Thank you, Mr. Chairman. I am pleased to present Supplementary Appropriation No. 1, 2009-2010 (Operation Expenditures). This document outlines an increase of $4.27 million in operations expenditures for the 2009-2010 fiscal year. The major items in this supplementary are requesting two:
$3.6 million for the Department of Health and Social Services for the increased cost associated with a new contract between the Government of the Northwest Territories and NWT positions.
$485,000 for the Department of Transportation to continue research and development projects funded under the Building Canada Plan for which funding was approved and lapsed in 2008-2009.
I am prepared to review the details of the Supplementary Appropriation document. Mahsi.
Thank you, Mr. Minister. With that, will the Minister be bringing in witnesses?
Yes, Mr. Chairman.
Does the committee agree to bring in his witnesses?
Agreed.
Sergeant-at-Arms, could you escort the witnesses in?
For the record, Mr. Minister, could you introduce your witnesses?
Thank you, Mr. Chairman. With me is Margaret Melhorn, deputy minister of Finance, and Mr. Sandy Kalgutkar, the deputy secretary for the Financial Management Board. Thank you.
Thank you, Mr. Minister. Welcome, witnesses. Are there general comments in regard to Supplementary Appropriation No. 1, 2009-2010? Are there any comments? We can move to page 3, Health and Social Services, operations expenditures, health services programs, not previously authorized, $3.785 million. Agreed?
Agreed.
Total department, not previously authorized, $3.785 million.
Agreed.
We are on page 4, Transportation, operations expenditures, corporate services, not previously authorized, $485,000.
Agreed.
Highways, not previously authorized, $300,000.
Agreed.
Total department, not previously authorized, $785,000.
Agreed.
Page 5, Industry, Tourism and Investment, operations expenditures, tourism and parks, not previously authorized, negative $300,000.
Agreed.
Total department, not previously authorized, negative $300,000.
Agreed.
Mrs. Groenewegen.
Thank you, Mr. Chairman. I move that consideration of Tabled Document 35-16(3), Supplementary Appropriation No. 1, (Operations Expenditures) 2009-2010, be now concluded and that Tabled Document 35-16(3) be reported and recommended as ready for further consideration in formal session through the form of an appropriation bill. Thank you, Mr. Chairman.
Thank you, Mrs. Groenewegen. The motion is being circulated. To the motion.
Question.
Question is being called.
---Carried
Does the committee agree the review of the Tabled Document 35-16(3), Supplementary Appropriation No. 1, 2009-2010, is concluded?
Agreed.
With that, I would like to thank the Minister and thank the witnesses. Sergeant-at-Arms, escort the witnesses out.
Okay, the next item for Committee of the Whole is Tabled Document 36-16(3), Supplementary Appropriation No. 2, 2009-2010. With that, I will ask the Minister if he has any opening comments in regard to this supp. Minister of Finance, Mr. Miltenberger
Thank you, Mr. Chairman. I am pleased to present Supplementary Appropriation No. 2, 2009-2010 (Infrastructure Expenditures). This document outlines an increase of $69.835 million for operations expenditures, and an increase of $101.669 million for capital investment expenditures in the 2009-2010 fiscal year. To clarify the document, of the $172 million in the total additional appropriation being requested through this supplementary appropriation, $112 million is for the carry-over of funding for infrastructure project, funding for which was approved and lapsed in 2008-2009. The carry-overs in this supplementary appropriation represent about 34 percent of the revised 2008-2009 capital budget. It declined from 48 percent and 43 percent for the two previous fiscal periods. I, therefore, encourage that some of the initial steps of the new capital planning process such as the fall approval of the capital estimates have had a positive result in helping lower this request. As we move to fully implement the other steps in the process including ensuring that the scope of project is more clearly defined and therefore project budgets based on more stringent estimates,. I anticipate the level carry-over threat will be lower.
Other major items include:
$43 million for the acceleration of projects identified under Building Canada Plan Amended and Restated Agreement;
$3.2 million for projects identified under the Canada-Northwest Territories Infrastructure Stimulus Fund 2009-2010 and 2010-2011 agreements;
$3.1 million for the Department of Education Culture and Employment for the replacement of the Western Arctic Research Centre in Inuvik. The total estimated cost for the centre is $11 million which is fully funded under the new federal government’s Arctic Research Infrastructure Fund;
$3.1 million for the Department of Education Culture and Employment to advance the Diamond Jenness Secondary School renovation project in Hay River.
If approved, the revised capital plan for 2009-2010 will be $425 million. We do not have the capacity within the NWT to deliver this plan in one year. Ensuring successful timing and delivery of this substantial investment will require this to be in our capital plan for the next one or two years. There is no capacity within the system to do more. People may therefore ask if this level of investment is appropriate now. I would say yes that is it for several reasons. Lack of deferred maintenance has resulted in significant deterioration of government and community infrastructure. Previous reductions to capital budgets has resulted in an aged infrastructure that needs replacing. In 2008, capital spending in the resource sector was $1.3 billion. In 2009, it was $721 million, a decline of over $600 million, or over 45 percent. The NWT economy is experiencing a downturn due to mining, oil and gas activity slowdowns. These capital projects will help stimulate the economy. Construction costs are also lower than they have been for several years.
Thank you Mr. Minister. With that I would like to ask if you will be bringing in any witnesses?
Yes, Mr. Chairman.
Committee agreed that Mr. Minister brings in his witnesses?
Agreed.
Sergeant-at-Arms, escort the witnesses in.
For the record, Mr. Minister, can you introduce the witnesses.
Thank you, Mr. Chairman. On my immediate left I have Margaret Melhorn, deputy minister of Finance; to my immediate right, Mr. Michael Aumond, deputy minister of Public Works and Services; to his immediate right, Mr. Russ Neudorf, deputy minister of Transportation. Thank you.
Thank you Mr. Minister. Welcome, witnesses. Are there any general comments to Supplementary Appropriation Act, No. 2, 2009-2010? Comments? Mr. Menicoche.
Thank you very much, Mr. Chairman. I am really pleased that we have this huge opportunity with our government to revisit some of the capital investment expenditures for 2009-10 and some of the investments from the federal government dollars.
I just wanted to continue to reiterate some of the transportation concerns from the Nahendeh region. Something that I have been trying to get on the books, at least the long-term capital plan were several…(inaudible)…that is going to be addressed, one of them, of course, is the Trout Lake relocation. And we can see that it is under discussion here.
As well as some of the things that are not on here, I just want to make mention that one of the priorities of my constituents and my riding is to continue to look at the long-term chipsealing of Highway No. 1 from the Providence Junction over to, to complete that section over to Checkpoint Junction, as well as to look at from the B.C. border back to Fort Liard. Having these done is the key strategy to improving the economic well-being of my residents, to increase tourism, to increase traffic flow and so that is something that I am looking to get on the capital plan; it is not here.
As well, I am pleased to see a continued investment in Highway No. 7, in the section that failed, and I will continue to construct that there, Mr. Chairman. But overall, I think that we have a beginning here with the capital investment expenditure that is before us. At the same time, I would like to reiterate some of the concerns according to myself and my constituents. Thank you, Mr. Chairman.
Thank you, Mr. Menicoche. Minister of Finance.
Thank you Mr. Chairman. We appreciate the Member’s concern on behalf of his constituents. We have before us the single biggest capital plan for the Government of the Northwest Territories’ history. And while we recognize that it is large, there are going to be challenges and issues. We do recognize that there is a far greater list of needs than there are resources, but this will give us a very good start, as the Member indicated, and we will put all our efforts collectively into getting all delivered as soon possible. Thank you.
Next on the list I have Mr. Beaulieu.
Thank you, Mr. Chairman. I, too, would like to see some more money going into Highway No. 6. I am pleased with the fact that there is probably enough money in Highway No. 6 to chipseal half of that highway and probably do some work on the other half, but not enough money there to complete the entire project right from Fort Resolution all the way into where Pine Point used to be. It is paved to there. It would be good to see chipseal to there. I would like to see the government examine the completion of that road, for sure.
One of the more important items, as far as within the communities go, inside both of the communities of Fort Resolution and Lutselk’e, getting some sort of permanent dust suppression there. I recognize that money flows to the communities but I still think that there should be more money flowing to the communities for them to address that important issue. I speak for the two communities in Tu Nedhe, but at the same time I am aware that many of the small communities have real serious issues with dust and I think that for the health of the community and just the overall well-being of the community, I think that government should actually work with the municipalities to address that issue. If there is more money being put into the communities, I think that this government should be sitting down with the communities and making this a priority. It seems to be a very high priority for the citizens of my two communities and also I have spoken to other people from small communities who have very similar concerns and that I think that is just a basic need of the people of the Northwest Territories, not to have to deal with dust problems all summer long, and mud problems all spring long. So I would like to see certainly this government start to work with various municipalities, as far as I am concerned, specifically for Fort Resolution and Lutselk’e to deal with the dust problem. Thank you.
Minister of Finance.
Thank you, Mr. Chairman. Of course, we’re prepared to work with the Member and, as we indicated in our meetings with the small, rural, remote communities committee, the idea of sitting down with the committee and some of the members from the communities and Association of Communities would help us initiate that process.
I would like to point out, though, that while we managed to keep government expenditures to 2 percent, the money that flowed through the communities was kept at 9 percent in recognition of the fact that there are needs at the community level.
So I take the Member’s concern and we’ll have those discussions about working with communities to see how we can best move on the priorities from constituencies in communities.
General comments. Detail. With that we can move to page 5 in regard to the 2009-2010 Supplementary Appropriation No. 2, (Infrastructure Expenditures), Municipal and Community Affairs, operations expenditures, community operations, not previously authorized, $46.479 million.
Agreed.
...(inaudible)...$46.479 million.
Agreed.
Go to page 6, Municipal and Community Affairs, continued, operations expenditures, not previously authorized. Sorry, regional operations, not previously authorized, $20.091 million.
