Thank you, Mr. Chairman. You have before you the very first budget of the Department of Resources, Wildlife and Economic Development. The total budget of $92.7 million represents a real reduction of 11 percent from the total combined budgets of the three former departments. In the amalgamation of Renewable Resources, Economic Development and Tourism, and Energy Mines and Petroleum Resources, we have done our best to reduce in areas of administration rather than programs and to reduce in headquarters rather than regions and communities.
For example, you will note we have reduced corporate services by 21 percent while the budget for environmental protection has actually increased by 31 percent. The overall reduction of 20 percent in active positions has been accomplished by a 26 percent reduction in Yellowknife headquarters. A 16 percent reduction in the 10 largest centres and only a 6 percent reduction in smaller communities. We have also made significant moves to decentralizing budgets and decision-making authorities.
Prior to amalgamation, less than 30 percent of the budget was under regional control. In 97/98 more than 50 percent will be under regional control. Most of the residual headquarters budget is in the "Forced Management Activity" which is headquartered in Fort Smith. During the amalgamation I have sought the advice of many groups, including Members of this Legislature. Some were concerned our attention to protecting the land and wildlife would distract us from our immediate needs to increase economic opportunity in jobs.
Others were concerned that we may compromise the environment for short term economic gain. Skeptics have said that it is impossible to be responsible for an environmental mandate and promote economic development at the same time. Mr. Chairman, I say we can do both. We must do both and we will do both. Our land and resources must continue to be our source of our wealth. We must use these resources today but we must use them wisely so they will be there for our children in future generations far into the future.
and establishes a higher level of commitment to northern employment and business involvement than has ever been made before. Mr. Chairman, we have faced a challenging year, managing the consolidation and absorbing a significant budget reduction at the same time. However, I am confident that with this behind us, the Department of Resources, Wildlife and Economic Development is well-positioned to move forward with its mandate. I am optimistic about the direction we are proposing to take. I am encouraged by the commitment of the staff of this new department to the new direction.
So where do we go from here? Mr. Chairman, our first priority must be to make sure the land and resources of the Northwest Territories are managed in such a way they will be available to use for generations to come. The department will continue to work closely with co-management boards in the study of management and conservation of wildlife and its habitat. Together we continue to provide models to the world for management of those resources.
We will also continue to work closely with our counterparts in other jurisdictions. For example, we have supported the development of a national accord for the protection of species at risk, in co-operation with other Canadian jurisdictions. This is to ensure that everything possible is done to prevent these species from becoming extinct as a consequence of human activity. The Government of the Northwest Territories has been and will continue to be committed to sound management of our wildlife resources.
As I have already noted, we have increased the budget of the Environmental Protection Service. A key priority of this activity will be to pursue partnerships with other government agencies, the association of municipalities and other private sector and energy management. The opportunities in energy conservation and energy alternatives will benefit the environment and reduce costs at the same time.
In March we will launch the development of the "Protected Area Strategy". The development of this strategy will involve staff from all divisions in the department, in partnership with federal departments, aboriginal organizations, industry and environmental groups. All areas of the north are special and all receive protection under laws of general application. However, there are areas of critical habitat, of special cultural, archaeological, scientific, historical, ecological or educational value.
There are areas of particular recreational or aesthetic interest. These areas must be identified and we need to look to establish measures to provide these areas with additional protection. The Protected Area Strategy, developed in a co-operative spirit, will give us a vehicle to do this. It is a commitment made under the Whitehorse Mining Initiative in 1994, and reconfirmed by the Minister of Indian and Northern Affairs and the Premier and myself in 1996. This task, Mr. Chairman, will require the support and commitment of a diverse group of interests. The result will be our legacy to future generations.
Mr. Chairman, by ensuring that we properly manage and protect our land and resources, we can proceed with greater confidence to meet our economic challenges and pursue our economic opportunities. As we all know the challenges are great. Our population is growing faster than our economy. People want jobs and opportunities so they can become more productive and self reliant. The need is greatest in our smaller level two and level three communities. This problem is compounded by our current fiscal crunch. Government finances cannot sustain economic growth. However Mr. Chairman, the opportunities are also great. Whether it is mining, renewable resources, tourism, arts and crafts, manufacturing, construction services or small business, every sector of our economy has the potential for growth and we must find better ways to harness this potential.
Government must use the resources we have in the most efficient way possible by reducing administration and overhead costs. We must target our efforts to those sectors that have the best potential and those opportunities that have the greatest need. We must find private sector partnerships which can compliment our efforts in bringing new investment dollars to the north. We must empower communities and individuals who can make better decisions about their own futures. Government must shift away from trying to design and manage our economy from the centre. We must move forward to a roll of providing a positive environment and the necessary support to communities, to the private sector and to individuals.
In the next few months, this department will be releasing a draft economic framework for discussion. This framework will provide information about the opportunities, strengths and challenges of every economic sector of the economy from a territorial, regional and community point of view. It will provide a basis for government, aboriginal organizations, communities, business and individuals to identify their opportunities and priorities and to identify the resources and programs they will need in order to succeed. The economic framework will provide a foundation for partnerships in improving the effectiveness of our economic policies and programs, from identifying and managing resources to improving access to business financing, to market development.
The framework will also help strengthen the links between our economic potential and workforce development. The provision of infrastructure and our regulatory and tax regimes. The economic framework will assist government, communities, business and individuals to make better economic decisions. Mr. Chairman, in the context of the framework, the department will also be pursuing several key economic initiatives. I would like to highlight a few of these.
An additional $500,000 has been budgeted to expand the community futures program to all regions. Community Future Societies in the Baffin, Keewatin, South Slave and Inuvik region provide funding and decision-making authority to community-based boards. These community future organizations are able to combine their resources, in partnership with other agencies, to work more effectively and efficiently in addressing local and regional priorities.
The Keevalik Partners in Development is a model of partnership. This organization brings together the department, Sakku, NTI and the federal government to provide a single window for business in lending contribution, training, marketing, research and infrastructure programs of the partners. As a logical extension of Community Futures, promoting and supporting community economic development will be a departmental priority.
Community economic development is a model where communities take responsibility for their own economic planning and decision-making. The role of government is to provide resources, information and support. Mr. Chairman, the Northwest Territories Development Corporation was established to create jobs in communities where the need is greatest and where private sector opportunities are limited. It has done so by establishing subsidiary companies and subsidizing start-up and operations costs. The Dev Corp. now has 21 wholly owned subsidiaries, creating jobs in manufacturing, arts and crafts, food processing, forestry and retailing. In this budget, an additional $500,000 will be allocated to the Development Corporation. The corporation's priority is to move existing subsidiaries towards greater self-sufficiency by increasing their efficiency and by aggressive marketing to enhance sales. Ideally these businesses will eventually achieve profitability and will be turned over to the private sector. This will in turn maintain existing jobs and free up money for new investments. In keeping with our goal of empowerment, the Development Corporation will also be increasing local authority and accountability for decisions about existing funds, in future subsidiaries. Mr. Chairman, the Minister of Finance provided information to Members on the Aurora fund and other initiatives to foster trade and investment in the Northwest Territories. The department will be complimenting his work by pursuing actions to improve access to investment capital. This will include a review of the roles of commercial lenders, the Business Credit Corporation, the NWT Development Corporation, community futures, the Aurora fund and others. To investment capital supports all economic opportunities.
In order to improve the investment climate, it is a priority of the Government of the Northwest Territories to reduce regulations and policies that create an unnecessary burden on the private sector. I will begin work with the Minister of Finance on the government-wide review of regulation. This does not mean that we will lower our standards or compromise protection of public safety, the environment, or consumers. Our aim is to clarify the rules and reduce unnecessary cost of red tape, for the business, the government, and individuals. The department is co-ordinating a broad range of government initiatives to commercialize, privatize, or devolve government functions which provide services the private sector can deliver with greater efficiency. Mr. Chairman, Cabinet has directed, I collaborate with the Minister of Education, Culture and Employment and the Minister of Finance, on fast-tracking the development of northern employment strategy.
This will build on the labour force development plan aimed at preparing our work force for emerging employment opportunities and on the economic framework aimed at enhancing these opportunities. Mr. Chairman, at the end of the day our success will be measured by the creation of new jobs and other productive opportunities which allow people to become more self-reliant, looking at business opportunities, jobs, the wage economy, opportunities to pursue traditional activities such as trapping, sealing, hunting, fishing, and cottage industries. Mr. Chairman, the Department of Resources, Wildlife and Economic Development has an ambitious agenda. The Protected Area Strategy, the economic framework, the northern employment strategy stand out as three of our most significant initiatives. We must continue to do well, those things that each of the former three departments did well.
In conclusion, Mr. Chairman, there have been significant changes as a result of the creation of the Department of Resources, Wildlife and Economic Development. However, I believe with these changes we are in a better position to meet the challenges before us. The support of all Members for our budget and the work ahead will ensure our success. Thank you.