Thank you, Mr. Speaker. Mr. Speaker, I want to congratulate Premier Morin and my Cabinet colleagues for this visionary new agenda for the new Western Territory. It reflects who we are, reinforces what we value and provides a blueprint for what we hope to become in the next millennium. As this vision is fulfilled, we will see increased northern self-reliance, reduced dependence on federal transfers and new opportunities for northern people to take their rightful place in the workforce and economy.
I want to expand on the Premier's remarks regarding our capacity to take greater control of our economic future, to move from near total reliance to self-sufficiency, from being an economic under-achiever to a net contributor to the country. Mr. Speaker, our strategy rests on a renewed relationship with the Government of Canada, and aboriginal governments because, the reality is, the federal government currently controls most of the levers necessary to bring about meaningful change. As the Premier pointed out, long-term solutions to our region's problems depend on progress on multiple fronts: constitutional, political and fiscal.
If the new west is to become a new economic force in confederation, there must first be a resolution of governance issues that currently inhibit economic and social development. Second, decisions about the north must be made in the north. We ask no more than our neighbours to the south would expect for themselves. Thirdly, and most fundamentally, there must be a new fiscal relationship that results in a more equitable distribution of revenues generated by northern economic development.
Mr. Speaker, we are seeking a significant restructuring of our fiscal relationship with the federal government and aboriginal governments, including an increase to the tax window. We are
arguing that greater access to own-source revenues will, over time, enable the federal government to reduce transfer payments. As we gain a greater share of tax revenues generated by local economic activity, we will be better able to pay for quality health care, education, housing and social programs for the people of our communities. As well, we will have greater control and a greater say over how this is done.
There must also be greater cooperation instead of the traditional confrontation between our three governments. We believe there needs to be a more coordinated, focused and productive approach to federal and territorial investments, and economic policy development. We are encouraging productive partnerships among the three northern governments and provinces, industry and aboriginal development corporations to make strategic investments in support of northern economic development. When you realize that fully 63 percent of the government's budget is committed to the social and health envelope, it becomes obvious that the creation of long-term, high-paying jobs presents the only lasting solution to our current economic and fiscal dilemma.
Our only hope of reducing our dependence on federal transfers is to create employment for our people. Only in this way will we realize our goal of creating healthy, productive communities capable of contributing to territorial self-sufficiency. At the same time, Mr. Speaker, we have acknowledged that we must expand our economic horizons beyond our northern borders. The regional market is simply not big enough to sustain growing territorial based businesses. In the same way that Canada needs the US for trade and economic growth, we also have to pursue larger southern markets for investment and increased business development opportunities.
There is another equally compelling reason for exploring new economic opportunities. That is the fact that the traditional northern economy, while critical to maintaining our culture and lifestyle, is nowhere near large enough to raise the kind of revenues necessary to meet the demands of our fast growing population. For example, Mr. Speaker, the revenues generated by trapping, the commercial wildlife harvest, forestry and fishing - some $46 million in 1996/97 - does not begin to cover the almost $740 million required for our social envelope budget.
We have to start capitalizing on the immense potential of our non-renewable resources, with their spin-off secondary industries, their ability to infuse billions of dollars into the local economy and capacity to create thousands of badly needed jobs. Of course, to succeed, we will need to develop the skills and confidence to tap into outside markets, and to become players on the national scene, but I have never doubted that northerners have what it takes to not only meet, but overcome, any challenge. Mr. Speaker, rather than being perceived as a long-term liability to Canada, we can turn that perception around to an appreciation that the north is a national asset. In so doing, we will earn the respect of Canadians for our ability to govern our own affairs.
My recent discussions with my federal counterpart, the Honourable Paul Martin, as well as the Honourable Jane Stewart, Minister of DIAND, suggest our federal partners recognize the merits of our vision and are receptive to a new approach. There is a willingness to try doing things differently, to give northerners a chance. In fact, my sense is that they welcome the input and innovative ideas we are putting forward. Mr. Speaker, they are beginning to believe in us. Is it not time we began believing in ourselves?
We can demonstrate that we have the vision and the energy to make the new north a reality. We have the opportunity to demonstrate to our federal partners that we are worthy of the enhanced autonomy that we are seeking. This, Mr. Speaker, is the objective of the economic development strategy. This strategy will set forth our arguments, backed by compelling substantiation, for the kinds of things we would like to do. It will chart the course for change, measured in concrete and tangible steps.
I believe, Mr. Speaker, that, done correctly, this strategy has the potential to bring to the Northwest Territories, over $30 million in a new economic development agreement, together with as much as an additional $50 million in incremental revenues from an increased tax window. Add to this, untold millions in increased investment in northern infrastructure by our southern partners. When the spin-offs from this additional revenue are also recognized and when leveraged investments yield additional returns, it is easy to see how the strategic approach we envision, could well bring billions of dollars on increased economic activity to the north.
Mr. Speaker, for a return of this magnitude, an investment of $400,000 to develop the strategy and do it well, is a small investment to make. The broad based and encompassing approach that we are taking to this work will bring together the expertise of a number of qualified northern consulting firms, under the coordination of Roland C. Bailey and Associates, balanced by input from key government departments on all aspects of the strategy.
At the officials' level, the work is being directed by a team of deputy ministers, lead by the secretary to Cabinet. I have been given responsibility as the lead Minister for this initiative, because of its sweeping fiscal implications. However, Mr. Speaker, this is a big undertaking that touches every aspect of our operations. The economic strategy will also rely upon the input of my Cabinet colleagues; the Honourable Jim Antoine, Minister of Transportation, who has responsibility for the new road initiative to open access to resource rich areas; the Honourable Stephen Kakfwi, Minister of Resources, Wildlife and Economic Development, responsible for negotiating the new economic development agreement with DIAND; and the Honourable Charles Dent, who will oversee the training initiatives flowing from this work.
It should be mentioned, Mr. Speaker, that the success of this strategy also depends upon the input of northerners. We are undertaking an extensive process of consultation with key stakeholder groups. An informal consultation process has been underway since the awarding of the contract, to allow for data collection to take place. I have just recently commenced a more formal process of consultation, by arranging meetings with a number of organizations representing a broad cross section of interests across the Northwest Territories. As well, I am awaiting a first draft of the strategy document, which I intend to table in this House.
This document will ultimately receive wide circulation in a draft format, for the purposes of consultation, before it is finalized. This will allow anyone with an interest in this work to have input into the final product. I encourage all Members of this Assembly, and all citizens of the new Western Territory to seize this opportunity to shape the kind of future we want for your children and ourselves. We have the rare privilege of building a new government for a new territory, from the ground up. It is a chance that comes, for those who are fortunate, only once in a lifetime. We owe it to ourselves, and the generations that will follow us, to do the job right Thank you, Mr. Speaker.
--Applause