Richard Gleeson
Northern News Services
Without the highway toll, reconstruction of Hwy 3 will slow to six kilometres per year, if that. The budget for the Ingraham Trail for the next four years would be more than halved, from $25 million to $12.5 million.
"This year we spent an extra $6 million on Hwy 3, assuming the commercial vehicle permit fee was going to go ahead," said Steen.
The toll would shorten reconstruction of the lone road to the capital from the south to four years from 10. Steen said the entire NWT highway strategy will have to be re-thought if the toll is rejected by the legislative assembly. The toll would add $100 million to the $48 million budgeted for road work over the next four years.
The toll has come under heavy criticism at committee hearings across the NWT.
"There's obviously an organized opposition to this from the mines and the chamber of mines," Steen said.
The government maintains that mining companies can write off 100 per cent of the additional freighting costs against royalties.
Chamber of Mines general manager Mike Vaydik said the mines are already making huge contributions to government revenues and savings on social programs.
"More than half of the flow of cash from (Diavik) goes to government," Vaydik said. "And nobody likes the rules changed midway."
Finance Minister Joe Handley said a recent increase in the cost-of-living allowance will more than offset the increase in the cost-of-living resulting from the toll.
The assembly is expected to make a decision on the commercial vehicle trip permit act, during its fall sitting.
