So I would like to ask the Minister responsible for the department if he has opening comments.

Yes, I do, Mr. Chair.

Thank you, Mr. Bob McLeod. Go ahead.

Mr. Chairman, I am pleased to present the 2010-2011 Main Estimates for the Department of Industry, Tourism and Investment.

ITI’s mandate is to promote economic self-sufficiency through responsible development of the NWT’s natural resources and the promotion of tourism, trade, investment, business and manufacturing to create a prosperous, diverse and sustainable economy for the benefit of all residents.

This mandate supports the commitment of our government that all residents of the NWT must have the opportunity to build a stronger future for themselves, their families and their communities. In total, the department’s main estimates proposes total operational expenses of approximately $51.8 million for the coming fiscal year, which is an increase of 1.7 percent from last year’s main estimates.

This includes sunsets of $5.5 million, strategic initiatives of $4.5 million and forced growth of $2 million.

Mr. Chairman, at this time last year we were in the middle of a worldwide recession, unlike any we have seen since the Great Depression, which has serious impacts on the NWT economy. NWT economy is expected to rebound and while we are not out of the doldrums just yet, the department is looking at investments in 2010-2011 to help our economy continue on the road to recovery.

These proposed investments will come in areas such as small business development, arts and fine crafts, sport hunting, agriculture, NWT fish and meat harvesting and processing, renewable energy planning and parks.

Mr. Chairman, I will now provide some detail on the department’s proposed spending plans for the upcoming fiscal year.

Mr. Chairman, in keeping with the goal of assisting in our economy’s recovery, the department is addressing some areas of forced growth funding this fiscal year. That funding would include $140,000 in support of the Northwest Territories Community Futures funding program, a very successful government program where community-based corporations assist small businesses and entrepreneurs through services that range from providing lines of credit to business planning.

We are also proposing to invest $120,000 in funding for a full-time regional land and resource analyst is the Deh Cho region. This position will help deal with the demands for increased land development initiatives in the Deh Cho region.

The department is also proposing $100,000 in funding for marine safety training. These training courses are provided to licensed tourism operators and guides who use motorized boats as part of their business. The training provides certification that allows these operators to meet new federal standards required to run their businesses.

Mr. Chairman, before I get into our department’s proposed strategic initiatives, I want to take a few moments to talk about some major ongoing projects and programs ITI is involved with and the funding we are proposing to spend on them.

The Mackenzie Gas Project is one of great importance to this government. As a result, the department will continue to allocate $2 million in existing funding to go towards its work on this proposed project and to support the work of the Mackenzie Valley Pipeline office in coordinating the government’s planning and response to the MGP. This funding will also allow us to continue our

support for the Aboriginal Pipeline Group, while fulfilling our government obligations and ensuring communities benefit from the MGP if it proceeds.

Reducing our reliance on diesel fuel for power generation, cutting back on greenhouse gas emissions and developing more renewable energy sources are all priorities of this government. That is why the department continues to support the NWT Energy Corporation in its efforts to expand the Taltson Hydro system. This proposed project is currently in the environmental review process.

ITI also proposes spending $1.3 million on the Tourism Product Diversification and Marketing Fund, which assists tourism businesses to develop new tourism products and diversify their product base. Since the fund was started in 2007-2008, ITI has distributed $3.42 million in assistance to tourism businesses.

Perhaps no one area of the department addresses as much in the NWT economy for individuals as our traditional economy programs. From the Genuine Mackenzie Valley Fur Program to the Take-a-Kid Trapping Program and the Community Harvesters Assistance Program, the department’s continued focus on the traditional economy assists in diversifying our economy and providing all regions and communities with choice. The department proposes continued investment of $1.97 million in our traditional economy programs in 2010-2011.

Mr. Chairman, the government will achieve its vision of the 16th Legislative Assembly through five

strategic actions. These actions are:

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Building our Future

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Reducing the Cost of Living

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Maximizing Opportunities

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Managing the Land

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Refocusing Government.

In our efforts to achieve those strategic actions, our department has focused on renewable energy projects like the Sahtu Hydro Assessment and Lutselk’e Mini-Hydro Facility, to wean our Territory off of diesel power generation and reduce the cost of living in our smaller communities.

We have invested in our entrepreneurs and our small businesses through continued support to the Support for Entrepreneurs and Economic Development Policy, SEED. We have worked on maximizing opportunities through investments in promoting our talented NWT artists and the arts and fine crafts they produce. And we have worked to assist our communities in being healthier and more self-sufficient through our investments in agricultural infrastructure development and promotion of the commercial processing and marketing of NWT fish and meat.

Mr. Chairman, all of these efforts are directed at achieving the 16th Legislative Assembly’s vision of

strong individuals, families and communities sharing the benefits of a unified, environmentally sustainable and prosperous Northwest Territories. I will now go over some of the key strategic initiatives this department proposes for the coming fiscal year to help the government achieve its vision.

Perhaps nothing is as important to NWT residents as managing and protecting our land. With that in mind, the department is proposing investments in a number of areas to help the government meet this strategic initiative.

The department proposes investing $800,000 in 2010-2011 into the Expansion of Residual Heat Initiative. This initiative is looking into using waste heat from electricity generators for space heating in our communities. A residual heating system will be completed in Fort Liard in 2010 and another system is scheduled to be completed in Inuvik in 2010-2011.

The department also proposes $500,000 in funding for the Sahtu Hydro Assessment. This regional hydroelectric assessment will examine all viable energy options for Sahtu communities and potential industrial customers.

Getting Sahtu communities off diesel power generation would not only decrease the cost of living in the region but also lower our greenhouse gas emissions.

Another strategic initiative ITI is focused upon is maximizing opportunities. In 2010-2011 the department plans to support this initiative by proposing investments in a number of programs and projects.

Continuing on our success at Northern House and the 2010 Olympics, ITI proposes a $560,000 investment to promote the NWT as a place to live and work through the National Marketing Campaign. This campaign will target specific regions in Canada and it is designed to address the leakage of employees moving from the NWT to other jurisdictions and its associated fiscal benefits.

The department proposes an increase of $30,000 for a total of $600,000 towards the Sport Hunt Outfitter Marketing Program. This program will assist sport hunting outfitters in targeting new markets for polar bear hunts, such as Mexico and Europe, and refocusing markets to non-consumptive tourism products. This is an important proposed initiative and would help maintain the viability of a business investment operating in this sector.

The SEED Policy has become a very important and popular ITI initiative. This policy promotes business

and community economic development in the NWT. The department is proposing investing an additional $300,000 into the policy for the 2010-2011 fiscal year. This will increase its budget to $3.5 million.

ITI is proposing investing $250,000 in the Mining Workforce Initiative MOU. In partnership with mines, this funding is designed to increase the benefits from mining activity in the NWT by reducing leakage of employment out of the Territory.

The department is also proposing an increase of $125,000 for a total investment of $225,000 to promote NWT artists and arts and fine crafts production. This funding will increase the economic impact and production of arts and fine crafts products in the NWT and will maximize the delivery of programs and services to NWT artists.

This funding is intended to promote our arts and fine crafts sector and open up new markets for our artists and the products they create.

The final strategic initiative I will highlight is ITI’s proposed $150,000 investment to continue to improve infrastructure and upgrade facilities at its territorial parks. The reason the department proposes this investment is to attract park visitors to stay longer and see more of the NWT while they are here.

As this government looks for ways to reduce the cost of living in the Northwest Territories, ITI has identified some key areas to invest in. One of the most critical is in the area of energy planning. The department is reviewing electricity rates and regulations, and the NWT Electricity Review continues. The goal is to implement a GNWT response to the recommendations of the 2009-2010 review process. The objective is to develop a long-term vision and plan for the management of generation, transmission and distribution of electricity in the NWT.

But it’s not just in the realm of energy where ITI is concentrating its efforts to reduce the cost of living in our Territory. It is also focusing on areas such as the traditional economy, agriculture and fisheries. Over the past several years our department has invested in increasing food production across the NWT through initiatives like the Small Scale Foods Program.

In 2010-2011, ITI proposes to invest $450,000 in promoting and supporting commercial harvest processing and marketing of fish and meat in the NWT. This funding would support the packaging, distribution and promotion of our fish and meat products to consumers in the NWT, providing a stable support of food for local needs and for sale at local markets. The funding would also help provide training to spur continued growth in the NWT fish and meat production sector.

The department is also proposing funding of $250,000 for agriculture development infrastructure. This investment is designed to lengthen growing seasons, increase yields in NWT communities and help lower the cost of living.

Mr. Chairman, the mission of the Department of Industry, Tourism and Investment is to provide quality programs and services to promote and support economic prosperity and community self-reliance in the NWT.

The initiatives I’ve touched on in these remarks are examples of how ITI is working on behalf of this Assembly and this government to fulfill its mission and have a diversified economy that provides all regions and communities with choices and opportunities as envisioned by the 16th Legislative

Assembly.

Let me conclude my remarks by thanking the Members of the House and the members of the Standing Committee on Economic Development and Infrastructure for your guidance and input in 2010-2011 Main Estimates process. Thank you, Mr. Chairman.

Thank you, Mr. McLeod. Would you like to bring witnesses into the House?

Yes, Mr. Chairman, I would.

Thank you, Mr. McLeod. Sergeant-at-Arms, please escort the witnesses into the House, if committee agrees.

Committee does agree, Mr. Sergeant-at-Arms.

If I could ask the Minister to please introduce the witnesses.

Thank you, Mr. Chair. To my left, Mr. Peter Vician, deputy minister of ITI, and to my right, Ms. Nancy Magrum, director of shared services with ITI and ENR.

Thank you, Minister McLeod. I believe we’ll start with general comments.

Calling for general comments, hearing none, thank you, committee. We’ll start with detail and we will defer until after consideration of detail the operations expenditure summary on page 12-7 for ITI and turn to page 12-8. Department summary, information item, Industry, Tourism and Investment, infrastructure investment summary. Questions?

Thank you. Page 12-9, department summary, information item, Industry,

Tourism and Investment, revenue summary. Questions?

Page 12-10, department summary, information item, Industry, Tourism and Investment, active position summary. Questions?