Ladies and Gentlemen, the Northwest Territories has a very exciting economic story to tell. And I, for one, am excited to be here today to tell you about it. I want to thank all of you today – and to your President, Jason McEvoy for the opportunity to speak with you today, at home.
We are now in a position to take a hands-on approach to growing and building our economy, our Territory and our future.
For the past three years – and especially since April 1st - the most exciting element of my work has been to champion this message. To our potential investors, our industry partners, and to potential new residents that we hope will come and help us build our North.
The challenge of transforming our new authorities into tangible jobs and business opportunities is huge. Equally challenging is doing this in a collective, timely and considered way.
But every challenge provides an opportunity. Our collective role – as a government with our partners in the business community – is to develop and put in place the strategies and plans needed to advance the many elements of this historic economy-building project.
This morning, I would like to offer you an overview of this project, and how we are proposing to put the economic cornerstones in place in light of the exciting new tools and resources that we have secured from Canada.
It of course begins with a blue print. For us, that is the NWT Economic Opportunities Strategy.
This Strategy represents the advice and guidance that has been gathered and provided to Government from key economic and community stakeholders across the entire Territory. It lays out the pillars that we need to have in place: a climate of growth, a strong network of northern businesses, infrastructure, economic diversity – and people.
It emphasizes and confirms the approach that we must take – that we cannot advance our economy solely on resource development. No more so than we can survive solely on the strength of our grass roots industries.
Our economy needs major projects and investments. Resource development is one area. The advancement of key energy and transportation infrastructure is another. But as important are projects like the proposed pellet plant in Enterprise and the fish plant in Hay River.
The Strategy sets out a plan to develop the economic environment in which NWT businesses like yours can take the lead in identifying, pursuing and realizing economic opportunities.
It focuses on providing support to NWT businesses and to supporting the development of opportunities – both from grass roots economic development and from major projects. The GNWT has already begun to advance many of the recommended actions and initiatives highlighted in the Strategy.
Our work is focused in four key areas:
- First – attracting, preparing and positioning NWT residents to benefit from the opportunities that their future holds;
- Second – pursuing major investment projects that will further serve to develop and expand our Territory’s business and service sectors;
- Third – growing a stable and attractive entrepreneurial environment;
- and finally – perhaps most importantly – improving our supports to the NWT’s existing stable of small and community businesses.
As a prerequisite for all of this, our Territory needs a foundation of major investments and people.
The first priority in our economic growth plan must be a plan to grow our population.
Yes, we need to retain, prepare and position NWT residents to benefit from the economic opportunities that are coming to our Territory. But we need to find and attract new residents with the knowledge and skill sets that our economy needs, simply to survive.
The numbers say it all – for the past several years, the NWT has experienced a population decline. That means fewer taxes being paid, less money spent at local businesses, and an increasing difficulty for business people such as yourselves to find the employees you need to be successful.
In the near future, we are looking at ways to strengthen and increase collaboration between government, industry and agencies to actively promote the NWT as a place to live, work and raise families. We are working on an initiative to strengthen and promote the tax advantages of working and living in the Northwest Territories.
We are also looking at ways to more effectively use the NWT Nominee program to attract immigrant entrepreneurs and the investment and employment that they can bring.
Longer term planning includes new strategies to retain students, develop the Government’s own workforce and to align training and labour force development with anticipated needs.
Our second priority is to attract and stimulate a resurgence of major investment. To do that, we must restore levels of investor confidence and activity.
The new Mineral Development Strategy offers a solid commitment to the mining industry. It is a real, concerted, tangible Strategy that shows we are serious about addressing the investment challenges that have been barriers to realizing sustainable and responsible mineral development.
We need to make a similar commitment to the oil and gas industry. I intend to begin that process formally when we gather for the Inuvik Petroleum Show next month. This year’s theme is “Arctic Energy and Development of Resources”, and this industry audience is the ideal place to kick-start the conversation on renewing confidence in the oil and gas, and mining and mineral investment industry.
Investment in large transportation, energy and communications projects will also offer further economic growth and opportunity.
Our third area of focus can be summarized in one word: Diversity. We need to generate economic activity in other sectors besides resource and infrastructure development.
To nurture and grow a positive, grass-roots economic environment, ITI has earmarked nearly four million dollars over the next two years to advance specific initiatives.
These can – and will – attract and reward the investments of small and new businesses. Businesses that we recognize to be the backbone of our NWT economy.
This includes a considerable investment in tourism initiatives that will attract new markets, develop new tourism products and engage more NWT residents in the tourism sector.
We are building a partnership to facilitate much needed investment in the construction, management and operations of an export-grade fish processing plant for the Great Slave Lake Fishery. And we are developing an Agriculture Strategy for the NWT.
We are wrapping up work on a new Film Strategy for the NWT – and intend to supplement it with a rebate program to attract filmmakers to our Territory.
We are improving our supports for the arts sector – particularly in the areas of marketing and branding – but also in the provision of an expanded raw materials program to support the creation of traditional arts and crafts.
Now, one thing that is a unique challenge for NWT businesses – and one we heard a lot about during our meetings for the Economic Opportunities Strategy – is the huge barrier that the cost of energy has on running your businesses.
In the mid to long term, we are investigating the potential to connect our electricity system to the continental grid. Such a link will provide an opportunity to stabilize and reduce prices.
But clearly, this will take time. In the more immediate term, the investments that will have the most impact are those in energy conservation and efficiency. The GNWT has made it a $7 million priority to establish and deliver programs that work to reduce energy use and costs in the NWT.
We are also addressing issues of red tape. Our planned actions on 11 of the recommendations identified in the NWT Economic Opportunities Strategy are designed to better target, streamline and coordinate government programs and services.
We will be introducing a Business Internship Program this year to assist businesses in smaller centers to recruit and retain accredited accountants, bookkeepers, and office managers.
And, we are embarking on a partnered approach to promote and encourage entrepreneurship in our Territory – especially among the youth and Aboriginal populations.
In all of this, of course, we must not lose sight of the fact that the responsibility of advancing a competitive economic environment belongs to us all.
If we want to have a vibrant economy, everyone will need to be engaged. Implicit in this statement is that we also have to share in the responsibility of investment and risk.
Our economy must mature. Home-grown industries are emerging and evolving in tourism, agriculture, fishing and manufacturing. And opportunities are growing in biomass and film.
With relatively small public investments these can all contribute in defining the long-term, sustainable, economic base that will bring needed stability to the NWT economy – and make it less reliant on government as its driver.
I will conclude today with this point – it is one that was highlighted by the NWT Economic Opportunities Strategy Governance Committee on the conclusion of their work to draft and develop their Strategy.
And I quote…
“The process of developing this strategy has – above all else – confirmed that NWT residents are right to feel optimistic about their future; and are ready and able to make the meaningful decisions that will lead to northern prosperity…”
Our Territory is blessed with great resource potential. As important, we have a shared understanding that these resources can and must be realized in a manner that is responsible and sustainable.
We have the foundation of a proven Northern business community that is already committed and equipped to move our economy forward.
Above all else, we have opportunity – in all regions, and in all sectors – to balance and diversify our economy with grass roots economic development.
Our economic future remains positive and attainable. The Conference Board of Canada’s economic report card released last week confirmed this.
Economic growth of over 15% is expected in the next 10 years. Our Territory’s labour productivity level is the highest in Canada. Per capita incomes in the NWT are well above those of every other Canadian province and territory. Our employment rate is the best in Canada and our Territory’s Gross Domestic Product per capita is the best in North America.
With the final underlying support of a new devolution agreement, everything is in place to realize the message that we have always known to be true… It is the message that I will continue to deliver for the remainder of my term as your Minister:
Our Territory is well on its way to being the single most exciting place in Canada to invest, work, run a business – and especially, live and thrive.
Thank you for your time today.