Debates of June 1, 2006 (day 3)

Thank you, Mr. Speaker. My questions this afternoon are for Mr. Bell, the Minister of Industry, Tourism and Investment, about the future of our secondary diamond industry. Mr. Speaker, the decision by the department last fall to collapse the diamond project division sent a confusing and a disappointing signal to my constituents in this community that our government had abandoned its commitment to this emerging new industry and leaves us, Mr. Speaker, without a team whose job it was to lead our government’s initiatives, protect our investments, help these companies and grow this industry. I felt abandoned myself, Mr. Speaker, after so many efforts that I’ve made, along with my colleagues in this Assembly, to foster this initiative. Now, Mr. Speaker, the question that I want to ask is, in light of these decisions and all the work that has been done that had been undertaken in the past, does this government still believe there’s a future in the NWT for a secondary diamond industry? Thank you, Mr. Speaker.

Thank you, Mr. Braden. The honourable Minister responsible for Industry, Tourism and Investment, Mr. Bell.

Return To Question 25-15(5): Future Of Secondary Diamond Industry

Absolutely, Mr. Speaker, and I’m proud of the work that this government has done in this area.

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I think it was the foresight of past government to establish this, recognize that this was a trade that was worthwhile and worth pursuing. We spent a lot of effort, a lot of time, a lot of money to set the up the programs at Aurora College and if you look at the factories today, whether its Polar Bear or Arslanian, you see the recent press announcements and we have the benefit of seeing some of the financials and know that they’re financially stronger than they have been in the past. The Tiffany factory is moving along, is moving quite well and doing quite well. We did have this issue with the Canada Dene factory that has really been struggling for quite some time. That’s not been any secret, Mr. Speaker. There are business model issues. It was our smallest factory. It was up against a number of very challenging hurdles. That is not the death knell for this industry and I think that the kinds of things that we’ve done with cutting and polishing should be replicated elsewhere. If we are to look at this sector, do a bit of a gap analysis, I think you’d recognize and quickly find that there are probably other areas we can focus on as well, continue to support this. Potentially small engine or diesel engine mechanics, could we put together more programs and more effort in those areas, and there are many, many others. I think we need to sit down and talk about some of these opportunities, but I think we’ve done well here and continue to support it. Thank you, Mr. Speaker.

Thank you, Mr. Bell. Supplementary, Mr. Braden.

Supplementary To Question 25-15(5): Future Of Secondary Diamond Industry

Mr. Speaker, I’m wondering if what the Minister is telling us is that now the diamond unit has been collapsed and things are better without it, I really can’t have that kind of decision. So, you know, now that the expertise that had been assembled over some time has now been dissolved or dissipated, just what is the government doing to grow and enhance this industry, Mr. Speaker?

Thank you, Mr. Braden. Mr. Bell.

Further Return To Question 25-15(5): Future Of Secondary Diamond Industry

Well, Mr. Speaker, we’re working successfully with our industry partners. Our industry partners said to us, quite clearly, we’re not interested in you putting a lot of effort into the National Diamond Strategy. We recognize that and we’ve moved away from that. They asked us to look for a public relations firm that was professional and capable as compared to trying to do these things in house. That meant spending some money with an outside contractor, but we’re doing that. We’re working with industry, we’re recognizing what they need, we’re helping them build brands, we’re fully committed to this. I think our success is evident. I think we’re getting stronger by the day. Our Rare in Nature Campaign is evidence of that, Mr. Speaker. Thank you.

Thank you, Mr. Bell. Supplementary, Mr. Braden.

Supplementary To Question 25-15(5): Future Of Secondary Diamond Industry

Mr. Speaker, a key factor at start-up of the secondary diamond industry, and I believe in the sustainability of it, is the deals that are in place with the suppliers. We have three of the world’s greatest miners exploiting our resource here, doing the best we can to get some value out of it. Now the socio-economic agreements that we’ve signed have been singled out quite often, Mr. Speaker, for the weaknesses that they have in compelling the mines to do deals that are attractive to cutting and polishing, not just the ones that we have here now, Mr. Speaker, but we should really be looking at what can we do to grow this industry. Are we going to revisit these deals, Mr. Speaker, to help us move forward and grow and enhance this industry? Thank you.

Thank you, Mr. Braden. Mr. Bell.

Further Return To Question 25-15(5): Future Of Secondary Diamond Industry

Mr. Speaker, I think if there’s any threat to the secondary industry, any real, credible threat, it’s probably that we won’t find new mines in future. What do we do in 15 years when the pipes that we know about are gone? Really, that’s the threat to the secondary industry. I think we need to focus a lot of our efforts and departmental resources on finding new mines. We continue to support the secondary industry. That’s critical. These arrangements that we’re hearing today, we hear that Arslanian Cutting Works and the Polar Bear factory are very much happy with the new arrangement and new agreement that they have with the mines. They are moving forward, they’re in a stronger position than they’ve ever been in. I think you can say the same for Tiffany, and the Member is well aware of the De Beers arrangements and agreement we have under the socio-economic agreement. Obviously, De Beers is not in production yet, but we look forward to their support of value-added activities in the North. Thank you.

Thank you, Mr. Bell. Final supplementary, Mr. Braden.

Supplementary To Question 25-15(5): Future Of Secondary Diamond Industry

Mr. Speaker, I share the Minister’s hope that we will find new mines and continue on in the future, but what I don’t see, Mr. Speaker, are cutting and polishing factories banging on the door out there looking for authorization and ways to get involved. This industry is not one that has a very optimistic future and that’s why I’m asking these questions, Mr. Speaker. The Minister referenced the National Diamond Strategy, also something that we abandoned. Now Saskatchewan and Ontario are next to become Canadian producers. Their economies of scale are much bigger; their pockets are a lot deeper than ours. What are we going to do, Mr. Speaker, to protect the industry that we have here today as these other Canadian producers come on line without being involved in some kind of a National Diamond Strategy? Thank you.

Thank you, Mr. Braden. Mr. Bell.

Further Return To Question 25-15(5): Future Of Secondary Diamond Industry

Mr. Speaker, we consulted with the local industry about the National Diamond Strategy and about where we should focus our efforts. The local cutting and polishing industry said to us, you know, national efforts are fine and they may make sense in future; right now, work on supporting our efforts and our brands, this is fledgling locally, never mind about Ontario and Saskatchewan, the time will come. At the same time, they were confused that Members in the House would be concerned about the National Diamond Strategy abandonment, as the Member has said, when they were lobbying for that. Mr. Speaker, I think Members have an obligation to sit down and actually talk to the industry before standing up in the House and understand what their efforts are focused on, because that’s what we’re doing, Mr. Speaker, and that’s who we’ve been working with. So National Diamond Strategy in future, yes, probably. Right now, support for this local industry in building these brands. Thank you, Mr. Speaker.