Thank you, committee. We will consider the documents after a brief recess.

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I'll call Committee of the Whole back to order. Committee, we have agreed to consider Supplementary Estimates (Infrastructure Expenditures), No. 3, 2018-2019. I will turn to the Minister of Finance for any opening remarks you may have. Minister McLeod.

Thank you, Mr. Chair. Mr. Chair, I am here to present Supplementary Estimates (Infrastructure Expenditures) No. 3, 2018-2019. This document provides for an increase of $4.6 million to the capital budget.

The items in these supplementary estimates include:

• $4.8 million to commence work for three projects related to the Mackenzie Valley All-season Road project. These expenditures will be partially offset by funding from the National trade Corridors Fund.
• $400,000 for the planning study for the mid-life upgrade and retrofit to the Prince of Wales Northern Heritage Centre. These expenditures will be partially offset by funding from the federal government.
• A decrease of $642,000 to reflect changes in the timing of the expenditures of the Fish Processing Plant project. This decrease is offset by an equivalent increase in expenditures in 2019-2020.

That concludes my opening remarks, Mr. Chair. I would be pleased to answer any questions Members may have. Thank you, Mr. Chair.

Thank you, Minister. Do you wish to bring witnesses into the House?

I would, Mr. Chair.

Thank you, Minister. Sergeant-at-Arms, please escort the witnesses into the Chamber. Minister, you may take your place at the witness stand. Minister McLeod, would you please introduce your witnesses for the record.

Thank you, Mr. Chair. Mr. Chair, to my right, I have Mr. David Stewart who is the deputy minister, Department of Finance. To my left, I have Mr. Sandy Kalgutkar, who is the deputy secretary to the FMB. Thank you, Mr. Chair.

Thank you, Minister. Welcome back to the witnesses. Committee, I will open the floor to general comments on Supplementary Estimates. General comments on the Supplementary Estimates. We are discussing Supplementary Estimates (Infrastructure Expenditures). First, I have Mr. Testart.

Thank you, Mr. Chair. This is an increase of $4.6 million to the capital budget. Can the Minister provide the impact to the supplementary reserve for infrastructure expenditures? Thank you.

Thank you. Minister.

Thank you, Mr. Chair. Mr. Chair, of the $4.6 million, we have 3.7 being offset by funding from the federal government, and the net impact on the supplementary reserve would be approximately $1.5 million. Thank you, Mr. Chair.

Thank you. Mr. Testart.

After the 1.5 million is expended, what is the total remaining balance in the supplementary reserve? Thank you.

Thank you. Minister.

Thank you, Mr. Chair. At this point, it would be a negative $1.3 million.

Thank you, Minister. Mr. Testart.

Thank you, Mr. Chair. What is the process for resolving that deficit? Can the Minister just explain where that money will come from? Thank you.

Thank you. Mr. Stewart.

Thank you. Mr. Testart.

Thank you, Mr. Chair. Is the Minister confident that we have sufficient flexibility through lapsed funding, through supplementary reserves, that this balance will be reconciled without requiring an additional appropriation? Thank you.

Thank you. Mr. Testart. Minister.

Thank you, Mr. Chair. Mr. Chair, we are about halfway through the year, but we are pretty confident that we will be able to reconcile.

Thank you. Minister. Mr. Testart.