Thank you, Minister, and thanks to the witnesses. I’ll ask the Sergeant-at-Arms to escort the witnesses out of the Chamber.

What is the wish of the committee? Ms. Bisaro.

Thank you, Mr. Chairman. I think we could proceed with Industry, Tourism and Investment, the Minister’s comments and any opening comments from Members, if there are any. Thank you.

Is committee agreed to review the Department of Industry, Tourism and Investment?

I’ll ask the Minister if he has any opening comments. Minister Ramsay.

Thank you, Mr. Chairman. I do have opening comments.

Go ahead, Mr. Ramsay, and thank you.

Thank you, Mr. Chairman. I am pleased to present the 2014-15 Main Estimates for the Department of Industry, Tourism and Investment.

The department’s main estimates proposes total operational expenses of approximately $67 million for the coming fiscal year. This is an increase of 34 percent from 2013-2014. This includes specific initiatives of $18 million and forced growth of $1.8 million, which is partially offset by $2 million in sunsets.

The mandate of ITI is to promote economic self-sufficiency through responsible management and development of the Northwest Territories mineral and petroleum resources and energy sources; the development of natural resource industries, including agriculture, commercial fishing and the traditional economy; and the promotion and support of tourism, trade and investment, business, and manufacturing and secondary industries to create a prosperous, diverse and sustainable economy for the benefit of all Northwest Territories 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.

As a result of devolution, the Department of Industry, Tourism and Investment is receiving responsibility for mineral and petroleum resources management. To accommodate its new responsibilities following the transfer, ITI will take on new functions and has redesigned its organizational structure, which will come into effect on devolution transfer date.

The department has created a new assistant

deputy minister responsible for mineral and petroleum resources;

a new petroleum resources division – nine

people, which will be established in Inuvik;

a new financial analysis and royalty

administration division is being added to manage royalty calculation, collection and auditing; and

a new client services and community relations

unit has been created to support industry by providing guidance on regulatory requirements and working with communities.

We have already hired key senior management for incoming programs, including an assistant deputy minister, and directors of financial analysis and royalty administration, the geoscience office and the petroleum resources division.

Additionally, 42 regional federal employees in transferring programs have accepted positions within the financial analysis and royalty administration division, the mineral resources division, the NWT geoscience office and the new client services and community relations unit within the department. We are pleased to welcome all new staff to the department as their knowledge and experience will enable us to provide continuity of service. Due to the department’s new responsibilities for the management of mineral and petroleum resources as a result of devolution, the budget for the Department of Industry, Tourism and Investment will increase by $13 million. This funding will be used to deliver regulatory responsibilities for petroleum and mineral resource

exploration and development, administration of the royalty regime, and related Aboriginal consultation and NWT regulatory system guidance. The department welcomes these new responsibilities and looks forward to our new role that will strengthen our ability to attract resource development and will provide territory-wide social and economic benefits for years to come.

In 2014-15 the department will support this government’s priority to strengthen and diversify our economy by proposing investments in a number of programs and projects. Last year this government achieved a major milestone with the completion of socially responsible and environmentally sustainable economic development and mining strategies. The Mineral Development Strategy and the Economic Opportunities Strategy are complementary strategies and are proceeding at the same time.

Industry, Tourism and Investment is proposing an investment of $1.5 million to address the recommended actions in the Mineral Development Strategy. This funding includes $655,000 to provide better and more comprehensive geoscience information and research, $400,000 for a NWT Mining Incentive Program aimed at attracting mineral exploration and $200,000 to market the NWT as an attractive place for mineral exploration and development investment. These investments will play key roles addressing the decline in exploration expenditures and firmly establish the NWT as a favourable jurisdiction for sustained mineral exploration investment.

To enhance Aboriginal engagement and community capacity building, a proposed $100,000 investment will go toward the Aboriginal Mineral Development Support Program, in support of organizations to prepare and participate in mineral developments in their area.

Our work continues to diversify our economy away from a dependence on nonrenewable resources. The department is proposing $1.2 million in new funding to initiatives supporting the Economic Opportunities Strategy. Each of the proposed initiatives provides the GNWT with the opportunity to make immediate investments in areas that directly impact NWT residents, businesses and communities. This work includes proposed investments of:

$150,000 on the development of comprehensive

Agriculture Strategy and Implementation Plan. The NWT agriculture industry has grown considerably in the past several years and there is great potential to grow this industry across the territory.

$100,000 for a Film Industry Pilot Project in

response to increased interest in the NWT as a

filming location. This project will measure the impacts of a rebate program to the film industry.

$150,000 for the development of regional

economic plans. Regionally-based plans will engage residents and guide the development of community and regional economies.

$200,000 to support the commercial fishing

industry in capitalizing on domestic commercial market demand. This includes investments to rebuild the current fish plant infrastructure in Hay River, improve the state of the current fishing vessels and improve distribution methods.

$100,000 in a Business Mentorship Program to

support small businesses to attract, recruit and hire professionals for in-demand positions.

Tourism offers some of the best opportunities for growth across the NWT, particularly in our smaller communities. The Department of Industry, Tourism and Investment is proposing increased support to the tourism industry in several key areas which will strengthen and diversify the NWT economy.

In response to feedback from the industry, the department is proposing to invest $200,000 over the next two years in the establishment of a convention bureau. In addition, the department is also proposing an investment of $100,000 to support community tourism infrastructure projects and $75,000 to provide tourism business operators with increased support to develop skills within the tourism labour force.

To grow the tourism industry throughout the territory, we are proposing a forced-growth investment of $600,000 to increase the annual marketing budget of NWT Tourism to $3.3 million. Last year saw the first increase to NWT Tourism’s budget and this increased funding has allowed NWT Tourism to take advantage of new marketing opportunities and focus on prospects that would promote development in regions that are experiencing declining tourism activity.

This funding is in addition to nearly $1.4 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 tourism operators and outfitters to explore ways to grow this important sector of the economy.

Several of the 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 2014-15 fiscal year, as outlined in the NWT Energy Action Plan, which focuses on efficiency and alternative energy.

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:

$1.4 million for the Whati transmission line,

which will connect Whati to the Snare hydro system. Reducing our reliance on imported diesel continues to be a key priority for our government.

$150,000 for finding a solution to the natural gas

shortage in Inuvik, which is a priority for our government. The funding will be used to explore medium- to long-term options for heating in Inuvik and will further examine the possibility of liquid natural gas for Inuvik, which has been identified as the most promising solution to Inuvik’s energy situation.

$200,000 for the Great Bear River mini-hydro

project.

$50,000 contribution to the NT Energy

Corporation to continue their Water Monitoring Program. NT Energy works with the Water Survey of Canada to measure water flows in selected rivers to determine the potential for hydro development. This funding will support current monitoring in the Kakisa River. NT Energy is working with and will share the results with the community.

$700,000 in core staff funding to NT Energy

Corp.

The department is also proposing some key forced-growth investments. To keep pace with the services and amenities visitors to territorial parks have come to expect, and to remain competitive in the North American marketplace, it is crucial to ensure parks are well maintained, have expanded amenities and services and have modern infrastructure.

The department is proposing an investment of $513,000 for parks operation and maintenance. The NWT parks system has experienced a system-wide deficit year after year. This funding will be used to replace deteriorating signage that is over two decades old, keep parks across the territory clean and well maintained and address the increased costs for park operations.

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. The department is proposing $123,000 for a business development administrator in the region to assist residents and businesses with the opportunities associated with development in the area.

The Department of Industry, Tourism and Investment provides funding to the Northern Frontier Visitors Association for administration of services to the North Slave region. This funding has been unchanged since 1996, and administrative costs have risen significantly since then. The department is proposing a forced-growth investment of $50,000 in contribution funding to offset the increased administrative costs incurred by the Northern Frontier Visitors Association to provide tourism services.

Although I have outlined some new and ongoing initiatives the 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 Harvester 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 last year our trappers saw their highest profits in over 30 years. There is potential for even higher sales of NWT furs as world-wide 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 our Take a Kid Trapping and Take a Kid Harvesting programs.

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 ensuing questions. Thank you, Mr. Chairman.

Thank you, Minister Ramsay. Minister Ramsay, do you have witnesses to bring into the House?

Yes, I do, Mr. Chairman. Thank you.

Does committee agree?

Thank you, committee. Ms. Bisaro.

Thank you, Mr. Chair. Seeing the clock, I move that we report progress.

The motion is defeated.

---Defeated

We will continue to debate the department. Sergeant-at-Arms, I will ask you to escort the witnesses into the Chamber.

I’ll ask the Minister to introduce his witnesses.

Thank you, Mr. Chairman. To my left I have Mr. Peter Vician, deputy minister, Industry, Tourism and Investment. To my right, Ms. Nancy Magrum, director, shared services, finance and administration.

Thank you, Minister Ramsay. I will now open the floor to general comments on the Department of Industry, Tourism and Investment. Ms. Bisaro.

Thank you, Mr. Chair. I move that we report progress.

We need to have some activity. Mr. Menicoche.

Thank you very much. I’m pleased to provide some general comments to ITI. I just wanted to talk a bit about our parks and, more specifically, the Sambaa Deh Park and some of the issues that they were having there. Well, there was a fire there this year and it interrupted the operations. As well, something new that the department had done with the contractors was about the user fees. This year particularly, the government kept the fees and that impacted the contractor. I just want to ask the Minister what the ongoing plan is for the park user fees as we go forward this fiscal year.

Thank you, Mr. Menicoche. Minister Ramsay.

Thank you, Mr. Chairman. Are we departing from the way things have been going? Are we going through general comments and then I’m expected to answer all the questions at the end, or do you want me to answer questions one after the other?

At the end, I guess. What is the wish of committee? Committee has decided we’ll take all the general comments for the day and then the Minister can answer all of them at the end. So, Mr. Menicoche, if you could complete

all your general comments and then we’ll move on to the next person.

Thank you very much, Mr. Chair. I have concluded all my general comments.