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Steen promotes highway user fee

Transportation minister argues toll, more maintenance needed

Malcolm Gorrill
Northern News Services

Inuvik (Sep 21/01) - Transportation Minister Vince Steen appeared before Inuvik town council last week to explain the need to enact a toll -- or permit fee.



Transportation Minister Vince Steen spoke to Inuvik Town Council last week on plans to implement a highway toll to raise funds for increased highway maintenance. - Malcolm Gorrill/NNSL photo


"Without this funding, our highways will not be able to handle the forecasted and present impact the roads and highways are receiving from oil and gas activity," Steen said.

"We're hoping the general public in general will see that the benefits from this program far outweigh the little we have to pay."

Bills 9 and 10, which have received second reading in the legislature, would impose a toll on all commercial vehicles weighing at least 12,000 kilograms and carrying freight on NWT public highways, but not ice roads.

The permit fee will be based on the axle configuration of the vehicle and the route travelled between predetermined zones on the highway system. Vehicles that remain within a single zone will not pay the fee.

One zone starts at the Yukon-NWT border and includes Fort McPherson and Tsiigehtchic. A second zone follows the Dempster Highway up to Inuvik.

Under the proposed legislation, a public highway improvement fund is also to be established. The government's plan, if the toll goes ahead, is to spend $100 million more on highway maintenance over the next four years, in addition to the $48 million already allocated.

The Dempster Highway is to receive $20 million during this period, in addition to $12 million already planned.

Steen pointed out the that the plan actually got a preliminary start this year, with the territorial government allocating $10 million of the $100 million. Of this $10 million, $2.5 million is being spent on the Dempster.

"Should the legislation not pass, we would have to somehow make up for the $2.5 million we spent this year," Steen said.

"I suspect that would mean there would be no activity next year on this highway."

Steen said this area will receive about $20 million in highway improvements, but the toll is only expected to generate about $12.2 million here.

Steen referred to some Department of Finance statistics estimating annual cost impacts of the toll. He said that groceries would go up about $21 in Inuvik, and Aklavik. The number would be $15 for Paulatuuq, Tuktoyaktuk and Holman.

Steen said the toll would cause a two dollar annual increase for motor fuel in Inuvik, and four dollars for heating fuel.

He said the GNWT has been pressuring Ottawa for more money for road maintenance, and that they could only manage to receive $4.5 million, which has to be used on Highways 1 and 3 from the Alberta border to Yellowknife.

Road bans possible


"Without this avenue for revenue, we may have to consider road bans on our highways as well," Steen said.

"In certain times of the year, we don't have the capability and our highways don't have the capability to stand the impact of the loads."

The minister said such bans would raise freight costs more than the toll.

Gary Walsh, director-registrar with the road licensing and safety division in the Department of Transportation, outlined how the fee system will be administered.

One way will be for truck drivers to contact a call centre before a trip, and provide necessary information. The second way will be for firms to administer the permits themselves.

Highway transport officers will have the power to stop commercial vehicles and check to see drivers have permits.