Thank you, Mr. Chairman. On behalf of the Standing Committee on Finance, we have a statement here in response to Economic Development and Tourism. The Department of Economic Development and Tourism has long had a reputation of being overly bureaucratic and centralized. This has caused frustration in the northern business community. However, recent movements by the department have started to reverse that trend, which the committee sees as a positive sign. Recent changes to devolve authority should go a long way to making the department and its programs more accessible to northerners.
Devolution
However, with this devolution of authority comes risk. Now that the regional superintendents and regional planners have greater granting and lending authority, they will require training and support to wield that authority in the most effective manner. With devolved decision-making comes a greater need to ensure adequate training of the ED&T staff in the communities and to ensure more consistency and accountability in the application of the department's policies. Committee Members will be watching to see that the mechanisms required to ensure proper accountability are being implemented.
Further, the granting of more responsibility and authority to individual ED&T employees in the communities could create new stresses in their relationship with community members. With a significant change in the role that the employees play in the community, will come a shift in how that individual is perceived in the community. With fewer "levels of appeal", the role that the employee plays in making opportunities available to community members becomes even more critical. Increasing an employee's responsibility and authority could become a major problem in communities where the employee has not earned the respect and trust of community members.
While the department said that decision-making has been devolved, the committee did not see a corresponding shift of support resources to the regions. Regional employees will undoubtedly require supplementary resources in order to carry out additional responsibilities. Committee Members would like to see this issue addressed by the department.
Small Business Ventures
Committee Members feel strongly that the support of small business ventures is a key element in developing a strong economy in the Northwest Territories. Government support of and investment in small businesses or "cottage" industries will produce more jobs per dollar and will greatly enhance a more equitable distribution of economic opportunities throughout the territories.
The department should make every effort to demonstrate their appreciation for and understanding of the role of small business in our economy, especially in job creation. The development and support of small business ventures, particularly aboriginal businesses, should be encouraged everywhere in the territories, including the larger centres. Current policies tend to discriminate against aboriginal individuals who live in larger centres. This unintended discrimination is based on the assumption that larger centres provide more opportunities for business development. However, the department should recognize and address the fact that need and opportunity should be assessed on an individual basis and not on the size or classification of the community.
Members suggested that the department take an active role in assisting communities to develop specific capabilities - for example, various forms of arts and crafts - and to identify appropriate marketing opportunities. Small business ventures that require a consumer market larger than what currently exists in their home community should be provided assistance to identify and assess viable marketing opportunities in other communities or regions.
Tourism Zones
One of the committee's major concerns was about the effectiveness of tourism zone concepts. There is a perception that planning and decision-making in some of the zones is dominated by a few individuals from larger communities and by tourism operators, many of whom reside outside the territories. Smaller communities in a given zone are not heard or taken into account. The committee feels that it could be appropriate for the department to make funding to the various zones' associations contingent upon the guarantee of appropriate representation from all communities within each tourism zone.
Recommendation 7
The committee recommends that the Department of Economic Development and Tourism consider ways to encourage adequate representation of all communities within a tourism zone in its zone association.
Secondment
One specific issue which brought concern to the committee was that of a long-term secondment of a GNWT employee in Rankin Inlet to Piruqsaijit. This secondment was...