I do, Mr. Chairman, thank you. I am pleased to present the 2013-14 main estimates for the Department of Industry, Tourism and Investment.
The department’s main estimates propose total operational expenses of approximately $50 million for the coming fiscal year, which is an increase of 1 percent over 2012-13. This includes sunsets of nearly $2.5 million, specific initiatives of $1.2 million and forced growth of $1.9 million.
The mandate of ITI 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.
In 2013-14 the department will support this government’s priority to strengthen and diversify our economy by proposing investments in a number of programs and projects.
Several of this department’s key initiatives centre around energy and energy projects aimed at reducing energy costs and greenhouse gas emissions, in support of the 17th Legislative
Assembly’s stated commitment in making strategic infrastructure investments and hydro initiatives.
Industry, Tourism and Investment works in partnership with the departments of Environment and Natural Resources, Public Works and Services, Transportation and Finance on energy initiatives. The Department of Industry, Tourism and Investment is proposing several specific energy initiatives for the 2013-14 fiscal year. These include:
• $100,000 for finding a solution to the natural
gas shortage in Inuvik, which is a priority for our government. The funding will be used to examine the possibility of liquid natural gas for Inuvik, which has been identified as the most promising solution to Inuvik’s energy situation.
• $250,000 in funding to complete the regulatory
application for the Whati T-line, the proposed transmission line to connect Whati to the Snare hydro system. Reducing our reliance on imported diesel continues to be a key priority for our government.
• $50,000 is proposed for the Water Monitoring
Program in Kakisa. This will allow NT Energy to further study the hydro potential of the Kakisa River, and explore possible opportunities for hydro development that could benefit the community and displace diesel-fired electricity.
The department will continue to support NT Energy in its efforts to continue to contribute to the implementation of GNWT energy planning initiatives. These include the renewal of the Energy Plan, Greenhouse Gas Strategy, the Biomass Strategy and the Solar Strategy. Funding will allow NT Energy to begin the consultation and implementation phases of power system planning, to continue managing energy projects and initiatives that examine and deliver energy solutions aligned with the goals and objectives of the GNWT.
The department is also proposing funding for the upcoming fiscal year in some key areas to support of the priorities of the 17th Assembly.
In support of the GNWT priority of increasing employment opportunities through
decentralization efforts, Industry, Tourism and Investment is proposing to invest $94,000 to relocate its Business Incentive Policy monitoring office from its current Yellowknife location to Hay River. This is in direct response to the 17th Legislative Assembly asking departments to review activities and positions with a view to decentralizing activities and/or positions.
To grow the tourism industry throughout the territory, we are proposing to increase the marketing budget of Northwest Territories Tourism by $600,000 this fiscal year and another $600,000 next fiscal year, for a total ongoing increase in NWT Tourism’s marketing budget of $1.2 million annually. NWT Tourism has historically been underfunded relative to other jurisdictions and is losing market share to other destinations. Increased funding will allow NWT Tourism to take advantage of new marketing opportunities reflected in the 2013-14 NWT Tourism Marketing Plan, and focus on opportunities that would promote development in regions that are experiencing declining tourism activity.
This funding is in addition to $1.2 million in direct support to tourism businesses through contributions to build and diversify tourism products, through our Tourism Product Diversification and Marketing Program and the Sport Hunt Outfitter Marketing Support Program. Moving forward, ITI will continue to work with NWT Tourism, and our tourism operators and outfitters to explore ways to grow this important sector of the economy.
We are seeing increased park usage in all regions of the Northwest Territories, but particularly in the North Slave region. During the three-year period between 2008-2011, the North Slave region has seen a rise of over 30 percent of overnight camping use. Ensuring a safe, enjoyable experience for our parks visitors is our top priority. Industry, Tourism and Investment is proposing $110,000 for increased parks enforcement due to increased use, and $30,000 to upgrade the parks communications system in the North Slave region to be compatible with the communications system used by the Royal Canadian Mounted Police.
Tourism offers some of the best opportunities for growth across the NWT, particularly in our smaller communities. Investing in events such as the highly successful NWT Days in Ottawa just this month, as well as Canada’s Northern House at the Vancouver Olympics, allows us to raise the profile of our territory and showcase not only the tourism potential but also the great opportunities that exist in all 33 of our communities.
Industry, Tourism and Investment is also proposing an investment of $14,000 for increased lease charges at our Dempster-Delta Visitor Centre in Dawson City, Yukon. The Dempster Highway is the gateway to the Western Arctic, and this award-
winning centre has staff on hand to provide travel assistance and advice. Continuing to have a presence in the Yukon, at a relatively small investment, is important to encourage travel to that region of the NWT.
In addition, a forced-growth investment of $30,000 is proposed to meet our legal obligations stemming from the Prairie Creek Socio-economic Agreement, which comes into effect in 2013-14. In addition, $40,000 is being proposed to conduct annual on-site employee surveys as provided for under our four current socio-economic agreements. These surveys assess the social, cultural and economic environments as perceived by the workforce of each mine.
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 intense interest in the oil and gas reserves of the Sahtu region. Three companies have confirmed projects in the Sahtu this season, including work on six wells, the construction of transportation infrastructure, the development of quarry sites, and ongoing scientific data gathering on water and wildlife. Upwards of $100 million is expected to be invested and will result in 350 jobs and significant economic spinoffs for local regional economies.
GNWT departments have been working together to find ways to encourage development and minimize impacts associated with the current and planned petroleum exploration activities in the Sahtu region.
ITI led a Sahtu Exploration Readiness Workshop last November in the Sahtu region with Sahtu business leaders, the local Chamber of Commerce, industry representatives and local residents, to discuss ways to ensure the development was mutually beneficial. The meeting was a success and there is potential to make this an annual event. As a result of last year’s initiative, industry is contacting us to expand the scope of the engagement. For its part, Industry, Tourism and Investment is proposing to establish a business development administrator in the community of Norman Wells at a cost of $122,000 annually. Having a dedicated position is key to assisting and developing local businesses in the region to access opportunities arising from this increased activity.
The oil and gas and mining sectors are the cornerstone of the Northwest Territories economy. Our territory has an abundance of untapped resources, ranking sixth out of 72 jurisdictions on the mineral potential index in the 2011-2012 Fraser Institute surveys, and we are just starting to realize the potential for mineral exploration in our territory.
To further explore this potential, we are also undertaking a Mineral Development Strategy, which will help to ensure there is a sustainable mining
future for the Northwest Territories and that it continues to be developed in an environmentally sustainable way. This is being developed in concert with a sustainable Economic Opportunities Strategy, which will identify new opportunities for investment and growth across the territory.
We will have an opportunity to showcase our resource and energy potential this August at the Federal/Provincial/Territorial Energy and Mines Ministers Conference. It is the Northwest Territories’ turn to host the conference and the department is proposing an investment of $227,000 to showcase the NWT and its potential to the rest of Canada. The NWT has major energy potential in areas such as hydro, wind and solar power. In addition, 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. The GNWT is expecting to recoup approximately 90 percent of this funding through delegate conference fees and sponsorships.
Although I have outlined some new and ongoing initiatives this department is proposing, it must also be said that we will continue to support our existing programs to grow and diversify our economy. Demand for our traditional economy and small business programs continues to grow and programs are often oversubscribed.
Funding for the Support to Entrepreneurs and Economic Development Policy will continue with dedicated funding for arts and fine crafts, the film industry and the Prospectors Grubstake Program. ITI is also proposing to continue our investment of over $1 million to the Community Harvesters Assistance Program, $550,000 in promotion and support of commercial harvesting, processing and marketing of fish and meat, and $610,000 under the Genuine Mackenzie Valley Fur Program. NWT furs continue to be in high demand at auction, and there is potential for even higher sales of NWT furs as worldwide demand for our prime wild fur continues to grow. The marketing of wild fur provides great opportunities for residents particularly in our smaller communities to gain economic benefits for their families and communities.
We are also looking to continue investments in Take a Kid Trapping, Take a Kid Harvesting Program, which, with our partners, invested almost $420,000 in 52 projects throughout the NWT.
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 17th Legislative Assembly.
I look forward to the committee’s comments and questions. Thank you.