Does the committee agree that we’ve concluded the Department of Public Works and Services?

With that, I’d like to thank the Minister and thank the witnesses. Sergeant-at-Arms, could you escort the witnesses out, please.

As we agreed, we’ll move to the next department which is Industry, Tourism and Investment. With that, I’ll ask the Minister if he has any opening comments for the department.

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.

Thank you, Mr. Minister. At this time, I would like to ask if you will be bringing in witnesses.

Yes, Mr. Chairman.

Does committee agree that Minister brings in his witnesses?

Sergeant-at-Arms, can you bring the witnesses in? For the record, Mr. Minister, can you introduce your witnesses?

Thank you, Mr. Chairman. On my left is Mr. Peter Vician, deputy minister. On my right I have Mr. Jeff Dalley, director of shared services, finance division. Thank you.

Thank you, Mr. Minister. Welcome, witnesses. Are there general comments? Mr. Jacobson.

Thank you, Mr. Chairman. I would like to thank the Minister for his opening remarks and thank him again for working with me in regards to my polar bear issue that I have been dealing with since I have been down here.

I would like to correct the Minister in regards to his statement in regards to shrinking market. It is not a shrinking market. It is just the biggest thing that we have been seeing in the United States, being fish and game, putting the polar bear on the endangered species list, and dictating to us in regards to the polar bear hides not being able to cross the border. Again, I would like to thank the Minister in regards to all the work he has done to date in regards to the polar bear and seeing if we can get them taken off the list. Again, it is a really important market. It is a $1.7 million industry in my region, which is really needed this time of year with regard to the global economy.

Oil and gas work has really been minimal in the Delta. People do rely on this. I really stress how important it is to keep the pressure on fish and game in the United States, making sure the federal government doesn’t put this on the endangered species list. Talking to hunters in my community of Tuk, there’s no shortage of polar bears and we’d be the first ones to stop if we thought they were endangered. Due to global warming they’re even drowning now. The polar bear, we don’t even fill out our quota. I think we only fill about 25 percent of the tags in the hunts that we do get. I stress to the Minister how important it is to keep the polar bear off the endangered species list. For ourselves, being dictated to and told what to do by people from the South, that’s not right. We take care of our own. I always said that.

With regard to the Mackenzie Valley Pipeline, keep that pressure going too. There are local businesses in the Beaufort-Delta that are really hurting. The sooner this project gets off and running, the better, because it’s going to generate work. That will really stimulate the economy in the Beaufort-Delta.

Thank you, Mr. Jacobson. Next on the list I have Mr. Abernethy.

Thank you, Mr. Chairman. I’m going to be quick. I’ll save most of my questions for the page by page, the detail.

Following up on Mr. Jacobson’s comments, you’ve indicated that you’ve allocated $300,000 in the proposed main estimates to market bear, barren land caribou and polar bears. I’m curious if you’re working with ENR. The number of tags the outfitters

have for barren land caribou seem to be shrinking. We’re down to I think 750 now, which has actually put a significant hit on the industry, a multi-million dollar industry bringing new dollars into the Northwest Territories. I’m glad to see you’re trying to do something, but if we continue to drop the number of tags it’s not going to be worth doing anything. I’d like to hear that you’re working with ENR to try to keep that industry alive.

Quite happy to hear about the markets for the genuine Mackenzie Valley furs. I think that’s great. A lot of good work is being done there.

When we get into the page by page I want to know a little bit more about what it is that you’re proposing to do with the NWT Fishermen’s Federation. We’re not even coming close to getting our quota used, which seems like a real shame. It’s a good product. We should be doing anything we can to help them. I see you say you’re doing something for $250,000, but I’m really curious what that is. Are you working with the Freshwater Fish Marketing Board -- I believe they're in Winnipeg -- to try to find ways to get our product to market, allowing us to charge slightly different rates so that we can actually sell the stuff? I’d be very curious to hear what you’re doing there.

Happy to hear that you’re working with the Territorial Farmers’ Association in the area of agriculture, however, it seems to be pretty focused on the Community Gardens Initiative. I think farming and agriculture, we have a huge opportunity here to create some local economy around that. I’d like to know what you’re doing with the Territorial Farmers’ Association. Are you engaging them about bigger projects or are you guys spending all your time focusing on the Community Gardens Initiative, which is good, but not enough.

You didn’t talk very much in here at all about collaborating with Education, Culture and Employment in the way of arts. I do see that you are working with them on other stuff, and that’s good because I like to see the silos breaking down a little bit. But I know that you’re doing a lot of work with the Olympics 2010 and whatnot. I know you’re doing things to promote arts and crafts, but if you’re going to be getting involved with the 2010 Olympics, Education, Culture and Employment provides a significant number of grants to local artists; painters, sculptors, musicians, singers, songwriters. I know they give a lot of money. A lot of really talented people are making albums and producing unique projects with ECE money. If you’re going to be going down and working for the Olympics, trying to get our image down there, I think it would be really important for you to engage with Education, Culture and Employment and find out who’s getting those grants to do projects.

The reason I say that is because I know that a lot of people in the past have received the grants from Education, Culture and Employment, they get the money and nobody knows what they’ve done. Nobody sees the product. I know the CDs are out there, I know the paintings are out there, but I never see the government standing up and saying we’re supporting these people, these are the products they’re producing, this is the music they’re writing, this is the music they’re out there singing. I’d like to see those individuals. If you’re going to engage anybody, get them down to the Olympics as part of your initiative to support and promote the Northwest Territories in there. I’d like to hear from you if, in fact, you guys are working with Education, Culture and Employment getting those names and finding out what those people are up to.

I do have a number of questions, but mostly I’m just responding to your opening remarks. When we get into the detail, I’ll ask some specific questions page by page.

Next on the list is Mr. Beaulieu.

Thank you, Mr. Chairman. I, too, just have a few comments and will save my questions for page by page. I’m very pleased with all the support that’s provided to the trapping industry. I think that’s something that at this point, with some people getting laid off, a bit of a…Even the community where there weren’t many people working, they feel the economic downturn a bit and the high cost of living and everything. With trapping getting such good support, I think that it’s helped a lot of the local people. I know they have a high number of furs being sold out of Tu Nedhe.

I’d like to get more into small business development. I think with this department, like, you know, some of the people, just an example, woodcutters. I think they’re a group of people that could be supported in the region. I think ultimately homeowners should go back to burning firewood as a means of reducing costs and so on and also placing some woodstoves in the homes of the elders that get their fuel subsidies to income support. I think that’s an opportunity for the woodcutters to have a little business in the community, provide for their family and provide something that’s less harmful to the environment than diesel fuel. In the long run, it would facilitate some cheaper energy at the community level.

In my Member’s statement today, I talked a bit about a fishing industry. I wasn’t really talking about the whole commercial fishing industry, but rather a small market fishing type of industry similar to trapping and so on. I’m not sure it could ever get as big as trapping, but if you look at some of the same types of support that trappers at the small

community level receive from this department, it may be something that is possible for fishing as well.

I know that in our communities we have a small motel and a couple of bed and breakfasts that certainly could use the support of the department.

People have been involved in some of the arts and crafts that could use support. It’s kind of an interesting dynamic that occurred, I think, with the involvement of a department to go into purchasing moose hides to try to make that product available for people who need to sew moccasins and so on. The way it kind of evolved is that the people actually making the product could no longer afford the moose hides. I guess that’s what you really call a double-edged sword. On one hand you try to provide a little bit of economy to the individuals making the moose hides and, at the same time, you kind of pushed the product costs out of range for the sewers, the craftspeople that are making the product. I guess that’s something that maybe could be looked at for subsidizing this small sector of the business that I’m sure would be much appreciated by the people making the products. We don’t want that to die as a result of the products being too expensive for them to afford.

I guess I’d like to get a bit into the process in which the Business Development Investment Corporation do their business, whether or not they’re going to continue. Are things improving with the department staff in this department; staff doing the actual grassroots work or legwork at the community level and then involving Business Development Investment Corporation, which is a headquarters organization? It would be interesting to hear what the Minister has to say about that. I’ll ask questions about that during the review.

I may have questions on parks, but nothing that really comes to mind at this point with the exception of perhaps looking at sponsorship of the protected areas and so on. Aside from that, I’ll save the rest for page by page.

General comments. Mr. Yakeleya.

Thank you, Mr. Chairman. The comments I have will just be general. In terms of page by page, I’ll get more into it. I would like to thank the Minister and staff for the presentation.

My comments would be more of supporting the small business sectors in our communities. As the Minister indicated on page 3 of 8, they are the backbone of our northern economy. These small business sectors are the ones that contribute greatly to the people in our communities. They pay the taxes. They deal with the high cost of energy

and fuel and electricity payments to the workers in the wage economy. These small business sectors contribute to the community through donations and contributions and in volunteering their machinery or their time to hold community events. These small business sectors are men and women who grew up in the communities and started out with loans, started out with nothing, sometimes starting out with grants from the government, that evolved into a strong community business. Certainly I agree with the Minister that these small business sectors with the entrepreneurial people are the backbone of our northern economy. They are there in the good times and they are there in the bad times. With the economy the way it is looking right now and the current crisis that we are dealing with, certainly these small businesspeople, these entrepreneurial people need to be supported 110 percent by this government in terms of being able to continue in our communities. That’s something I want to probably speak to you about when we get to those items in the budget here. There are various forms of how to continue supporting these small business sectors and supporting the entrepreneurialship. These people are the backbone, as you say, in our communities and our northern economy. Most likely these people are going to stay in the community, specifically in our region. Now, granted there are various regions in the Northwest Territories that sometimes businesspeople and people who are going after business do come into other regions to bring the costs down on fuel and equipment. That is sometimes an appetite that this government looks at favourably because of the budget and numbers we have to operate it. But that’s where, I guess, there’s a fine balance in terms of pricing. Sometimes these small business people and entrepreneurship feel that this government sometimes doesn’t support them that much. But that’s up for debate. I’ll leave it at that.

The other one is the Tourism Plan. Lots of money going into tourism. I think there are some good opportunities to look at tourism. There are some areas that certainly should be supported and continued. There are some areas that need more support in terms of clientele or bringing people to the Northwest Territories.

I look forward to the Minister’s comments on page 4 of 8 on brand awareness for Canada’s North and the Olympic issues in terms of what type of branding we are going to showcase.

There are other areas I look forward to talking to the Minister about on tourism regarding sport hunting. Certainly the partnership on the Canadian Tourism Commission, I certainly want to say thank you to them. If it wasn’t for them and this department, a group of people from my region would not have had the opportunity to play hockey in London, England. It was with a contribution from

this department and its partners in NWT Tourism and the Canadian Tourism Commission that they got wind of this government declaring Deline as the birthplace of ice hockey in Canada. Somehow they got wind of that and they supported the team to go over and play at Trafalgar Square. So I wanted to say that to the Minister. If I haven’t said thank you already to the Canadian Tourism Commission for allowing something like that to happen. I think the birthplace of ice hockey in Canada should be continued, but that’s another story at another table.

I certainly look forward to having some lively discussions as to the different projects and initiatives under traditional economy. I think traditional economy is taken very lightly. It’s actually our traditional way of life. The economy is what we get from it. I think when you look down to it, it’s our way of life. It’s in our blood. These young people with the elders, it’s something that they, it’s like breathing for some of them. They just have to go out there. Because there’s a demand for these beautiful furs that are caught in the Northwest Territories, they make money off it. For a huge part of it, I really support this program because they’re supporting a way of life that will continue to be supported. Some of these youth trappers who have gone out to trap, I think the government should be commended to continue to really support them.

Like I said before, not all people want to be heavy equipment operators or office managers or deputy ministers or directors. I think a good group of them want to become trappers and practice that way of life as their grandfathers, great-grandfathers, and great-great-grandfathers have done. It’s a beautiful life. It’s a very peaceful life; a very simple life. As I spoke with my father-in-law the other day, it’s a very hard life. But it is a life that should be commended, held high. We should hold it very high in terms of these men and women who want to go into this section of their life. I think that should be looked at and I think we should do more to promote it. So I’m really happy that the Minister is giving some thought to this.

Also with our commercial fishermen around the lake here I’m very concerned with the contaminants that are leaking down from Fort McMurray into the Slave River and into Great Slave Lake. I talked about this again the other day with my father-in-law. He’s been fishing for a number of years around Great Slave Lake and he has noticed that there’s been a change in the fish over the years. He notices that there’s changing of the land, so I’m very concerned and I hope we can do some things on that.

Mr. Chair, the SEED policy, the NWT Development and Investment Corporation, I hope that there’s enough flexibility that would really see the money going to communities. I hope that the economic development officers in the communities really,

really help our people, really sit down with them, explain to them and work with them. I hope that these economic development officers are told that. Just don’t push paper, but sit down and spend some quality time with our people. That’s the way it’s going to work. Those regional officers come into our communities and they sit down and talk about these programs. I’d like to see where money has been lapsed or where our money is not being used, and people get frustrated. In small communities word goes around really fast and they give up, there’s apathy there. So I hope we can change it around, Minister.

The last comment I make to you is around the hydroelectricity and there’s going to be more questions in there in terms of issues that I spoke about earlier. The cost of energy is very important and I wanted to make note that I’m going to speak on these when they come up very strongly in terms of what’s going to happen in our region. Thank you.

General comments. Mr. Beaulieu.

Thank you, Mr. Chairman. Committee moves to report progress.

---Carried

I will rise and report progress. I’d like to thank the Minister and his witnesses. Sergeant-at-Arms, could you escort the witnesses out.

Mr. Speaker, your committee has been considering Tabled Document 11-16(3), NWT Main Estimates 2009-2010, and would like to report progress. Mr. Speaker, I move that the report of Committee of the Whole be concurred with.

Thank you, Mr. Krutko. Motion is on the floor. Do we have a seconder? The honourable Member for Nunakput, Mr. Jacobson.

---Carried

Item 22, third reading of bills. Mr. Clerk, item 23, orders of the day.