Capital Budget 2008-2009

Hon. Denis Landry
Minister of Transportation
December 12, 2007

Ministerial Statement


Appendix "A" - Provincial Programs - New Projects 2008-2009
Appendix "B" - Federal-Provincial Cost-Sharing Agreements - New Projects 2008-2009
Appendix "C" - Provincial Programs - Multi-Year Projects - 2008-2009
Appendix "C" - Federal-Provincial Cost-Sharing Agreements - Multi-Year Projects - 2008-2009

News Release: Record-breaking capital budget to rehabilitate NB highway system (07/12/12)

Ministerial Statement

Mr. Chairman, I am pleased today to present the capital estimates for the Department of Transportation for the 2008-2009 fiscal year.

Before I begin, let me acknowledge the people of the Centre-Péninsule—Saint-Sauveur riding, whom I am proud to represent in the Legislative Assembly. I want to thank them for their trust and their support of my work as their MLA. I also wish to thank Onil and Sergine in the riding office at home in Paquetville, as well as my executive assistant, Gabriel, and my executive secretary, Rose, here in Fredericton. Without the loyalty and support of my team, it would be very difficult for me to fulfill my responsibilities as MLA, as Minister for the Acadian Peninsula, and as Minister of Transportation. I thank them sincerely for all of their work over the past year.

Mr. Chairman, this is a ground-breaking capital budget. It is a budget of action that puts us on the road to self-sufficiency in our province by 2026. It is both strategic and transformational. We are making smart investments in New Brunswick’s highway infrastructure based on sound business decisions. There will be construction activities in all regions of our province that will immediately improve the condition of our roads and bridges.

The Department of Transportation’s capital budget for 2008-2009 will be nearly $340 million. Excluding any payments as part of public-private partnerships, this is the largest transportation capital budget in New Brunswick history.

This capital budget will be a significant boost to our province’s road building industry. The budget will generate over 3,400 full-time, direct jobs in the road construction industry, and more than 3,300 indirect jobs. Over and above this record-budget, next year’s capital investments will generate an additional $163 million in spending activity in the industries that support construction and as a result of the jobs that will be generated by the work.

Mr. Chairman, during last year’s capital budget speech, I said we were laying the necessary groundwork to bring about the kind of transformational change this province has not seen in a generation. The investments we will make in the coming fiscal year are significant and necessary if we are to build a self-sufficient New Brunswick. They are directly connected to Our Action Plan to be Self-Sufficient in New Brunswick and also reflect our commitments to the people of this province in the Charter for Change.

Mr. Chairman, in the Charter for Change, our government committed to put in place a three-year plan to specifically address the road infrastructure needs of rural New Brunswick. My Department took that commitment even farther and developed a three-year plan that addresses the needs of our rural roads, our highways and our bridges. New Brunswick’s Road Infrastructure Plan 2008-2011 explains how the principles of asset management can be used to improve New Brunswick’s highway system. The government has accepted this report and its philosophy was used in the development of my department’s capital budget this year.

Of the approximately $340 million budgeted:

• $82 million has been designated for construction on the national highway system under the the Canada/New Brunswick Strategic Infrastructure Fund, and the Canada/New Brunswick Border Infrastructure Program, and the National Highway System Program.
• $126 million has been designated for the construction and upgrading of provincial highways,
• $52.7 million has been designated for the construction and upgrading of bridges and ferries;
• $44 million has been designated for rural road infrastructure;
• $21 million has been designated for Routes 11 and 17, in addition to $15 million in federal/provincial funding provided for these highways;
• $14 million has been designated for vehicles and equipment for the Vehicle Management Agency.

Achieving self-sufficiency involves building a better New Brunswick by strengthening our trade corridors. Seventy-five per cent of our province’s gross domestic product is export-based.  Without good infrastructure to support trade, our economy would be less competitive.

We took a significant step forward in this effort with the completion of the four-lane Trans-Canada Highway in our Province. Now that work is complete, we must turn our attention to completing other essential work on our arterial highways. These highways provide a vital connection to markets in central Canada and the northeastern United States.

On Route 1, my department plans to complete the twinning of 23 kilometres of Route 1 between St. Stephen and Waweig. We expect to invest about $27 million in this $80 million project in the coming fiscal year. Work will continue on a grading contract, two paving contracts, one grading and paving contract and three structure contracts that were tendered in 2007. In addition we will call two new paving contracts and a signing and lighting contract.

My department will also undertake work to twin Route 1 between the Waweig River and Murray Road. Approximately $10 million will be invested in this 2.2 kilometre project. This includes grading, paving, signing and lighting and the completion of an overpass tendered in 2007. This section of highway will also open to traffic in the coming fiscal year.

In addition, Mr. Chairman, this year’s capital budget includes funding to start construction on the One Mile House interchange and we will carry out pre-construction activities to complete the twinning of Route 1 between Waweig and Lepreau.

There is also significant funding in this year’s capital budget for construction on the Marysville/Nashwaak Bypass on Route 8.

On Route 11, my department will continue its construction efforts on the Tracadie-Sheila to Six Roads Bypass. This seven-kilometre construction project will require a total investment of $27 million and my department plans to have this work completed by 2009-2010.Work in the coming year will include grading, paving and a structure.

In addition to the work on the bypass, my department will invest $21 million in upgrading work on Routes 11 and 17. This will include 13 projects on Route 11 in the coming year and eight projects on Route 17.

My department will also continue its efforts to reduce moose/vehicle collisions on New Brunswick highways. In the coming fiscal year, we will install nearly 75 linear kilometres of wildlife fencing and necessary underpasses on our highways. This includes 46.8 linear kilometres of fencing on Route 7 to complete our wildlife fencing project on that highway. It will also include 12.8 linear kilometres of fencing on Route 8 between the Bathurst city limit and Packard Brook and from Bass River to Route 160; 13 linear kilometres on Route 11 from De la Gare Road to Laplante Road; and two linear kilometres on Route 2 in the Davidson Brook area.

In addition to this work, Mr. Chairman, my Department will invest $52.7 million in constructing and upgrading our province’s bridges. We will invest $126 million in our provincial highways and $44 million in our local roads.

To give you a picture of the magnitude of this work, my department will pave over 34 kilometres of Route 8 between Miramichi and Bathurst.

We will pave over 27 kilometres of Route 15 between Shediac and Moncton.

We will pave over 24 kilometres of Route 126 between Miramichi and Moncton.

We will pave over 19 kilometres of Route 134 between Belledune and Campbellton.

We will chipseal more than 700 kilometres of roads, double our historical amount.

Mr. Chairman, we need to make improvements to our trade corridors if we want to achieve self-sufficiency. However, we cannot afford to keep building new roads at the expense of our existing system. Our infrastructure is aging. If we don’t make these investments now, our highway system will pay later.

That is why $178 million will be directed at rehabilitating our province’s roads and bridges in each of the next three fiscal years. These investments will be based on the principles of asset management.

The Department’s award-winning asset management solution is transforming the way my department manages and maintains New Brunswick’s roads and bridges. This approach to managing our highway system will help us to identify the right time and the right way to make improvements to our roads at the lowest cost to taxpayers. 

The basic premise behind asset management is simple and it makes good business sense. It costs less to keep a road in good condition than to rebuild it once it is in poor condition. One dollar invested in minor rehabilitation today could save five to six dollars in reconstruction five years from now. If roads are treated at the appropriate time, we can do work on a larger volume of roads and keep our roads in better condition.

This means we will have a safer, more efficient highway system to the benefit of our economy and all those who depend upon our road system to travel to and from work and school each day.

I am proud to lead a department that brought forward such an innovative way to build and rehabilitate our roads in this province.

In addition to these projects, my department will continue to invest in municipal designated highways in our province through both our regular municipal designated highway program and the municipal designated highway grant program.

My department will also make progress in its efforts to improve our province’s ferry system. My department remains on schedule to sign an agreement with a successful proponent as part of the Fundy Islands Ferry Services Project in early 2008. We will also start construction on a new 24-car ferry for Westfield. 

Before I conclude, Mr. Chairman, I wish to once again congratulate my staff for their tremendous contribution in the development of this record capital budget for the Department of Transportation. The executive team in my department, including my silent partner, my Deputy Minister David Johnstone, has worked extremely hard to make this project a reality. They have been ably supported by our Department’s very competent and professional staff here in head office.

The task of managing this budget now passes to our six district engineers and their teams all over our great province. I have absolute confidence in their ability to deliver this transformational program. They will build a better New Brunswick. It is a pleasure to be part of a team of people who believe so strongly in the work that they do. And, it is a privilege to be the minister of a department that provides such excellent service to the people of New Brunswick. 

Mr. Chairman, due to the sheer number of projects being undertaken this year, I will not be outlining them as part of my formal remarks. However, as we do each year, we are providing a detailed listing to the members. Appendix A and Appendix B provide a summary of the work to be undertaken in 2008, and Appendix C which lists the contracts for work that began in 2007 but will be continued or completed in 2008. I will now take any questions.

Thank you, Mr. Chairman.

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