Thank you, Madam Chair. We do have a couple of different programs within the department. I talked a little bit about the Deferred Maintenance Program. That is intended for completing repairs to buildings. I already mentioned that in the Member's first answer. We also do have the different priorities. We have the status of Department of Infrastructure-managed and client-managed capital projects. We have a number of programs here that we look at. As things change and as things evolve and as we start to complete programs and start up new programs and new infrastructure assets, we start to look at what we can do better as a department to ensure that we are following some of the standards and some of the updated licensing. You look within the federal government and all the different policy changes. Transport Canada just made a new change that really impacts our operations in some of the airports going forward. It's a case-by-case basis, and I think we just need to keep on top of them and just adjust as we need to. Thank you, Madam Chair.
Thank you, Minister. Member for Great Slave.
Thank you for that. I'll continue to follow up with the Minister on that at a future time. I'm just looking at the line item for transportation. Can the Minister speak to the 2019-2020 actual of $6 million versus the $3.7 or $3.8 million that has been the usual forecast? Is that a COVID-related expense? Thank you, Madam Chair.
Thank you, Member. Minister.
Thank you, Madam Chair. Can I ask the Member what page she is referring to?
Page 236, the $6 million in the 2019 actuals, the transportation line.
Thank you, Madam Chair. I'm going to get ADM Brennan to find that. Thank you.
Thank you. Mr. Brennan.
Thank you, Madam Chair. Yes. The difference there is about $2.2 million, and that's basically made up of about $1.2 million of incremental salaries that we spent on capital projects whereby the spending didn't meet the requirements of a federal funding agreement. We have worked on some bridges historically. Normally, we pay for that out of the capital, but because they never met the capital guidelines, it gets written up into the O and M. Then there was another couple of hundred thousand that was spent related to the Mackenzie Valley Fibre Link that we never had in our budget for. Thank you, Madam Chair.
Thank you. Member for Great Slave.
Thank you, Madam Chair. No. I think I'm good. Thank you, Madam Chair.
Any further questions under asset management? Member for Frame Lake.
Thanks, Madam Chair. On page 236, I see a few areas where funding is actually declining: facilities and properties in the program detail, and then contract services and purchase services in the expenditure category. Can someone explain to me, as we build more and more assets and we just had the largest capital budget ever, how these are declining over time? Thanks, Madam Chair.
Thank you, Member. Minister of Infrastructure.
Thank you, Madam Chair. Under the facilities and properties, there was a decrease of just over $1 million, which meant that there was a transfer of some of the property management budget to the regions where some of the functions were carried out. We also have to consider some amortization costs to some of the buildings, as well. The variance there that we're looking at is for vacant positions for 2019-2020 for facilities and properties of about $400,000. There is also a surplus in the GNWT building assets being delayed and not really pushed into service until this fiscal year, about $200,000. Also, the operation and maintenance expenditures for facility risk management, so again, some of the deferred maintenance as well as property management. In terms of the contract services, yes, I see there is a decrease in the budget. Sorry, Madam Chair, that was his second question. There is a decrease in the budget, and part of that is the internal transfer to the budget regional operations activity. That's where the work was performed. There is a decrease, and there is transfer. There is also a sunset of the Northern Transportation Adaptation Initiative. Those were some of the reductions in the costs. Thank you, Madam Chair.
Thank you, Minister. Member for Frame Lake.
Thanks, Madam Chair. Those are pretty good briefing notes, if the Minister ever wants to share them. I think she answered the first two areas. What about purchased services? Is there some reason for the decline there between 2020-2021 and what is forecast for next year? Thanks, Madam Chair.
Thank you, Member. Minister.
Thank you, Madam Chair. I was quickly able to find those numbers right in front of me, but I'm going to get ADM Brennan to answer that one.
Thank you. Mr. Brennan.
Thank you, Madam Chair. Yes. The decrease in purchase services is related to the money that was transferred to the regional operations. About $1 million or so of money that was held in headquarters was for work being delivered in the region, so we transferred the money into the regions. About $150,000 of that was related to purchase services, so there should be a corresponding increase in regional operations. Thank you, Madam Chair.
Thank you, Mr. Brennan. Member for Frame Lake.
Thanks, Madam Chair, and thanks for that information. How do we pay for maintenance on highways? Is it found here, or is it found in the capital budget? Thanks, Madam Chair.
Thank you, Member. Minister.
Thank you, Madam Chair. It's in the operations expenditure in the main estimates.
Thank you. Member for Frame Lake.
Thanks, Madam Chair. Am I in the right section, then? No? All right. That's all I've got. Thanks, Madam Chair.
Thank you. Any further questions under asset management? Member for Deh Cho.
Mahsi, Madam Chair. I was looking at your production of granular materials, although I don't quite see a line item for it. I had a question in that area. I'm not sure if that's saying that the GNWT reduces their own stockpile for granular material because I would really hope to stimulate local economies in our communities along the highway systems, whether the department can consider working with local development corporations for the supply of the granular material. It creates much needed employment and ripple effect for the business opportunities to the mechanics and everybody else. It hires local people. Considering that many locals have taken the heavy equipment operator program at the Thebacha campus in Fort Smith, I'm just wondering if the department would consider working with the communities in this regard? Mahsi.
Thank you, Member. Minister.
Thank you, Madam Chair. Absolutely. If and where there is ability to be able to work with some of our community partnership, our Indigenous groups, and having a look at where we can see any improvements in services and if it's a cost saving and if there's opportunity for some training to be able to have some of the community local businesses make use of that program. Madam Chair, this is not something that's new to us. This is something that the GNWT has done in the past in terms of working. One example is the Tlicho All-Season Road, where there is opportunity to be able to partner and provide training for local residents. That was a nice success story. Thank you, Madam Chair.
Thank you, Minister. Member for Deh Cho.
I don't have any further questions, Madam Chair. That's wonderful to hear that, that they would consider that. Mahsi.
Thank you. Are there any further questions under asset management? Seeing no further questions, please turn to page 236, Infrastructure, asset management, operations expenditure summary, 2021-2022 Main Estimates, $18,138,000. Does committee agree?
Agreed.
Thank you. We will now move to corporate management beginning on page 239, with information items on page 241. Corporate management. Questions? Member for Frame Lake.
Thanks, Madam Chair. Can someone explain to me the increases for department management and finance found on page 240? Thanks, Madam Chair.
Thank you, Member. Minister.
Thank you, Madam Chair. I am going to get ADM Brennan to answer this.
Thank you. ADM Brennan.
Thank you, Madam Chair. Yes. First, for the Department of Management, there was an increase there of about $200,000, which related to salaries for, I guess it's for an unfunded position, what we'd like to refer as an inaccuracy of amalgamation whereby there wasn't enough funding provided there. On finance, again, it was a funding that was moved in there to cover mostly, I think it was $600,000 for TSE chargebacks and some salary dollars, as well, for, again, an amalgamation inaccuracy. Thank you, Madam Chair.
Thank you, Mr. Brennan. Member for Frame Lake.
Thanks, Madam Chair. I'm trying to understand what an amalgamation inaccuracy is. Can I get an explanation of that? Thanks, Madam Chair.
Thank you, Member for Frame Lake. Minister of Infrastructure.
Thank you, Madam Chair. I will get ADM Brennan to answer that again. Thank you.
Thank you. ADM Brennan.
Thank you, Madam Chair. Yes. I think that, when amalgamation happened, there's been some budgeting issues across the department, and we're trying to clean up some of the internal budgeting that we have. Amalgamation happened fairly quickly, although it's been quite a while since then, but they hadn't been dealt with. We've been, under their new leadership, trying to deal with some of those areas to make sure that we have the funding in the correct locations to deal with the people that we have hired to do those things. Thank you, Madam Chair.
Thank you. Just to be clear, is it the old transportation and public works amalgamation, Mr. Brennan? Yes?
Yes. Thank you.
Member for Frame Lake.
