Thank you, Mr. Chair. I'm pleased to present the 2016-2017 Main Estimates for the Department of Public Works and Services. The department's estimates will support the core programs and services which help achieve our government-wide goals while providing the best value to the government, communities, businesses, and residents of the Northwest Territories. These estimates propose an increase of $1.4 million, or one per cent from the 2015-2016 Main Estimates, which is budgeted at $120 million.
Highlights of the proposed estimates include:
● continued investment in operations and maintenance for new and aging building infrastructure to ensure the availability of facilities to support the delivery of government programs and services;
● the creation of four positions for cross-department support to implement the final phase of the Government of the Northwest Territories' Digital Integrated Information Management System;
● a $3.5 million contribution to the Arctic Energy Alliance, including a $760,000 one-time enhancement to support residential and commercial energy conservation and efficiency programs; and
● the department's proposed budget reductions in response to our government's call to address our fiscal situation.
These proposed Department of Public Works and Services estimates support the priorities of the 18thAssembly. Specific activities in support of these priorities include the promotion and support of the use of energy efficient technologies in the public and private sectors and increasing the production of renewable and alternative energy.
The department's capital asset retrofit fund program reduces the cost to government in operating buildings through the delivery of energy efficiency upgrades and the installation of renewable energy solutions. For example, in just seven years, capital asset retrofit fund projects have helped achieve a reduction of 24 per cent in the total energy intensity in the Government of the Northwest Territories schools. Savings from the implementation of energy efficiency and alternative energy projects such as biomass resulted in an annual utility reduction of $1.8 million in 2015-16, which is returned to the Capital Asset Retrofit Fund Program to finance further energy efficiency upgrades. In addition to this significant savings in taxpayer dollars, greenhouse gas emissions reductions of nearly 9,000 tonnes were also achieved. The departmental Capital Asset Retrofit Fund budget for 2016-2017 is $3.8 million.
In addition to the substantial support being provided to the Arctic Energy Alliance, the department is undertaking a number of other energy initiatives, including $720,000 for the development of a solar project and variable speed generator in Aklavik to allow for a high penetration of solar into the local electricity system; $250,000 to continue feasibility and design work for a proposed wind project in Inuvik; and funding to support the development of a new Energy Plan.
The deferred maintenance program has a proposed 2016-17 budget of $8 million, including $3 million in capital and $5 million in operations and maintenance improvements. The deferred maintenance program remains an essential part of our department's overall strategy to address the deficit in building infrastructure needs essential to the delivery of government programs and services. The program is coordinated with the capital planning process, energy conservation investments, and our regular preventative maintenance program to maximize effectiveness. The current deferred maintenance backlog is calculated at $214 million, which is a significant reduction from the $470 million first identified in 2007-08. While the department anticipates continued pressure on deferred maintenance in 2016-17 and beyond related to the normal aging of our asset base, continued investment in the deferred maintenance program will ensure that buildings continue to be safe for occupancy and that critical deferred maintenance items are addressed to maximize the useful life of these assets.
The Technology Service Centre is an important program for the government and a major focus for our department. The technology service centre's service costs of nearly $23 million are recovered entirely through chargebacks to client departments and government agencies, so we are always seeking efficiencies by evaluating and implementing innovative technologies to better serve the needs of our clients. The increased use of modern, web-based applications, data collection and analysis, and the evolving global information security environment are just a few of the challenges that the technology service centre is committed to meeting.
It is through these and other department activities that Public Works and Services will continue to provide its many clients with the high quality of services they have come to rely upon and assist the Government of the Northwest Territories and the 18thAssembly in achieving its goals. This concludes my opening remarks. Thank you, Mr. Chair.
