Thank you, Mr. Chair. Since the Member asked me this question in the House, all the design work now has completed for kilometres 13 and 19. We are hopefully going to install these this year. Thank you, Mr. Chair.
Thank you. Anything further, Mr. Vanthuyne?
No. Once again, I appreciate the commitment and undertaking of that work. I look forward to seeing those installed for the safety of the public. Thank you. No further questions at this time.
Thank you. Infrastructure, regional operations, operations expenditure summary, activity total, $130,715,000. Does committee agree?
Agreed.
Thank you, committee. We now have a series of information items. Technology Service Centre, Public Stores Revolving Fund, Petroleum Products Revolving Fund, Marine Transportation Services Revolving Fund, Yellowknife Airport Revolving Fund. These commitments and work performed on behalf of others. As these are hot button issues, I will allow committee to comment on each one if they wish.
First, we will begin with Technology Service Centre. Comments or questions? Seeing none, we will move on to Public Stores Revolving Fund. Comments or questions? Seeing none, we will move on to Petroleum Products Revolving Fund. Question or comments? On Petroleum Products Revolving Fund, Mr. Beaulieu.
Thank you, Mr. Chairman. Mr. Chairman, this question would also be applicable to all the other revolving funds that are in this department.
In this particular one, and they're all similar, there is a $55 million Petroleum Products Revolving Fund. It appears as though they drew down $37.4 million. My question is: is $55 million recorded in the debt or is it separate from the debt, or is it $37 million that's recorded in the debt or is it separate from the debt? Thank you, Mr. Chair.
Thank you. Mr. McCormick.
Thank you, Mr. Chair. The $55 million refers to the authorized limit, which is the limit under the act, or the difference under the act that's allowable between the assets and the liabilities of a revolving fund. The $37 million is the operating costs, so they're not against the debt per se. They're just the operational costs of operating the cost of fuel, delivery, et cetera. Thank you, Mr. Chair.
Thank you. Mr. Beaulieu.
Thank you. Just so it's clear in my mind, so $55 million is just a limit. That's good. The $37 million is taken and that's the sale, and then the expenditures and so on. This has nothing to do with any accumulation of debt whatsoever. Is that correct? Thank you, Mr. Chair.
Thank you, Minister.
Yes, that is correct. Thank you, Mr. Chair.
Thank you. Further to Petroleum Products Revolving Fund? Mr. Beaulieu.
That's all I have for that. Thank you, Mr. Chair.
Thank you, Mr. Beaulieu. Marine Transportation Services Revolving Fund. I see the hands going up. Mr. Vanthuyne.
Thank you, Mr. Chair. Last year, it looks like we undertook some charters and we generated significant revenue in that area. I can also see that we expended quite a bit as well. This year, we're not projecting any charters. Can I get an update from the Minister on what the reason is for not reflecting any number in charters this year? Thank you. Mr. Chair.
Thank you. Minister.
Thank you, Mr. Chair. This is a conservative estimate going forward. The revised estimates clearly show the work that was taken on last year. We're just taking a conservative approach to this. There's a possibility of some charter work coming up this year, but that hasn't been confirmed yet. Thank you, Mr. Chair.
Thank you. Anything further, Mr. Vanthuyne? Nothing further from Mr. Vanthuyne. Next, Mr. Testart.
Thank you, Mr. Chair. When we reviewed the Department of Finance, there was the preparation line for strengthening labour negotiating capacity, and one of the stated purposes was around MTS and enhancing their ability for labour negotiations.
At the time we reviewed that, the department wasn't able to give an exact figure for what they predicted. The cost of MTS is a component of that additional funding would be, but they did indicate that that would be billed back to this revolving fund. I'm wondering if this department can help us get more clarity on what the expected cost of that additional labour negotiating capacity for Marine Transportation Services is going to be. Thank you, Mr. Chair.
Thank you. Mr. McCormick.
Thank you, Mr. Chair. We've confirmed with the Department of Finance that that item was for addressing capacity issues in the labour relations unit broadly. Marine Transportation Services was just one of the incremental costs that they may or may not accrue. Our MTS revolving fund would reimburse the Department of Finance for any incremental cost directly related to MTS bargaining. Thank you, Mr. Chair.
Thank you. Mr. Testart.
Is there any sense of what we can expect those costs to be? Thank you.
Thank you. Mr. McCormick.
Thank you, Mr. Chair. No, we have not had any discussions with the Department of Finance to date as to exactly what they would be. Thank you, Mr. Chair.
Thank you. Mr. Testart.
Nothing further for this department. Thank you.
Thank you, Mr. Testart. I'll leave the door open; I'll assume you meant this activity. Mr. O'Reilly.
Thanks, Mr. Chair. I recall that the Minister or whoever got a special warrant to buy some barges for the Marine Transportation Service. How do these show up as an expense against the fund, or do they show up as an expense against the fund? Thanks, Mr. Chair.
Thank you. Mr. McCormick.
Thank you, Mr. Chair. The assets will be recorded in the financial statements audited of the Marine Transportation Services. They will show as a capital asset, and the expenses will show up on an annual basis through the straight-line depreciation as per any other asset. Thank you, Mr. Chair.
Thank you. Mr. O'Reilly.
Thanks, Mr. Chair. I am not looking at the whole financial statement. Where is that recorded as an amount here on page 262? Is there a line item here that sort of shows the special warrant and how it figures into the balance of the revolving fund? Thanks, Mr. Chair.
Thank you. Mr. McCormick.
Thank you, Mr. Chair. The only line that will show up in this particular statement, which is a pro forma operating statement, is the amortization line of $434,000. This isn't a balance sheet that is presented in the main estimates, so it doesn't show up there. It would show up in the audited financial statements. Thank you, Mr. Chair.
Thank you. Mr. O'Reilly.
Thanks, Mr. Chair. Where, then, does the value of the $10 million special warrant show up? Is it a debt related to the revolving fund? Is it a debt, then, that is carried by the Department of Infrastructure and only sort of amortized or allocated to the Marine Transportation Services over a period of time? Thanks, Mr. Chair.
Thank you. Mr. McCormick.
Thank you, Mr. Chair. Yes, when the audited financial statements of MTS are produced, the value of those assets would show up as a debt in the MTS books. That would be paid back to the GNWT over time. Thank you, Mr. Chair.
Thank you. Mr. O'Reilly.
Thanks, Mr. Chair. This is getting a little bit clearer. The amount that is not amortized, does that show up as debt in the Department of Infrastructure? Thanks, Mr. Chair.
Thank you. Mr. McCormick.
Thank you, Mr. Chair. The revolving fund is a division of the Department of Infrastructure. In a technical sense, yes, it would be part of our department. The payback of that shows up in the accumulated surplus, that difference in the authorized limit between the assets and the liabilities of the fund. That accumulated surplus amount that we build up is where we build up room to be able to buy new assets, pay off the old ones, and reimburse the GNWT as a whole on that. Thank you, Mr. Chair.
Thank you. Mr. O'Reilly.
Thanks. Now I know how the amount is going to be paid for. Where is the value of the special warrant parked right now? Is it parked just as a GNWT-wide debt in Department of Finance, or is it parked within Infrastructure? Where is that debt parked? Thanks, Mr. Chair.
Thank you. Mr. McCormick.
Thank you, Mr. Chair. Yes, that would be part of the broader fiscal liability of the GNWT. If borrowing was used to pay for it, it will not show up in INF or marine transportation except in the audited financial statements. Thank you, Mr. Chair.
Thank you. Mr. O'Reilly.
