Thank you, Mr. Chair. I have talked to the development corporation in McPherson, I have talked to the co-op board, I have raised this in workshops we’ve held locally because they are talking about craft shops. They are talking about trying to help the crafts industry in McPherson. I asked them why do you want a craft shop. You have a perfect facility in Fort McPherson which is known, it’s marketable. It’s the Tent and Canvas Shop. It says Fort McPherson on the logo. We have to work with those other sectors in the communities and work with the Fort McPherson Canvas Shop to allow them that opportunity to work in conjunction and formulate that partnership, but also to work with local entrepreneurs to look at marketing their products also. I think Fort McPherson, we still have

the traditional sewing style, which is not being used as much today as it used to by others where you use the different styles of sewing. Because of that, we are able to market their products throughout Alaska, Yukon and southern trade shows. It’s a perfect opportunity to work in conjunction with the craft sector in Fort McPherson, the canvas shop business and the local business.

I think under the manufacture directive we have, as government, we have a warehouse sitting right next door to the canvas shop which is owned by the development corporation and could be used to manufacture products either for the Housing Corporation or the oil and gas industry, so we are able to not only expand the economic opportunities in those communities and generate jobs in the different sectors that are there, use existing government facilities to do it and not just focus on one product. I think that’s something that I feel quite strongly about.

I have been talking to leadership, the development corporations, the Gwich’in Tribal Council and I think this is a perfect opportunity for government and the aboriginal organizations to formulate this partnership. In order to do that, we have to allow for some way of having the government and the development corporation, it could be the local Rat River Development Corporation, which is the development corporation based out of Fort McPherson, or the co-op, which is owned by a majority of the shareholders who are residents of Fort McPherson. I think working with those groups and identifying these partnerships...but it has to be meaningful partnerships where you actually have a board of directors, which is a joint board of directors. It’s not people you just pick off the street.

You have to allow them to have a say in the operation and if they are going to invest, they want to be able to have a say in regards to how you develop products and consider other products that can be developed out of that facility. It’s formulating a business plan and working forward by way of job creation and look at the manufacturing directive and see how we can provide more job opportunities, more skilled people in the different sectors and work to entice that business venture so it can generate profit and get more people to work. Thank you.

We have our senior management travelling to Tsiigehtchic and Fort McPherson as we speak. So I’m sure those kinds of opportunities will be brought to their attention. I think that any opportunities to increase the revenue stream of our businesses under the BDIC will be pursued.

As far as working with the co-op, we work with the co-op in a number of communities, so we can do that. In terms of directors of the various companies, we went out and advertised for volunteers to sit on

the different companies because it was an Auditor General requirement, so most of the businesses are filled by directors from BDIC, as well as members that have applied to serve on the boards from the different communities. That’s the way we have been operating. If there are better ways of doing it, we are quite prepared to hear it and look at how we can better represent the community in these businesses. Thank you, Mr. Chair.

Thank you, Mr. Minister. Mr. Krutko, your time is up. I can put you back on the list, if you like. Now the chair will recognize Mr. Beaulieu.

Thank you, Mr. Chairman. Mr. Chairman, previously in Fort Resolution, the NWT Development Corporation, prior to their amalgamation into the Business Development and Investment Corporation, supported a business in the community of a sawmill. Similar supports to the businesses that are successful now under that investment corporation like Acho Dene Fur Clouds and Fort McPherson Canvas Shop. I understand from discussions with local people that there was always an intention, even though that business of the sawmill did receive a lot of support from the government, ultimately at the end of the day, it was not viable. I was made to understand from the people in Fort Resolution that there was always a plan for the dev corp and now the investment corp to return to that community to create a business in the community. I just want to get the Minister’s opinion on that. Thank you, Mr. Chairman.

Thank you, Mr. Beaulieu. Mr. Minister.

Thank you, Mr. Chair. I am quite familiar with the history of the Fort Resolution sawmill. I think that it was in existence for quite a long period of time through different management regimes and the last operation that I am familiar with, it was owned by the NWT Development Corporation. At that time, there was always an issue with accessing timber and that’s still an issue for forestry operators in the Northwest Territories.

The biggest problem in finding an efficient sawmill that could maximize the utilization of the timber. I believe, if I recall correctly, the recovery rate was something like 50 percent, which is very, very low when you’re harvesting timber.

Also, the corporation, for a number of reasons, lost a significant amount of money and consequently there was a lot of investment written off. I don’t think there have been any proposals that the corporation has looked at recently which would indicate it was feasible at this point.

I recognize that the sawmill didn’t work out, although it existed and created lots of business and put some income into the community and some employment. As I’ve often indicated, the

low employment in Tu Nedhe communities, I was more or less thinking of opportunities for some other business in both Fort Resolution and Lutselk’e, opportunity for a business similar to the type of businesses that the investment corporation now supports in other parts of the North. There is no business in Tu Nedhe that is supported by the investment corporation. That’s basically what I’m asking. Are there plans for the government or ITI to work with BDIC to try to get back into Tu Nedhe through Fort Resolution and Lutselk’e to look at some business that may be viable if not lumber?

The direction that I’ve provided to not only BDIC but also to the Department of ITI is that we want to work towards the objective of having an ongoing operation in every community in the Northwest Territories. So that’s our objective. We only have limited resources, so in the long term we are definitely interested in having something in Fort Resolution and Lutselk’e. We are working at establishing new economic development initiatives right now. We’re looking at establishing at least three every year. Ultimately we’ll have something in every community. Certainly if there is a business opportunity that can be identified for Fort Resolution or Lutselk'e, we would try to advance it. Thank you, Mr. Chair.

Mr. Chairman, just shifting gears for a minute here, one of the other key areas in both Tu Nedhe communities, Lutselk'e and Fort Resolution, seem to be small loans. I’m not sure if that’s some sort of venture capital needed by some smaller scale businessmen in the community just employing one or two people and just some capital to get their business off the ground. Right now, the structure is set up where the economic development officers don’t work directly for the department but actually the department has a contribution agreement with the local organization to bring the EDOs into the community to deliver programs.

I’m not sure if the department... I guess my question would be: would the department go and support the economic development officers to maybe advertise or do some sort of communication strategy within the communities so that individuals are aware that that’s where they go and maybe advising what type of programs are available? I notice that in one community through ITI, like, through trapping they’ll get $5,000 grants. Then another community hasn’t even heard of it or I can’t track down where the holders of the grants in that community are. So I’m wondering if the Minister can just fill me in on those two points. One is EDOs there, what type of support are they getting from ITI? The other is when they do provide pots of money into the traditional harvesting, what type of communications are in place so the people in the community know? Thank you.

We have a variety of delivery agents and either they’re ITI staff or they’re community transferred positions or we contract with a band or some other entity to provide the service. So what we do is if it’s a community transferred position, we review it periodically. We make sure that the funding we’ve been providing is adequate. We bring together all of our delivery agents together on a regular basis to make sure that everybody has the same information and also to communicate and market the programs that we have. If the Member feels that that’s not happening in his community, well, we will follow up and take proactive action so that all of the programs are being marketed and promoted in Fort Resolution. Thank you.

Thank you, Mr. Minister. Mr. Beaulieu, your time has expired as well. I can put you back on the list if you like, but now the chair is going to recognize Mr. Bromley.

Thank you, Mr. Chair. I had one follow-up. The Minister did let me know earlier that a review is being done of the support for the film industry. I’ve been having a lot of meetings with the folks lately and I guess they’re calling it now the new media industry. It involves a little more than film. Media is changing so quickly. I thought I’d start by asking what’s the focus of the review, what’s entailed in it, who is doing it and if there’s a time frame to it. Thank you.

Thank you, Mr. Bromley. Mr. Minister.

Thank you, Mr. Chair. Because of the different projects we have been working on, we are looking at starting the review later this spring and it will be done internally. Our expectation or my expectation is we would look at what all of the different jurisdictions are doing. A lot of people are referencing what Yukon is doing or what Nunavut is doing. In the past, with support to the film industry, the biggest concern was we were just funding southern companies to come up and leave with the money in their pocket and there was no benefits remaining. Obviously times change and we were prepared to do a review and once we determine that there are significant benefits, then we would make representation to obtain additional resources and perhaps even go as far as looking at tax credits if that’s what other jurisdictions are doing to compete to see who ultimately...it’s whoever provides the most benefits that attract these filmmakers. Thank you, Mr. Chair.

I appreciate those comments and it’s a very positive move. Of course, there are many and they are easy to get at, a couple of clicks on the Internet and we can see what Nunavut and Yukon are doing. It’s very similar between the two territories, assistance with local hires. You can put conditions on it to ensure that the majority of hires

are local or territorial before you get the support and so on; different mechanisms to maximize the degree of support with the investment made; travel assistance, recognizing the size of the Territory and so on.

I know the department has looked at it before, but it’s regarded so far as fairly shallow when they have looked at it. They don’t have the expertise on staff or at least they probably don’t have all the answers. Few agencies do have all the answers. I’m wondering if this review is open to participation by the public. As I mentioned earlier, we do have a lot of people who have on the ground experience, both within this jurisdiction and elsewhere. They usually have to go elsewhere to get support even if they are working here. If the Minister will be incorporating their perspectives and insights into that review and how that will be done, again an important diversifying opportunity for our economy.

We will be seeking input from filmmakers in the Northwest Territories. Our preference is doing it internally. We don’t want to be accused of relying too much on outside consultants to do things that could be done internally. Thank you, Mr. Chair.

That’s good to hear. I know there are a number of eager people out there who would enjoy the opportunity to participate in a review. For that matter, there are probably lots of people in the Territory who have expertise and could do an actual independent review rather than an internal review that I think might bring some benefit as well. I hope the Minister could consider that or perhaps that’s next on down the road as the next after we do our internal one.

Right now we have a Film Commission as we hear from the Minister often and yet there is really nothing there. It’s a paper exercise. I think one of the things is really our perspective in how we approach this. Really, if we want to see it develop, we are going to have to think positive on it and do some meaningful things.

I’m wondering if the Minister would also consider developing a commission with actual expertise and real bodies in it that have an interest in seeing this opportunity develop.

I guess I see that as being part of the assessment. We do have an NWT Film Commission. Basically it provides liaison and provides advice to perspective filmmakers. So far, as the Member indicated, we do have three reality TV shows that have been operating in the North and we would like... I think obviously there are a lot of stories to be told up here, so we should take advantage of that. Thank you, Mr. Chair.

The Minister brings up a good point. We do have a lot of stories to be told. Unfortunately, right now, it’s people elsewhere who

are coming up and trying to tell our stories, spending a few dollars and then leaving and spending all the big dollars in production and labour and so on elsewhere. I know that’s one of the real motivating factors of our artists in the film industry, is that they want to be telling their own stories, the northern stories themselves. So I hope that will be considered as well.

My last focus, Mr. Chair, is will the Minister be bringing this review, the framework for the review to committee and when the results are here, will he be bringing that to committee as well?

We always consult very closely with the Standing Committee on Economic Development and Investment, so we would be doing that. Thank you, Mr. Chair.

Thank you, Mr. Minister. Anything further, Mr. Bromley?

No, I appreciate that commitment. Thank you, Mr. Chair.

Thank you, Mr. Bromley. Next, the chair will recognize Ms. Bisaro.

Thank you, Mr. Chair. I just have a couple of questions. The first one references the study and the potential changes to the Business Incentive Plan, which has been out there being studied, being reviewed for quite some time. I wonder if I can get an update from the Minister on where the consultation on potential changes to the BIP is at and whether or not there is any plan to make changes. Thank you, Mr. Chair.