Airports, not previously authorized, $2.512 million. Agreed?

Highways, not previously authorized, $13,000. Agreed?

Marine, not previously authorized, $1.398 million. Mr. Dolynny.

Mr. Chair, last week, through another supplementary appropriation, we approved capital upgrades to the Louis Cardinal to the tune of about $380,000. Now this week we are seeing another infrastructure amount for almost $1.4 million. Can we get some clarification as to why we are seeing such extra costs moving forward? Thank you, Mr. Chair.

Thank you, Mr. Dolynny. Mr. Miltenberger.

Mr. Chair, there are capital upgrades of $380,000. The annual ongoing operation costs are estimated at $1.377 million plus $20,000 of one-time operation expenditures for training costs in 2013-14. Thank you.

Thank you, Mr. Chairman. The operation of any ferry service usually follows a fairly preordained path. I mean, water freezes, water thaws, there is a week or two here and there, the trips are pretty much consistent. Can you give an explanation of why we are expecting to see that almost $1.4 million more?

The single biggest operation cost is going to be the crew compensation for the extended season in the neighborhood of almost $433,000. We have fuel for the ferry and the backhoe at $182,000, and we have shop supplies and mechanical/electrical at $187,000. We have ice removal from the hull done twice at $40,000. We have props and shafts at $20,000. Wood chips for the deck are $20,000. If you add it all up, it comes to the cost of $1.37 million.

Thanks to the Minister for the detailed list. I guess my question is – and I know the Member for Mackenzie-Delta is going to be more well-versed in this than I would be – the Louis Cardinal is a much smaller vessel and I know we have the Merv Hardie, a class 2 icebreaker which is way more efficient in design in terms of moving at capacity and yet I suspect not as fuel efficient as the Louis Cardinal. Was there any thought or

design to moving the Merv Hardie in lieu of the Louis Cardinal position to get more maximum use and possibly more capacity of use in terms of size, in getting all these extended ferry services during that freeze-up period? Is there any rationale except maybe the efficiency of the motors that went into play here? Thank you.

Thank you, Mr. Dolynny. Mr. Ramsay.

Thank you, Mr. Chairman. The department set out and did a thorough analysis of whether or not they could move the Merv Hardie there. It was determined that a better economic fix was to retrofit the Louis Cardinal. It is less expensive to operate the Louis Cardinal.

On the Mackenzie River, the best way to explain this is we had the Merv Hardie run up until December and sometimes even into the first week of January, while the ice road was being put in. Sometimes it could operate until the ice road came in. That extended service to the North Slave region until the end of December or beginning of January. The same thing is envisioned for the Mackenzie Delta at the Peel River crossing for the Louis Cardinal, being able to operate in ice conditions maybe up until Christmastime or maybe a little bit past Christmas. It is going to have a profound impact on the cost of goods in the region, and for people travelling and any commerce that is taking place up there and the movement of goods. It is really going to impact the entire region in a positive way. Thank you.

Thank you, Mr. Chairman. I appreciate the Minister of Transportation‘s clarification. I do know that the Merv Hardie is a class 2 icebreaker. What is the classification of the Louis Cardinal? Thank you.

It is anticipated that the Louis Cardinal will be able to perform in ice similar to the Merv Hardie. The other thing I should mention, as well, the Merv Hardie would have required a big retrofit and replacement of some engines on the vessel. That would have probably been another $1.5 million in one-time capital costs immediately. Again, that was all factored in. I think Minister Miltenberger mentioned the use of a backhoe on the Cardinal to clear ice. It will perform and we look forward to the Louis Cardinal working well into December this coming fall in the Mackenzie Delta.

I appreciate the Minister‘s comments. When the Minister is able, I’m sure he can probably provide the classification of the vessel. Again, these classifications have a certain capacity in terms of definition. So at least we can compare apples to apples when we talk about the efficiencies of these vessels.

Mr. Chair, I’m going to leave it at that. If there are any other questions, I’m sure the Member for Mackenzie Delta, if he wants to weigh in, he can; but if everyone feels that this is the go-forward and this is the best way to provide services and costs to the people of the Beau-Del area and the Mackenzie area, then I’ll leave it at that. Thank you.

Thank you, Mr. Dolynny. I’ll take that as a comment. Mr. Blake.

Thank you, Mr. Chair. I’d just like to ask whichever Minister decides to answer. This year it will be sort of a pilot project on this service. If this doesn’t play out as the plan goes, next year will the department look at bringing the Merv Hardie down to Tsiigehtchic? Thank you.

Thank you, Mr. Blake. Minister Ramsay.

Thank you, Mr. Chairman. Again, this is the first year that we’re going to be trying the Cardinal, extending the season in the region, and our engineers and our folks at DOT marine believe that the Cardinal has the capability to perform. We’ll see how it does this fall.

Failing that, with an investment of $1.5 million on the engines, the Merv Hardie is a very capable backup vessel for us system-wide. So we do have that at hand as well.

I’d just like to make a comment. I’m really looking forward to this fall to see how this project goes. I know the people in the Mackenzie Delta and the Beaufort-Delta will be very happy and encouraged by this. Thank you.

Thank you for those comments, Mr. Blake. Marine, previously, not authorized, $1.398 million.