December 7, 2010 - Speaking at the 9th Annual Aboriginal Oil and Gas Forum, Minister Bob McLeod highlighted the many partnerships and joint ventures Aboriginal people have struck, particularly in resource development, and how they are creating economic growth in the NWT.
Good afternoon. Thank you for the invitation to join you here today. As the Minister responsible for Industry, Tourism and Investment in the Northwest Territories, I often have the opportunity to talk about potential. There is vast potential in the Northwest Territories and it is an exciting time in our development, both economically and politically.
As many of you know, development of any kind requires partnerships, information sharing, and a vision for the future. The Government of the Northwest Territories’ vision for the future includes devolution and the time is right for the Government of Canada and the Government of the Northwest Territories to focus on ensuring northerners have control over their own resources, destiny and a future for our children.
Northerners have built our future by understanding our past. We are connected to the land in a unique and profound way. Our history of reliance and respect for the land is a common thread that links the generations of the past to the generations of the future. We want to develop even stronger partnerships with businesses, communities, Aboriginal organizations and other governments to foster prosperity and community self-reliance, the kind of prosperity that will lead to an economic development project in every one of our 33 communities.
Ladies and gentlemen, the economy and cultures of the Northwest Territories are deeply rooted in the environment. As a government, we believe that the sustainable development of natural resources is essential to the long-term economic, cultural and social well-being of northern residents. For this very reason, we have adopted the principles of sustainable development to guide decisions and actions related to resource development in the Northwest Territories.
We are committed to promoting this development, in a way that maintains resources at sustainable levels, and also maintains essential ecological processes and natural diversity. We are also working to ensure that the development of our resources will provide opportunities for employment, investment, and business for all of our citizens.
A key piece to ensuring that happens is recognizing the role our Aboriginal people have to play in this process. With a population of just over 43,000 people, more than 50 percent of our residents are Aboriginal. Our government also recognizes Aboriginal governments and organizations are key partners in northern governance.
In fact, our consensus-style of government reflects the values of our Aboriginal people. This unique system of government blends the British traditions of ministerial responsibility, cabinet solidarity and legislative accountability with the Aboriginal traditions of open dialogue, inclusive-decision-making, accommodation, respect and trust.
Ladies and gentlemen, any kind of resource development on traditional Aboriginal lands in the North today requires the application of those consensus style government values. There must be dialogue; there must be respect, trust and inclusive decision-making. Meaningful partnerships must be struck with communities and Aboriginal governments.
I am happy to report that Aboriginal governments, businesses and development corporations are participating directly in the Northwest Territories economy as business owners, operators, partners and investors. They are taking on key roles in expanding the northern economy.
Many have already achieved recognition in areas including oil field services, drilling, logistics, transportation, northern construction and operations.
For a territory of less than 50,000 people, we have some amazing success stories. It’s all part of living in a place where everyone is part of a supportive network. Perhaps this helps our business community to collaborate more readily with southern partners and among ourselves. I see real economic strength emerging through these success stories.
Mining, together with ongoing petroleum resource exploration and development, has provided an opportunity for Aboriginal partnerships and joint ventures to meet the needs of our many partners in resource development. It has changed the way we do business - the majority of southern participation in the northern economy is now through joint ventures.
Perhaps the best known example is the Aboriginal Pipeline Group, and Bob Reid gave you a detailed presentation of this unique partnership just before we began this luncheon. There are, however, many others.
The Aboriginal Pipeline Group has set the bar for a new model of Aboriginal participation in the economy through its shared ownership in the Mackenzie Gas Project. In time, I believe the Aboriginal Pipeline Group will be a model for maximizing benefits and providing long-term payouts for the Aboriginal owners, and promoting self-reliance among our communities and our people.
As Mr. Reid mentioned, this Aboriginal corporation owns a one-third interest in the Mackenzie Valley gas pipeline ─ a $16 billion project that is expected to pay out millions of dollars in dividends to the Aboriginal Pipeline Group once its loans are repaid.
But the benefit isn’t just monetary. Aboriginal groups involved in pipeline development are now involved in meaningful consultations about the other resources on their land. They are directly influencing the development of the pipeline, by having a voice that is being heard.
The Government of the Northwest Territories believes that the Mackenzie Gas Project, provided it can be built in a responsible manner, is one of the most important economic opportunities in this territory’s history. This project and the spin off developments that it will support can open up the North and represents an awakening of our world scale sustainable economic potential.
It will be a basin-opening project – one that will trigger significant opportunities for Aboriginal people in the Mackenzie Valley for decades to come due to the exploration and production activities that will follow the construction of the pipeline. That is why the Government of the Northwest Territories has invested in preparing our people to take advantage of the jobs and business opportunities the pipeline will provide.
I know the review of the Mackenzie Gas Project has taken a long time. But northerners are resilient people.
Our resilience has been tested here, yet we are now closer than we have ever been to getting a decision on this project. Let’s not lose sight of that. The Government of the Northwest Territories certainly won’t. In less than a month, we are expecting the National Energy Board to finalize this important phase in the regulatory review process, and issue its Reasons for Decision - hopefully, to be followed shortly by a Certificate for Public Convenience and Necessity.
This certificate will be the trigger for the next phase of work and investment in the project, which will need to be completed in order for the proponents to reach a decision. We anticipate that the upcoming gathering of technical information and processing of regulatory permits will involve Aboriginal businesses and partnerships. There is much work to be done, but we are growing close to the time where all of our hard work will realize the potential of this huge opportunity.
I will continue to champion this project and the Government of the Northwest Territories will continue to work towards a project that will maximize the benefits from the pipeline for northerners. And once the Mackenzie Gas Project is built, our Aboriginal people can use the knowledge and skills they have gained from working on the Mackenzie pipeline to help build another important northern project – the Alaska Highway natural gas pipeline.
While this work is being done, we can also expect an all-weather Mackenzie Valley Highway to be built. This nation-building project will open up the Northwest Territories, reduce the cost of living in our communities and provide the oil and gas industry with improved access to our resources. It will also require partnerships and Aboriginal equity participation to occur – participation that will benefit our Aboriginal people and the private sector partners that will be a part of it.
Ladies and gentlemen, apart from our resiliency, we, in the Northwest Territories, do not settle for jobs and contracts that follow the boom and bust of construction and exploration cycles. This is our history ─ we have consistently sought out sustainable business opportunities for northerners.
Another concrete example of a project that, in our view, is a successful Aboriginal equity partnership, that at the same time appropriately fits the term “sustainable development,” is the proposed expansion of our Taltson Hydro system to serve the Northwest Territories diamond mines.
The project is being developed by the Deze Energy Corporation – a joint venture made up of the Akaitcho Energy Corporation (representing the Akaitcho First Nation), the Métis Energy Corporation (representing the Northwest Territory Métis Nation), and a subsidiary of our crown corporation (the Northwest Territories Energy Corporation). Each partner owns one third of the shares in Deze Energy Corporation.
Once constructed and operational, the Taltson Expansion Project will result in a significant reduction of greenhouse gas emissions by providing hydro-electricity for our three operating diamond mines and one other prospective mine. It will also displace over 100 million litres of imported diesel annually, and reduce greenhouse gas emissions by 300,000 tonnes.
On the economic side, this $700 million project will create 800 direct and indirect jobs during the three-year construction period. It will also spur on new economic development opportunities in the Northwest Territories and provide long-term revenues for the Aboriginal government shareholders in this project.
Ladies and gentlemen, I am going to give you one last example of a successful Aboriginal equity partnershipin the Northwest Territories. In the aviation field, Discovery Air Inc. benefits from joint venture relationships with a number of Aboriginal groups through its Air Tindi Ltd. and Great Slave Helicopters Ltd. subsidiaries.
That is because a key business strategy of both Air Tindi and Great Slave Helicopters for several years has been to establish long-lasting Aboriginal partnerships to generate economic benefits in the North.
These partnerships are beneficial for all partners involved. Each provides access to business opportunities on settled land claims territory to which Air Tindi and Great Slave Helicopters may not otherwise have been able to attain. Each partnership demonstrates the commitment of Discovery Air to the people and communities of the Northwest Territories.
Ladies and gentlemen, the Aboriginal Pipeline Group, Deze Energy Corporation, and the Discovery Air joint ventures I just mentioned are all a reflection of the increasing role our Aboriginal people are taking in our economy as investors and decision makers.
Our Aboriginal residents, businesses and corporations are now looking beyond jobs and contracts that follow the boom and bust of construction seasons and exploration cycles. Instead, they are finding ways to take a direct role in our region’s economic growth ─ as business owners, operators and investors.
As I conclude my remarks, let me leave you with the following thoughts. Economic development in the Northwest Territories in general, and resource development in particular, will require the combined efforts and sustained cooperation of the public and private sectors and it must include Aboriginal participation.
As northerners, we need to continue to build carefully crafted partnerships that bring knowledge, investment and opportunity to the Northwest Territories. At the same time, we can use these partnerships to take advantage of our own wealth of traditional knowledge and human resources to create the bright future we envision for our territory.
And, when we arrive at that flourishing, sustainable future, other Canadians will recognize what those of us in the North already know – that the Northwest Territories is a great place to live, visit, work and invest in.
Thank you.
For more information, contact:
Press Secretary
Office of the Premier/Cabinet
Government of the Northwest Territories
Phone: (867) 669-2302