Thank you, Mr. Chairman. I would like to first of all make reference to the committee's report regarding Bill C-65. There have been some recent developments that make our recommendation somewhat moot and I would like to provide an update on these recent events. I believe the Minister has already spoken in the House on this.
Regarding Bill C-65, a number of parties made representations regarding this bill to the Federal Standing Committee on Sustainable Development. Most of these parties echoed the territorial government's concern that the proposed bill would legislate the management of endangered species from the NWT back to the federal government. The standing committee has now completed its work on the bill and the bill has been revised, so that authority for managing endangered species remains at the territorial government level, at the GNWT level. I thought I would provide that to start with, Mr. Chairman, as clarification for everyone.
Regarding the Minister's statements, I would like to make reference to a number of areas and one was the area of consolidation of the department. It did require a great deal of work on the department of many officials, and including our Committee, who had to deal with looking at the pros and cons with consolidation. I think there are still some rough edges within the department that the officials do need to work on. I understand one area is the vacancy rate, at the moment within the department is a critical area.
The agreement with BHP, we were certainly all very pleased that this was achieved but it did demonstrate that we need, here in the territories, a more stream-lined process for large corporations like BHP to do business in the north. We need refinement and a clearer way for them to start operating in the territories. This was a particularly challenging and onerous two years that the company was put through and had it not been for the fact that diamond mining is very lucrative, it is my belief the company would not have stayed to conclude its business in the territories. It was very, very challenging for them. As I say, I think it was in their interest because of the value of diamond mining and the profitability of it, that they were able to do so. But had it been a marginal operation, a small gold mining operation that was put through these types of hoops, then I am not sure that particular company would proceed. Anyway, my point is we need to pay attention to the regulations and the streamlining of the process for companies, hence the need for us to address the northern accord which I would like to know where we are going with that. What is happening, because I have not heard a thing about it in the recent months. So, perhaps when we get into detail on the consideration of budget, we could have the Minister address that particular area.
The Protected Areas Strategy, again, I was very pleased with the Minister's statement yesterday regarding the effort to draw together in Inuvik all parties that may have a concern in this area. It is of concern to the mining industry and exploration companies because they want to know what lands are available and what lands are not available. It is therefore important for all parties to settle this. Also, there is, of course, an urgency to have the land claims settled fairly and quickly, so that companies know who they can deal with in respect to accessing land.
Regarding the economic side of the department which is responsible for tourism, arts and crafts, manufacturing, small businesses, I would like to have the department put forward a strategy to better encourage this whole sector, we are not putting in this budget. We have a budget of $1.2 billion. Sixty-two percent is being devoted to the social envelope area. This particular budget of this department is smaller than certain sectors of the major departments of Social Services and Health and Education, Culture and Employment. Yet this department is the only department that is working on job creation from the perspective of outside government job creation. I am glad to hear the Minister is working closely with the Minister of Education to tackle the problems of a job strategy and job education, because we have a need for identifying where the jobs will be in the future, so our education department can concentrate its efforts on where to provide training and education. I am very pleased to hear the Minister is working closely with the Minister of Education on that.
Regarding the NWT Development Corporation, there are now 21 wholly-owned subsidiaries which create jobs in manufacturing, arts and crafts, et cetera, food processing and forestry. However, while these corporations were established and there is a desire certainly and an important area for the corporation to play a part in job creation, that should not be the sole reason for its existence. We must have this Development Corporation create companies that become profitable. Profitable companies will continue to exist in the future. If we cannot continue to support these companies financially through the Development Corporation, then they will fail in the long run. It is imperative that we give attention to this, to ensure companies take the approach that their first priority should be to create a profit. If we create good employment and sustainable employment as a result, that is the purpose of it. I am pleased to see the Aurora fund again. We do have an area through the Business Credit Corporation, the NWT Development Corporation and Community Futures, as well as the Aurora fund, an opportunity for northern individuals and companies to access funding for the private sector.
Mr. Chairman, the reality for us in the territories is government will no longer will be a growth sector. It has to be private enterprise. This particular department is ultimately going to be extremely important to all northerners. It is my feeling that we have to look at providing more funding for this whole economic stimulation sector. Thank you, Mr. Chairman.