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Legislative Assembly of Alberta Title February 28, 1996 Alberta Hansard 303 Legislative Assembly of Alberta DR. WEST: May I, Mr. Chairman, ask that we revert to introduce some guests? Title: Wednesday, February 28, 1996 8:00 p.m. Date: 96/02/28 THE CHAIRMAN: All those in favour of introduction of visitors, please signify by saying aye. head: Committee of Supply [Mr. Tannas in the Chair] HON. MEMBERS: Aye. THE CHAIRMAN: I'd like to call the committee to order. THE CHAIRMAN: Opposed? Carried. head: Main Estimates 1996-97 head: Introduction of Guests Transportation and Utilities DR. WEST: I'd like to take this opportunity to introduce some THE CHAIRMAN: Although lottery funds are under the responsi- very important people as it relates to this budget this year. bility of the Minister of Transportation and Utilities, they are not They've worked very hard on the reorganization and restructuring to be considered this evening because of course under our of both Transportation and Utilities and the Gaming and Liquor Standing Orders they're on a separate occasion. Commission. Somebody said to me on the way in, “I didn't think there were that many people left in the department,” but I want to MR. DAY: Could you repeat the remarks you just made related assure you that the right people are left, and I'd like to introduce to the lottery estimates? them. If they'd stand as I call their name, then they would receive the warm welcome of this House: Jack Davis, the Deputy THE CHAIRMAN: The committee is reminded that we have Minister of Transportation and Utilities; Jim Sawchuk, assistant under consideration the estimates of the Department of Transpor- deputy minister of safety and technical services; June MacGregor, tation and Utilities. We will not be considering items under the assistant deputy minister of corporate services; Les Hempsey, lotteries, because although it's the responsibility of the minister, director of financial planning; Jayne Jeneroux, director of under Standing Order 58(2) that is a separate item, and until we communication, Transportation and Utilities; George Pedersen, receive instructions from the Assembly to the contrary, I'm now the chairman of what's to be the new traffic safety board, obliged to go with that. which is the combination of the Motor Transport Board and the Driver Control Board. From the Alberta Gaming and Liquor DR. WEST: I have to point out to the Assembly that these are Commission: Bob King, chairman and chief executive officer; now our consolidated income statements, and under the new format of reporting it's now integrated with the Department of Norm Peterson, director of finance and administration; Roy Transportation and Utilities and totally entwined in the budget Bricker, director of corporate development; and Darlene Dickin- here tonight. son, director of communications. My assistant, Jim Kiss, tagged along; instead of going out tonight, he's here. So I'd ask you to THE CHAIRMAN: Well, that may prove awkward during the give them the warm reception of this House. course of the evening, hon. minister. head: Main Estimates 1996-97 HON. MEMBERS: Take a motion. Transportation and Utilities (continued) THE CHAIRMAN: I can't take a motion in committee to deal DR. WEST: Mr. Chairman, I'd like to file the '96 to '99 business with that particular item. plan and supplementary information incorporating the changes. Our main business plan was introduced at budget time, and I'm MR. DAY: Mr. Chairman, maybe we can begin discussion on sure that each department as they've changed their plan will be Transportation and Utilities, and other comments could even be filing those. tossed in. Members opposite have indicated that they are Now, you've thrown a bit of a curve at us tonight because this prepared and ready to be discussing this, and as the minister is the first time that we've brought forth the departments in which proceeds to make his remarks related to transportation, I could we have totally consolidated the income and expense budgets. As probably take a minute or two to confer with the Chair to relieve I said, I'll start with transportation, and hopefully by the time I any discomfort about this particular process. get through this we can have a green light to go ahead with the others, because it's totally entwined within this budget. THE CHAIRMAN: Okay. I'd like to start by drawing your attention to page 394 of the Before we commence further, I also would remind hon. government and lottery funds estimates. What you see there is the members that the convention is that although this is the informal consolidated income statement for the ministry. So if you look at session, members are allowed to move around quietly, but we 394, we'll start. It shows the different financial entities that make only have one member standing and talking at a time. For the up the ministry in a way that reflects the government's commit- benefit of the people in the gallery, members may only speak to ment to fully consolidated budgeting. When viewed on a the estimates from the positions that they normally hold in the consolidated basis, the various entities that make up the ministry House. So you can't have for instance somebody who'd normally show a surplus, which contributes to the government's general sit over here wanting to speak and address the minister from some revenues and balanced budget. other position. They must be in their places when they're On the revenue side you'll note that the key sources of income addressing the committee. for the ministry are the lottery fund and the Alberta Gaming and With those remarks, we'd invite the Minister of Transportation Liquor Commission. On the expense side of the ledger, I'll point and Utilities to begin this evening's discussion. out that the departmental program expenditures of Alberta 304 Alberta Hansard February 28, 1996 Transportation and Utilities balance against revenues collected things that was stated at the beginning of the restructured Trans- from motor vehicle fuel taxes and driver licensing fees. These portation and Utilities plan was that realized savings would go revenues are shown in a later table. Fuel taxes and fees are not back into maintaining and rehabilitating our infrastructure. included in the department revenue statement. In effect Alberta Let's look at the reinvestment. While these factors I just said is reinvesting the taxes and fees it collects from the road users have resulted in a $79 million decrease in the operating budget, back into infrastructure. they allowed for reallocation of funds within the operating budget All right; let's start now with Transportation and Utilities. This so that key elements may be increased. Alberta Transportation will be consistent with what you've said, and I'll hear later and Utilities is committed to preserving the infrastructure, and this whether you'll let me go on to the next package here. I'm going shows in the $4 million increase for primary highway rehabilita- to begin by stressing two major points. The department has tion, from $46 million to $50 million. achieved significant reductions in staffing levels and operating There is a $7 million increase for primary highway connector budget. These reductions will not compromise the quality of grants to cities, from $7 million to $14 million. That's the service that Alberta Transportation and Utilities will provide to Alberta cities transportation partnership, and you'll see it under Albertans, and they won't compromise the safety and integrity of that level. This will go towards work in the cities to improve the our transportation infrastructure. In fact these reductions will north-south trade corridor. One of those projects announced the enable us to reinvest in the infrastructure to preserve it at its other day was the Anthony Henday Drive improvement around current high standard and to make strategic reinvestments that will Edmonton. These factors have allowed for an increase to the upgrade and improve it. department's capital budget from $120.5 million to $127.8 Alberta Transportation and Utilities remains committed to million. The total increase: $7.3 million. Almost all of this providing key services and programs to Albertans: primary capital increase will go to primary highway capital construction. highway maintenance and rehabilitation, road grants to municipali- The major long-term focus over the next 10 years will be ties and rural utilities, and essential safety, disaster, and emer- upgrading the north-south trade corridor. This route runs from gency services. Grande Prairie in the north through Edmonton, Calgary, and Here are the details of this budget. Let's look at the reductions. Lethbridge to Coutts and on to the U.S. border. It includes How have they taken place? The outsourcing of highway highways 34, 43, 16, 16X, 2, 3, and 4. The department will maintenance, engineering design, and construction supervision will spend more than $50 million per year on rehabilitation and new be completed during the 1996-97 fiscal year. In addition to these construction related to this initiative over the next few years. radical changes in program delivery, the department is making Over one-third of the total expenditure along the route will be in significant administrative changes. Road safety functions from and around the province's major cities. These additional expendi- Alberta registries are being integrated with Alberta Transportation tures will be funded largely from savings realized through and Utilities. The department is re-engineering its business departmental restructuring. processes, making it more efficient and responsive, and some In 1996-97 the department will manage these key capital administrative and support functions are being transferred to client projects along the route: begin four-laning of Highway 4 between organizations or outsourced, such as the information technology Coutts and Lethbridge, continue four-laning of Highway 3 function.
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