Thank you. Is ITI's sole involvement in the development of this plan setting reduction targets for BDIC? Thank you.
Thank you, Mr. Testart. Minister Schumann.
Thank you, Mr. Chair. We went to them and asked them what they can do to help offset our reductions, and they came forward with what they think would work. They believe, as I said already, that they can carry out their programs and meet the objections of the BDIC for the people of the Northwest Territories for economic development. That is what we have brought forward, and we stand behind it. Thank you, Mr. Chair.
Thank you, Minister Schumann. Mr. Testart.
Thank you, Mr. Chairman. Minister, are there future cuts contemplated apart from this, or is this the extent of the reduction exercise that we will see for BDIC over the remainder of this term of government? Thank you.
Thank you, Mr. Testart. Minister Schumann.
Thank you, Mr. Chair. In the remaining life of this government, after this session is done and we get the budget passed, no, we will not be asking the BDIC for any more cuts. Thank you, Mr. Chair.
Thank you, Minister Schumann. Mr. Testart.
Thank you, Mr. Chairman, and thank you Minister. That is a welcome commitment. You will note that the Standing Committee on Priorities and Planning has also asked that this cut be foregone, so I will leave that with you for consideration. Another area of concern is, of course, the SEED program. I note that the SEED program has remained stable in funding, which is also welcome, but why have we not looked at enriching this program? Are all areas of the many buckets available for access, are they being fully subscribed, or are there some areas that have less interest than others? Thank you.
Thank you, Mr. Testart. Minister Schumann.
Thank you, Mr. Chair. As I said in an earlier answer, the SEED is fully subscribed in the Northwest Territories. My concern is: how are we actually spending this money? Are we targeting it properly to diversify and grow the economy in the Northwest Territories?
Also, to the other Member's comment that he mentioned, there are many buckets of money. There are a number of programs in the Northwest Territories for people to access, from community futures, to SEED, to BDIC, to different funding in ITI for tourism support, so there are a number of initiatives that are available through the department and outside sources of funding in the Northwest Territories to help people grow their businesses or start a new business in the Northwest Territories. Thank you, Mr. Chair.
Thank you, Minister Schumann. Mr. Testart, you have a little bit of time left.
Thank you, Mr. Chairman. Noting the clock, I will yield the remainder of my time. Thank you.
Thank you, Mr. Testart. Mr. Simpson.
Thank you, Mr. Chair. What is the total amount that BDIC has available to lend? Thank you, Mr. Chair.
Thank you, Mr. Simpson. Minister Schumann.
Thank you, Mr. Chair. We would have to look that up and get back to the Member. Thank you, Mr. Chair.
Thank you, Minister Schumann. Mr. Simpson.
Thank you, Mr. Chair. That is unfortunate. I figured that would be something that would be in one of those big briefing binders. What is the total amount that BDIC is able to lend each person? Thank you, Mr. Chair.
Thank you, Mr. Simpson. Minister Schumann.
Mr. Chair, I believe the maximum they can lend an individual is $2 million. Thank you, Mr. Chair.
Thank you, Minister Schumann. Mr. Simpson.
Thank you, Mr. Chair. How long has that number been in place, and is it indexed to inflation? Thank you, Mr. Chair.
Thank you, Mr. Simpson. Minister Schumann.
Thank you, Mr. Chair. I believe that is been in place roughly about five years, if I remember correctly. I do not believe it is tied to CPI. Thank you, Mr. Chair.
Thank you, Minister Schumann. Mr. Simpson.
Thank you, Mr. Chair. So, the money in this budget, this line item here for NWT Business Development and Investment Corporation, almost $3 million, that is just to manage the lending of the money. Is that correct? Thank you, Mr. Chair.
Thank you, Mr. Simpson. Minister Schumann.
Thank you, Mr. Chair. That is also for the collection and the subsidiaries of BDIC. Thank you, Mr. Chair.
Thank you, Minister Schumann. Mr. Simpson.
Thank you, Mr. Chair. You can see why it is difficult to vote on these types of items without more information. What exactly am I voting on here? It is not clear in these main estimates. In the coming years, they really need to be fleshed out a bit more.
We discussed SEED already, but I have a few more questions. The Minister said he was looking into how that money is actually used. Is there some sort of a system that each region is using, some sort of uniform system that the information is being put in: who the money is being lent to, what sector it is going into, and then returns on investment? Is there some sort of unified program that the department will be able to look at to make a determination, evidencebased determination, of how that SEED money is being used? Thank you, Mr. Chair.
Thank you, Mr. Simpson. Minister Schumann.
Thank you, Mr. Chair. I believe that information is already out there. It is all in the grants and contributions reports. Thank you, Mr. Chair.
Thank you, Minister Schumann. Mr. Simpson.
Thank you, Mr. Chair. So, just to confirm, the grants and contributions report will tell us how effectively that money was spent, what the return on investment for the GNWT was, which sectors the investments are most needed in, most useful for, and most profitable in, and have created the most number of jobs and the greatest economic diversification? Thank you, Mr. Chair.
Thank you, Mr. Simpson. Minister Schumann, if you want to add the amount of the lending portfolio to the question, as mentioned by Mr. Simpson, go ahead. Minister Schumann.
Thank you, Mr. Chair. That is why I said I wanted to review how SEED is getting allocated, but, in the grants and contributions, if you look in there, it is broken out into five different areas right now, sector support, micro business, entrepreneur support, community economic development, and business intelligence and networking. Thank you, Mr. Chair.
Thank you, Minister Schumann. Mr. Simpson.
Thank you, Mr. Chair. I think that the Minister is probably trying to we are trying to get to the same point here, of being able to look at where the money is being spent and how well it is being spent to make some decisions about it.
Are there policy changes coming as to how SEED can be distributed? I believe it is $15,000 per person right now, but are there options to maybe make that a bit more flexible, say if a cooperative or some other entity needed some money to do something that might cost more than $15,000? If it was a micro fish plant that might $100,000, are there opportunities to fund those types of endeavours with SEED? Thank you, Mr. Chair.
Thank you, Mr. Simpson. Minister Schumann.
With SEED, I already have the authority to go over $15,000, so if something came forward and there was an initiative that I believe we can support, the Minister can sign off and go above the $15,000.
Just back to the Member's earlier question, though, about sectors, if you actually go into the grants and contributions, in there on page 12, it also breaks it out by activity. It has all the sectors, I believe, that he was trying to get to. It has agriculture, arts and crafts, business conferences, ecommerce, education. All these sorts of things are broken out by percentages and amount of money, so all that information is available there. Thank you, Mr. Chair.
Thank you, Minister Schumann. Mr. Simpson.
Thank you, Mr. Chair. You mentioned manufacturing, the new manufacturing sheets, the promotional sheets. What has been the response to those from industry? Thank you, Mr. Chair.
Thank you, Mr. Simpson. Minister Schumann.
Thank you, Mr. Chair. The sheet that I seen was just in draft form, so I don't think we have actually sent them out and shared them with everybody yet. Thank you, Mr. Chair.
Thank you, Minister Schumann. Mr. Simpson.
Thank you, Mr. Chair. From what I have heard from industry who have seen them, they might need a bit of work. Finally, I just have some questions. I would like the rationale for having the manager of Traditional Economy, Agriculture and Fisheries located in Yellowknife. I know I discussed this in the House. The Minister stated that the other person in that department, the other position, is located in Hay River, although the government's website states that that is located, actually, in Yellowknife, along with an intern who is also located in Yellowknife. This manager manages that person, an occasional intern, and the person in the fur section, which is in Yellowknife.
Now, this position talks about setting the direction for the sectors, the fisheries and agriculture sector. I am not discounting fur. It was a milliondollar sector last year. Fisheries was $1.2 million and, according to the strategy, it could grow tenfold. Agriculture is also on the move. Both of those are centred in the South Slave.
Now, this position needs to have industry consultation meetings, needs to know what is going on with the industry, what is going on with the people on the ground. With the way the GNWT is set up, you don't need to be in Yellowknife if you are a manager. You don't need to be in Yellowknife to be in touch with headquarters. We have Internet, telephones, all that kind of stuff now, so I would just like the rationale why this position is in Yellowknife instead of where it could do the most good for the territory as a whole? Thank you, Mr. Chair.
Thank you, Mr. Simpson. Minister Schumann, on the position transfer.
Thank you, Mr. Chair. The reason it is in Yellowknife is because it is looking after the Northwest Territories as a whole. It is a panterritorial position, so that position is located here to do that stuff. As the Member alluded to, we talked about it in the House, the position is going to be getting reprofiled in Hay River to look after the fishery and agriculture strategy, and they also have the full support of the superintendent of ITI in this House, who also works on all these files and helps direct some of that stuff. Thank you, Mr. Chair.
Thank you, Minister Schumann. Mr. Simpson, there is time allowed for another.
