The department will continue to work with NWT Arctic Tourism Association and the Canadian Tourism Commission to market the Northwest Territories as a prime tourist destination. We will be providing the NWT Arctic Tourism Association with another $900,000 next year, which they will use to leverage up to a total of $1.8 million for marketing, through the CTC and others.
Forested lands in the NWT are primarily publicly owned. Land claim organizations in settled land claim areas own forest resources on their private land. The GNWT has the authority to issue a number of different licences and permits, including timber-cutting licences, under forest legislation.
A forest inventory, at a landscape level involving the classification of vegetation types from satellite imagery, has been completed for virtually the whole NWT. More detailed inventories have been completed for over forty thousand square kilometres in the NWT. The establishment of commercial timber operations can be carried out in areas where detailed forest inventories have not yet been competed. Interim timber supply analyses can be prepared to support applications for significant volumes of timber. Some communities are quite active in utilizing their timber resources to support their forest industry. The department continues to conduct forest inventories at a more detailed level in areas where there is potential for commercial opportunities. Inventory is an ongoing process, as forest areas change over time through growth, harvest, insect damage, disease, other industrial developments and fire.
Further growth in the NWT forest industry is contingent on the successful settlement of outstanding aboriginal land claims and the easing of a very tight labour market. The department is currently working with aboriginal leaders, including the Tetlit Gwich'in Council in Fort McPherson, to encourage employment in the forestry industry.
In the coming year, the department will revise its training strategy for forest fire management. Our goal is to enhance and upgrade the skills of contract and other personnel to meet the new national standards for the incident command system. Canadian fire agencies have agreed to adopt this system to facilitate the international exchange of fire personnel.
Mr. Chairman, the Standing Committee on Governance and Economic Development noted in their report on the draft main estimates that some members indicated that a negotiated contract was used in awarding the original 1995 contract to Buffalo Airways Ltd.. I would like to clarify for the record that the air tankers contract originally awarded to Buffalo Airways Ltd. in 1995 was done through a public request for proposal process.
Much of the economic growth the Northwest Territories has enjoyed in recent years can be attributed to our developing diamond industry. The start of production at the Diavik diamond mine at Lac de Gras earlier this month is yet another example of the growth and importance of this industry to our economy. We are currently working to conclude a socio-economic agreement with De Beers to cover its proposed diamond mine at Snap Lake. We want an agreement that will maximize primary business opportunities, maximize spin-off business opportunities and maximize jobs in the Northwest Territories.
Our secondary diamond industry also continues to grow. However, for it to reach its full potential, we need to persuade the competition bureau to change its definition of a Canadian diamond. The Canada Customs and Revenue Agency has defined a Canadian diamond as one mined, cut and polished in Canada. We agree, and we will continue to press the Competition Bureau to adopt this broader and fairer definition of a Canadian diamond.
In the oil and gas sector, the Government of the Northwest Territories will continue planning and preparing for the construction of the proposed Mackenzie Valley pipeline, including the negotiation of a socio-economic agreement that will ensure that the residents of the Northwest Territories receive their fair share of the benefits. This work is being done with the expectation that a preliminary information package will be filed shortly by the Mackenzie Delta Producers Group.
With our diverse and growing economy, the Northwest Territories is not only an energy producer, it is also a major energy consumer. The NWT energy strategy will provide a blueprint for reducing the high cost of energy to consumers, while ensuring continued access to reliable energy services. We are expecting to table this document during the June session.
Mr. Chairman, small businesses are critical components of our economy and the department will also continue work to support them. Our intent is to introduce legislation to create a new Business Development and Investment Corporation in June. The new corporation will combine the operations of the Northwest Territories Development Corporation, the Business Credit Corporation and the department's business programs under a single board and administration. It will provide community and economic development services, including financial assistance, business information, and promotion and mentoring services to existing and potential entrepreneurs in the Northwest Territories. The department now supports seven community futures organizations which provide small business lending activities to all the communities in the NWT. The department plans to reduce its overall budget by $500,000 per year once the new corporation is in full operation.
Through the Maximizing Northern Employment Strategy, the department will continue to support workplace-based training and other community capacity-building projects financed by the private sector partnership fund. We will also implement the memorandum of understanding on contracting signed with the Gwich'in Tribal Council, which will promote the awarding of government contracts to local aboriginal businesses.
Lastly, the Business Advisory Panel has submitted its report on manufacturing in the NWT. We will distribute the report widely, and based on the input received, we will develop and implement a strategy to support and encourage the growth of this important sector of our economy.
In conclusion, Mr. Chairman, the main estimates of the Department of Resources, Wildlife and Economic Development clearly indicate how it intends to preserve and protect our natural and cultural heritage. They also describe how the department intends to promote sustainable economic development that will benefit all the residents of the Northwest Territories. This budget reflects our best efforts to strike a balance between these important objectives and to do so in a way that is prudent and cost-effective. Mahsi, Mr. Chairman.