Arthur Mitchell, chair of the legislature's standing committee on public accounts, says he is pleased with the outcome of Thursday's hearings held regarding the findings of the Auditor General of Canada's report on the Department of Highways and Public Works.

'The responses to our questions added a lot to what we learned from the auditor general's report,' he told the Star this morning.

Mitchell further added the committee was able to get a better understanding of the challenges the department faces.

The audit, released last week, examined the department over the last three years.

It found the department's infrastructure projects are chronically overtime and over-budget and that it tends to use short-term, sole-sourced leases for government office space.

The auditor general's 35-page document further stated there is a lack of long-term planning and risk management in Highways and Public Works.

The findings showed highway pavement in the Yukon is averaging 20 years of age and is in need of major reinvestment to halt its deterioration.

Approximately $3 million annually would be needed just to maintain the present pavement conditions with more funding required if the overall condition is to be improved.

A third of the Yukon's bridges were also found to be constructed more than 40 years ago. Estimates suggested that as of 2004, 29 of the 129 bridges in the territory were found to be unacceptable and requiring immediate rehabilitation to bring them up to minimum standards.

The public accounts committee heard from several officials in the department. They assured committee members the minimum standards referred to in the report are a measurement used for determining priority needs in terms of maintenance, not safety.

The Yukon's roads and bridges are not unsafe, said Robin Walsh, the department's director of transportation engineering.

Getting a better understanding of the indexing system used by the department was important, said Mitchell.

The government representatives also highlighted challenges that spread beyond the territory's borders, citing oil prices and marketplace competition as a barrier to getting projects done on time and on estimated budgets.

Mitchell added the committee was pleased the department acknowledged some responsibility for the issues highlighted in the audit, especially in relation to accommodation space and lack of planning in that regard.

Steven Gasser, assistant deputy minister in the property management agency, agreed it is the lack of a long-term plan that has allowed the situation to reach where it is today.

The agency has been without a long-term plan for almost 12 years, he said.

The government has worked on a 'one-off' type of planning process when it comes to office space, he said, working on a case-by-case basis.

'I'm not sure why over the last 10 to 12 years the department has not been engaged,' he said. 'We need to get the system back in place.'

However, he further added that the department does not have enough resources to be able to inspect the buildings on a regular basis.

The three major challenges in relation to government buildings maintenance and office space planning have been a lack of data, lack of documented procedures and a lack of resources to do the work, he said.

Government officials repeatedly referred to a lack of resources and funding during the hearings, suggesting higher budgets and expensive computer systems as ways that may help resolve the issues.

Mitchell said the committee is encouraged to hear the department has already begun to address concerns raised in the report.

'We're pleased to see the department recognizes there have been shortcomings,' he said.

Premier Dennis Fentie told the Star this morning from Ottawa the Yukon Party government has been aware of challenges the department faces since first coming to power in 2002.

'This government wasn't surprised as to the outcome of the report,' said Fentie.

The department spent $60 million in the 2005-06 fiscal year to develop, construct and maintain the territory's infrastructure, which includes highways, roads, bridges, airport and airstrips. Another $52 million was spent on the development, leasing, operation and maintenance of government buildings.

Fentie said the Yukon Party recognized the challenges being experienced by the infrastructure, that includes highways, roads and bridges, and increased investment.

The work done over the last three years is an example of how the government recognized and addressed the need for investment, he said.

Fentie agreed with the department officials that labour shortages and an increasingly competitive marketplace in terms of construction are a factor in the report's findings.

'It's a result of where the marketplace is today,' he said, reaffirming similar situations in terms of cost-overruns and delayed projects are being experienced throughout western Canada.

Determining how to deal with the situation is part of what sound fiscal management is all about, he added.

Mitchell said the hearing with Highways and Public Works officials won't be the last and they can expect another one in the future.

'This wasn't a one-off,' he said. 'We will be paying attention and wanting to see what progress has been made.'

The committee will now be preparing a report on the hearing, which will be tabled in the legislative assembly this spring.

The public accounts committee is a nonpartisan body that reviews the economy and efficiency of government programs and resources.

Its members include Mitchell, Klondike MLA Steve Nordick, McIntyre-Takhini MLA John Edzerza, Riverdale South MLA Glenn Hart, Pelly Nisutlin MLA Marian Horne, Porter Creek South MLA Don Inverarity and Southern Lakes MLA Patrick Rouble.

Hart did not participate in the public hearing, because he was the minister responsible for the department during the period covered in the report.