Thank you, Minister. Mr. O'Reilly.
Thanks, Mr. Chair. I guess we're going to agree to disagree. Can the Minister tell us what sort of efforts he and his Cabinet colleagues have made in terms of trying to secure some of the increased investment or capital following from the federal government for specific improvements at the Yellowknife Airport? Thanks, Mr. Chair.
Thank you, Mr. O'Reilly. Mr. Neudorf.
Thank you, Mr. Chair. We've had several different programs that provide capital funding for airports. We do access those whenever possible. Any time you come forward with a need, you're always needing to determine what the highest priority is and then balance that with the needs in all different modes of transportation; and in fact, the needs across multiple departments that might be wanting or able to access the same pot of federal money.
Specific to airports, there is the Airports Capital Assistance Program. It provides $35 million a year. It's an application-based program. The $35 million a year is across Canada. We compete with all airports across Canada that are eligible. We typically get one, maybe two, projects a year that would amount to $1 or $2 million. Some current projects are we're replacing the lighting in Norman Wells and replacing lighting in Tuktoyaktuk.
We've also, as part of the Building Canada Program or one of its predecessors, the Canada's Strategic Infrastructure Fund, been able to find the funding or have airport projects be a priority there. Seven or so years ago, the Yellowknife Combined Services Building received about 50 per cent of its funding from the federal government. More recently, three terminal buildings in Paulatuk, Sachs Harbour, and Tuktoyaktuk were replaced under the Canada Stimulus Fund.
We do take every opportunity that we can in order to obtain federal government funding. The thing is you're always subject to whatever the federal government program criteria are, so you have to make sure that your needs fit with that. You're always competing with all of the other needs that are in all of the modes of transportation. At the present time, their Federal Engagement Strategy is really for new road construction and investing in new roads. That's the higher priority at this time. Thank you, Mr. Chair.
Thank you, Mr. Neudorf. Mr. O'Reilly.
Thanks, Mr. Chair. I'm glad that the deputy minister raised the last point about the Federal Engagement Strategy. I guess I'd like to ask the Minister if he and his Cabinet colleagues are prepared to review the Federal Engagement Strategy with a view to adding in federal investment and air transportation and make that become a priority? Thanks, Mr. Chair.
Thank you, Mr. O'Reilly. Minister.
Thank you, Mr. Chair. First of all, I want to point out the mandate of 18th Legislative Assembly was the three highway corridors, and that's what we focused on. The Federal Engagement Strategy was very strategic. We wanted to keep, as we've said in the House, our number advanced to a minimum and it was very strategic when we went down there. We focused on those key areas moving forward. Thank you, Mr. Chair.
Thank you, Minister. Mr. O'Reilly.
Thanks, Mr. Chair. I don't think I actually got an answer, though. Is the Minister prepared to work with his Cabinet colleagues to change the Federal Engagement Strategy to include trying to secure federal investments in our airports? I think it is completely consistent with our mandate because, you know, looking at the mandate, they're talking here about strategic investment, diversification of the economy, transportation, lots of things in here. I guess I'd like to know whether he and his Cabinet colleagues are prepared to change the Federal Engagement Strategy to move airports out in the priority list. Thanks, Mr. Chair.
Thank you, Mr. O'Reilly. Minister.
Thank you, Mr. Chair. As I said, our focus was very limited. We didn't want to go down there with a number advanced. We've concentrated on energy and highway corridors when we were down there. As I have said, the mandate of the 18th Legislative Assembly has the three corridors outlined and our mandate is our priority. We will continue to focus on that. We'll see what the Federal Government comes out with their budget here on March 22nd. Thank you, Mr. Chair.
Thank you, Minister. Forty-seven seconds, Mr. O'Reilly.
Thanks, Mr. Chair. Yes, I think that's a no. The Minister just does not want to say it. I'll move on to or yield the rest of my time to somebody else, but I would like to get back on the list at another opportunity. Thanks, Mr. Chair.
Thank you, Mr. O'Reilly. Anyone further? Ms. Green.
Thank you, Mr. Chair. Mr. Chair, the Minister has said a number of times that the effect of the fee increase will be 0.08 per cent of an increase to the cost of living. I'd like some details about how that was calculated. Thank you.
Thank you, Ms. Green. Mr. Neudorf.
Thank you, Mr. Chair. We had worked with the stats bureau of the government in order to try to quantify what the impact of the increase in the ticket prices would be. We looked at how much air travel component is of the average household expenditures in Yellowknife. We looked at the number of people in a household and what, if assuming the increase is going to be in the $27 to $29 per ticket range, with the number of people that would be flying, and the percentage is on the total household expenditures. It would work out to that 0.08 per cent increase. Thank you, Mr. Chair.
Thank you, Mr. Neudorf. Ms. Green.
Thank you, Mr. Chair. Thank you for that answer. That's the calculation for residents. What's the calculation for the increased cost of doing business for businesses? Did you do one of those? Thank you.
Thank you, Ms. Green. Mr. Neudorf.
Thank you, Mr. Chair. No, we didn't do any increased costs for businesses. We did look at the GNWT, and the Minister has indicated that number before that the incremental cost would be about $300,000, or about 2 per cent of the travel budget. Any business could multiply the $27 to $29 ticket price or the $17 to $19 if you're doing travel in the North. Just multiply that by the number of times that you're going to be flying and can come up with an impact. Thank you, Mr. Chair.
Thank you, Mr. Neudorf. Ms. Green.
Thank you, Mr. Chair. Thank you for that response. What I heard the Minister say is that the increase would increase medical travel by $300,000, but what would the increase be to the GNWT for all the forms of flying it pays for? Thank you.
Thank you, Ms. Green. Minister.
Thank you, Mr. Chair. I thank the Member for asking that, because I misspoke when I said it was $300,000 increase to medical travel. It's a $300,000 incremental cost, the total expenditures of the Government of the Northwest Territories. Thank you, Mr. Chair.
Thank you, Minister. Ms. Green.
Thank you, Mr. Chair. Mr. Chair, I wonder if the Minister can think of a remedy to the problem posed to the people who pre-sell tourism packages, where the fees have been made now and so the increased airport fees cannot be added on. Is there a solution he can propose that would allay the concerns that tourism businesses have about having to bridge the gap between their pre-paid and their upcoming business? Thank you.
Thank you, Ms. Green. Minister.
Thank you, Mr. Chair. Any pre-sold packages at any of the tourism operators that have already sold will not have an effect with this fee. Once this is passed through the House we want to start July 1st, but anything that has actually been pre-sold before that is at a later date will not be affected by this. Thank you, Mr. Chair.
Thank you, Minister. Ms. Green.
That is good news. So just to recap this: as long as it has been pre-sold prior to the effective date, then the initial price is the price. Is that correct? Thank you
Thank you, Ms. Green. I will just remind everything to make sure the light is on before you begin speaking. Minister.
Thank you, Mr. Chair. That is correct. Thank you, Mr. Chair.
Thank you, Minister. Ms. Green.
Okay. Thank you very much for that. I think that those are all my questions. Thank you.
Thank you, Ms. Green. Mr. McNeely.
Thank you, Mr. Chair. I recall a number of years ago when the immigration funding established the Aurora Fund to provide venture capital for enterprises an private communities. In particular, there were quite a large amount of applications going towards air travel supports, expansion of existing chopper companies, airplane companies. As a result of that movement on capitalization to the opportunity and flexible terms of the immigration fund called the Aurora Fund, we saw the creation of some new companies. What my question is: is given the fact that they're still operating today, are our lease rates within the airport property considered competitive? Thank you, Mr. Chair.
Thank you, Mr. McNeely. Minister.
Thank you, Mr. Chair. Yes, that's correct, our leases are considered market rate. Thank you, Mr. Chair.
Thank you, Minister. Mr. McNeely.
None yet. I may have another one later. Thank you, Mr. Chair.
Thank you, Mr. McNeely. This discussion is actually better suited for the second clause, so I'm going to proceed to call the first clause and the discussion can continue on clause 2. So clause 1, does committee agree?
Yea.
Thank you, committee. The yeas have it. Moving on to clause 2. Clause 2, comments or questions. Comments or questions on clause 2. Mr. Testart.
Thank you, Mr. Chair. The total cost of this, the Minister made a comment that the honourable Member for Nahendeh was incorrect in his assessment; I just want to get back to that number. My understanding is that, should someone travel to Edmonton on a return flight, for example, from let's say Fort Simpson, the cost of that would be a $29 fee once they arrive in Edmonton and once they return to Fort Simpson there will be a $19 fee. So there are fees on both ends of the trip, is that not correct? Thank you.
Thank you, Mr. Testart. Minister
Thank you, Mr. Chair. So this individual, if he flies from Simpson through the Yellowknife Airport to Edmonton, there's no fee, nothing. But if the individual flies to Yellowknife on one ticket and then buys a different ticket to leave out of the Yellowknife Airport to go to Edmonton, there would be a fee. But if he's flying the Yellowknife Airport from Fort Simpson return, or even one-way to Edmonton, there is no additional cost to the ticket. Thank you, Mr. Chair.
Thank you, Minister. Mr. Testart.
Thank you, Mr. Chair. I suppose it's a bit clearer, but I think committee had a different understanding when we embarked on our report.
The other thing, the Minister made reference that carbon taxes and other cost of living increases are not part of this plan, but I would argue that our cost of living has everything to do with the Yellowknife Airport and any fees need to be carefully measured. The committee has recommended that the airport fees be implemented over time rather than all at once.
Now the Minister has already said that he disagrees with that, but does he further disagree with the committee's formal recommendation that these fees be implemented over time? Thank you.
