Mr. Speaker, I am very pleased to report on our territory's robust economic performance last year. We estimate that real gross domestic product grew by close to 32 per cent in 2001. This dramatic growth demonstrates a remarkable level of economic activity that includes massive increases in investment and substantial contributions from exports and consumer spending.

Exciting things are happening in the diamond and natural gas industries, two of the Northwest Territories' fastest growing economic sectors. Diavik estimates that close to $700 million of the almost $1 billion spent on goods and services so far in the construction of the Lac de Gras diamond mine were purchased from northern businesses. Oil and natural gas exploration and related activities were also engines for economic growth, with activity concentrated in the Mackenzie Delta, Fort Liard, Norman Wells, and Cameron Hills regions.

Exports grew by an estimated 19 percent in 2001. The biggest contributors to the increase came from diamond shipments and natural gas deliveries. Diamond production from the Ekati mine was much higher than the previous year and the most prolific wells in the Fort Liard area provided a full year's production in 2001.

Marketing efforts are paying off for the fur industry. Indications are that the substantial growth experienced by the industry in the 1999-2000 season is continuing.

Tourism makes up an important part of the Northwest Territories' economy. Last year over 39,000 visitors spent approximately $41 million in the Northwest Territories. Although the number of visitors has dropped following the events of September 11, we expect tourism to start to grow again in 2002.

We estimate that consumer expenditures grew about 9 per cent in 2001, as increased economic activity put more money in people's pockets. This figure is supported by the fact that retail sales grew by over 10 percent in the first 11 months of 2001.

Unemployment rates in the Northwest Territories have fallen from almost 14 percent in early 1999 to 9.8 percent last month. Currently, our employment rate is the highest in Canada.

-- Applause

Increased employment opportunities for Northwest Territories residents have lessened dependence on social assistance. Northwest Territories' social assistance payments have fallen consistently since 1999.

Our strong economic performance in 2001 resulted from a very large increase in investment. Although we are not expecting the dramatic economic growth of 2001 to be repeated in 2002, we do expect our economy to remain stable. On balance, the Northwest Territories' GDP should grow approximately 2 percent in 2002.

Mr. Speaker, our economy has impressive potential.

The Northwest Territories' second diamond mine at Diavik's Lac de Gras site should be producing early next year, and a third mine proposed by De Beers Canada at Snap Lake is entering the regulatory review process. These projects require hundreds of millions of dollars in capital investment and employ hundreds of people.

Recent developments give us additional confidence that the Mackenzie Valley pipeline will be built. Following two years of intensive lobbying by our government, the Mackenzie Delta Producers Group and the Mackenzie Valley Aboriginal Pipeline Corporation announced last month that they intend to spend between $200 and $250 million over the next three years to undertake project definition. This work will include the preparation of a pipeline application, with a submission expected in 2003. Current projections are for natural gas production by 2008. This is a very positive signal and we look forward to working with northern communities and industry to prepare for the project.

The performance of our economy has been impressive in recent years. The developments on the drawing board confirm that the Northwest Territories is on the road to becoming a "have" jurisdiction.