Thank you, Mr. Testart. Does committee agree?
Agreed.
Thank you, committee. We will consider the documents after a brief recess.
---SHORT RECESS
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.
Thanks, Mr. Chair. As well as a supplementary reserve for infrastructure, we also have one for operations funding, and then there is an estimate that goes into the Main Estimates on how much will be lapsed by departments over the year. As part of the public accounts process, all of that is reconciled, and we will know whether we end up with a different cash position than what was forecast at the time of the main estimates. It is really after the end of the fiscal year, and we get a final accounting of all three of those pots that we will be able to know what the impact would be overall on the cash position. Thanks, Mr. Chair.
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.
Thank you. Nothing further, Mr. Chair.
Thank you. Next, I have Mr. O'Reilly.
Thanks, Mr. Chair. My colleague from Kam Lake asked the questions I was going to. Thanks.
Thank you, Mr. O'Reilly. Next, for general comments on the infrastructure expenditures supplementary estimate, I have Mr. McNeely?
Thank you, Mr. Chair. To the appropriation, I just shared my recent trips, and recent trip here over the last couple of days here to finish off the engagement session for two of the communities that were postponed here back in mid-August. When I review the presentations here made by the infrastructure project team to the public and the leaders, advising them that this would be the schedule, knowing the fact that some of the workload is only accessible for this winter, or any other winter for that matter.
I view this bill or this approval process as a timely one to support the work program that is being proposed to get off the road and running here this coming January. Hopefully, by that time, they would have their permits to support the geotechnical needed to support these two particular sites in the Sahtu, one being the Bear River bridge and the other being the Oscar Creek bridge relocation. I just share that information there, how this would support the execution of the workload. Thank you, Mr. Chair.
Thank you, Mr. McNeely. Would the Minister care to respond?
Thank you, Mr. Chair. Mr. Chair, I appreciate the Member's comments, and it is one of the reasons that we debate the capital budget in the fall time, so that, once it is approved, if it is approved, then that gives time for planning, and, if those are successful and get contracts through this process, then they can take advantage of the winter roads and have their planning to have a lot of their material into their respective communities in a timely fashion. We have run into some issues in the past where, in the old capital budget planning process, we would approve a budget and then contractors would go and get material. I think we had one incident in one community where they didn't get their material until November the 1st. That caused some delays.
I know the timing is critical to those who are hoping to secure some of the work through the funds that are appropriated through the capital budget planning process, but, again, I appreciate the Member's comments. Thank you.
Thank you, Minister. Anything further from Mr. McNeely?
None. Thank you, Mr. Chair.
Nothing further from Mr. McNeely. Next, Mr. Beaulieu.
Thank you, Mr. Chairman. Mr. Chairman, I'm looking at the estimates for Infrastructure, Department of Infrastructure, $4.8 million split between Bear River Bridge, Gaudet Mountain, and an environmental assessment for the MVH. I'm wondering if there is an appropriation in all of these three areas since this is the supplementary for this current year. What is the budget for this current year for, so much the environmental planning, but for the Gaudet Mountain and Bear River Bridge? Thank you, Mr. Chair.
Thank you, Mr. Beaulieu. These are general comments, but it's a small sub so I'll go to the Minister and perhaps we can get their questions out of the way.
Thank you, Mr. Chair. Mr. Chair, the figure that you see there is actually the figure that's the only money that was appropriated for these particular projects. Once the planning of that is done, they will be coming forward in 2019-2020 for larger appropriations start the actual building. Thank you.
Thank you. Nothing further from Mr. Beaulieu. Next, Mr. Vanthuyne.
Thank you, Mr. Chair. Mr. Chair, I'm prepared to go into questions if we've reached that point and if there are no further general comments. Thank you.
Does committee agree we proceed to the detail?
Agreed.
Thank you, committee. Please turn to page 6. Comments or questions? If not, I will call this item. Mr. O'Reilly.
Thanks, Mr. Chair. This is with regard to a planning study for the mid-life upgrade and retrofit to the Prince of Wales Northern Heritage Centre, the museum that is here, in Yellowknife. Can the Minister or his staff explain whether any of this has to do with fire code or building code work that might be required at the museum? Thanks, Mr. Chair.
Thank you, Mr. O'Reilly. Minister.
Thank you, Mr. Chair. My understanding of the planning study will produce a class C cost estimate and preliminary schematic design. The study will look at a wide range of capital needs for the Prince of Wales Northern Heritage Centre, including the heating, ventilation, and air conditioning; collection storage space quantity and quality; asbestos remediation if any is found; geotechnical assessment of the Prince of Wales Northern Heritage reserve land; security and safety concerns; public access and employee workspace requirements; and aesthetic factors like retail space, accessibility, marketing, and exhibit design. Thank you, Mr. Chair.
Thank you. Mr. O'Reilly.
Thanks, Mr. Chair. I appreciate the list of items that the planning study is going to review. I know that half of the funding is going to come from the federal government. I support this work. I just want to make sure that it gets done in a timely fashion.
What are the prospects that we could obtain federal funding under the Canada Cultural Spaces Fund for the actual mid-life update itself, the renovations that are going to be required? Thanks, Mr. Chair.
Thank you, Mr. O'Reilly. Minister.
