Thank you, Mr. Chair. I am pleased to present the 2017-2018 Main Estimates for the proposed Department of Infrastructure. Overall, the department’s estimates, totalling $240.4 million, propose a decrease of $4.5 million or 1.9 per cent from the 2016-17 combined estimates of the Departments of Public Works and Services and Transportation.

These estimates continue to support the GNWT’s objective of ensuring a strong and sustainable future for the government and its programs by managing expenditures due to limited revenue growth.

The 2017-2018 Main Estimates include an increase of $2.9 million from the 2017-18 business plan reviewed by standing committee in September. This increase resulted from a $2.3 million increase in amortization expense for new assets being brought into service; $350,000 transferred to the department for leases formerly administered by the Department of Executive; and $253,000 for permafrost research and development activities along various sections of the highway system.

The 2017-2018 Main Estimates also include an increase of $1.5 million to maintain and enhance our transportation infrastructure through construction and maintenance of the Wekweeti winter road, operation and maintenance of the Inuvik to Tuktoyaktuk highway, and through various highway and winter road contracts intended to improve transportation infrastructure in the Deh Cho region.

These increases are offset by reductions totalling $6.5 million resulting from the amalgamation of the Departments of Transportation and Public Works and Services.

The amalgamation will achieve future savings through improved efficiencies, such as eliminating duplicate services in the areas of finance, administration, and management of the vehicle fleet.

A priority for the department is the continuation of a decentralized service delivery model, which will be enhanced with the proposed establishment of a new regional office in the Sahtu to be headquartered in Norman Wells.

The department’s 2017-18 estimates will continue to support the priorities of the 18th Legislative Assembly. Specific initiatives include increasing the use of renewable and alternative energy in off-grid communities, engaging with the federal government to access funding for major renewable energy initiatives, like assessing ways to use the surplus power available in the South Slave region, and the ongoing development of the NWT Energy Strategy to support the priorities of this Legislative Assembly by reducing our reliance on fossil fuels, reducing the cost of living, and promoting a sustainable future for our land and people. The department will also provide $2.7 million to the Arctic Energy Alliance to support its work promoting the use of energy efficient technologies for residents, businesses, and communities.

The department will continue its investment in the Deferred Maintenance Program by upgrading and preserving our building assets such as workshops, offices, schools, and health centres. The Deferred Maintenance Program helps the GNWT to better target its capital dollars in support of its priorities by maintaining and extending the useful life of our existing asset base.

The exit of an established northern marine carrier from the Western Arctic shipping business made it necessary for the Government of the Northwest Territories to step in and secure its unique assets and keep them in the North. The decision to purchase the assets was only made within the last few weeks, so marine operations are not reflected in these estimates.

The department is currently researching and evaluating various business models so the government of the Northwest Territories can make the best use of these marine assets. Our residents, businesses, and communities depend on reliable marine transportation services to deliver their household goods and building supplies as well as aviation, diesel, gasoline, and heating fuels. To fund the planning and start-up of operations the department will be seeking supplementary appropriations in 2016-17 and in 2017-18 that will be fully offset by shipping revenues. Providing reliable and affordable marine resupply services to government and residents is one way the Department of Infrastructure is advancing this Legislative Assembly’s goals to address the high cost-of-living.

That concludes my opening comments, Mr. Chair.