Thank you, Mr. Chairman. The department's 1994-95 proposed budget is virtually unchanged from 1993-94. There is a net reduction of $84,000 resulting from restraint initiatives.
The department is proposing to increase its emphasis on minerals. This is in response to increased activity. Funds are available because of the general lack of oil and gas activity.
The minerals initiatives program represents a large portion of the department's budget. This is a five year program which is funded under the Canada/NWT economic development agreement. Seventy per cent of the expenditures from the minerals initiative program are recovered from the federal government.
Mineral exploration activity has increased significantly over the past year, and is expected to continue for the foreseeable future.
Two companies have bulk sampling programs under way for diamonds. A determination that there are one or more economic diamond deposits could be made later this year. BHP recently submitted a project description for its NWT diamonds project, which sets out an aggressive schedule for a very large-scale operation.
Although Metall Mining has put its work for the development of the Izok Lake base metals project on hold, a number of other projects are in an advanced exploration stage. A conservative projection would be that five new mines will open up in the NWT over the next ten years.
Oil and gas activity has been declining in recent years due to low prices, lack of exploration success and the lack of exploration rights issuances in the Mackenzie Valley. Exploration rights should, however, be issued in the Gwich'in and Sahtu regions in 1994, now that the land claims have been settled.
As a result of preparatory work conducted over the past several years, the department is in a good position to implement oil and gas and minerals management programs. However, an agreement to transfer these responsibilities from Canada has yet to be finalized.
The devolution of responsibilities for oil and gas and minerals from the Government of Canada to the GNWT is a matter of highest priority. The magnitude of the impacts of impending mineral development on the economic future of the Northwest Territories makes it imperative that these agreements be finalized as soon as possible. Without the tools to manage these industries through provincial-type authorities, this government will continue to have little control over the non-renewable resource industries and will realize no fiscal benefits from mining and oil and gas activity.
Responsibilities for public programs related to energy conservation were transferred from the Department of Government Services and Public Works in August 1992. The department is now responsible for the promotion of energy awareness and for providing energy management advice to all energy users in the NWT, other than those whose energy costs are paid for by the Department of Government Services and Public Works.
As a result of this transfer, the department has integrated energy policy and programs under a single division. These organizational changes have enhanced the GNWT's ability to respond more effectively to increased demands for energy conservation information, advice and services.
Thank you, Mr. Chairman.