
• $4.4 million for information technology projects;
• $2.1 million for improvements to NWT parks;
and
• $1.2 million to continue the Capital Asset
Retrofit Program for energy efficiency upgrades to existing GNWT buildings.
I am prepared to review the details of the 2013-2014 Capital Estimates.