Thank you, Mr. Speaker. When I presented my budget to this Assembly in February I spoke about a need to develop a broad macroeconomic policy for the NWT. Today I want to talk about how we will accomplish this.

We have all heard the statistics about the tremendous economic growth the NWT has experienced; 71 percent growth in gross domestic product since 1999, the highest employment rates in Canada and higher levels of income for workers. Much of this growth has come from investment in the construction of diamond mines and from exports of diamonds, with some growth associated with oil and gas exploration activities. Spin-offs from this growth have been experienced more strongly in the construction sector, manufacturing, and in the area of professional and technical services.

The labour market in the NWT is operating at close to full capacity. Higher incomes have resulted in increased consumer spending. The NWT retail sector and even our population has grown since 1999, but at a slower rate than the economy as a whole.

Despite a healthy economy, the linkages between the key economic drivers and the rest of the economy are still not well established. The local impacts of economic activity in the NWT are lower than would be seen in other parts of Canada.

Economic activity in the NWT over the next decade is forecast to continue to be strong. Expansion of the diamond mining industry, the construction of the Mackenzie gas project, and other potential projects all contribute to a positive economic outlook.

As I stated in the February budget address, the Northwest Territories faces important questions as we proceed with economic development. What do we want the NWT to look like in five, 10 or 20 years? What does this mean in terms of the types of economic development we should encourage? Do some types of economic development provide a better return to NWT residents than others? How do we address labour force issues? What key strategies and actions are needed to meet our goals? What government expenditure and taxation policies will best help us achieve our objectives?

We know we need to make investments in our economy and in our people, but our resources are limited. We will need to make choices and set priorities. We need a policy framework that will help guide us in setting these priorities.

Over the next few months we will be seeking advice from northerners on what this framework should look like. These questions will be presented to NWT residents, aboriginal and community leaders, business leaders, and other organizations. Advice from recognized experts will be sought to complement the research and analysis of our own staff. Guidance from the Members of the Legislative Assembly will be an important element of these consultations. We will solicit views through public advertisements, by writing the key stakeholders and organizing a number of roundtable discussions. This process has begun. People will be receiving materials and information soon, and two roundtables are scheduled to take place in Yellowknife and Inuvik in November.

When I present the 2007 budget next February, the Assembly will be presented with a document that summarizes the consultation results and presents proposals for next steps. I plan to seek further advice after that before coming back with a final paper with answers to the questions posed earlier.

That, of course, will not be the end of the process; it is only the beginning. Over the coming years, as we need to make choices, those choices can be analyzed and examined to determine the net economic benefit to the NWT, and recommendations can be made in light of the priorities that NWT residents have identified.

Mr. Speaker, I have been told by people in southern Canada that the message they hear from the NWT on development is foggy. Do we want development? It is not clear to those who view us from a distance. The answer may be yes, we want development, but we want it to happen in a way that will provide long-term, sustainable benefits for the NWT. To ensure this occurs, we, as NWT residents, need to be clear about our goals and priorities and what choices we are prepared to make to achieve them. A macroeconomic policy will help provide that clarity and direction. Thank you, Mr. Speaker.

---Applause