Thank you, Madam Chair. We're in the process of consulting to develop an adult basic education program policy. We are certainly taking a look at the issue that the Member alludes to; but until this process is a little further along, I can't tell him for sure where we're going. The goal of the consultation is to develop standards and guidelines for effective program delivery and to project future demands and resources. I think the Member is talking about ensuring that we have adequate resources to provide the training in the future. The plan is to have this consultation and the recommendations concluded by September of this year.

Thank you, Mr. Dent. Mr. Erasmus.

Thank you, Mr. Erasmus. Mr. Dent.

Thank you, Madam Chair. One of the goals of the consultation will be to determine the need for people with this kind of training. If the need is demonstrated to be there, then the Member is right, we'll have to look at providing the course in a more comprehensive manner. That will be one aspect that will be looked at.

The other aspect is going to be what is the potential for graduates from this course to find employment. That will also have a bearing on how often the course is provided. It all ties into a workplace strategy that this government must have which identifies the potential for jobs and the best way for us to make sure that northerners can get those jobs. I think we're doing our best to move towards that in a cohesive and comprehensive way. Thank you, Madam Chair.

Thank you, Mr. Dent. Are there any further general comments? If not, would the committee like to return to page 14-11, program summary, Education, Culture and Employment?

Operations and maintenance, total operations and maintenance, $257.895 million. Total capital, $36.905 million.

Total expenditures, $294.8 million.

Mr. Steen.

Thank you, Madam Chair. I have a question on total capital and it is the same question I had on total O and M. I would like the Minister to possibly identify or make a statement regarding whether or not there are any expenditures here for the preparation of Nunavut.

Thank you, Mr. Steen. Mr. Dent.

Thank you, Madam Chair. Not in the capital of this budget.

Thank you, Mr. Dent. Total capital, $36.905 million.

Total expenditures, $294.8 million.

Does the committee concur that we have concluded the Department of Education, Culture and Employment?

We are now on the Department of Economic Development and Tourism with Mr. Kakfwi. I will invite the Minister to make his opening comments on the department's estimates.

Minister's Introductory Remarks

Thank you, Mr. Chairman. Today marks my first budget address to you as Minister of Economic Development and Tourism. Some time over the next year, and likely within six months, the Department of Economic Development and Tourism, Renewable Resources and Energy, Mines and Petroleum Resources will be combined into a single, new department responsible for all facets of economic development.

As you can see within the budget papers, the Department of Economic Development and Tourism has a budget of close to $39 million for 1996-97; 78 per cent of this amount is for operations and maintenance. The relatively small capital budget of $8 million is targeted into two areas:

- 38 per cent towards tourism parks and visitors' centres; and,

- 62 per cent towards community and business capital assistance.

The Budget In Brief

Compared with last year, we have cut O and M spending 11 per cent and capital by 14 per cent. Within the capital budget, the entire reduction was made from within the parks and visitors' centres allocation; our commitment to capital assistance for businesses remains constant with last year. Even with this reduction, however, we still managed to develop a comprehensive development program for tourism facilities and capital projects are being planned in every region.

In terms of cuts, the single largest reduction is associated with the sunsetting of the EDA or economic development agreement. The department's current share of the EDA budget, almost $5 million, will be applied to alternate community development initiatives.

Other reductions, as applied to divisions within the department, include a 13 per cent drop in the directorate resources; 10 per cent reduction in policy and planning; nine per cent cut in the Business Credit Corporation budget; 19 per cent overall to parks and visitors' centres; and, four per cent reduction in the tourism marketing budget.

All news is not negative, however, as these reductions were used to offset major increases in the corporate and technical services budget -- 29 per cent, most of which is directed at the regional level -- as well as a small increase in the finance division's budget.

Overall the resources at our disposal are relatively small; around three per cent of the government's O and M budget. At the same time, the department is asked to deal with some major economic problems. Right now, our unemployment rate is one of the highest in the country, and it's not going to improve without significant effort. All our young people ask is the same chance we had, an opportunity to make a safe and secure future for themselves and their children.

Where are these jobs going to come from? To be sure, there will be opportunities in government, but these will be limited. Most of these jobs will have to be created outside government. While this will be a significant challenge, we do enjoy some unique advantages. Mr. Chairman, there are real and tangible benefits we can build on: abundant mining resources and likely the first major diamond mine in North America; significant oil and gas deposits; one of the largest reserves of timber in Canada; abundant fish and wildlife; a unique and clean environment; one of the lowest overall tax rates in Canada and no sales tax; and, relatively close proximity to major tourism and export markets in Canada and the United States.

Defining The Vision

Taking advantage of these opportunities requires careful planning. Like any business plan, this planning process starts with a vision or goal. In this case, I believe we all share the same vision. A vision of the NWT where jobs and businesses are created in every community and region. A vision of an economy where resources, both renewable and non-renewable, are responsibly developed to create jobs and opportunities; the new technologies of the information age are applied to selling NWT products and services throughout the world; northern businesses have access to the tools and assistance needed to take advantage of new opportunities, locally and internationally; and, where people have the skills to realize their potential.

Mr. Speaker, if defining the vision is the first step, developing strategies to get us there is the second. While parts of this strategy are reflected in the current budget, one of our priorities is the development of a new comprehensive economic policy framework.

A "framework" goes beyond identifying jobs or opportunities in each sector. It looks at new ways of stimulating the economy and creating a favourable climate for business and investment growth. It will look at cutting red tape, promoting the development of new processes and markets, supporting community-based, rural development and it will look at ways of streamlining government.

In short, we are planning a comprehensive, action-oriented approach; one which will provide the focus, programs and structure for the combined Department of Economic Development and Tourism, Renewable Resources and Energy, Mines and Petroleum Resources.

A New Spirit Of Cooperation

People from small communities are realists. They know what opportunities will work, and which are a waste of money. If we are going to succeed at regional development, I firmly believe we need to adopt new tactics for dialogue and partnership and we need to practise listening to the concerns of business and people.

In this case, we don't need professional advice or to look south for inspiration. We already have successes to build on, like the "Kivalliq" project being implemented right now in the Keewatin, for example. This is a new partnership jointly developed by ED&T, Sakku Investments and community futures.

Before its creation, local people complained that business assistance programs were confusing and difficult to access, especially for people in smaller communities. The overlapping mandates of these programs discouraged people and wasted time. Paperwork seemed to create a mountain that people couldn't climb. On top of it all, the system was slow and cumbersome. People lacked faith in the process and opportunities went undeveloped.

Something had to be done. Together with clients and communities, a strategy was developed for a one-window approach to development. All agencies involved, including our department, Sakku and community futures pooled their resources and committed themselves to work as partners. We now have a single application and review process. Assistance turn-around time has improved. Complaints are way down and business starts have increased. Just the simple sharing of support staff, offices and computer equipment enabled us to do more with less. This is a "winwin" situation.

Getting Communities Involved

While Kivalliq provides the model for regional development, we also need to focus on community delivery. Over the past few years, we have made significant progress in transferring positions and authority to communities:

In the Baffin, positions have been transferred to the local level in Cape Dorset and Sanikiluaq;

In Inuvik, seven communities deliver economic development services directly or through contract;

Negotiations are nearing completion on the transfer of responsibility to four communities in the Kitikmeot; and, two communities are currently negotiating in the Keewatin.

Transferring responsibility for business and economic development to communities allows them to tailor development spending to local needs and priorities. At the same time, potential businesses are provided with a single development window within the community. Business licence applications, development approvals and start-up assistance are all processed by the same authority. I can say at this time that I am committed to community devolution and will actively pursue further transfers to communities.

The department is working with the Inuvialuit Development Corporation to create a "development library" on CD-ROM; currently, we have scanned over 1,000 economic and business studies. These range from the feasibility of berry farming through to strategies for maximizing aboriginal benefit from mineral development. Instead of sitting in a dusty library, we plan to put these studies and reports to work, at the community level where information is needed. Over the current year, copies of the library will be available through the Inuvialuit Development Corporation.

We can also increase our effectiveness by cooperating with the provinces, especially within tourism. By marketing the NWT with Alberta, for example, we can increase the appeal of both destinations. Tourism market research is another area for cost sharing. We recently participated with the four western provinces and Yukon to undertake a major review of the US market. Since the cost of the study was shared according to each region's tourism market and since our market is very small compared to a province like British Columbia, the department's share of this $200,000 study was only $5,000.

Building A More Efficient Department

Efficient program delivery will be one component of the new economic strategy. As a department, we are proceeding on this front in a number of areas. First, we have made a commitment to privatize our existing territorial parks function over the coming year. Once again, this will give local people increased opportunities to participate and benefit from local projects. A process and timetable for the privatization of parks will be developed over the coming year.

Tourism marketing is another area where we are building efficiencies. In the past, the department funded up to eight zones to market each destination area while, at the same time, undertaking an overall NWT campaign. With our limited marketing budget -- the lowest in Canada -- this fracturing of marketing limits our effectiveness. To be frank, most potential tourists don't know where the NWT is, let alone the Arctic Coast or Big River zones. In a recent survey of the northwestern States, Angus Reid found a very low awareness of the NWT as a destination; less than one per cent. To improve our performance, we have moved decisively to combine the eight existing market zones into two: Nunavut and the Western Arctic.

While there is a role for government to play in promoting the NWT as a tourism destination, we want to get the tourism industry more involved. Over the next year, we plan to devolve marketing authority directly to these two new marketing agencies. This will ensure a marketing program sensitive to the industry needs.

Applying New Technologies

Mr. Chairman, I firmly believe the Internet is going to change the way we do business in the NWT. It offers us an unparalleled opportunity to overcome our major impediment: distance. On the Internet, it is the same distance to Australia as Yellowknife and it costs the same to communicate to either location. The potential for marketing tourism, arts and crafts, services, products and other services, or simply sharing development ideas, are unparalleled.

Conclusion

Mr. Speaker, I have attempted to outline some of our vision for the future. Some of the new directions I have outlined today are just the beginning. Over the coming year, we will consolidate Economic Development and Tourism, Renewable Resources and Energy, Mines and Petroleum Resources into a single, new department. This will improve our cost effectiveness while ensuring increased services over difficult budgetary times. Shifting some of the decision-making to regional and community bodies will ensure that local priorities are funded and that funds are used more effectively. The economic framework will focus a variety of strategies into a common goal: job creation.

Overall, I am excited about the future and about my responsibilities for this department. More businesses mean more pay cheques, more pride and independence and less dependence on government resources. It means a better future for us all. Thank you.