Thank you, Madam Chair. Madam Chair, I am pleased to present the proposed 2004-05 main estimates for the Department of Resources, Wildlife and Economic Development. These estimates propose total operational expenses of $85.57 million for the coming fiscal year. This amount is slightly higher than last year's total of $85.51 million. Although $2.21 million has been proposed in new initiatives, representing a 2.6 percent increase, and more than $910,000 proposed for forced growth, a one percent increase, these amounts have been largely offset by $3.16 million in reductions to operations and travel expenditures, resulting in a minor overall increase.
The proposed capital infrastructure acquisition plan requests $2.2 million.
The proposed main estimates reflect the continuation of existing departmental initiatives to preserve and protect the environment, while fostering the sustainable development of both renewable and non-renewable resources.
I will now highlight the major initiatives that the department is undertaking in the coming fiscal year.
The protection of the environment for generations to come is a central priority of the department.
In the coming year, the department will implement the new regulations that govern the proper handling of used oil and waste fuels, which came into force in January. We will complete the development of an air quality code of practice for the oil and natural gas industry, and begin to draft two new environmental guidelines that address biomedical wastes and CFCs, chemical compounds that destroy the earth's ozone layer.
The department will also continue to work with the Government of Canada, territorial departments and agencies, communities, industry and the Arctic Energy Alliance to reduce our consumption of energy, control the emission of greenhouse gases and plan for the changes a warmer climate will bring.
We will provide up to $560,000 in contributions to this program area, an amount that is expected to leverage more than $1.5 million in federal project related funding over the coming year.
The 14th Legislative Assembly created the legislative framework for a broadly supported beverage container recovery program by passing the new Waste Reduction and Recovery Act. The department has allocated $1.078 million for the coming year to implement a territory-wide community-based deposit refund program.
This will reduce the number of beverage containers going to landfill sites, reduce litter, encourage conservation and reinforce a recycling ethic among NWT residents. Abandoned and contaminated mines and industrial sites are an unfortunate legacy of past development in the North. The department will continue to work to ensure that the parties responsible for past and future developments take proper closure and remediation actions.
In cooperation with the Government of Alberta, we are developing an integrated information management system to store and share wildlife population and habitat data. This will enable us to respond more effectively to information requests driven by resource development and to fulfill our wildlife and habitat stewardship responsibilities.
The western NWT biophysical study initiated in 2003-04 will continue to gather the baseline data needed to measure the impact of natural gas development on the land, air, water and wildlife.
Wildlife studies will be conducted to determine the health and status of endangered species such as Peary Caribou, other species including wood bison, moose, grizzly bears and woodland and barren ground caribou will also be studied. New and valuable knowledge of the Bathurst Caribou herd in the North Slave region will be gained through the implementation of the proposed Bathurst monitoring program.
The department has now implemented all of its planned program revisions in support of the trapping industry. Trappers in the NWT now receive the most comprehensive coverage available in Canada. We remain committed to promoting excellence in the trapping industry through investments in trapper training programs.
To continue our long-standing support of the commercial fishery in the Northwest Territories, we will provide more than $390,000 in industry support payments to defer costs and assist in the replacements of capital for our fishers.
We are currently monitoring the ongoing federal/provincial discussions on the outbreak of BSE in both Canada and the United States and I am pleased to report that we anticipate no specific negative impact on the NWT.
The department continues to support product and market development and food safety programs to enhance the territorial muskox harvesting and exporting industry. To meet this objective, the department will be looking to the agricultural policy framework agreement which we recently signed with the federal Department of Agriculture and Agri-foods.
Last summer, events in Inuvik, Norman Wells, British Columbia and Alberta demonstrated the impact that forest fires can have on our communities.
RWED, in partnership with Municipal and Community Affairs, has developed the capacity to crate map products for land use and fire management planning. When complete this year, the maps and the associated data currently collected will provide the foundation for a comprehensive approach to community protection in the NWT.
Plans to minimize the risk to our communities will require the coordinated participation of several agencies, including the emergency measures organization, office of the fire marshal, RWED and MACA, as well as the active involvement of communities and land owners. Several communities are now in a position to develop comprehensive local plans and RWED will continue to support this important local process.
Fuel-type maps for the entire NWT will be completed during the coming year improving our planning and decision-making process through fire growth modelling and fire behaviour forecasting. This initiative will also develop a better understanding of forest regimes to help in assessing long-term effects on forest ecology. A pilot project to develop a more cost-effective and timely way to collect forest inventory information will be completed in 2004.
Information on the extent, nature and productivity of the forest resource is essential to determine the impact of resource development on forest vegetation and wildlife habitat. Forest surveys including establishments of permanent monitoring plots are important for tracking these changes over time, as well as the impact of climate change on forest landscapes. This information is also important to ensure all forest development undertaken is sustainable.
The Northwest Territories is a major tourist destination for visitors from around the world. The department will continue to work with NWT Arctic Tourism and the Canadian Tourism Commission to market the Northwest Territories as a prime, four season tourist destination providing the NWTAT a total of $1.8 million to fund their operations and marketing efforts on behalf of the NWT tourism industry.
New and attractive products are vital to a healthy tourism industry. This year, we have budgeted $375,000 to help develop new tourism products and concepts that will help this industry develop more fully. We have also invested $45,000 in a creative partnership with the Department of Education, Culture and Employment to help train NWT residents for meaningful careers in tourism.
The Government of the Northwest Territories, through RWED, will continue preparing for the construction of the proposed Mackenzie Valley pipeline, including the negotiation of a socioeconomic agreement that will ensure that the residents of the Northwest Territories receive their fair share of the benefits.
We will continue to support the Aboriginal Pipeline Group, who last year reached an historic agreement with the Mackenzie gas producers to become full equity partners in the pipeline. The APG will receive $250,000 for administrative expenses from the GNWT in 2004-05, a level of support that will continue for the next six years.
A preliminary information package for the pipeline was submitted to the National Energy Board in June 2003 and the first regulatory application was filed in December. The project is expected to move to a joint environmental
impact assessment panel review later this year. RWED will lead the GNWT's participation in this review.
The department has provided funding to aboriginal organizations for the past three years to assist them in building their capacity to deal effectively with oil and natural gas development in the NWT. The department's contribution last year was $360,000. The same amount will be provided in 2004-05.
Through the private sector partnership fund, the department will continue to provide funding for on-the-job training in the oil and natural gas industry, as well as in mining, tourism, construction and other priority areas. Total funding for this initiative in 2004-05 will be $500,000.
The department will continue to play the leading role in providing technical support for the GNWT, as it lobbies against the proposed floor price subsidy for Alaskan gas in the proposed energy bill by the United States Congress.
We will also work to resolve the issue of regulatory authority over the Alberta pipeline system in order to ensure northern gas can be shipped to market in an efficient, economically-favourable manner.
In addition, we will continue to play an active role in the negotiation of devolution from the federal government to regulatory authority, especially as it relates to the disposition of the rights of the NWT's mining and oil and natural gas resources.
Much of the economic growth the Northwest Territories has enjoyed in recent years can be attributed to our burgeoning diamond industry. With two diamond mines in production, we are now the third largest producer of rough diamonds in the world.
As De Beers proposed Snap Lake mine completes its permits and licensing process, the department is working to conclude a socioeconomic agreement with that company. We seek an agreement that will maximize jobs and opportunity in the Northwest Territories.
We are also negotiating, on behalf of the GNWT, an environmental agreement with the federal government and De Beers that will establish the means by which the environmental impact of the Snap Lake development will be monitored and mitigated throughout the life of the mine.
With the opening of the Tiffany-owned Laurelton facility, there are now four factories employing a total of almost 150 people. Our government certification program, the only one of its kind in the world, provides a significant marketing opportunity for these factories. New opportunities in jewellery and in diamond-related tourism are also being explored.
With the federal, provincial and other territorial governments, we are working to create a national diamond strategy. When implemented, the strategy will provide the basis for a truly national approach to exploration, mining, production of rough diamonds, polished diamonds and jewellery, as well as retail and tourism opportunities related to the industry.
Small business is a major contributor of our economy, and we are encouraged that manufacturing shipments from the NWT grew from $15.3 million in 1998 to $43.6 million in 2002.
Our government will continue to promote manufacturing opportunities in the NWT. In response to the recommendations of the Business Advisory Panel, we expect to release the new NWT manufacturing strategy later this year. This strategy will focus our efforts on pursuing an innovation strategy that fosters the development of products and processes that respond to northern needs and opportunities; promoting the use of northern-manufactured goods in the negotiation of socioeconomic agreements with major resource development companies; and providing financial assistance to venture that undertake value-added processing.
With the Department of Education, Culture and Employment, we have published a response to the Arts Strategy Advisory Panel Report. Both departments will carry out immediate initiatives and conclude a more comprehensive strategy to guide future initiatives.
In conclusion, Madam Chair, the main estimates of the Department of Resources, Wildlife and Economic Development clearly show how we intend to preserve and protect our natural heritage and promote sustainable economic development that will benefit all the residents of the Northwest Territories. These estimates reflect our best effort to strike a balance between these two important objectives and to do so in a way that is prudent and cost-effective. Thank you, Mr. Chairman.
