October 12, 2011 - "We need the opportunity to invest in our people, to put funding in community programs that will best support residents and to allow us the opportunity to invest in the long term needs of this Territory." Bob McLeod, Minister of Industry, Tourism and Investment, Oct. 12, 2011, Yellowknife, NT.
Bob McLeod's keynote speech at this year's Northern Aboriginal Business Association's Annual (NABA) General Meeting held in Yellowknife. NABA's mission is to promote full participation of NWT aboriginal business in the northern Canadian economy.
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Good morning, ladies and gentlemen, and welcome to the Northern Aboriginal Business Association 2011 conference. The theme of this years’ conference is Today’s Vision – Tomorrow’s Prosperity and considering we just came through an election, vision and prosperity are very much in everyone’s mind, including mine.
As northerners we are resilient and we are resourceful, and we have to be. Our future is not an easy one to secure but with the right vision we can not only secure our future, we can bring prosperity and opportunities to our entire territory.
I want the NWT to prosper. I want residents to reach their potential and in doing so ensure the NWT will achieve new levels of success. Now, if we are to achieve these levels of success, if we are to evolve into an independent member of Confederation we have to work together to secure full decision-making authority over the NWT’s future.
There are differing positions on our evolution as a Territory and we need to work together to bridge those gaps and bring about a new era of independence for the people of the NWT. To do this we need a devolution deal finalized and we can do that through respectful dialogue and a genuine desire to see our Territory thrive. Together we can find a way to move forward on this critical issue for the NWT. Devolution is Evolution; it is the natural change and growth that this Territory needs.
At this time perhaps more than any other in the history of the Northwest Territories we have the opportunity to guarantee the future health and prosperity of northerners. With devolution we will see the control of our land and water in the hands of northerners where it belongs. We need the opportunity to invest in our people, to put funding in community programs that will best support residents and to allow us the opportunity to invest in the long term needs of this Territory.
Supporting our residents is a goal that the Government shares with the northern business sector and I won’t deny that the past few years have been a challenging time for business. Although we were fortunate to have a strong economic foundation, many businesses are still feeling the effects of the economic downturn. But there are many bright spots on the horizon and that is what I want to focus on today: the vast potential in the NWT, our business success stories, and what the GNWT is doing to help your businesses thrive.
Your businesses make a huge contribution to the NWT. You employ NWT residents and make donations of time, goods, and services to support your local communities. And perhaps most important, your businesses supply needed community services across our huge territory. Through the services and employment you provide, and through your community involvement, it’s clear you are committed to making a positive contribution to the NWT.
You have been clear about the challenges you face. The Government of the Northwest Territories has heard you. What I want to do today is outline what the GNWT is doing, for you, the entrepreneurs and businesses of the NWT.
Ladies and gentlemen, I would first like to announce the creation of the Aboriginal Tourism Champions Advisory Council. This past summer, I appointed seven members to this Council.
Members of this Council will play a key role in advancing a sustainable Aboriginal Tourism Strategy for the NWT. They will also provide leadership and direction to the tourism industry, help to identify development opportunities for Aboriginal tourism, and promote Aboriginal tourism in communities across the NWT.
Tourism offers tremendous opportunities for sustainable economic development all across the NWT, especially in our smaller communities.
In fact, the Council just met for the first time last month and had the chance to speak to others from across Canada who have worked to promote Aboriginal tourism. With the direction of Council members, we hope to explore options to diversify our economy and provide jobs and opportunities in the tourism sector for our residents.
With the guidance of the Aboriginal Tourism Champions Advisory Council, the Aboriginal tourism sector in our territory holds great promise.
Speaking of great promise, I would also like to mention the positive signs for the NWT economy. Employment is increasing throughout the north. In fact, between August 2010 and August 2011, nearly 1100 additional people were employed in the Northwest Territories. This is a strong signal that our economy is improving, and we can expect to see even more jobs created.
The Northwest Territories’ strong resource base provides it with one of the most favourable long term outlooks in Canada. With development of the Mackenzie Gas Project, the Conference Board of Canada predicts the GDP will climb to $9.6 billion by 2020. The board also projects 8,500 new jobs will be created in the Northwest Territories between 2016 and 2018.
At least seven new mining projects are projected over the next decade – these would add over 2,000 new direct jobs. Other opportunities exist for gas development near the NWT and British Columbia border and in the Sahtu region of the NWT. This is good news for our business community. We also have the Mackenzie Valley Fibre optic link, the $150,000 Inuvik to Tuk highway project and the Mackenzie Valley Highway from Wrigley to the Beaufort. These are all real and we have to make sure they happen.
The Aboriginal business community is diverse and complex. Companies range in size from huge holding companies, like the Tåîchô Investment Corporation, through to small service corporations. And there have been many successes. From the small three person operation to the development corporations that provide funding and support, our northern business community is thriving.
I mentioned the Tåîchô Investment Corporation – they are a great example of success. The Corporation has used Impact Benefit Agreements to expand business and employment opportunities. This Corporation now owns over 44 companies, including some of the largest in the Northwest Territories, like Tåîchô LandTran. Tåîchô LandTran is now one of Canada's leading Northern transport companies.
Many smaller corporations also provide funding and support for Aboriginal businesses in the NWT. Clients are in a range of sectors and businesses: oil and gas, tourism, heavy equipment, municipal services and more.
Northwest Territories businesses also operate on a larger scale, dealing with multi-million dollar projects. Nishi-Khon SNC-Lavalin is a majority Aboriginal-owned, multidisciplinary engineering organization.
It provides a full range of engineering and environmental services to private sector and government clients throughout the Northwest Territories and Nunavut.
One of their major projects was at the Diavik diamond mine. For their work on the design and construction of the Diavik A154 Dike, NKSL did something almost unheard of: they completed the project ahead of schedule and below budget.
As you can see, there is no shortage of success stories in the NWT business world.
What I want to do now is outline what the GNWT is doing to assist our businesses in creating a prosperous, diverse economy. We have heard the challenges you face.
We heard that businesses are experiencing labour issues. We heard that the cost of doing business in the NWT is high. And we heard that businesses need funding and business guidance in order to succeed.
When it comes to our labour force challenge, one major initiative the GNWT has undertaken to address this is the Come Make Your Mark National Marketing Campaign. This multi-year campaign was launched in April 2010. Its aim is to create awareness among residents in select regions across Canada about the opportunities the NWT has to offer and to convince Canadians to live and work here long-term.
While the GNWT has not backed away from its desire to train our own people and have them take advantage of the employment available in our territory, we also recognize that our population is not large enough to fill the labour needs of all of our businesses.
I believe our businesses and entrepreneurs recognize this. That’s why the NWT Chamber of Commerce has supported the campaign. And I think that’s why we have 77 private sector partners involved in promoting Come Make Your Mark.
We have heard from local businesses that have benefitted from this campaign by being able to keep their businesses well-staffed and operational. You recognize this campaign could be valuable in filling the vacancies you have, and allowing your businesses to grow and thrive.
Of course, one important aspect in addressing labour shortage issues is reducing the cost of living. Last year at the Prospects North conference I talked about the progress the GNWT had made in response to the Electricity Review recommendations. While I am on the topic of important government initiatives, I would like to mention the outcome of the Electricity Review.
Two years ago we embarked on a review of electricity rates, regulations and subsidy programs in the Northwest Territories.
As a result, on December 1, 2010 lower electricity rates were implemented in many of our Northwest Territories communities.
Under the old power rates, businesses in many of our communities had to deal with crippling power bills. Today, many businesses are already seeing a huge cost savings in the communities where lower electricity rates were implemented. In some instances, the savings total thousands of dollars a month.
These new rates will greatly reduce electricity costs for NWT businesses in many communities, making them more competitive and fostering growth. There is no burden placed on the businesses here in Yellowknife due to those changes. Current commercial power rates for Yellowknife have remained the same.
The GNWT also assists NWT businesses through its Support for Entrepreneurs and Economic Development, or SEED policy ─ the main vehicle for providing contributions to our small and medium-sized businesses. The Department of Industry, Tourism and Investment will invest over $3.8 million in funding for the SEED Policy programs over this fiscal year.
Business support also comes through the $1.3 million the GNWT contributed this fiscal year on the Tourism Product Diversification and Marketing Program. This program assists tourism operators to re-invent, improve or expand tourism products and operations.
We have increased our support by $140,000 for the Northwest Territories Community Futures program. Community Futures Development Corporations are active lenders in our communities
We have also invested an additional $475,000 in the Community Harvesters Assistance Program, to bring the total investment to over one million dollars. Fur sales have been stellar this year due to increased worldwide demand for our high-quality furs. Trappers in the territory brought in over $1.2 million in sales this season, which ended in June.
BizPal is a service that provides prospective business owners and entrepreneurs with one-stop access to permit and licence information across Canada. We have worked with 15 communities to implement BizPal. Fort Simpson was the most recent community to launch BizPal – their site came online in May of this year. There has been a great response to BizPal so far. It’s proving to be a valuable tool that reduces red tape and allows NWT entrepreneurs more time to do what they do best ─ look after their businesses and create jobs.
The GNWT is also working with the Federal government to address the issues that impact the effectiveness of our regulatory regime. By reducing the administrative burden placed on potential investors, we hope to attract additional investment to the NWT.
I would like to congratulate the Northern Aboriginal Business Association and the organizing team for hosting an outstanding conference. The organizing committee deserves a round of applause for all the work you have put into making this conference a success.
The Government of the Northwest Territories recognizes the importance of a strong and vibrant Aboriginal business community in the NWT and we ask that you continue to look for innovative ways we can work together to achieve our shared goal of a prosperous future.
Thank you and enjoy the rest of the conference.