Speaking Notes
for
The Honourable Ethel Blondin Andrew
Minister of State (Northern Development)
At
The Prospects North Conference

September 15, 2004
Yellowknife, NWT

Check against delivery

Thank you.

I want to begin by congratulating our conference organizers and presenters on a very successful event.

Most of all, I would like to thank all of you for participating.

There is a vast and diverse range of opportunities in Canada's north. We're pleased that you've come to see for yourself and learn more.

Today, I would like to discuss how federal and territorial governments are working together to ensure we capitalize on the tremendous opportunities before us.

Together, we're making sure investors find the certainty they need to make a commitment to the northern economy.

We're following a two-track approach.

In the short-term, we're working together to create agreements that allow sustainable development to proceed while respecting the rights and needs of First Nation communities.

In the longer-term, we're working on various fronts, including land, resource and self-government agreements, and a northern economic development strategy, to ensure that today's opportunities contribute to a brighter future for all.

The north, with its rich resource potential, is attracting interest from companies throughout the world, especially in two key resource industries: diamonds, as I mentioned, and oil and gas.

Canada's diamond industry already accounts for 35 per cent of world diamond exploration expenditures. We've become the third largest producer in the world.

Diamond mines are expected to produce more than $28 billion in GDP and $5 billion in revenues over the next 20 years, as well as 125,000 person years of employment.

The major players in the industry are here: BHP Billiton, Diavik and De Beers have become part of our business community.

In the oil and gas sector, the prospects are just as promising and the list of investors is just as impressive. Imperial Oil, Conoco, Shell Canada, ExxonMobil, Petro-Canada and others have made commitments in the Mackenzie Delta-Beaufort region.

The private sector has committed $1 billion in oil and gas exploration over the next four years. Proposed projects could realize a GDP impact of more than $25 billion, with over 30,000 person-years of employment.

The most important step we are taking to promote economic development is to ensure clarity through the negotiation of successful land, resource and self-government agreements.

We're working hard to build good governance so we can create the right atmosphere for attracting investment, creating partnerships and building prosperity for northern communities. Here in the Northwest Territories, we're making good progress. In addition to the Inuvialuit, Gwich'in and Sahtu agreements, we are in the final phases of the Tlicho Agreement.

We recognize that the complexity of the process means that negotiations can take time. The reality is that even under the best circumstances, they can take years to complete.

At the same time, we also recognize that investment opportunities exist now.

We have to keep in mind that where development is occurring, peak periods are often fleeting.

We must be able to act on these opportunities now.

That's why, working together, federal, territorial and First Nation communities are producing creative interim agreements. These allow opportunities to be seized, while we continue working towards final agreements.

For instance, in the Deh Cho, an Interim Resource Development Agreement is in place. It is providing the Dehcho with funding for economic development projects based on resource royalties collected in the territory.

Approximately $1 million in funding has gone to the DFN each year since 2001 to implement their Interim Measures Agreement.

This includes funding for a comprehensive land use planning initiative, traditional land use mapping and a Resource Management Coordinator position.

In addition to partnerships with individual First Nations, we're also working with northern governments and other stakeholders to develop an investment strategy for federal support in the North.

Our government committed $90 million in our most recent Budget for this purpose. The $90 million in new funds will enable us to invest in new activities and to build on the efforts being made in the North by other departments.

As I have said, we're moving forward in the short-term to ensure that opportunities are not lost.

In order to maintain momentum in the North on current and emerging economic development opportunities, over the summer we held discussions with stakeholders across all three territories to identify short-term priorities and to develop an investment strategy for the allotment of the first advance — $10M — of the $90 million announced in the budget.

The $90 million in new funds will enable us to invest in new activities and to build on the efforts being made in the North by other departments. For example, Infrastructure Canada plans to invest over $190 million in the next five years addressing northern infrastructure priorities, and we need to ensure that our activities are complementary and coordinated.

In all three territories, there has already been extensive work done on economic development project strategies and prioritization of needs, in areas such as geoscience, knowledge and innovation and fisheries.

Efforts are underway to complete the necessary planning to secure an advance this fiscal year of the initial portion of the funds, an estimated $10M. Should this be approved, we will, in partnership, be strengthening initiatives that fall within already-identified priorities and that can be completed this fiscal year.

While the project list is still being finalized, I understand that in the NWT, for example, over one third of the targeted $3M is allocated to maximize and support projects in the resource and development sector, in areas such as mapping and geotechnical analysis.

A discussion paper is being drafted, and we are continuing to meet with northern governments, the business and industry sectors and northerners to develop a longer-term investment framework for the balance of funds in the coming four years (April 1, 2005 and March 31, 2009).

Much work has already been done towards the creation of economic development strategies in each territory. We do not intend to reinvent the wheel or duplicate efforts. Rather, we are committed to working with northerners to build on these efforts.

The participation of northern Aboriginal people will be essential to any economic development strategy. Aboriginal rights must, and will, be respected. Through interim measures and other investments, we're taking a pragmatic and balanced approach to resource development.

I encourage all of you and other private sector partners to get involved when you see opportunities.

Even where outstanding issues exist, there is a strong will among parties — in government and in First Nations — to find the common ground that will allow development to proceed.

Northerners have also spoken about the need to build capacity.

Investments in capacity development will be critical for maintaining momentum in northern development. Northern organizations, businesses and workers need to rapidly develop their human resources and business capacity.

This is about people — we want everyone, including Aboriginal northerners, youth, and women, to benefit from opportunities for business, employment and skills development.

And it's about business success — the skills and knowledge of the people in our communities are as valuable as the resources in the ground. Both are needed to achieve real economic development and export success.

Aboriginal communities face increased pressure to respond to developer's plans.

Our government is helping to build capacity by supporting strategic partnerships.

We have programs already in place such as the Resource Access Negotiations Program (RAN). The RAN program supports the negotiation of commercial resource development opportunities, joint ventures and impact benefit agreements.

And to assist communities in building capacity in areas where a land, resource and self-government agreements have yet to be concluded, there is the Interim Resource Management Assistance (IRMA) Program, a joint program developed by DIAND and the Government of the Northwest Territories (GNWT) to fund to First Nation and Métis groups. IRMA funding helps them participate in regulatory processes, environmental assessments and resource management policy and legislation. It also enables them to provide training to local people, who, in turn, help their community to address development proposals.

Projects like these, in which a variety of partners work together, are essential as we work to build capacity in the North.

We are currently working on a number of employment development initiatives in the areas of mining and oil and gas that we expect to announce shortly. These initiatives will provide funding to enhance the capacity of communities to participate in the environmental and regulatory processes, to take advantage of economic gains, and to ensure that the North is well-equipped to deal with the social and cultural impacts of economic development.

We also need to ensure that our collective approach to devolution and resource revenue sharing reflects our ultimate goals.

The Government of the Northwest Territories and Aboriginal governments have told us that progress is needed in this area. Our government has listened.

We understand that improvements in this area are about more than revenue — our progress will also help build a more productive relationship among the three levels of government.

We believe that transferring decision-making responsibility around sustainable development to Northerners is a key element to successful northern development initiatives.

Devolution, including a resource revenue sharing component, was completed in the Yukon on April 1, 2003.

Devolution is the next logical step in the political and economic development of the NWT and will not only place decision making in the hands of territorial residents but will also provide them with a share of the revenues resulting from resource development.

Canada, the GNWT and the NWT Aboriginal organizations have a common interest in creating and maintaining the best possible climate for sustainable economic development and investment. We expect that devolution will not hinder development. In fact, we expect that sustainable development will gain impetus once northerners are able to make land and resource management decisions and receive tangible benefits.

Discussions on this topic have started, and we are working towards an inclusive approach to devolution and resource revenue-sharing that ensures all people in the North have access to the jobs, investment and other opportunities that development brings. We need to continue to together to work creatively, in a spirit of give and take, to ensure the current resource revenue sharing regime reflects our ultimate goals.

Whether we we're dealing with revenue-sharing, capacity building or land, resource and self-government negotiations, we need to continue working together creatively and in a spirit of give and take.

For sustained prosperity, we must find ways to use the economic momentum from individual major projects to build other sectors of the economy. We have to ensure prosperity flows to all communities, including those situated far from major development sites.

This can be achieved by adopting a broad view of northern economic development — be it pipeline, diamonds, oil and gas, or other development. Longer-term investment strategies must be integrated with an overall northern strategy for economic, human and political development, environmental protection and circumpolar affairs.

Finally, I would like to reconfirm that the Government of Canada takes its responsibilities for the environment very seriously. We remain committed to working with First Nations and Northerners to develop community-driven programs to address environmental concerns while balancing community and economic means.

In the 2004 Speech from the Throne, the Governor General announced a 10-year, $3.5 billion investment towards the clean-up of federal contaminated sites in Canada. Cleanup initiatives are underway. The federal government's top priorities for contaminated sites, such as Giant Mine, are to preserve the health and safety of northerners and to protect the environment.

Policies are in place to include economic opportunities, to the extent possible, for northern and aboriginal communities in the management and remediation of contaminated sites. The Government of Canada is the direct driver of this significant economic and capacity-building opportunity for the north. And the capacity and expertise we need for our programs transfers directly to the private sector who are funding their own progressive plans.

Cleanup initiatives will remain priorities, and stringent measures have been put in place to ensure that no one leaves behind a legacy of environmental and human health hazards, and that we preserve the beauty of Canada's North.

In closing, I want to thank all of you, once again, for coming here to learn more about the opportunities that exist.

In our communities you will find entrepreneurial and hard-working people who are ready to compete and win in the global economy.

This is a land of great opportunity. And, working together, we'll realize its potential.

Together, through the sustainable development of northern resources, we'll build a future of shared prosperity for the north … and for Canada.

Thank you.

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