Mahsi. Economic diversification and business support beginning on page 229, with information item on pages 230 to 232. Any questions? Ms. Nokleby.
Thank you, Mr. Chair. I like this area of the budget. It's really the place where given my or really the Minister's reply that I gave to the budget address today, we can tell that the nondiversification of our economy is quite concerning with the sunsetting of the diamond mines. So my first question is going to be around the Canadian Agricultural Partnership. I note that in the estimates for 20232024 that it's at $1.2 million, and prior to that we saw actuals of $488,000.
So can the Minister or the department please let us know what that significant increase of money is for and maybe just a little bit more about some of the future work that's being done there. Thank you.
Mahsi. Minister.
Thank you, Mr. Chair. So the CAP, or the Canadian Agricultural Partnership agreement, is a bilateral agreement with the federal government. It does get renegotiated time to time. And there has been a new framework that was negotiated with the provinces and territories and the federal government. So we are expecting, as a result of that, a 25 percent increase to the overall funding envelope.
Mahsi. Ms. Nokleby.
Thank you, Mr. Chair. I think that's wonderful. I'm sure the Minister's aware we had our food security panel recently and have had a couple, actually, of different presenters come in. I just really can't underscore how important food security is and that also it isn't really always, though, a money issue. So if the Minister hasn't watched or her staff hasn't watched that food panel, I would definitely recommend that they take a look at that.
My next question is just I note that there is some sunsetting here of different supports, which I would assume are because of the COVID funding etcetera sunsetting. That would be things like the regional relief and recovery fund and as well the just various contributions for ECDEV and business support. So I'm not going to ask a lot about that. However, I do look and note that when we look at some of our arts and film industry type subsidies or sorry, contributions, they're not really increasing by much. I know we've put $200,000 into the film industry rebate, which I think is great. However, I really am struggling to understand how we would think that film can go anywhere in the North if only we've got towards it is $300,000.
So can the Minister speak to what is the plan there. I know she's spoken in the House already about film but are we going to see, say in 20242025, a bigger jump there? Thank you.
Mahsi. Minister.
Thank you, Mr. Chair. Mr. Chair yeah, I mean at this point we'd like to get through 20232024's budget before I have a hope about what might happen in 20242025.
But with respect to film, we certainly did see this was an area where we are seeing a significant amount of growth, both in terms of local production but also in terms of the amount of films that are coming and scouting locations. This was actually an area that saw a lot challenge in COVID because people couldn't travel into the territories even though they were asking. They were looking to come and get ready to film so that they'd be ready to go when COVID lifted and that obviously wasn't how we approached keeping everyone safe here in the Northwest Territories.
The good news is though, is that the interest remains and there's been a lot of growth in this area. So this is a significant increase to the budget, to go it's more than doubling where it was at, but there is certainly that demand there. And if it is successful and is utilized successfully, which we fully expect it will be, then there may be an argument in favour of seeing something more in the future. But at this point, we'll be happy to spend the money that's been projected or been allocated at this point. Thank you.
Mahsi. Ms. Nokleby.
Thank you, Mr. Chair. And I do appreciate that the Minister does not have a crystal ball to tell us what's going to happen in the future. But I know that I think I can even speak for my colleagues that this is an area where obviously we would support, I think, increased funding.
Another area where we would support increased funding is under the SEED program. And one of the reasons I really enjoyed like the SEED program is that it's not specific to any type of industry, and really anybody can access. And I very much try to promote people when they tell me they have a business idea that they need to go and talk to ITI about getting themselves some SEED support. So I know why we've gone from $4.2 million to 3.86. That is additional money that was put in for COVID. I am disappointed though that we didn't maintain that extra funding and, really, I think that we should actually really look at increasing this more, not only by what maybe we might be wanting as Regular Members but even greater than that, because it can just be used so versatilely.
So can the Minister speak to whether or not we think we're going to see an increase in funding for the SEED pot? Thank you.
Mahsi. Minister.
Thank you, Mr. Chair. And Mr. Chair, this is certainly an area that I know can be very popular in terms of having that SEED support. What we did during COVID was because there was other areas that weren't being fully utilized in light of the restrictions and changes during the pandemic, there was some ability to move money over to the SEED program to provide supports at times when small businesses were very much struggling. As far as what the future of the program is, we are you know, this is an area where there hasn't been a significant indepth review done in some time. It is still a significant amount of public dollars that goes out into the private sector, in an area that I would agree, is quite important. So at this point looking for an opportunity to, you know, make sure that that funding is being utilized effectively and then potentially seeing it come through another initiatives process in the future. But, again, that's a bit speculative right now. Thank you.
Mahsi. Ms. Nokleby.
Thank you, Mr. Chair. Yeah, again, as I echoed, said before, I think you would definitely find support from the Regular Members for more money into that. We often talk about getting money into communities, etcetera, is better for our economy than having it sit in the government pots.
Speaking of that, the community futures – sorry, the community transfer initiatives no, I'm looking at the wrong one. What am I looking at here? Community futures, sorry. Perhaps maybe we could think of some different naming for some of these pots, but.
I note that it's at $450,000. We had given $600,000 before. This is the area where there are a couple community futures organizations that are not under the funding or under the umbrella or support of the GNWT. Is that correct, Mr. Chair?
Mahsi. Minister.
Mr. Chair, there is just one that is operating on its own. Its I believe in Hay River, Mr. Chair. Thank you.
Mahsi. Ms. Nokleby.
Thank you. I just wanted to make sure I was talking about the right thing before I proceeded. Is there any chance then that this community futures group would be brought back into the fold so to say, and what really is this is again another area where I think perhaps some increased money would be useful as it takes the burden off the department to find the people to give money to and gives it to a different organization. However, I have heard complaints that at times these organizations are not being fairly run or at times that there's appearance of favoritism in the communities.
So can the Minister or department speak a bit to is there any reach that they have in there that they then use to sort of control that and, really, this negligent sort of increase of less than 20K isn't really that much. So, again, another area I would support increased funding for. Thank you, Mr. Chair.
Mahsi. Minister.
Thank you, Mr. Chair. With respect to the one organization that's not part of the community futures program formally, Mr. Chair, that's been a decision of their own making. I'm certainly happy to see them come back should they wish to be part of this particular process and the funding pot and the funding stream. There's reporting requirements and obviously requires the organization to have its books in order and to be able to report on them and whether they want to follow the guidelines as provided. But certainly can't force anyone to modify their governing structure according to what we would expect to have public dollars. And then as for, you know, seeing further increases, again the 2.2 percent that was put out by the Department of Finance was, you know can't necessarily predict what inflation was doing but it was meant to reflect a CPI increase. And I know the Bank of Canada is hoping we'll be back down at 3 or 4 percent next year so hopefully that ongoing 2 percent increase will be a little more meaningful as time goes on. Thank you, Mr. Chair.
Mahsi. Ms. Nokleby.
Thank you, Mr. Chair. And if I don't already have this in the schedules, could the Minister provide me with the breakdown of the different community futures and how much money they're each getting? It perhaps is in the schedules and maybe she just needs to remind me of which page that's on. I'll let her answer that.
But I just want to do one last thing while I've got 17 seconds left here. The northern food development program, glad again to see that we've sustained the funding of $550,000. However, again, my comment being that it's probably too low. Can the Minister speak a little bit to whether or not there's other funding that they can find or whether that money is going to go the number's going to go up? Thank you.
Mahsi. Minister.
Thank you, Mr. Chair. And certainly we'll commit to make sure we can provide the breakdown. I'm not sure if it's in the schedules for sure or not. I don't need to read it out here.
And as for an increase to the northern food development program, again, at this point, our understanding is that it is actually meeting needs. This isn't a program that's necessarily oversubscribed. But I'll certainly take that comment back and just confirm with the department that that continues to be the case. It certainly was from 20222023 until now. Thank you.
Mahsi. Next up, Ms. Cleveland.
Thank you very much, Mr. Chair. Mr. Chair, I’m going to pick up where MLA Nokleby left off which was in agriculture there.
And just in terms of the grants that are available to different people involved in agriculture, what I have heard is that the reporting requirements or expectations are a little bit too onerous for the value of the grant. And so I just wanted to kind of leave that there. I do understand from the agrifood association that that is something that they have been following up with the GNWT on, and so I think it's worth noting just so that we can ensure that these dollars get out the door and get into hands of Northerners who want to participate in food growing and be part of that future. So just a note there, Mr. Chair.
My next line of questions that I wanted to ask about was fisheries. And was just laughing with the Member for Hay River South that I never thought I would speak so much about fish as I have in the length of this term, so I appreciate the opportunity.
I understand that the fishery sector support position is being sunset. And I'm wondering if the Minister can speak to how they intend to fill the potential gap that might be left by that sunset of the position or how they intend to fulfill that role without those dollars? Thank you.
Mahsi. Minister.
Thank you, Mr. Chair. Mr. Chair, so, firstly, just quickly with respect to agrifood, I am conscious of the Member's time but I'm actually at their association AGM next Friday and so certainly can follow up immediately and make note of the fact that this has been brought to our attention with respect to reporting to see exactly what the issue is.
And with respect then to the position for the fisheries, it is, indeed, a sunset but that is in part I think there was an expectation that the position was going to seconded to the Tu Cho for two years and in fact now the position is just changing in terms of responsibility in who is paying, Department of Fisheries and Oceans is able now to help with that, support that, and so I'm happy to not have to spend the GNWT's dollars in that respect. Thank you, Mr. Chair.
Mahsi. Ms. Cleveland.
Thank you very much, Mr. Chair. So I see under commercial fisheries and contributions, there's a little bit of a difference, which I assume is that, that sunset there.
Can the Minister speak to whether or not there are any expected legislative changes required to the Fisheries Act coming forward from changes to the fisheries sector expected in the next year and if they have the resources to fulfill that work? Thank you.
Mahsi. Minister.
Thank you, Mr. Chair. Yes, there are changes expected but exactly where they will be coming from is still unknown. That is in the sense that the Freshwater Fish Marking Act is a federal piece of legislation. They, the federal government, the Department of Fisheries and Oceans, has been doing a review of that and is working on some form of transition that I, as of yet, don't know for sure. We are working closely, though, with them. There was, in fact, just a meeting last week with both the Tu Cho Fisher Cooperative here in the Northwest Territories, ourselves, and the FFMC to just make sure everyone's aligned. And right now, our priority is getting the fish plant operational, having a manager in place to run the fish plant and then that will transition so that the FFMCrun plant will transition to ours and that can then allow the process by which the fish can move out to the south directly and we'll, hopefully by that point, know what FFMC's plans are to extricate themselves entirely and allow us to move forward. So then we'll know whether it's their legislation that's changing, our legislation that's changing, or exactly when we're figuring it'll be about a couple of years of working, Mr. Chair, but right now not anticipating at this time any need for further supports outside of the capacity of the department. Thank you.
Mahsi. Ms. Cleveland.
Thank you Mr. Chair, I just want to repeat I know something that the Minister has heard me say before, but I think it's really important to repeat, and that is that there are existing federallyaccredited fish plants in the Northwest Territories already. And I just want to essentially hear a commitment from the Minister to ensure that when they're going through these talks at federal tables that that is recalled and advocated for so that we're not inadvertently pushing out people in the business sector who have had a tremendous amount of investment into this sector already. Thank you.
Mahsi. Minister.
Thank you, Mr. Chair. Mr. Chair, I am well aware that there are other fish plants and thrilled that there are other fish plants. We are not even remotely close to meeting our quota of fishing of freshwater fish here in the Northwest Territories. There's ample opportunity. If anything, I think our challenge is more on the side of having more fishers. And we certainly will make that point to raise this issue. I think the deputy minister actually may have an opportunity as early as tomorrow. If this comes up, she's at FFMC's meeting tomorrow just to make that they are aware of the complexity of our industry, that it's not just about the fish plant. But there's no intention to compete, and there's no need to. There's enough fish and enough market for that fish. Thank you, Mr. Chair.
Mahsi. Ms. Cleveland.
Thank you, Mr. Chair. I absolutely agree with the Minister and think that there is ample opportunity for business development across the territory and absolutely support that. I just want to make sure that we don't have legislation at the end of the day that cuts out people who maybe are not directly affiliated with the plant but who also support the plant. Which brings me to SEED.
And so, again, in terms of what one of my colleagues noted was the decline in SEED with the removal of the COVID supports. My concern is that with the economy where it is right now and the high rate of inflation, that this is a time where people might be looking for things like SEED in order to expand their business and find every opportunity to do so. And so I think that the more that we can put into SEED and invest in northern economic development, the better.
One of the things that I'm wondering here is in terms of the micro business, if the Minister can speak to whether or not that pot of SEED funding that is specific to artists and artisans was fully subscribed, and if it is and other pots aren't, if they're able to pull from other pots that have not been fully subscribed in order to meet the demand for that one? Thank you.
Mahsi. Minister.
Thank you, Mr. Chair. So, again, I'm happy to hear the support for the SEED program. Again, recognizing it's popular but recognizing, too, that there was a desire just to make sure that that fund is actually being effectively used. We want to make sure that those that are getting the money are using it in a way that grows businesses, in a way that supports local economies. There are some that are frequent returners to the program and that may or may not be the best use of public dollars to actually grow a marketplace economy. But these are all questions that need to be answered in a methodical and analytical way before putting more money into the program. We certainly are able to move money from within this division to support if there’s particular elements under SEED, because there are some divisions within SEED I'm sure the Member knows including micro business. Mr. Chair, I would suggest there's a fairly detailed analysis done in the grants and contributions as to who gets the SEED money. And I'd rather suggest that we I not do that, taking up the Member's time, but can certainly provide that information after the fact. I can say I'm informed that we have about $100,000 left right. So even coming up at the end of the fiscal, there's still room in SEED. Thank you.
Mahsi. Ms. Cleveland.
That is excellent news, Mr. Chair. Thank you very much for that. So what I would like to know is if the review that's currently taking place with SEED, if that will include a review of the market disruption clause and also any kind of potential down the road for a residency postgrant requirement. So people who are getting SEED aren't turning around as soon as they get it and leaving the territory with that investment in their business, that they're actually staying and doing that business development here in the territory. Thank you.
Mahsi. Minister.
Thank you, Mr. Chair. Mr. Chair, there was an effort done to do some engagement on SEED right towards the end of COVID. It wasn't it didn't get a lot of uptake in terms of feedback and this is the program where, obviously and specifically looking at the question of market disruption. That was one of the main areas that was asked. It is one where there's a divide a bit between small and large centers in terms of whether there should or should not be market disruption. And so while I this is policy and it can change, wanted to go back when the economy's settled a little bit so there is a desire, and I know I've spoken to the department just in the last few days, about making sure we get that work done this Assembly, to look at the market disruption clause in SEED and see if we can approve it. So I hope that is a sufficient commitment for the Member. Thank you.
Mahsi. Ms. Cleveland.
Thank you, Mr. Chair. I'm going to squeak in one last question, and that is in regards to the manufacturing strategy.
One of the things that came out of the procurement review was a recommendation to actually implement the recommendations that came out of the manufacturing strategy. So I'm wondering if the economic diversification and business support team have the dollars to and resources, rather, to actually implement those recommendations and what recommendations we can see implemented before the end of the 19th Assembly? Thank you.
Mahsi. Minister.
Thank you, Mr. Chair. Mr. Chair, we are still doing some work on the manufacturing strategy. Some of it comes in under the procurement review stream, but I don't have the exact order. Perhaps I'll turn it to the deputy minister if she could give a bit of a brief summary of where we're at on that.
Deputy minister.
Yes, thank you, Mr. Chair. So, yes, with respect to the NWT manufacturer's products policy, the first thing that you're going to see released are guidelines which will provide, you know, more transparency, timelines. And within that as well, as the Minister referred, the procurement review, we will be looking at some additional pieces on what the future of that policy should look like.
With respect to the manufacturing strategy, yes, there are 17 actions and a number of them are well underway. Some of them are completed. And, yes, at this point we do have the inhouse resources to advance most of those. Thank you, Mr. Chair.
