In their budget, the federal government has put $75 million for northern oil and gas development. There is also another $10 million for 2004-2005 in the northern economic development strategy. Can the Minister please provide details that explain the following?
1."What this funding is for?"
In his speech from the Throne, the federal Minister of Finance made a commitment to responsible energy development in the North. The federal budget 2004 provides $75 million over three years to increase federal and regional environmental assessment capacity and streamline the regulatory process. The federal government technical budget document states, "This announcement will also ensure resources are available to conduct scientific research on current and longer-term environmental challenges associated with development in the Mackenzie Valley, Mackenzie Delta and the Beaufort Sea." That document also shows budget amounts of $20 million for 2004-05 and $30 million for 2005-06.
The budget also provides for $90 million over five years to support a northern strategy for economic development. This allocation is directed at all northerners, including approximately 50,000 aboriginal people living in northern Canada. Ten million dollars of this funding has been allocated to the 2004-2005 years. There is no information available as to the amount that will be allocated to the Northwest Territories.
2."Who can access this funding?"
3."How can you access this funding?"
4."When will this funding be available?"
With respect to the $75 million for northern oil and gas development, the federal government has not yet made the details public. The understanding of the Government of the Northwest Territories is that this funding represents federal program dollars that will flow to a number of federal departments and agencies as part of the preparation for oil and gas development. These agencies likely include:
- • DIAND
- • Natural Resources Canada
- • Canadian Environmental Assessment Agency
- • Department of Fisheries and Oceans
- • National Energy Board
- • Transport Canada
This commitment of additional funding is viewed as a positive initiative as it represents increased federal attention to northern oil and gas development. However, the GNWT will continue to work with federal counterparts and push for additional resources in areas where required.
5."What other programs does the GNWT have to help the Sahtu take advantage of oil and gas development and what is the best way for the Sahtu to access them?"
The Department of Resources, Wildlife and Economic Development regional staff, I partnership with the Department of Education, Culture and Employment, industry and others utilize the Maximizing Northern Employment Program for regional training initiatives. In addition, program funding from the Mackenzie Valley development project may be used to assist with regional initiative related to oil and gas development. In 2002-2003, the Business Development Subcommittee was formed to ensure that NWT businesses participate in the sustainable benefits from oil and gas exploration and related sustainable economic development opportunities. The committee is currently investigating the adequacy and availability of business financing in the context of the Mackenzie Valley oil and gas development.
While not targeted specifically to the development of the oil and gas sector, RWED has a number of programs that are accessible to businesses in general. These programs include the business development fund, grants to small businesses, as well as term loans, loan guarantees and contract security provided by the NWT Business Credit Corporation. The NWT Development Corporation can also participate with businesses through minority equity investments.
Furthermore, the NWT provides a contribution to the Sahtu Business Development Centre to assist with the operational costs of the organization. This organization
provides business counselling services and is an additional source of business loans within the region.
These programs can be accessed through the local economic development officer, the regional business development officer, or the Sahtu Business Development Centre. Staff can provide assistance to the prospective clients in determining the needs and feasibility of a proposal. They can also assist in identifying which program or programs would be an appropriate source of financing for a specific proposal.