Thank you, Mr. Speaker. This motion is stating in many cases and to a large extent what the government is already doing. The government of the 16th Legislative Assembly directed significant resources to update and improve the Diamond Policy Framework in 2010-2011. Updating the framework was a significant achievement of the 16th Legislative Assembly, and involved extensive consultation with industry and other stakeholders to assure a comprehensive approach. At that time the government worked closely with the Standing Committee on Economic Development and Infrastructure, Government of the Northwest Territories departments, the operators in the Northwest Territories diamond manufacturing industry, the Northwest Territories diamond mines and the City of Yellowknife for their input and involvement in establishing a revised framework.
We have been working within the updated Diamond Policy Framework to support and encourage the growth of the diamond manufacturing industry in the Northwest Territories. The revised framework provides a more streamlined and flexible approach, including reducing the red tape associated with the approval process for gaining approved northern manufacturer status. We are confident that the recently updated Diamond Policy Framework contains all the necessary considerations to establish and maintain a secure and vibrant secondary diamond industry in the Northwest Territories.
The revised framework is more effective in many ways. It outlines the GNWT’s role in facilitating investment in the secondary diamond industry, and
eliminated loan guarantees to existing and potential approved NWT diamond manufacturers. It guides potential diamond manufacturers in submitting their business proposal for consideration and become an approved NWT diamond manufacturer, or ANDM. When a manufacturer is granted approved NWT diamond manufacturing status by the GNWT, they are able to purchase from a special allocation of NWT-mined rough diamonds and NWT diamond producers. ANDMs must secure rough diamonds purchased from this special allocation in the NWT. The GNWT monitors ANDM purchases and their operations to ensure the diamonds are mined, cut and polished in the NWT. Crossworks Manufacturing continues to manufacture high quality cut and polished diamonds from the Northwest Territories. Deepak International Ltd. has been approved as an approved NWT diamond manufacturer. We are pleased that the company is moving forward with plans to re-establish and grow the secondary diamond industry.
We have confirmed that the manufacturing of NWT diamonds in the NWT will recommence shortly. As we speak, state-of-the-art equipment is on its way to the territory to be placed in the new factory. We have also reached an exclusive agreement for the use of the Polar Bear trademark with Deepak International. Our diamond certification process is in place and remains ready to reinitiate certification as soon as manufacturing recommences.
With regard to the establishment of a diamond bourse, we continue to work diligently to establish the presence of a diamond bourse in the NWT. A meeting is planned with the bourse here in Yellowknife in April and we hope to reach a successful conclusion to those discussions shortly. Negotiations are underway with Harry Winston Diamond Corporation – soon to be renamed Dominion Diamond Corporation, DDC. These discussions are the first step in securing a formal diamond allocation agreement with DDC for a portion of the production from their diamond mining interests in the NWT.
As Members of the government know, we continue to work to establish socio-economic agreements for proposed new mines and are encouraging existing mine operators to meet their commitments in socio-economic agreements. The GNWT will continue to work closely with the operating diamond mines, potential and current NWT diamond manufacturers, and the SCEDI to ensure the greatest benefits as possible come to the residents of the NWT.
We do not want to get ahead of ourselves and undertake revising a policy framework that has proved to be successful since its last revision only a few years ago. We appreciate the interest by the Members in the diamond industry. Since this is a direction to government, we will be abstaining.