Thank you, Madam Chair. The Standing Committee on Governance and Economic Development met with the Department of Resources, Wildlife and Economic Development on February 20, 2004, to review the draft 2004-2005 main estimates.
RWED promotes economic self-sufficiency through the sustainable development of natural resources and enhances the creation of sustainable opportunities in the traditional and wage economies. RWED also promotes sustainable development through the management and protection of the quality, diversity and abundance of our natural resources and the integrity of the environment.
Development Of The Renewable Resource Sector
The standing committee continues to be concerned with the convoluted regulatory process affecting the renewable resource sector. The barriers to development seem to be increasing and becoming more cumbersome, rather than decreasing. The committee encourages the department to identify all of the regulatory processes and simplify them where possible. The committee will continue to monitor this issue.
The committee would also like to see RWED develop marketing initiatives for the fishing, forestry and the harvesting of animals and animal products like wolves. RWED should assist communities in developing their natural resources. The committee proposed that renewable resources officers for instance could have an
expanded role and perform more developmental and educational tasks. The committee looks forward to an update on progress in this area and at the time of draft business plan reviews.
As an example of how this sector has been neglected over the years, the committee is aware that a healthy bison lake at Hook Lake has been established and is growing, but there does not appear to be any plan for the future of that herd. The committee urges RWED to address this gap.
Economic Diversification
The committee was concerned that oil, gas and mineral development might overshadow the smaller industries in the communities, such as arts and crafts, hunting and trapping, tourism, fishing, forestry and agriculture. Members are pleased to hear the department strongly supports diversifying economies within the regions and hopes to see actions associated with their comments.
The committee was also concerned about support for the manufacturing industry in the NWT. The Minister replied that RWED is currently preparing a response to the report prepared by the Business Advisory Council on manufacturing and value-added industries. The committee looks forward to reviewing the department's response in this report.
Legislation
Travel And Tourism Act
The standing committee commented that the tourism industry for quite some time has been waiting on regulations which when revised will allow them to go to a one-licence system. Currently there are two licences for the outfitters licence and the tourism establishment licence that are required. The committee was pleased to hear that these regulations will be brought in September.
Waste Reduction And Recovery Act
The standing committee inquired as to the status of the beverage container recovery program. The committee was pleased to hear that RWED expects to have this program up and running for September of this year, after the regulations have been developed and stakeholders have been consulted.
Species At Risk Act And The Wildlife Act
The standing committee was pleased to learn that RWED expects to table the Species at Risk Act later this spring and also hopes to table the new Wildlife Act in the fall.
NWT Business Development Investment Corporation
In 2003-04 there were plans to combine the NWT Development Corporation and the Business Credit Corporation to form a new NWT business development investment corporation. These institutions are responsible for managing the business development fund, small business grants, community transfer initiatives and the community futures program.
However, the NWT Business Development Corporation and the NWT Development Corporation are still separate entities. The 14th Assembly did not have time to consider legislation needed to amalgamate the two corporations. The department reports that legislation is pending and could probably be introduced in June. The department also intends to do more work on the structure of the programs to be delivered by the corporation. The standing committee has written to RWED requesting a presentation on the initiative as soon as possible. The committee is disappointed that the department delayed the presentation on this very important issue until after conclusion of this session. If this initiative is to proceed, the committee expects to see cost savings and a streamlining of programs through a single-window delivery model. The committee is also looking forwarding to discussing how this new institution might further foster investment in the Northwest Territories and what the possibilities are for incorporating a credit union act.
Pipeline Unions
Some Members have heard that in Calgary is being said that anyone who wants a job in pipeline construction would have to meet union standards. Members are concerned northern workers could be excluded from the benefits of a pipeline construction and wants to see them have access to all positions both at the senior and entry levels.
The committee was pleased to hear the department is working with the Department of Education, Culture and Employment on a certification and training program. The department also indicated it will take this issue under consideration in negotiating socioeconomic agreements. The committee would like to urge the government to seek legally-binding obligations in this area, given the importance of northern workers having access to pipeline jobs.
Assistance To Northern Communities
Members have observed that communities do not always seem to have information about what resources are there to help them take advantage of oil and gas opportunities. Industry in some cases is not recognizing that there are land claim agreements in place that have to be respected. Communities are frustrated because they do not have expertise internally to make presentations and submissions at the many regulatory hearings and to negotiate with industry on a level playing field.
Committee would like to recommend that the ministerial lead joint committee be set up to raise the viability of the government's initiatives that will help communities realize the benefits from the pipeline.
With regard to the Mackenzie Valley development project, committee noted that an ADM-level position heads up this initiative for RWED but does not appear on the organizational chart. The committee recommends that this position and associated resources be relocated from Yellowknife to a community such as Fort Simpson or Inuvik that is actually on the pipeline route.
New Positions
The department has a director of informatics positions. The department explained that the reason for the creation for this position is to support the implementation of the knowledge management strategy and the development of RWED's informatics strategy plan. RWED has also consolidated information management and information system resources by amalgamating the information
systems section and the NWT Centre for Remote Sensing into the informatics division. RWED has also moved its records management position into this division.
The committee would like to recommend, in order to save costs that these functions could be further consolidated under systems and communications, Department of Public Works and Services.
NWT Arctic Tourism
This year's main estimates propose that the NWT Arctic Tourism will again receive $1.8 million in funding. Members noted this organization has not seen an increase in their funding for quite some time. The Canadian Tourism Commission has changed the way it is marketing and this may force the NWTAT to increase expenditures for advertising the NWT. The committee is pleased that RWED is aware of this situation and will continue to monitor it.
The committee is also pleased to hear that RWED supports this organization and also thinks that it does a good job. However, the committee is concerned that the NWTAT has only four staff members, and suggests that RWED review the function of their parks and tourism division for duplication of services and perhaps relocate resources to the NWTAT.
Arctic Energy Alliance
Members question the value for money of funding this organization and were concerned that there was a duplication of services between this organization and that of the Power Corporation. Members would like to recommend that if there is duplication of services, that perhaps the funding for this organization could be transferred to the Power Corporation.
Fire Suppression
The department tenders fire suppression contracts on a region-by-region basis. The committee asked the department if costs could be saved by tendering territorially. The committee also asked what would the cost difference between tendering regionally and tendering territorially be to the end product. The department responds that there are no cost savings to be had by changing how fire suppression helicopter contracts are tendered. The tenders are public tenders, open to qualified helicopter operators across the Territories.
RWED does not tender for multiple rotary wing aircraft. An individual tender is for the supply of an individual helicopter based at a specific location for a number of days and hours per season. However, the terms of the contract require that a helicopter be operated anywhere in the Territories or in Canada under the mutual aid resources sharing agreement.
In the 2004 fire season, RWED will have five contracts in place for helicopter services on a long-term basis. Thank you, Madam Chair.