Debates of October 29, 2004 (day 31)

Thank you, Mr. Speaker. My question today is for the Minister of Resources, Wildlife and Economic Development. I just wanted to ask the Minister with regard to the federal northern strategy funding that came from DIAND earlier this year, at what stage is that funding in our system, so to speak, Mr. Speaker? Thank you very much.

Thank you, Mr. Menicoche. The Minister of Resources, Wildlife and Economic Development, Mr. Bell.

Thank you, Mr. Speaker. Just to apologize, I would like some clarity from the Member. I am wondering if the Member is referring to the Northern Economic Development Strategy money, the $90 million that was referred to in the Throne speech. If that is the case, I can get into some detail. Thank you.

Thank you, Mr. Bell. Mr. Menicoche, do you want to clarify your question?

Thank you very much, Mr. Speaker. The Minister is absolutely correct; that was my reference in the question earlier.

Thank you, Mr. Menicoche. Mr. Bell.

Return To Question 340-15(3): Availability Of Federal Economic Development Strategy Funding

Thank you, Mr. Speaker. This is something that I have been having a fair amount of discussion on and the department has been working on for a number of months now with the DIAND officials. There is a Northern Development Ministers’ meeting being held in Chibougamou, Quebec, right now that I wasn’t able to attend because of session, but my deputy minister is there in attendance, working with the two Ministers from the other territories, Ministers Kenyon and Simailak. They are in agreement on several fundamental principles as to how this money should role out. We have communicated those to the federal government, to the DIAND Minister and to Minister Ethel Blondin-Andrew who has responsibility for this program. The $90 million we feel there was some discussion about doing some funding announcements and trying to role out at least $10 million of that between the three territories this year. We’ve had further discussion, it’s been taking awhile to get project approvals. I think we are at the point now where we would prefer to see us go forward April 1st with the whole $90 million, hold the $10 million this year. It would be very difficult for us to spend that $10 million effectively before year end, so our preference would be to talk about a $90 million strategy next year.

In addition, we are not interested in new administrative mechanisms or regimes that would talk about and determine the rollout of this money. All three territories have economic development agencies that are more than capable of handling this money. We would like to see bilateral deals with the federal government and see us make the decisions on the programs as opposed to a policy committee in Ottawa.

So those are several of the things that we are discussing now and we are hoping that we will have an announcement from Minister Ethel Blondin-Andrew soon in this regard. Thank you, Mr. Speaker.

Thank you, Mr. Bell. Supplementary, Mr. Menicoche.

Supplementary To Question 340-15(3): Availability Of Federal Economic Development Strategy Funding

Thank you, Mr. Speaker. I would like to thank the Minister for providing an adequate breakdown of where we’re at with the process. My other concern, Mr. Speaker, is that the priorities are northern priorities and not direction from Ottawa where to spend the funding that they have allocated for us, for this year or, indeed, if, as the Minister says, that we start allocating on April 1, 2005. I just want to get assurances from the Minister that any of the priorities will be priorities. Thank you.

Thank you, Mr. Menicoche. Mr. Bell.

Further Return To Question 340-15(3): Availability Of Federal Economic Development Strategy Funding

Thank you, Mr. Speaker. That is certainly our position. The federal government had sought to, as I had mentioned, have a policy committee in Ottawa to determine which projects could qualify for this money. We don’t feel that is adequate. We feel those decisions need to be made in the North. We are prepared to defer the $10 million that would need to be spent this year in a very quick manner, we don’t think effectively, probably, and talk about the $90 million going forward. But that would be based on decisions made in the Northwest Territories for the Northwest Territories, and likewise for Nunavut and the Yukon.

I think the longer-term solution here is a northern economic development agency much the same as Western Economic Diversification or Atlantic Opportunities. We’ve been pushing that and the federal Minister, Minister Ethel Blondin-Andrew, certainly seems to like the idea as well. Having said that, we don’t want to see this $90 million held up as we work towards the formalization of such an organization. So we think that a northern economic development agency is a long-term solution for the $90 million over the next few years. We want to see those decisions made in the respective territories. Thank you.

Thank you, Mr. Bell. Supplementary, Mr. Menicoche.

Supplementary To Question 340-15(3): Availability Of Federal Economic Development Strategy Funding

Thank you very much, Mr. Speaker. I guess once we identify ourselves as say an economic development agreement or a similar type region, what typically happens with a lot of these agreements is that we offer low interest loans or even no interest loans to stimulate the businesses, Mr. Speaker. I was wondering if the Minister had had any thoughts towards that area in terms of this strategy, in terms of stimulating our regions and our businesses. Thank you very much.

Thank you, Mr. Menicoche. Mr. Bell.

Further Return To Question 340-15(3): Availability Of Federal Economic Development Strategy Funding

The delivery mechanism I think that we have in mind, should it be successful in getting through the House and getting support of Members, is the new BDIC which will have regionally-focused program delivery. Largely the mechanisms used to deliver economic development lending and programs in the regions now would be those going forward, at least initially. I think there will be some evolution and some progression there as regions and communities gain the capability to deliver the programming themselves.

But we think as a transition, it would make sense to keep the current mechanisms in place and our idea would be to see our $30 million, or whatever our percentage of this money, go through the BDIC and make sure the regions are involved. Those in fact are the people who have their ear to the ground and are working with people in communities and understand the needs in these communities. It would be my preference that those are the ones reviewing projects.

Low interest loans are certainly a very good idea. I think we are more likely to look at loans as compared to contributions or grants, because we can make and stretch loans farther, especially if we are able to partner with other federal agencies, with Aboriginal Business Canada, and make our money go further and help more people. Thank you, Mr. Speaker.

Thank you, Mr. Bell. Final Supplementary, Mr. Menicoche.

Supplementary To Question 340-15(3): Availability Of Federal Economic Development Strategy Funding

Thank you, Mr. Speaker. I just want to get clarification from the Minister. Did the Minister say that some of the money would be earmarked towards the business development centres in the regions? Thank you very much, Mr. Speaker.

Thank you, Mr. Menicoche. Mr. Bell

Further Return To Question 340-15(3): Availability Of Federal Economic Development Strategy Funding

Thank you, Mr. Speaker. All this is predicated on us getting a successful agreement with the federal government. In the end, the $90 million is federal money and they could determine that there are strings to be attached or that there are criteria to be met. We have given them our preference and our suggestions; we think they are strong because the three territories are in agreement. We hope that they will see the merit in doing it in this manner. At this point I don’t have enough detail to tell the Member exactly the mechanism that we would use, other than to say if we get our hands on this money, the regions will certainly be involved in program delivery. It doesn’t make any sense to have headquarters making determinations on the viability and validity of projects in the regions when they are not in fact there working with people on a day-to-day basis. So it will be regional program delivery, and I will certainly commit to that. Thank you, Mr. Speaker.