Thank you, Mr. Speaker. It is a pleasure to speak to you today at the resumption of the second session of the 16th Legislative Assembly. It provides an opportunity to take stock of the busy months we have had and to discuss our directions for the future.
You will recall that together as Members of the Assembly we identified major goals for our great territory:
A strong, independent North, where Northerners make their own decisions and chart their own course;
An environment that sustains Northerners today and into the future;
Healthy and well-educated people with bright futures and the skills they need to benefit from all the opportunities our territory will provide;
A diversified economy providing jobs, business opportunities and prosperity for families and communities;
Sustainable, vibrant and safe communities where people can build their futures;
An effective and efficient government that sets the right priorities and gets the job done.
The government’s plan to pursue those goals remains unchanged. We are moving forward with our plan in a way that develops the natural resources of our territory while respecting the values our people have for the land and the environment.
Our plan began in February, when I laid out the government’s five strategic initiatives:
Building our future through a focus on our children and youth and by promoting healthy choices and supporting families and seniors.
Refocusing government to achieve greater effectiveness and efficiency in how we operate and how we deliver programs and services.
Reducing the cost of living to help Northerners achieve a better quality of life, and to help grow and diversify our economy.
Managing this land by finding the right balance between development and protection of our land and resources.
Maximizing opportunities in the NWT by opening the door to new developments and improving the quality of education and training so that Northerners can take advantage of new jobs and new economic growth.
Lead Ministers have been assigned to work on each initiative, and they look forward to updating Members on their activities during this session. These updates will provide details on the annual spending of over $1.2 billion in social program areas, economic development, and infrastructure that contribute to the overall quality of life in the Northwest Territories.
I have said these five strategic initiatives would be the focus of our efforts and that they would guide the government’s actions and investments as it works toward building a stronger, self-sustaining Northwest Territories and fulfilling the vision of this Assembly.
We followed that with Budget 2008, which backed up our strategic initiatives and solid investments. We took steps to align our budget with our strategic initiatives so that appropriate resources were directed to achieving our vision. We also took steps in Budget 2008 to establish a strong, sustainable fiscal foundation. We made some tough choices.
Even though we are enjoying a time of prosperity in the Northwest Territories, we knew our spending growth was not sustainable in the long term. Our expenditures were growing faster than our revenues, and we sensed the possibility of economic volatility, of financial turmoil ahead. As I said when we introduced Budget 2008, financial ripples can become dangerous waves.
We saw the need to get our budget under control while investing in our key initiatives so that we could protect the NWT’s financial security while building its great future. Our choices were prudent, and we had foresight in our budget, because those dangerous waves have begun.
Now North American and world financial markets are under strain. Stock markets everywhere have had roller coaster rides. There is a lot of confusion and uncertainty out there, and NWT residents and businesses will be affected. So it’s more important than ever that we stay on track, that we keep a firm hand on the rudder, that we stay focused on our goals and that we continue to work our plan. Now is the time to remain steady in our efforts to secure the futures of Northerners.
Our plan is prudent and measured. It will improve the quality of life for individuals, families and communities. It will prepare us for future growth, and it will generate benefits for businesses and consumers alike.
We will continue our efforts to refocus government so that it works better for Northerners and works toward our vision. This means ensuring that government programs and services are achieving their results in efficient ways. It also involves reforming key GNWT boards so that they deliver services effectively and accountably to Northerners. We will also continue to manage government expenditures so that we have a strong fiscal foundation on which to build.
On an ongoing basis we will identify areas for financial improvement — ways we can do things more efficiently and free up dollars. We will also identify new sources of revenue through consultation with Northerners about future revenue options, including potential for growth of our population. We must ensure that the dollars we identify are reinvested wisely, in ways that align with our major initiatives and help Northerners take advantage of the opportunities our territory offers.
Devolution and resource revenue sharing also play a role. Authority over NWT lands and resources remains a key priority of this government and a cornerstone of our strong future. Recently I have made a substantial proposal to the federal government to bring discussions on devolution and resource revenue sharing to a successful conclusion for Northerners. The proposal offers an infrastructure partnership with Canada as an integral component of an overall devolution and resource revenue sharing deal. We must remember that resource revenues are not the panacea that will solve our fiscal challenges and meet all of our fiscal needs overnight, but they will be an important part of our future. I look forward to discussing this topic with the Prime Minister shortly after the federal election.
There has been a lot of talk about the North over the last number of months. More and more Canadians are realizing that the future of the North is vital to the future of Canada and North America. They are realizing that the North holds vast potential for exploration and development. Greater development in the North offers many benefits to both Northerners and Canadians as a whole. It raises our standard of living and provides additional revenue to the GNWT to help fund important programs and services for Northerners, and it builds a stronger NWT, helping to assert Canadian sovereignty.
We’ve got incredible resources here. We have diamonds and other minerals, with more to be found. We have rivers and lakes that offer incredible hydro potential. We have arts and crafts and a unique, rich culture we want to share with visitors to the NWT, and we have oil and natural gas, which the world increasingly needs. We’re investing in the skills and abilities of Northerners to help realize the promise of those resources. Opportunities for Northerners to apply their trades. Opportunities for northern businesses to sell their goods and services. Opportunities for aboriginal investment. Opportunities to partner in our great future.
When the Prime Minister visited Inuvik in late August, I was encouraged. The Prime Minister has shown a welcome level of interest in the North that we have not seen in a long time from federal governments. He has helped put northern issues back on the national radar, so I expected to hear a great deal about seizing our opportunities.
But let me be clear: it is going to take more than an icebreaker and some geo-mapping to assert Canadian sovereignty over the North. It’s going to take more than well wishes to develop our northern resources.
In addition to naming a ship after former Prime Minister Diefenbaker, we need to bring light to his vision. We need to build those roads to resources. We need to grab hold of the opportunities on offer, invest in them and turn them into realities. In short, we need to unlock the incredible energy of the North: the energy beneath the ground and sea, the energy flowing through lakes and rivers and the energy of our people, communities and businesses.
When it comes right down to it, that’s what our strategic initiatives are all about. Obviously, the number one way to unlock the energy of the North is to responsibly develop our vast oil and natural gas resources as soon as possible to the maximum benefit of Northerners.
At one time we considered our North to be isolated and remote, insulated from national and global events and issues, but it’s a new world now. We know climate change is having an impact here in the North. The ice road season is getting shorter. Permafrost is melting.
Last month the Canadian Ice Service announced that the northern deep water route through the Northwest Passage is open once again. It’s only the second time in recorded history. The first time was last year.
This summer Canadian scientists revealed that the ancient ice shelves of Ellesmere Island have been disappearing rapidly. The Arctic is becoming more open and accessible due to melting sea ice — more open to shipping, more open to exploration activity and more open to international interests.
When he refers to Canada’s northern lands and resources, Prime Minister Harper says we need to “use it or lose it.” We all agree on this. Let’s use it.
The timing couldn’t be better for projects like the Mackenzie Gas Project. Energy prices are strong. We’ve got rising worldwide demand for resources. North America is increasingly turning to natural gas as a cleaner alternative. The Arctic is becoming more accessible, and countries are competing for its resources. We’re sitting on trillions of cubic feet of natural gas that everybody wants. It’s time to get a deal finalized and get the Mackenzie Gas Project built.
The Americans have figured this out, already establishing their business case. From a regulatory perspective the Mackenzie gas pipeline has an encouraging head start over the Alaska pipeline. But the business side of the Mackenzie Gas Project still isn’t nailed down.
There are outstanding ownership questions. There are economic questions. There are cost concerns. Every day we debate, every day we wait is a day of progress lost. Meanwhile, we will take the necessary steps here in the NWT to prepare for the finalization of a deal so that when the time comes, we are ready to move forward.
We can also unlock the energy of the North by pursuing greater hydro development. We’ve got incredible hydroelectric power potential in the North. Our rivers and lakes have the potential to generate an additional 11,500 megawatts of hydro power. To put that in perspective, Quebec’s James Bay Project generates just over 16,000 megawatts.
Developing this great resource can help satisfy the power needs of the Northwest Territories, including major industrial users, and help stabilize the cost of living for our residents. Extra power could be exported for use in other Canadian provinces. This will help more Northerners use hydro for their power needs instead of other costly fossil fuels, helping reduce the cost of living. It will help satisfy the growing power needs of other provinces, and it will help all Canadians lower greenhouse gas emissions and address our climate change objectives.
The NWT has the potential to become a clean energy leader of this country — hydro power, biomass and wind energy — and, at the same time, generate new jobs and opportunities for Northerners and reduce their costs of living. We intend to invest significantly in these areas.
Large-scale hydro projects have the greatest potential to make an impact. In the 2008 budget the government made investments to advance work on the Taltson project, and work is proceeding on this project.
But we will also explore additional opportunities in hydro development. This includes mini hydro projects, which could help power smaller communities, and modernization of hydro transmission facilities can help more Northerners take advantage of hydro. The potential is exciting.
But given our limited tax base we don’t have the fiscal capacity to develop these hydro projects all on our own. To unleash this hydro potential, we’ll need the creativity, the innovation and the capacity of the private sector as a key partner.
We’ll be searching for the right partnership opportunities that can help us realize our hydro goals and result in positive, lasting benefits for Northerners. The federal government will also play an important role here. It is critical for us to make the case for the right investments in NWT hydro development.
Finally, we unlock the energy of the North by investing in the potential of Northerners, northern communities and northern businesses by connecting them with great opportunities, by improving their quality of life and by building a strong, self-sufficient Northwest Territories.
I realize the concerns Northerners have right now and the financial pressures they face. Rising costs of services and utilities are creating challenges for many Northerners and their families. The recent turmoil in world markets is adding to the concern. Many are worried about what it will mean for Canada, for the North and for their own finances. Northerners need to know they’ll be able to obtain the services they need. Reducing the cost of living in the North is more important than ever.
In the longer term greater hydro development will help bring down power bills, and the development of the Mackenzie Gas Project will help expand access to natural gas. This will help Northerners transition away from higher cost fuels.
But in the short term the government needs to look at ways of helping Northerners with the cost of living. As the government provides nearly $140 million in direct subsidies to lower the cost of living, it is increasingly important that we deliver this money in the most effective ways possible.
The government has begun a review of our electricity rate structure to better understand its impact on the cost of living. We intend to come forward with options in the next business planning cycle to promote energy conservation, rate fairness across the system and reduced costs to Northerners. These investments and actions help ensure that Northerners and their families remain strong and stable so that they have the means to contribute to our great territory.
Infrastructure also plays a major role in reducing the cost of living and improving the quality of life for Northerners. Members of the Assembly have heard me say this before: it’s time to modernize our infrastructure, especially our transportation corridors, to improve connections between our communities, to improve the connection between the North and the South, to improve the connection between the Northwest Territories and the world.
Building modern all weather transportation is essential for our future prosperity — roads and bridges that can be used year-round by our citizens, by tourists and by business and industry. This will take partnership between the Government of the Northwest Territories, the federal government and the private sector. We will be exploring the creation of those partnerships so that we can build our own roads to resources and help foster new opportunities for our residents and businesses. We will also look at ways of improving the delivery of that infrastructure.
In the recent budget we announced investments of $180 million in public infrastructure, including community infrastructure projects. It is important that these and future investments are made effectively so that Northerners see the greatest benefit from all these investments.
Mr. Speaker, our great territory continues to have a bright future, and a future that offers great potential and prosperity. I know during this session we will do important work on behalf of Northerners — work that contributes to a better quality of life for northern families, keeps national attention focused on northern issues and builds a stronger NWT to help strengthen our great nation. Quyanainni.
Thank you, Mr. Roland. Before we go any further, colleagues, I’d like to draw your attention to the presence in the gallery of a former Member of the House. Ms. Lena Pedersen is in the House.
Minister’s Statement 80-16(2) Sessional Statement is referred to Committee of the Whole for consideration.
Item 17, motions. The honourable Member for Frame Lake, Ms. Bisaro.
