Thank you, Mr. Chairman. Mr. Chairman, previously in Fort Resolution, the NWT Development Corporation, prior to their amalgamation into the Business Development and Investment Corporation, supported a business in the community of a sawmill. Similar supports to the businesses that are successful now under that investment corporation like Acho Dene Fur Clouds and Fort McPherson Canvas Shop. I understand from discussions with local people that there was always an intention, even though that business of the sawmill did receive a lot of support from the government, ultimately at the end of the day, it was not viable. I was made to understand from the people in Fort Resolution that there was always a plan for the dev corp and now the investment corp to return to that community to create a business in the community. I just want to get the Minister’s opinion on that. Thank you, Mr. Chairman.
Thank you, Mr. Beaulieu. Mr. Minister.
Thank you, Mr. Chair. I am quite familiar with the history of the Fort Resolution sawmill. I think that it was in existence for quite a long period of time through different management regimes and the last operation that I am familiar with, it was owned by the NWT Development Corporation. At that time, there was always an issue with accessing timber and that’s still an issue for forestry operators in the Northwest Territories.
The biggest problem in finding an efficient sawmill that could maximize the utilization of the timber. I believe, if I recall correctly, the recovery rate was something like 50 percent, which is very, very low when you’re harvesting timber.
Also, the corporation, for a number of reasons, lost a significant amount of money and consequently there was a lot of investment written off. I don’t think there have been any proposals that the corporation has looked at recently which would indicate it was feasible at this point.
I recognize that the sawmill didn’t work out, although it existed and created lots of business and put some income into the community and some employment. As I’ve often indicated, the low employment in Tu Nedhe communities, I was more or less thinking of opportunities for some other business in both Fort Resolution and Lutselk’e, opportunity for a business similar to the type of businesses that the investment corporation now supports in other parts of the North. There is no business in Tu Nedhe that is supported by the investment corporation. That’s basically what I’m asking. Are there plans for the government or ITI to work with BDIC to try to get back into Tu Nedhe through Fort Resolution and Lutselk’e to look at some business that may be viable if not lumber?
The direction that I’ve provided to not only BDIC but also to the Department of ITI is that we want to work towards the objective of having an ongoing operation in every community in the Northwest Territories. So that’s our objective. We only have limited resources, so in the long term we are definitely interested in having something in Fort Resolution and Lutselk’e. We are working at establishing new economic development initiatives right now. We’re looking at establishing at least three every year. Ultimately we’ll have something in every community. Certainly if there is a business opportunity that can be identified for Fort Resolution or Lutselk'e, we would try to advance it. Thank you, Mr. Chair.
Mr. Chairman, just shifting gears for a minute here, one of the other key areas in both Tu Nedhe communities, Lutselk'e and Fort Resolution, seem to be small loans. I’m not sure if that’s some sort of venture capital needed by some smaller scale businessmen in the community just employing one or two people and just some capital to get their business off the ground. Right now, the structure is set up where the economic development officers don’t work directly for the department but actually the department has a contribution agreement with the local organization to bring the EDOs into the community to deliver programs.
I’m not sure if the department... I guess my question would be: would the department go and support the economic development officers to maybe advertise or do some sort of communication strategy within the communities so that individuals are aware that that’s where they go and maybe advising what type of programs are available? I notice that in one community through ITI, like, through trapping they’ll get $5,000 grants. Then another community hasn’t even heard of it or I can’t track down where the holders of the grants in that community are. So I’m wondering if the Minister can just fill me in on those two points. One is EDOs there, what type of support are they getting from ITI? The other is when they do provide pots of money into the traditional harvesting, what type of communications are in place so the people in the community know? Thank you.
We have a variety of delivery agents and either they’re ITI staff or they’re community transferred positions or we contract with a band or some other entity to provide the service. So what we do is if it’s a community transferred position, we review it periodically. We make sure that the funding we’ve been providing is adequate. We bring together all of our delivery agents together on a regular basis to make sure that everybody has the same information and also to communicate and market the programs that we have. If the Member feels that that’s not happening in his community, well, we will follow up and take proactive action so that all of the programs are being marketed and promoted in Fort Resolution. Thank you.
Thank you, Mr. Minister. Mr. Beaulieu, your time has expired as well. I can put you back on the list if you like, but now the chair is going to recognize Mr. Bromley.
Thank you, Mr. Chair. I had one follow-up. The Minister did let me know earlier that a review is being done of the support for the film industry. I’ve been having a lot of meetings with the folks lately and I guess they’re calling it now the new media industry. It involves a little more than film. Media is changing so quickly. I thought I’d start by asking what’s the focus of the review, what’s entailed in it, who is doing it and if there’s a time frame to it. Thank you.
Thank you, Mr. Bromley. Mr. Minister.
Thank you, Mr. Chair. Because of the different projects we have been working on, we are looking at starting the review later this spring and it will be done internally. Our expectation or my expectation is we would look at what all of the different jurisdictions are doing. A lot of people are referencing what Yukon is doing or what Nunavut is doing. In the past, with support to the film industry, the biggest concern was we were just funding southern companies to come up and leave with the money in their pocket and there was no benefits remaining. Obviously times change and we were prepared to do a review and once we determine that there are significant benefits, then we would make representation to obtain additional resources and perhaps even go as far as looking at tax credits if that’s what other jurisdictions are doing to compete to see who ultimately...it’s whoever provides the most benefits that attract these filmmakers. Thank you, Mr. Chair.
I appreciate those comments and it’s a very positive move. Of course, there are many and they are easy to get at, a couple of clicks on the Internet and we can see what Nunavut and Yukon are doing. It’s very similar between the two territories, assistance with local hires. You can put conditions on it to ensure that the majority of hires are local or territorial before you get the support and so on; different mechanisms to maximize the degree of support with the investment made; travel assistance, recognizing the size of the Territory and so on.
I know the department has looked at it before, but it’s regarded so far as fairly shallow when they have looked at it. They don’t have the expertise on staff or at least they probably don’t have all the answers. Few agencies do have all the answers. I’m wondering if this review is open to participation by the public. As I mentioned earlier, we do have a lot of people who have on the ground experience, both within this jurisdiction and elsewhere. They usually have to go elsewhere to get support even if they are working here. If the Minister will be incorporating their perspectives and insights into that review and how that will be done, again an important diversifying opportunity for our economy.
We will be seeking input from filmmakers in the Northwest Territories. Our preference is doing it internally. We don’t want to be accused of relying too much on outside consultants to do things that could be done internally. Thank you, Mr. Chair.
That’s good to hear. I know there are a number of eager people out there who would enjoy the opportunity to participate in a review. For that matter, there are probably lots of people in the Territory who have expertise and could do an actual independent review rather than an internal review that I think might bring some benefit as well. I hope the Minister could consider that or perhaps that’s next on down the road as the next after we do our internal one.
Right now we have a Film Commission as we hear from the Minister often and yet there is really nothing there. It’s a paper exercise. I think one of the things is really our perspective in how we approach this. Really, if we want to see it develop, we are going to have to think positive on it and do some meaningful things.
I’m wondering if the Minister would also consider developing a commission with actual expertise and real bodies in it that have an interest in seeing this opportunity develop.
I guess I see that as being part of the assessment. We do have an NWT Film Commission. Basically it provides liaison and provides advice to perspective filmmakers. So far, as the Member indicated, we do have three reality TV shows that have been operating in the North and we would like... I think obviously there are a lot of stories to be told up here, so we should take advantage of that. Thank you, Mr. Chair.
The Minister brings up a good point. We do have a lot of stories to be told. Unfortunately, right now, it’s people elsewhere who are coming up and trying to tell our stories, spending a few dollars and then leaving and spending all the big dollars in production and labour and so on elsewhere. I know that’s one of the real motivating factors of our artists in the film industry, is that they want to be telling their own stories, the northern stories themselves. So I hope that will be considered as well.
My last focus, Mr. Chair, is will the Minister be bringing this review, the framework for the review to committee and when the results are here, will he be bringing that to committee as well?
We always consult very closely with the Standing Committee on Economic Development and Investment, so we would be doing that. Thank you, Mr. Chair.
Thank you, Mr. Minister. Anything further, Mr. Bromley?
No, I appreciate that commitment. Thank you, Mr. Chair.
Thank you, Mr. Bromley. Next, the chair will recognize Ms. Bisaro.
Thank you, Mr. Chair. I just have a couple of questions. The first one references the study and the potential changes to the Business Incentive Plan, which has been out there being studied, being reviewed for quite some time. I wonder if I can get an update from the Minister on where the consultation on potential changes to the BIP is at and whether or not there is any plan to make changes. Thank you, Mr. Chair.
Thank you, Ms, Bisaro. Mr. Minister.
Thank you, Mr. Chair. I am pleased to advise that the consultation has been completed. We have confirmed a date to come back to the standing committee to report on the results of the consultation as per the direction we received from committee. Thank you, Mr. Chair.
As usual, I need to be a little more specific with my dates to get it into my head. The Minister mentions a date, but whether that is in 2010 or 2011, I would like a little bit more specific information of when that date might be, please. Thank you.
My understanding is we have a date that’s been confirmed for the first week of March. I don’t have the exact date, but it’s one of those dates between March 1st and the 5th. Thank you, Mr. Chair.
That’s great to hear that. I would just like to know, once the information has gone to committee, is it the intention of the Minister to publish the results of this consultation to the general public? Thank you.
We would follow policy review convention and it would be referred to a committee, whatever the process is. We’ve already done all the consultation. All the stakeholders are aware of what is being proposed, so we would follow the policy convention of the government. Thank you, Mr. Chair.
Thanks to the Minister, I think. That wasn’t totally clear, but I’ll follow up when the briefing comes down.
I wanted to ask a question with regard to support for Avalon, the company Avalon and the potential for establishing a secondary industry for processing within the NWT for Avalon Rare Earth Metals. I know that the company has been speaking with the government. I believe they have been speaking with ITI. I just want to know from the Minister whether or not the conversations the government is having with the company are going to...if we are entertaining all options and if we are aggressively looking to keep this particular secondary industry within the NWT and trying to avert any possibility of them fleeing and taking their operation to the South. Thank you, Mr. Chair.
We’re doing a number of things with regard to value-added. We are undertaking a review of the competitiveness of the Northwest Territories and we would be looking at competing jurisdictions, because Avalon has told us that they are looking at different locations, not only in the Northwest Territories but also in Alberta and Saskatchewan. So we will be looking at the different jurisdictions.
We’re also planning with our colleagues from DIAND, or CanNor I guess is the more appropriate term, a value-added workshop so that we can determine how we can best support it. Specifically it has been reported in the media about what Avalon is looking for, is power in the Pine Point area, and we are examining what the barriers are. So the question becomes how much are we prepared to contribute in order to maximize the benefits to the Northwest Territories.
With regard to the secondary diamond processing, for example, when we first set up the value-added there we put up loan guarantees for the different manufacturers and more recently we’ve been told to move away from that. So what we’re doing is establishing what it would take to provide incentives for Avalon to set up their secondary processing in the Northwest Territories. So at the appropriate time we would come back and seek support as to what our government would have to do in order to do exactly what the Member has said, to keep the company here and operate in the North. We would say, okay, well, this is what it would take to get them to stay and I guess we would make a conscious decision at that time. Thank you, Mr. Chair.
Thanks for that explanation. I’m very glad to hear that. It sounds as though we are being very positive about wanting to keep this industry here. Judging by the information that I’ve been given, this is a long-term mining project and one that’s going to benefit our Territory, particularly the South Slave for a long time to come. So I think we need to do as much as we can to encourage this industry to locate themselves within the NWT as opposed to outside.
The last time we got information from Avalon there was a bit of a suggestion that they haven’t really had a lot of meetings with either the department or with the Minister and they sort of gave me the suggestion or the interpretation that they sort of felt that we didn’t really want to talk to them, that we didn’t really want to keep them. So I just would like to know from the Minister, are there plans to get in touch with these guys sooner rather than later and to keep the dialogue open and to communicate early and often, as they say. Thank you, Mr. Chair.
I can assure the Member that we have regular interactions with Avalon; our regional staff interact with them almost on a weekly basis. I myself meet with them at every opportunity. The last time I met with management of Avalon was at the Cordilleran Roundup in Vancouver and they do have representatives here in Yellowknife as well. So we have the opportunity to meet with them on a regular basis. Thank you, Mr. Chair.
Thanks to the Minister. That’s all I have.
Thank you. Next on the list I have Mr. Yakeleya.
Thank you, Mr. Chairman. I want to talk about the traditional economy. I want to ask the Minister about the support for traditional economy. There are several suggestions that were coming from Deline in terms of having the elders and trappers take out some young people to pursue this traditional economy and to support them. I think there were some programs, I’m not too sure, but it was something that they were telling me that it wasn’t enough, they want to continue on this here. Is there something like that within the budget here for supporting the traditional economy in regard to the trapping industry?
Minister of ITI.
Thank you, Mr. Chair. We do have a whole host of programs that are available and also we work in very close partnership with other departments and other Ministers. So, for example, we work very closely with the Department of Education, Culture and Employment and Municipal and Community Affairs and also we’ve even had the federal government provide funding on occasion. So the communities that have been most successful in getting the youth to become interested in trapping or being exposed to trapping are the ones that have involved almost the whole community. They bring in elders and so on to work with the youth on these projects. So we’re quite pleased with the Take-a-Kid Trapping Program and I would think that that would be the venue to have the elders participate. Thank you, Mr. Chair.
Mr. Minister.
I should point out, also, that through the Minister of Youth, they are also involved in this Take-a-Kid Trapping Program. Thank you, Mr. Chair.
Thank you. I know that small communities that rely on trapping people have gone out trapping for a good portion of their lives, these elders, and certainly there are some young trappers who also want to be part of that lifestyle. I agree with the Minister that there are programs that contribute to trappers in the Northwest Territories. Just in saying that, I wanted to ask the Minister about the Trapper Training Program. I’m not too sure if it quite goes with the youth trapping, but I could be wrong. It was just something that they were asking that, you know, we have a group of trappers, but maybe six trappers want to take out some youth and go out there for a month or two months, but not a one-time, but have it on a continuous basis throughout the year. There’s different trapping seasons, I guess, and they want to use that. That’s what they were asking. So they do appreciate it, they just say that we wish the government would put this or redirect or allocate some funding from the budget to do this in a way that they know they will have success with the youth there.
We have a bit of flexibility in the program, so our regional office has worked closely with the schools and I think that’s where the flexibility comes in. I know some of the communities, the teachers go out so the kids or the youth can also learn while they’re out there. So if a group of trappers want to get together and bring youth out, I’m sure it could be worked out. Thank you, Mr. Chair.
Thank you. I appreciate the comments from the Minister about the flexibility on this issue. I do agree with the Minister that some of the teachers in some of the smaller communities certainly enjoy getting out on the land with elders and learning about different cultures and that, and they appreciate being in the community. It sure makes a big difference for them to live in our community. They know that they’re taking a risk by going out, but they’re also learning a lot from the people. So I do want to thank the Minister for that.
Mr. Chair, the suggestion by the Minister about the flexibility in the programs I will relay back to my region and I hope that we can have some good discussions with the staff in terms of the flexibility. They did bring up the issue of the high cost of gasoline in the small communities in terms of going out on the land and that, and sometimes that brings down the amount of money that they want because the gas is high. So I think that’s something they want to have some discussion about, but I take the Minister’s words very seriously and I will go back to my region and see what can be done for supporting our trappers.
Thank you. Yes, I would certainly support that, working with the region. Thank you, Mr. Chair.
Anything else, Mr. Yakeleya? Economic diversification and business support, operations expenditure summary, activity summary, $20.599 million. Agreed?
Agreed.
Moving on, activity summary, economic diversification and business support, grants and contributions, grants, $560,000.
Agreed.
Contributions. Moving on to page 12-32, total contributions... Okay, we’ll go to 12-31, Industry, Tourism and Investment, activity summary, economic diversification and business support, grants and contributions. Agreed?
Agreed.
Moving on to page 12-32, Industry, Tourism and Investment, activity summary, economic diversification and business support, grants and contributions, total contributions, $11.193 million. Agreed?
Agreed.
