I call the committee to order and as previously agreed we will revert back to Bill 8, Appropriation Act, 1998-99, Department of Resources, Wildlife and Economic Development. I will invite the Minister responsible for the department, Mr. Kakfwi, for his opening comments on the department estimates. Mr. Kakfwi.

Thank you, Mr. Chairman. I would like to begin my remarks by highlighting some of the achievements in the first full year of operation of this very large and complex department.

Mr. Chairman, the primary goal of Resources, Wildlife and Economic Development is to support the creation of jobs through the development of an economy that is sustainable and provides maximum benefits to northerners. Our approach is to work in partnership with the private sector and communities to create employment.

The Northern Employment Strategy, which is coordinated by RWED, resulted in an increase of $8.5 million to several departmental funding programs, in particular, the Business Development Fund, Community Futures and the NWT Development Corporation. These additional funds plus existing departmental contribution and loan funds stimulated economic projects with a total value of $34 million which created about 400 full-time and 1,000 part-time jobs.

Several special circumstances this year prompted us to provide additional support to businesses and economic development. The first was the low number of forest fires. This resulted in reallocation of funding, including $1.2 million to the NWT Development Corporation, almost $300,000 for marketing of aboriginal arts and crafts, $125,000 to Community Mobilization Partnership to build capacity for resource development opportunities and $100,000 to assist with the organization of the first Aboriginal Tourism Operators Conference. This Legislature also supported the reallocation of about $1 million to the Department of Justice. The second set of circumstances was the general economic climate generated by low interest rates and the closure of several large northern mines. This resulted in the decision to roll back interest rates for loans provided by the Business Credit Corporation.

Communities want to take control of their local economy. To support the growing demand by communities, our department has transferred 23 economic development positions to communities. Recognizing that special support is required to develop the economy in small communities, the Community Economic Development Services division has been created. Their programs and services will support Business Development Centres being created through Community Futures, promote partnerships with other funding agencies and the private sector, research and distribute information needed for economic planning and monitor the performance of RWED programs and our economy. RWED has also followed direction on privatization and continues to increase opportunities for communities to deliver programs, especially in the areas of forest fire management, forest management and parks and tourism. The last major achievement relates to the transfer from the federal government and expansion of the Community Futures Program.

The intent behind this program is to establish autonomous boards, composed of regional, experienced business people, who will develop local and regional economic plans. These boards have the authority to develop and manage a loan and loan guarantee program. RWED supports establishment of these boards and development of economic strategies and receives an annual report on their disbursements. The new boards in Sahtu and Kitikmeot are beginning operations and implementation is close for the remaining boards in the Deh Cho, South Slave and North Slave regions.

Mr. Chairman, a second program area I would like to highlight is diamonds. To date, we have been working closely with the federal government and industry in gaining entry into the exclusive club of diamond producing countries. This has required an extraordinary investment in time and resources. We have had to learn about this new industry, lobby the federal government and BHP to maximize benefits for northerners and address environmental protection and regulatory concerns.

Gaining knowledge about the diamond industry has been critical in establishing a clear vision on how to maximize benefits for northerners. In the past year, I have personally met with many diamond industry experts and I have ensured that other northerners could benefit from the knowledge of these people.

RWED has also been vigilant in reviewing environmental protection measures for the Ekati Mine. Our concerns formed part of the federal report which resulted in BHP's commitment to revise its Construction Phase Environmental Management Plan. RWED is providing advice to the company in the development of their Operational Phase Environmental Management Plan. We continue to cost share and support the West Kitikmeot/Slave Study, which is addressing information gaps relating to managing exploration and development in this area.

The final achievements I will highlight relate to aboriginal involvement in resource management. After over ten years of negotiations, studies and consultation; the Mackenzie River Basin Management Board was established this year. This board provides an interjurisdictional forum for the protection of water quality and quantity for this river system, which affects the lives of almost everyone in the western Arctic. The GNWT may appoint two members. Mr. Bob McLeod, assistant deputy minister, RWED has been appointed for a one year period, after which I will assess the option of appointing a non-government person. Western NWT aboriginal organizations are also being contacted to provide nominations for a second member who shall be aboriginal.

Aboriginal people in the North and South Slave regions have had a number of concerns relating to fishing and tourism, two important economic activities. We have recently submitted a nomination to the federal government to appoint an aboriginal person to the Fresh Water Fish Marketing Board. Mr. Len Cardinal, a seasoned commercial fisherman on Great Slave Lake, will bring his first hand experience and knowledge of the challenges and opportunities for this fishery to this board. I have also been working to reach agreement with aboriginal organizations in the North Slave area on a process for issuing tourism outfitter licences. Completing these agreements will help facilitate the growth of tourism in this region.

Mr. Chairman, I would now like to review where we are going in 1998-99. My first comments relate to changes I made during this department's first year of operation.

In small communities, the traditional economy remains important, especially in reducing dependency on imported goods. I have kept my commitment to increase the contribution funding for the major support program for hunters, the Community Harvester Assistance Program. I have also made an effort to inform all regions and communities that to date have not participated in the Western Harvester Support Program of the opportunity to create their own program to promote the local renewable resources economy.

I have also directed the department and the NWT Development Corporation to enhance product and market development and training for our traditional northern arts and crafts. Our recent participation at the first Canadian Indigenous Arts Festival in Arizona convinced me that this economic sector can create occupations for our young people that are based on our unique, northern cultures. In my recent meeting with the NWT Development Corporation, I have asked the board of directors to make recommendations on how this corporation can work more closely with RWED and with other funding agencies in meeting GNWT economic objectives. The board is also developing a work plan to prepare its operations for division.

The addition of a small diamonds division is the final structural change I have made to the department. I believe it is essential that our government has its own expertise if we are to make informed decisions in developing this industry in cooperation with the federal government and the private sector.

The two major challenges I see for 1998-99 are developing management strategies to balance economic needs with environmental protection requirements and completing preparations for division which includes fostering strong economic climates for each new territory.

Finalization of the Protected Areas Strategy will be a major step in supporting environmental protection and conservation objectives while providing greater certainty for development. Regional and community organizations have become actively involved in contributing to this strategy. The Deh Cho First Nations and Fort Resolution will hold workshops in March. The Gwich'in will shortly release a draft Land Use Management Plan which addresses protected areas. The Sahtu has been successful in having the federal government designate Scented Grass Hill and Grizzly Bear Mountain as National Historic Sites. The completed Protected Areas Strategy should identify areas of natural and cultural significance and various levels of protection in relation to development activities. The partners include federal agencies, aboriginal organizations, industry and other stakeholders, who agreed in March, 1997, that the process should be community driven. A major conference of all partners is being planned for this spring to build consensus towards finalizing the strategy and how it could be implemented.

Another area where RWED must take measures to balance economic and environmental goals is addressing the conservation of land, air and water resources and the emerging issue of global climate change. This year, I have the privilege of co-chairing the Canadian Council of Environment Ministers. It is the major intergovernmental forum in Canada for discussion and joint action on environmental issues. This council, along with Energy Ministers, must begin to develop a national strategy to meet the climate change commitments made by Canada in Kyoto, Japan last December. As part of this strategy, the NWT must determine how and if we can reduce our production of greenhouse gases without negatively affecting a growing economy. RWED's Energy Management Program and the involvement of the newly formed Arctic Energy Alliance will be critical in developing NWT goals and approaches to energy conservation and climate change.

In preparing for division, RWED has taken a pro-active approach. This year, the plan is to transfer an additional 16 PYs and $2.7 million to add to the existing 23 PYs and $4.3 million budget in RWED Nunavut headquarters. Training and recruiting Inuit staff continues to be a priority.

Like all Members of this Legislature, I want to see each new territory develop a strong economy. In Nunavut, we are encouraging investment from the mineral industry through support to regional mining symposiums. One was held in Rankin in 1997 and another will be held in Kitikmeot at the end of March. The Baffin fishery has been very successful and I intend to meet with the federal Fisheries Minister to ensure that the north shares in any increases to offshore quotas. Nunavut regional staff is also providing business assistance and expertise to northerners who want to participate in economic opportunities, such as the construction of infrastructure and tourism, associated with the creation of a new government.

In the western Arctic, we want to see value-added activities be part of the development of our natural resources, such as diamonds, forests and wildlife. Such activities mean more employment and this is what our smaller communities need.

Finally, I would like to recognize the extra efforts that RWED staff has made to adjust to the impacts of amalgamation. This has resulted in additional workloads. Yet I believe that staff, especially in the regions, have maintained the quality and level of services.

Mr. Chairman, in just two short years this department has adjusted to amalgamation and is preparing for division. To meet our other objectives under these circumstances speaks to the support from this Legislature and to the hard work of RWED staff. I thank you for that support and look forward to your suggestions and comments. Mahsi cho.

--Applause

Thank you, Mr. Kakfwi. Before I recognize Mr. Krutko with his comments from the committee, I would like to remind all Members, including Ministers, that the time limit is ten-minutes for any one Member to speak in committee of the whole. Mr. Krutko.

Thank you, Mr. Chairman. The Department of Resources, Wildlife and Economic Development's 1998-99 budget is $100 million ($96 million in operations and maintenance and $4 million in capital expenditures), an increase of $4.6 million from 1997-98. There are 550 positions in total for 1998-99. This is an increase of ten positions from 1997-98.

Committee Members are concerned that the enthusiasm behind the community economic development initiative may soon fade. Members would like to see this initiative continue and emphasize that it should remain a priority and responsibility of this department.

Members would like to see this initiative be properly monitored in each region and a reporting mechanism be developed to ensure a fair distribution of funds. The department has agreed to provide quarterly reports to the committee.

The department would like the NWT Development Corporation's portfolio to be enhanced by promoting its role in the development of the economy in level 2 and 3 communities. In order for this to happen, the Financial Management Board Secretariat approved a one-time contribution of $1.2 million to the NWT Development Corporation. The department agreed to provide an update on the corporation's subsidiaries to the committee.

The standing committee wants to ensure there are no major changes to the Wildlife Act before division with the exception of the amendments with respect to the Gwich'in and Sahtu Land Claim Agreements. The department agreed to provide a letter of intent reflecting this assurance.

The department plans to revisit the Northern Accord to examine the issue of resource revenue sharing. We support this initiative and encourage the department to invite interest.

The standing committee requested additional information from the department in a number of areas, most of which has been received. The committee appreciates receiving the responses to these requests and looks forward to further discussions with the Minister regarding departmental initiatives. Thank you.

--Applause

Thank you, Mr. Krutko. I recognize Mr. Ningark.

Thank you, Mr. Ningark. We have a motion on the floor to report progress. The motion is not debatable. I will have to ring the bell for a quorum. We have a motion on the floor to report progress. All those in favour? All those opposed? The motion is carried. I will now rise and report progress.

Thank you, Mr. Speaker. Mr. Speaker, your committee has been considering Bill 8, Appropriation Act, 1998-99; Bill 14, An Act to Amend the Legislative Assembly Retiring Allowances Act and the Supplementary Retiring Allowances Act and Committee Report 04-13(5) and would like to report progress. Bill 14 is ready for third reading. Mr. Speaker, I move that report of the committee of the whole be concurred with.