Thank you, Mr. Minister. Page 14, education and culture. Mr. Nitah.

Thank you, Mr. Nitah. General comments? We are on page 14, education and culture, total education and culture, $9,886,000.

Total department, $11,484,000.

Does the committee agree that consideration of the department's main estimates is concluded?

With that, I would like to thank the Minister and his witnesses for appearing before the committee. Madam Groenewegen.

Thank you, Mr. Chairman. Mr. Chairman, I move that we report progress.

The motion is in order. It is not debatable. To the motion. All those in favour? All those opposed. The motion is defeated. As we had previously agreed, we will go onto the Department of Resources, Wildlife and Economic Development. Is the Minister prepared to make opening comments?

Yes, Mr. Chairman. Mr. Chairman, I am pleased to present the main estimates for the Department of Resources, Wildlife and Economic Development. The department is responsible for promoting economic self-sufficiency and growth through the sustainable development of natural resources and enhancing the creation of new sustainable opportunities in the traditional and wage economies.

Mr. Chairman, the natural environment is critical to Northerners' cultural, social and economic identity. This is reflected in the department's goal to ensure that the naturally high quality of our land, air and waters is maintained through sound environmental and energy management. The Government of the Northwest Territories is committed to renewable and non-renewable resource development that respects the overall health of our environment.

In meeting with the senior staff of the department, we discussed what I see as the department's top five priorities for the next fiscal year:

• • tourism and the traditional economy;
• • managing gas development in the Mackenzie Delta;
• • developing an energy strategy;
• • building regional capacity; and
• • implementing Common Ground, the NWT Economic Strategy.

Tourism is one of the five priority areas. It is a growing industry worldwide, especially in the areas of adventure and cultural tourism. Tourism opportunities in the Northwest Territories contribute to economic diversification and are one of the few economic activities available to small northern communities. For example, anyone involved in the traditional economy has basic tourism outfitting skills. Tourism can also help to establish a stable market for arts and crafts products and to preserve our rich, northern heritage and cultural traditions. I have stressed that we must be able to measure the results of new investments in tourism. The department, working with partners and stakeholders, will finalize a Tourism Strategy and an action plan where new investment will focus on marketing the NWT as a prime tourism destination and developing quality, regional attractions.

We expect the non-renewable resource sector to be the major economic contributor to the Northwest Territories for the next several decades. The second priority area for the Department of Resources, Wildlife and Economic Development is ensuring that Northerners maximize the benefits from the development of our natural resources. That is why the Mackenzie Valley Development Project was established two years ago. It ensures Northerners participate and benefit from the development of our substantial natural gas reserves and provides a coordinated approach by aboriginal, federal and territorial governments to prepare for development. This remains a key initiative. The department will also continue to support the Aboriginal Pipeline Group, which is seeking a long-term revenue source for aboriginal governments through equity participation in a Mackenzie Valley pipeline.

Support for resource development also means addressing industry's concerns. One concern has been the regulatory regime in the Northwest Territories. Mr. Chairman, I am pleased to report that regulatory agencies are working cooperatively to establish a process to coordinate regulatory requirements for the construction of a Mackenzie Valley pipeline. The department will continue to participate in these efforts to develop an efficient regulatory process that will avoid unnecessary duplication.

The third priority area is examining options to develop an energy strategy to guide future decisions and investment on separate, but related, energy and environmental issues. It will outline an overall vision of the NWT's future energy needs and requirements and set specific objectives to provide the context for more detailed decisions. These would relate to such issues as northern oil and gas development, energy subsidies, and the implementation of a Greenhouse Gas Strategy. Of particular interest is the use of hydroelectric power, which could reduce costs to generate electricity as well as environmental impacts. In the interim, the department will continue to work closely with the Arctic Energy Alliance to reduce costs and environmental impacts of energy and utility services.

Supporting our government's objective of building regional capacity is the fourth priority area for the Department of Resources, Wildlife and Economic Development for this upcoming year. Working with other departments, partners and stakeholders, the department will assist in developing a qualified, resident workforce that can take advantage of the employment, training and business opportunities flowing from resource development. For example, the department has recently filled three regional oil and gas positions to assist communities to maximize involvement in development. More importantly, the department is working directly with aboriginal groups to increase their capacity to maximize benefits from resource development. More importantly, the department is working directly with aboriginal groups to increase their capacity to maximize benefits from resource development. For example, the department has:

• • jointly funded the Information Clearing House for the Beaufort Delta;
• • provide direct support for aboriginal-owned business;
• • sponsored a series of human resource development programs and associated support services; and
• • contracted aboriginal corporations to deliver forest inventory and silvicultural activities. This ensured direct involvement of aboriginal people in managing forest resources on their traditional lands.

The department will also continue to assist in the assessment of community impacts and the collection of environmental base line information related to resource development.

The final priority area for the Department of Resources, Wildlife and Economic Development is implementing the NWT Economic Strategy as contained in the Economic Strategy Panel's Common Ground report. Our government has described the actions we will take in the document, Securing Our Future. We intend to work in partnership with aboriginal governments, the federal government and the private sector to implement these actions and I will report annually on the results of our actions.

In addition to the five priority areas I have outlined, the Department of Resources, Wildlife and Economic Development will be undertaking work in other important areas.

The department's environmental protection division administers initiatives and programs on air quality, hazardous and solid waste management, and energy awareness and efficiency. Priorities for this fiscal year include designing a revenue neutral beverage container recovery program, implementing a northern strategy to control greenhouse gases and working with the federal government on the surface clean up of Giant Mine.

Other programs supporting initiatives to protect our northern ecosystems include the continued implementation of the Protected Areas Strategy by the territorial and federal governments. Communities continue to lead this process. Recently, Deline was advised that the federal government has agreed to interim protection for the Grizzly Bear Mountain Candidate Protected Area. As well, the Department of Resources, Wildlife and Economic Development is providing assistance to the Deh Cho First Nations' proposal to establish a protected area in the Mills Lake-Horn Plateau area.

The department continues to support the renewable resource sector at the community level. For example, we are working with the Department of Municipal and Community Affairs to promote access to land for agricultural pursuits. Together, the Department of Resources, Wildlife and Economic Development and the NWT Development Corporation will provide over $2.4 million to support harvesters, fishermen, arts and crafts producers and wildlife management committees.

With the upswing in price and demand for wild fur, the department is reviewing the NWT Fur Marketing Strategy with the NWT Development Corporation and other stakeholders to assess its benefits and determine if a change in approach is warranted in the effort to enhance returns to producers.

The extensive wildlife provisions in land claim agreements require the direct involvement of aboriginal governments in developing the new Wildlife Act and species at risk legislation. The Wildlife Aboriginal Advisory Group was established this year to advise the department on aboriginal viewpoints and priorities. As well, the department will provide funding to aboriginal governments for consultation. A discussion paper to address issues identified through public consultation will be released in the new fiscal year.

The Department of Resources, Wildlife and Economic Development and the NWT Development Corporation play a key role in encouraging the development of a healthy and vibrant northern business community. In addition to providing support to the traditional economy, the NWT Development Corporation has set goals to establish a new subsidiary and invest $1 million in northern ventures.

Two other initiatives to improve support to the business sector and clients should be completed next year. The first is the report from the committee evaluating the delivery of business assistance programs offered by the NWT Development Corporation, the Business Credit Corporation, the Business Development Fund, and the Community Futures program. The second is the review of the existing Business Incentive Policy. Regional consultation to develop a revised policy is underway and I have been pleased with the interest shown by the private sector in finding solutions to the shortfalls of this policy.

The Department of Resources, Wildlife and Economic Development continues its support for the value-added diamond industry. Our government's new certification and monitoring program will capitalize on the growing interest in our diamonds. Two northern diamond manufacturers are participating in the program. The department will develop, in partnership with northern manufacturers, a marketing strategy to complement the monitoring and certification program and to help position northern mined, cut and polished diamonds as a quality product in the competitive diamond marketplace.

Mr. Chairman, the activities proposed under the main estimates of the Department of Resources, Wildlife and Economic Development will help this Legislature achieve the vision set out in Towards a Better Tomorrow by:

• • developing strong partnerships with aboriginal, federal, provincial and territorial governments;
• • supporting resource development that balances economic benefits, social impacts and environmental protection;
• • sharing northern benefits among governments, communities and regions; and
• • ensuring a diversified economy, which encourages investment and growth in all sectors.

Both the Department of Resources, Wildlife and Economic Development and the NWT Development Corporation have ambitious work plans for this year and your advice and comments are welcomed. Thank you.

Thank you, Mr. Minister. Does the committee responsible for reviewing the department have any comments? Mr. Roland.

Thank you, Mr. Chairman. The Department of Resources, Wildlife and Economic Development has the mandate to promote economic self-sufficiency through the sustainable development of natural resources and to enhance the creation of sustainable opportunities in the traditional and wage economies. It is also responsible for the promotion of sustainable development through the management and protection of the quality, diversity and abundance of natural resources and the integrity of the environment.

In order to fulfill its responsibilities, the department is organized into the following ongoing activities: corporate management, environmental protection, resource management and economic development, and forest management.

The Standing Committee on Governance and Economic Development met with the Minister of Resources, Wildlife and Economic Development and his staff on Thursday, January 18, 2001 to review the department's main estimates for 2001-2002. Committee members noted a $1,312,000 increase in operations expense for the department from their 2001-2004 business plan. This arose from:

• • a $1,414,000 increase in compensation and benefits resulting from the recent UNW collective agreement;
• • a $18,000 upward adjustment in amortization estimates;
• • a $180,000 increase in Financial Management Board (FMB) approvals; and
• • a $300,000 reduction in other adjustments.

There were no changes in capital expenditures and in projected revenue levels from the department's 2001-2004 business plan.

During the review of the department's 2001-2004 business plan, the committee was concerned about the department's consultation process for the Wildlife Act. Committee members were apprehensive about the department conducting stakeholder consultations as this is done in standing committee when the proposed bill comes before the Legislative Assembly. The committee requested that an effective and timely consultation process must be developed as the life of the 14th Legislative Assembly is only another three years. The standing committee expects to receive a report that outlines the department's consultation process and projected timelines for the Wildlife Act once it is developed.

The Standing Committee on Governance and Economic Development recommends that the Department of Resources, Wildlife and Economic Development pursue the federal government for additional resources and to ensure the federal government meets their wildlife management and protection obligations.

The committee agreed with the department that tourism is a growth industry in the Northwest Territories. Tourism opportunities in the North must be maximized in concert with an effective and responsive tourism strategy.

The territorial government has proposed to fund their tourism strategy with a hotel room tax. Committee Members expressed concern about the hotel room tax and the potential consequences to our accommodations industry and its overall impact upon tourism.

Further, as part of the legislative process, the Standing Committee on Governance and Economic Development recently met with stakeholders and residents on the proposed hotel room tax legislation. The committee wishes to ensure that the view of all Northerners and tourism operators will be considered in its deliberations and the committee will be reporting on the hotel room tax in the very near future.

Mr. Chairman, at this time I request that the deputy chair of the committee, Ms. Lee, continue with the report.

Thank you, Mr. Roland. Ms. Lee.

Thank you, Mr. Chairman.

In the committee's review of the department's 2001-2004 business plan and 2001-2002 main estimates, committee members remained concerned that there are other economic sectors other than diamonds that require assistance and attention. Other sectors include agriculture, fur, forestry, tourism, arts and crafts, and oil and gas.

Again, the committee members were of the opinion that there may have been an initial requirement to support the secondary diamond industry, but other economic sectors also deserve at least similar levels of support. Committee members were especially concerned that current and proposed resources may be inadequate to take full advantage of recent developments in the oil and gas sector.

The committee, after reviewing both the department's most recent business plan and draft main estimates, noted that too much money and resources are dedicated to the development of strategies rather than on implementing current ones. Committee members suggested that funding for most of the new strategies could be used for priority issues or for other essential department programs and services. The committee restated from their review of the department's 2001-2004 business plan that it is concerned about "what we can realistically do in the life of this government."

The committee is of the opinion that the Giant Mine clean-up operation is a priority. The standing committee is concerned that the federal government is not living up to its obligations, and this government should not assume responsibilities that are within the domain of the federal government. Finally, the committee encourages the Minister to lobby the federal government to clean up the mine site in a safe and timely manner.

Committee members maintained the position that the arts and crafts industry deserves increased levels of support. Further, the committee noted that this sector has the highest participation rate amongst the over-60 age group. Without a growing arts and crafts industry, many people in this age group will become solely dependent upon limited pensions and income support.

Furthermore, the committee observed that funding might have been disproportionately allocated elsewhere, especially to the secondary diamond industry. In many communities, arts and crafts represent a significant component of the local economy and some people may prefer to participate in the arts and crafts industry. Arts and crafts represent a viable employment choice for many people.

The committee is of the opinion the current Harvesters' Program is not responsive to its clientele and, as a result, changes will have to be made to ensure harvesters are paid in a timely fashion. This slowness in payment may have contributed to a decline in the industry.

The committee pointed out that more support is needed for this sector. In many communities, harvesting is one of the few viable industries and many people may prefer to work in the harvesting industry. The Minister agreed to revisit and augment the program, and that the department will also review the Fur Marketing Strategy and Fur Pricing Model. The committee looks forward to examining the results of this review.

Mr. Chairman, that concludes our report. Thank you.