Mr. Chairman, as elected leaders we have stated that one of our goals is to realize an independent North built on partnerships and a diversified economy.
Today I am pleased to return to this House with proposed main estimates that I believe will allow us to build on this balanced and targeted approach.
Our goal is to promote economic activity in every one of our 33 Northwest Territories communities and to provide the opportunities and choices of a fully diversified economy to improve the quality of life for all Northwest Territories residents.
In total, the Department of Industry, Tourism and Investment’s business plan proposes total operating expenses of $50.87 million for the coming fiscal year. This represents an increase of $4.85
million or 10.5 percent over the previous year. Of this amount, over 46 percent totalling $23.5 million will be directed to Northerners and northern businesses and organizations as grants and contributions in support of our economic agenda. The overall main estimates also includes $11.7 million in targeted strategic initiatives.
While many of the decisions that shape the economy are made by people and organizations outside of government, government activities can have a significant effect on the economy contributing to the stabilization and growth of the economy. The stabilization and growth of the Northwest Territories’ economy is a goal that, in large part, falls on the Department of Industry, Tourism and Investment.
We all know that a vibrant and flourishing economy will mean more choices for our people, more opportunities for our businesses and increased quality of life for our residents.
We have identified and secured resources for our strategic initiatives through our annual business planning process. We have been able to maximize funding opportunities presented to us by the federal government in areas such as investment in economic development, traditional economy, agriculture and energy initiatives. We have been successful in leveraging funding from other sources.
The National Marketing Campaign leverages funding for our territories to promote the three territories as great places to visit, live and invest. We have also been successful in restructuring and coordinating our programs and services to realize as much support for Northwest Territories businesses as we can from the resources that we do have. Specifically, the SEED program was launched in September 2008, replacing the Grants to Small Businesses and Business Development Fund.
With the valued input and participation of all Members of this House, and stakeholders like the Northwest Territories Aboriginal Business Association, the NWT Chamber of Commerce, the regional chambers of commerce, NWT Tourism, the Tourism Marketing Advisory Committee and the NWT Chamber of Mines, the department has identified and delivered proposed main estimates that reflects areas of support for every type of organization and business in need in our Territory.
As Members can appreciate, our consideration and approach to these proposed main estimates has been heavily impacted by the current economic crisis. But while we respect the effects that this economic slowdown is having, particularly in the exploration and development of our region’s
resources sector, we recognize the cyclical nature of this downturn, and we are confident that in time the nature and magnitude of our region’s natural resources will allow us to rebound from the challenges that now exist.
In the interim, it is critical that we work to counter the impacts of this downturn and to, as much as we can, keep building capacity in our people, business and communities, and by doing so, in our economy. Our economy is reliant on the economic stimulus and diversification that is provided by the small business sector. They are the backbone of our northern economy.
These proposed main estimates reflect this. In this time of economic uncertainty, the department’s focus will be to support the entrepreneurs that are taking the risks in our economy. These men and women have been the financial basis of our industry for many years, transforming their ideas into solid businesses and providing the energy and innovation to fuel our competitive and prosperous northern business environment.
Our tourism industry is a prime example built almost entirely on the commitment, hard work and endurance of small enterprises and their owner operators. These proposed main estimates will provide year four of our five-year investment in the Tourism 2010 plan; a plan that represents one of the most significant commitments ever taken for tourism in the Northwest Territories and has resulted in a $6.5 million investment in marketing, research, training and product and infrastructure development. In acknowledgement of the good work that NWT Tourism does in promoting the Northwest Territories as a tourism destination, the department has increased its annual contribution for the operations of NWT Tourism by $120,000, resulting in a total contribution of $2.54 million annually.
These proposed main estimates also include $1.4 million in new investment to capitalize on unprecedented opportunities presented by the upcoming 2010 Olympics and Paralympics in Vancouver.
The natural combination of our environment, people, culture and arts and crafts, provide a travel experience that is unmatched. The Olympic Games will offer an opportunity to promote this and our region to the world and to bring forward investment that will provide dividends for our tourism and culture and arts and fine crafts sector for many years to come.
The investment in the Olympic Games will be complemented by the proposed national marketing campaign, a joint effort with the two other territories. A total of $400,000 for ‘09-10 is contemplated to
build on the attention gained from the 2010 Olympics to foster significant positive brand awareness for Canada’s North among national and international audiences by positioning the North and each of Canada’s territories as great places to visit, live and invest.
The introduction of the Tourism Diversification and Marketing Program last year has already enabled many of our operators to take steps to better position their operations to meet this future demand and match emerging trends in tourism. We will further supplement our contributions, totalling $1.55 million, to this program in 2009-10.
We have also allocated $300,000 in these proposed main estimates to market our barren ground caribou and polar bear sport hunting products in light of shrinking market shares, fluctuations in caribou populations and political actions taken by the U.S. regarding the protection of polar bears.
In economic terms, our tourism product is a renewable resource that is the object of rising global demand. More than any other, investment in this sector holds the potential to advance and develop a myriad of jobs, business opportunities and benefits in just about every corner of our Territory.
Thanks to partnerships with the Canadian Tourism Commission, and the Government of Canada and with the valued guidance of the NWT Tourism and the Tourism Marketing Advisory Committee, our industry is better positioned than it ever has been to look forward.
Programs and services to support small, community-based businesses and the traditional economy are also proposed. In collaboration with my colleague, the Honourable Michael Miltenberger, Minister of Environment and Natural Resources, the department will continue its support for the traditional economy through providing funds to local wildlife committees, to the Community Harvesters Assistance Program and the Western Harvesters Assistance Program, to name a few. We will also continue support to our fur industry.
Investment in trapper training and youth trapping initiatives has resulted in an increase in the quality and demand of Northwest Territories furs at auction. Thanks in large part to our ongoing collaboration with both the departments of Environment and Natural Resources and Municipal and Community Affairs, our wild fur is now recognized as among the finest in North America.
During this economic downturn, we are building on this success to broaden consumer demand and markets for Genuine Mackenzie Valley Furs
beyond our traditional market base. There is reason for this optimism; sales figures from the January fur harvesters auction indicate that demand is still strong for Northwest Territories fur sold under the Genuine Mackenzie Valley Fur label.
Commercial fisheries are another important, community-based industry that the department is supporting. Funding is proposed to be $250,000 for 2009-2010 and we will continue to work with the NWT Fishermen’s Federation to revive the commercial fisheries industry in the Northwest Territories.
In the area of agriculture, the department will continue to support the Community Gardens Initiative. With the input of the Territorial Farmers Association, the department anticipates renewing the Agricultural Policy Framework, Growing Forward, with the federal government. Mr. Chairman, our government’s vision for the Northwest Territories is characterized by the title “Northerners Working Together.”
Last fall, with the valued guidance of the Standing Committee on Economic Development and Infrastructure, we introduced the new Support for Entrepreneurs and Economic Development, or SEED policy. The department proposes a total investment in SEED of $3.267 million in these main estimates.
I would like to thank Members for the advice and insight that they provided in the development of this policy.
The SEED policy reflects your input that business programs should provide a chance for growth, employment and self-sufficiency to businesses outside of our major centres. It is a policy that focuses on the needs of our clients, works more effectively with banks and other partners and incorporates a streamlined and simple approach.
I can assure you today that the SEED policy is meeting all of the challenges and with the ongoing investment identified will continue to develop, promote, and sustain small business in the Northwest Territories.
We are continuing our investment in the Northwest Territories through this policy.
We will also continue to invest in the strength and diversity of our network of individuals and organizations who work with us to build our region’s economic capacity and development.
The NWT Business Development and Investment Corporation is an integral part of this work, as are the dedicated men and women who make up Community Futures organizations in our communities.
Of course, we cannot have a healthy business community without people. People empower our businesses and provide the market for goods and services that will create more businesses. We must continue to invest in ways to attract and retain people to our Territory.
Our budget’s support of the Falcon Communications Broadband Infrastructure Project is an example of government spending that will provide increased access to the World Wide Web to our communities.
The collaborative approach that we have initiated with our Territory’s diamond mines is another example. A memorandum of understanding signed in late 2008 will provide a framework for a strong and positive working relationship that will help government and the mines find even more ways to develop the skills and capacities of Northwest Territories residents to meet the needs of our industry and attract even more new residents to the Northwest Territories.
I would like to thank and recognize the work of my colleague, the Minister of Education, Culture and Employment, and his department for sharing the lead on this important and industry-leading initiative.
This time of economic change can and will provide an opportunity for us to showcase and highlight the opportunities for investment and employment in the Northwest Territories.
For prospective residents or investors now looking north, the potential for success is clearly evidenced throughout our Territory and is implicit in our community of successful northern companies, corporations, joint ventures and partnerships.
Locally owned airlines, hotels, restaurants, construction firms, telecommunications and logistics companies, service and supply industries all pay testament to our capacity for growth and to take a direct role in our region’s economic growth as business owners, operators and investors.
But while the rewards of working and operating in the Northwest Territories can be attractive, we do recognize that the cost of doing business in this environment is also high. The cost of energy, in particular, is a common challenge that is faced by industry and government alike.
Using the Energy Priorities Framework as our guide, these main estimates provide resources totalling $5.54 million to address both the Northwest Territories energy issues and potential. It continues funding to the NTEC and the Deze Energy Corporation to advance and invest in the expansion of the Taltson Hydro Project. It also includes continued investment in the future of hydro power
for our Territory, recognizing that investing in the future of our world-class hydro potential will work to extend the lives of our diamond mines, reduce our dependency on fossil fuels and facilitate access for our communities to varying forms of hydro power.
Funding is included to develop and act on the recommendations that will result from the Territory-wide dialogue that we have begun with Northwest Territories residents and stakeholders on the regulation, distribution and cost of electricity in the Northwest Territories; the electricity review.
Finally, we will continue to invest in preparing our people, business and communities for the eventuality of the Mackenzie Gas Project, the biggest and most important energy development initiative in Canada in the foreseeable future.
These proposed main estimates extend the contribution to the Aboriginal Pipeline Group to support their ongoing work to secure an equitable share in the Mackenzie Valley Pipeline on behalf of our Territory’s aboriginal people.
Funding is also identified to support and coordinate the Government of the Northwest Territories continued planning and preparation for this significant infrastructure project.
Mr. Chairman, in conclusion, I would like to thank Members for their ongoing support and guidance in the preparation and development of the ITI business plan and proposed main estimates.
Together I believe we have charted a path by which this Assembly and this government will work to increase diversity and value, not only in the Northwest Territories economy but in the businesses, communities and lives of the people who must be the beneficiaries of our economy. Thank you, Mr. Chairman.