Thank you, Mr. Speaker. Mr. Speaker, as stated in the Budget Address, economic growth is critical to the long-term fiscal health of the Northwest Territories. In an effort to stimulate economic growth, the Department of Resources, Wildlife and Economic Development actively promotes employment and economic opportunities for northerners in the forest sector. These opportunities are based on sustainable and environmentally responsible development.
Timber harvesting and processing continues to be a growing industry in the NWT, with lumber and fuelwood as principal products. Planned harvest levels for the 1997-98 season will increase by 40,000 cubic metres to a total of 270,000. This increase will add 40 direct and 52 indirect jobs to our northern economy.
In addition, local mills will handle approximately 89,000 cubic metres of primary forest products such as rough lumber and other building grade products. This is a 37 percent increase over last year's production for the local and export markets. The milling sector has room for expansion in primary and secondary wood processing, while value-added processing opportunities are still being sought.
The Forest Management Division of the department continues to transfer government services to the private sector, providing business opportunities to community organizations. Currently, forest management crew contracts for forest fire management provide employment in 17 Western Arctic communities. The contracts employ more than 180 residents and provide an economic value in these communities of more than $4.5 million.
Mr. Speaker, utilizing northern businesses for forest management activities is a priority. Our air tanker services, equipment maintenance and additional support services are all contracted from community businesses in the north. Other services provided by contractors include forest management planning, development, research and traditional knowledge in northern forests. These activities will generate over 70 direct positions and stimulate a variety of community support services.
The department is also encouraging more northern involvement in forest development businesses and support services in the fields of aerial photography, forest inventory, information services and silviculture. Forest silviculture including site preparation, tree planting and thinning offers ideal employment and economic opportunities at the community level. Contracts in these areas support existing northern businesses and encourage new northern ventures in the technology and information field.
Future plans include an expansion of northern business involvement in forest inventory, planning for integrated resource management and expansion of the value-added sector.
Forest inventories, when complete, could indicate a sustainable annual harvest level of more than 500,000 cubic metres of spruce and pine saw logs and another 500,000 cubic metres of aspen and birch. This would more than triple our current harvest figures and has the potential of creating at least 500 direct jobs and 800 indirect jobs in harvesting, milling and basic silviculture. Training will provide the skills and abilities for northerners to secure and maintain these jobs.
Mr. Speaker, our forests offer tremendous potential for sustainable, long-term employment in our forest-based communities. My department will continue to promote the business of forest management as a viable and sustainable source of economic security for northerners, by northerners. Thank you.
--Applause