Thanks, Mr. Chair. The O and M savings that were initially identified for the 802s that we were buying, initially there was $500,000 identified for contract savings. During the initial evaluation of those planes, the original estimates were based on U.S. dollars. At the time of the estimates, the Canadian dollar was actually 10 cents higher than the U.S. dollar. By the time the planes were bought, the American dollar was then $1.26 to our Canadian dollar. So the $500,000 was not realized as a contract savings as initially thought of in 2016.

In addition, there was thought that, given that they were going to be a new fleet of aircraft, that the O and M would be substantially lower because it's a new fleet of aircraft. Unfortunately, when we saw that we didn't get the $500,000, what we asked committee was to delay the second $500,000 so we could get a year under our belt with the 802s to see how much operations and maintenance were. What we realized is, based on the fleet of eight versus the CL215s, where we had four planes, we actually didn't realize a savings in terms of O and M.

Upon realization of that, what we did was looked at, again, the areas within our forest management division, and we were able to find $800,000 in savings that was manageable from an ENR perspective. On the basis of that, what we looked at, the $800,000 breaks down to $350,000. We are not hiring a long-term fixed-wing aircraft for pre-suppression activities. These are for smoke controls and services to camps, and when we move people. This is really aligned to a risk measure, depending on if we have a lot of fires or don't have a lot of fires.

$250,000 of the $800,000 was reduced training costs for the aviation contract, and there will be little impact, as the contractor now has trained flight crews for two seasons, so we don't have to have that level of training. In addition, we found $200,000 for reduced consultant support for aviation services dealing with aircraft maintenance and inspection scheduling, and, as well, weather forecasting. We've been able to now, as we've had staff work through this process, actually acquire that competency, and we have them now working in the department and using weather-forecasting tools to predict fires. Again, we feel that those series of reductions will be better identified versus the 802 that we did not realize. Thank you, Mr. Chair.