Yes, I would, Mr. Chairman. I am pleased to present the 2011-2012 main estimates for the Department of Industry, Tourism and Investment.
The department’s mandate is to promote economic self-sufficiency through responsible development of the Northwest Territories 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. Through this mandate, we continue to support the commitment of our government that all residents of the Northwest Territories must have the opportunity to build a stronger future for themselves, their families and their communities.
The department’s main estimates propose total operational expenses of approximately $53.3 million for the coming fiscal year, which is an increase of 3 percent over 2010-11. This includes sunsets of $3.5 million, an increase in strategic initiatives of $3.6 million and forced growth of $1.4 million.
In 2011-12 the department plans to support the Maximizing Opportunities Strategic Initiative by proposing investments in a number of programs and projects.
Industry, Tourism and Investment is proposing to establish an economic development officer in the community of Ulukhaktok at a cost of $150,000 annually. Having a dedicated economic development officer in Ulukhaktok will also assist Sachs Harbour and Paulatuk, by enabling the economic development officer for those communities to be able to focus time and energy on supporting economic development in those locations.
An investment of $150,000 is proposed to provide socio-economic expertise in the technical review of the proposed De Beers Gahcho Kue project, and in the negotiation of a socio-economic agreement.
Industry, Tourism and Investment is proposing to enhance funding for the Support to Entrepreneurs and Economic Development (SEED) Policy by an additional $350,000, bringing the investment to almost $4 million, with $125,000 of the existing funding being specifically targeted for support to the arts and fine crafts sector and $100,000 of the proposed increased funding being targeted specifically for support to the film industry.
The Community Harvesters Assistance Program provides funds, distributed by the local wildlife committees, to community harvesters in support of harvesting activities. Industry, Tourism and Investment delivers this program working with the Department of Environment and Natural Resources, and is proposing to invest an additional $475,000 annually in this program, for a total of $1.074 million.
In support of Reducing the Cost of Living Strategic Initiative, over the past several years Industry, Tourism and Investment has invested in increasing food production across the Northwest Territories through various initiatives.
Industry, Tourism and Investment proposes to invest an additional $100,000 in the promotion for the support for the Commercial Harvesting Program. This program supports the packaging,
distribution and promotion of fish and meat products to consumers in the Northwest Territories, providing a stable supply of food for local needs and for sale at local markets.
The department is also proposing increased funding of $50,000 for agriculture development infrastructure. Investments in this program are designed to lengthen growing seasons, increase yields in Northwest Territories communities and help lower the cost of living.
Mr. Chairman, the department is also proposing some key areas of forced growth funding for the upcoming fiscal year.
The demand for the Genuine Mackenzie Valley Fur Program has continued to outstrip available resources for the past three years. In 2010, total income and support to Northwest Territories trappers was $1.3 million. It is proposed that an additional $65,000 per year be invested to support the trapping sector.
Over the last five years the number of applications for business advice, contributions and loan funding has tripled. Industry, Tourism and Investment is proposing $129,000 for an additional business development officer to help deliver business support programs in the North Slave region.
We are seeing increased park usage in all regions of the Northwest Territories, but particularly in the North Slave region. Industry, Tourism and Investment is proposing $85,000 to hire two additional seasonal parks officers, to ensure the safety of our park users and their enjoyment of our beautiful natural parks environments.
Since 2005, the resources allocated to deliver the Workers’ Safety and Compensation Commission for Harvesters Program have been exceeded by demand, in some cases by as much as $300,000 per year. This program provides benefits to harvesters of renewable resources who are injured while engaged in harvesting activities. We are proposing an additional $225,000 per year towards this program to accommodate the growing costs.
In addition to the activities outlined above, there are also some potential large-scale significant developments in the resource sector that could result in major investments in the Northwest Territories. During this past year we have seen the achievement of major milestones that have brought the Mackenzie Gas Project much closer to reality. Much work remains to be done to ensure we reach our goal in regards to this project.
The oil and gas and mining sectors are the bedrock of the Northwest Territories economy and we will continue to support geosciences research as one of the most important investments that a public government can make to sustain these industries. Our Territory has an abundance of untapped resources, ranking seventh out of 72 jurisdictions
on the mineral potential index in the 2009-2010 Fraser Institute surveys, and we are just starting to realize the potential for mineral exploration in our Territory.
Many projects are in the works to explore this potential, projects like De Beers Gahcho Kue, which is currently undergoing environmental impact review. Other examples are the Avalon Rare Metals Nechalacho Project, believed to be one of the highest quality undeveloped rare earth element deposits in the world, and the Canadian Zinc Corporation Prairie Creek Project, with a proposed underground mine capable of processing up to 1,200 tonnes per day for 14 years. Developing mineral exploration projects and providing support for projects that span a wider scope such as lead, zinc, silver, gold, nickel and other rare earth elements has the potential to grow and diversify the Northwest Territories economy.
Reducing our reliance on imported diesel continues to be a key priority for our government. Industry, Tourism and Investment continues to support the Northwest Territories Energy Corporation in the implementation of the draft Northwest Territories Hydro Strategy. We have invested substantial time and effort in the electricity review, and the change we have brought to our electricity system could be one of the most significant achievements to date in addressing the high cost of living in the North, and especially in our remote communities.
In support of these energy initiatives, this government is investing in an Energy Investment Plan, and Industry, Tourism and Investment is proposing specific strategic initiatives for the 2011-12 fiscal year.
Industry, Tourism and Investment is proposing $2.350 million in funding for the proposed Lutselk’e mini-hydro facility to enter the regulatory phase and begin construction. These activities would be subject to accessing federal funding through the Green Infrastructure Fund.
We are also proposing a $50,000 investment towards renewal of the 2007 Northeast Territories Energy Plan.
Mr. Chairman, the initiatives I have touched on are just some examples of how Industry, Tourism and Investment 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 16
th
Legislative Assembly.
I look forward to the committee’s comments and questions.