(January 17, 2013) - Ladies and Gentlemen – it is my pleasure today to address you on behalf of the Minister of Industry, Tourism and Investment on the important subject of economic opportunity in our Territory. As the Chair of the Standing Committee on Economic Development and Infrastructure for the 17th Legislative Assembly, local economic development is something I feel very strongly about.
From tourism to furs; oil and gas to diamonds; rare earths to satellites; and EVEN eggs and potatoes, it really does seem like we in the Northwest Territories live in a land of phenomenal economic opportunity.
The challenge that is before us today is to convert this overwhelming list of economic potential into real and tangible economic development – and to do so in a way that will addresses the economic disparity that exists in our Territory today.
Diversifying and strengthening the economy is a challenge the 17th Assembly has recognized in its vision: Believing in People and Building on the Strength of Northerners. In fact, we have set the goal to establish a diversified economy that provides all communities and regions with opportunities and choices.
In particular, we have identified the need for a strategy that will allow us to keep pace with the incredible opportunities and growth potential that our territory has, to ensure we are positioned to guide and manage this investment and growth, and to use it to build capacity in our communities and self-sufficiency in our people.
Work to prepare this strategy – the Economic Opportunities Strategy – began last year with the guidance and partnership of the NWT Chamber of Commerce, the Northern Aboriginal Business Association, the NWT Association of Communities, Canadian Northern Economic Development Agency and the GNWT’s Department of Industry, Tourism and Investment.
I would like to acknowledge the Northern Aboriginal Business Association – and its members – as major partners in this undertaking. Thank you for your time and commitment.
As we gather for this Economic Opportunities Conference, today, it seems appropriate to consider this key initiative of the 17th Assembly in closer detail:
- First, why do we need an economic opportunities strategy?
- How are we proposing to advance this project? And…
- How can we work together to ensure its success?
Let’s begin then, with the question of why we need an economic opportunities strategy?
The recent recession has served as a reminder that our economy is dependent on market forces beyond our control and vulnerable to boom and bust cycles We now are part of a global economic market place - one that is changing and evolving and – even with a wealth of resources - our Territory is prone to the rise and fall of the world economy.
Admittedly, the NWT fared the recent recession better than many jurisdictions - thanks in large part to our diamond industry and significant infusion from government. Neither however, are sustainable in the long run - and even today, we are seeing some early warning signs that we must heed.
As I mentioned, regional economic disparity is growing, but our population is not. GDP measure by industry is declining overall. Mineral exploration and deposit appraisals – while up from 2011 – are well below the marks set in 2007.
Resource development activities have been, and will continue to be, an important element of the NWT economy. For more than a decade, our robust resource base has been the icing on our economic cake.
But as we know, too much cake doesn’t make for a balanced diet – and continuing to fill our economic plate solely with rich resource offerings doesn’t make for a balanced economy. Our economy also needs some meat and potatoes.
We must also grow our main stays – those industries that will be here for years to come: small business, our manufacturing sector, tourism and our service industries. In the long term, our Territory’s economic health hinges on its diversity.
So... how are we going to do it? Like northerners do everything... by coming together...
It’s been over a year since our government formally took office with a commitment to doing business differently. From the beginning, we have readily acknowledged that we do not have the resources or expertise to do everything ourselves.
We recognize the importance and value of partnerships and good relationships. And have said – many times – that it is only by working together that we will be able to realize the full potential of our territory and the kind of future we envision for our people.
To quote our Premier: “Our Territory is too small to be fragmented by issues that divide us. If we are to move forward, we will need to do it together.”
In the development of the Economic Opportunities Strategy, we are proposing to do exactly that...
We are seeking out the meat and potato opportunities in each of our communities and regions. Local and regional opportunities that reflect and can be built on the individual characteristics and potential of each community and its region.
We envision a strategy that responds to and addresses the economic strengths, weaknesses, opportunities and threats of each region; one that identifies the opportunities and challenges that exist - and provides a plan to address both.
As this plan gives way to actions and investments; as these individualized and unique opportunities grow and flourish - so will our local, our regional and finally, our territorial economies.
Throughout the process, care will be taken to ensure that we are responsive to changing economic circumstances in the territory and recognizing the need to maintain sustainable development best practices.
We will also need to take into account that some communities in the NWT live and prefer a traditional lifestyle. For these communities, the focus of the strategy will be on self-sufficiency, such as finding ways to reduce imports such as fuel, increase local food production and to maintain and improve local housing and other community services.
Which brings us to the third and final question: How can we work together to ensure the strategies’ success?
In order to capitalize on the many extraordinary economic opportunities that exist in our Territory, we must first know what they are - and what is needed to translate them into jobs, investment, business growth, training opportunities, infrastructure development and growth for our communities and Aboriginal corporations.
In December last year – and on advice from the Governance Committee partners– Minister Ramsay appointed an Advisory Panel to engage NWT residents, the private sector, governments and other key stakeholders in a series of discussions.
Their overall goal is to identify and prioritize a list of regional economic opportunities; and provide recommendations for actions to realize these opportunities.
The extensive engagement process that this panel has embarked upon will serve to ensure that all considerations are heard and that – when completed – the strategy will work as an effective guide for all regions in our territory.
This conference is a great opportunity for each of you to contribute your own regional and experience-based knowledge and insight into this important process.
There has never been a more important time for us to look ahead, work through any limitations that exist today, and envision a vibrant, diversified economy with a healthy balance between new and traditional economies. Working together, we can create an environment in which investors and entrepreneurs have the incentives to innovate, the confidence to take risks and the tools to succeed.
I encourage all of you to embrace this opportunity that we have, and to work together to advance an economy that provides greater self-reliance for our communities, jobs for our residents, opportunities for our businesses and sustainability for our Territory.
Thank you.