Thank you, Mr. Chair. I am pleased to present the 2015-2016 Main Estimates for the Department of Transportation. These estimates propose an operating budget of $119.5 million for 2015-2016, a decrease of $6.7 million, or 5.3 percent, from the 2014-2015 Main Estimates. Although, this includes budget reductions of almost $1.2 million, the reductions proposed have been selected to minimize the impact on the transportation system while maintaining safety and service levels that communities and industry rely on.
The department operates the NWT public transportation system to provide for the safe, secure, accessible and reliable movement of people and goods. The proposed operations and maintenance activities will continue to protect the infrastructure investments already made in our transportation system while meeting the increasing demands on our network of roads, winter roads, ferries and airports.
The proposed main estimates also include a reduction in annual amortization of $5.7 million. This is a result of accounting treatment changes related to the Inuvik-Tuktoyaktuk highway and a number of transportation assets becoming fully depreciated.
Sunsets include $200,000 for the work currently underway to investigate improved access into the Slave Geologic Province in support of the Mineral Development Strategy. In addition, $2.35 million for interim emergency repairs to address the depression that formed on the Inuvik runway also sunsetted. Additional investigations to assist with long-term solutions are ongoing through partnerships established to advance climate change adaptation research and development.
The department is working to increase the level of services and information it provides in French. This budget includes $163,000 to achieve this goal. The Department is currently working to develop and install highway signs in French, to provide improved French language services on the web and to provide active offers for services in French.
The budget also includes forced growth requirements of $2.8 million to primarily address operations and maintenance contract cost increases across the highway, winter road and airport system.
Transportation infrastructure is essential to the economic health and prosperity of this territory and its residents. It connects our communities, supports exploration and responsible development of our natural resources, and lets business and industry move their products to market. Continued investment in the NWT transportation system is essential to creating a strong economy that will provide jobs and economic opportunities for our residents. We continue with the construction of the
Inuvik to Tuktoyaktuk highway and to promote additional partnership opportunities in the Mackenzie Valley Highway, the seasonal overland road into the Slave Geologic Province, and the Tlicho road to Whati.
The new Building Canada Plan and renewed partnerships with the federal government will provide the opportunity to continue investing across the existing transportation infrastructure. This ongoing investment will improve system conditions, better connect our communities, enhance safety for our residents and help ensure that the entire network in the NWT is ready to do business.
I am pleased to present the main estimates for the Department of Transportation that will help support the priorities of the 17th Assembly and a sustainable
fiscal future.
That concludes my opening remarks. Thank you, Mr. Chairman.