Notes for an address by

The Honourable Jim Prentice, PC, QC, MP
Minister of Indian Affairs and Northern Development and
Federal Interlocutor for Métis and Non-Status Indians

to the

Arctic Gas Symposium

Calgary, Alberta
March 2, 2007

Check against delivery

Thank you for this opportunity to speak with you this morning/afternoon.

I would like to take this time to discuss how Canada's new government is working with Aboriginal, territorial, and industry stakeholders to develop Arctic Canada's rich resource endowment in natural gas. I am convinced we can harness these resources to provide regional benefits and secure a new source of clean energy for Canada. And I am further convinced that we can achieve these objectives while minimizing environmental impacts and safeguarding traditional lifestyles and cultural values.

This government's goals are relatively simple: ensure that development projects proceed in a manner that is environmentally sustainable, economically feasible and socially beneficial. Our policy is similarly straightforward: work with all stakeholders, including Northerners, Aboriginal groups, private companies and regulatory boards.

Today, more than ever before, the eyes of the world are focused on the North; and so they should be!

International Polar Year, or IPY, 2007-2008, launched by Minister Baird and myself in Ottawa just yesterday, demonstrates just how important polar regions have become to people the world over. More than 60 countries will fund hundreds of projects and studies. Canada alone will invest $150 million in IPY projects, making us a major player in this initiative.

The international research effort now underway will improve our understanding of the North from a number of perspectives: environmental, social and economic. Knowledge acquired through IPY projects will inform future actions and improve our ability to develop and implement resource-development projects in a sustainable and feasible manner.

The North holds a significant percentage of Canada's energy resources. The Northwest Territories, Nunavut and the Arctic Offshore area hold an estimated one-third of this country's conventionally recoverable resources of natural gas and one-quarter of the remaining recoverable light crude oil. Yet only a tiny fraction of the North's energy resources have been tapped. The remainder represents an immense opportunity for exploration and development investment for generations to come.

To make the most of this opportunity, Canada's new government believes that all interests-economic, social and environmental-must be accommodated. I'm pleased to see delegates and other stakeholders adopt a collaborative approach to making this vision a reality. And effective consultation with Aboriginal groups who may be affected by a project is an integral part of the review of any project and its impacts.

This approach underlies the Mackenzie Gas Project-undoubtedly the largest economic opportunity in the history of the North. Due to its unprecedented size and complexity, the proposed Project faces significant challenges. There are grounds for optimism, however, given the progress made in recent weeks.

A few weeks ago, the National Energy Board published draft terms and conditions of the Certificate of Public Convenience and Necessity for the Mackenzie Gas Project, providing much-needed clarity on the proposed conditions that the National Energy Board will place on the Proponents. The Northwest Territories finalized a socio-economic agreement with project proponents. And public hearings related to the environmental-assessment process continue apace.

While a settlement has yet to be reached with the Dene Tha, negotiations continue on good terms. And this government has set aside $500 million to help offset the socio-economic impacts of the Mackenzie Gas Project.

Assuming this Project proves to be economically feasible and satisfies environmental and regulatory requirements, it will have the full support of the Government of Canada. A project of this magnitude, managed in a sustainable and equitable fashion, has huge potential to be good for the North, good for Aboriginal communities and good for Canada.

But in order to advance this Project to meet the public interest and Northern aspirations, we must see greater collaboration among stakeholders. It is largely through resource development that we will be able to provide Northerners with options for economic benefits - a basis for healthy, sustainable communities.

And as I said earlier, this project continues to face significant challenges. For instance, once the Joint Review Panel work is complete, regulators need to ensure that a timely, efficient and effective application review and authorization process is in place. A process that avoids duplication, reaches for consistent terms and conditions, and reflects the comprehensive analysis, scientific and traditional knowledge work already provided.

Prime Minister Harper believes in a balanced approach to resource development in the North. During his visit to Yellowknife last August, he was clear about this government's support for Northern development.

Insisting that "we must see the Mackenzie Gas Project come to fruition," he noted that "without projects like this, no amount of transfer payments will give the North the future it deserves."

To promote greater accountability and efficiency, he assigned an expanded responsibility for pipelines to me, as Minister of Indian Affairs and Northern Development. On behalf of Canadians, he has entrusted me with the authority to cross departmental boundaries, facilitate the negotiation of agreements with territorial and Aboriginal governments, and address the many factors that affect pipeline development.

Of course, the Mackenzie Gas Project is not the only pipeline under consideration in the North. And while these huge projects can deliver tremendous benefits, they can also pose important challenges. The Government of Canada recognizes that it has an important role to play to help overcome the challenges and maximize the benefits of pipeline projects.

While Canada's new government is keen to facilitate pipeline development, it also recognizes its solemn duty to safeguard sensitive ecosystems and protect the public interest. By adopting a balanced approach to the development of northern pipelines, I'm convinced we can achieve all of these goals.

This balanced approach includes methods to ensure that Northerners and Aboriginal groups alike have the opportunity to share equitably in the benefits of pipelines. The Aboriginal Pipeline Group, for example, with its ability to own up to one third of the Mackenzie Valley Pipeline, has fundamentally changed how northern projects are conceived, structured and financed. It is an example of how Aboriginal groups can, as owners, meaningfully participate in and benefit from resource development opportunities.

The Mackenzie Gas Project is part of a broader set of resource-based projects in the North, including diamond mining and oil and gas exploration, which have contributed to increased economic growth over the last few years. To continue this trend, this government wants to ensure that Northerners continue to play a meaningful role in decisions regarding resource-development projects. To help achieve this goal, I believe we must revitalize the co-management regime in place in the North.

Looking to the future, I am convinced that we need to do more to realize the tremendous opportunities represented by Northern resource development. And we need to disentangle the complex regulatory processes - to simplify and de-layer those processes.

With greater recognition among all parties involved in managing Northern resources-including signatories of land-claim agreements-of the links between efficient regulatory processes and responsible resource development, I am confident that we can work towards a healthier investment climate that will advance Northern aspirations. To maximize the potential benefits of resource-development projects absolutely requires a predictable, effective and efficient regulatory system.

I encourage the signatories of land-claim agreements in the Northwest Territories to meet with me and come up with a plan to reduce regulatory uncertainty and improve efficiencies. We must work together to address challenges related to capacity, management, and targeted legislative and regulatory change.

The North must also ensure that its residents are prepared to take advantage of the jobs and opportunities associated with resource development. Canada's new government appreciates the serious challenges posed by shortages in the skilled trades.

To help address these issues, the federal government continues to invest millions of dollars in training and skills-development programs in the NWT. Training, for example, that will ensure that the long term jobs associated with the operation of the Mackenzie Gas Projects will be filled by Northerners.

No single party, however-even the Government of Canada-can meet these challenges unilaterally. Private companies must do their part to recruit and train workers, for instance. Already, industry partners in the Mackenzie Gas Project are working together to deliver apprenticeship programs in partnership with Aurora College and the Aboriginal Futures Society. Again, this will ensure that the people and communities in the North have the skills to benefit from economic opportunities.

In recent years, Northerners have enjoyed an unprecedented level of participation in decision-making processes and ongoing progress on devolution will ensure that Northerners have a greater say in the decisions that affect their wellbeing.

This government believes in the value of negotiated settlements with Aboriginal groups. Land-claim and self-government agreements enable Aboriginal communities to take control of their destinies. Across Canada, Aboriginal groups continue to leverage the certainty and clarity provided by settlements to deliver significant benefits to their communities.

Last year, government negotiators tendered a fair and equitable offer to the Dehcho; this year, Canada's new government will redouble efforts to secure agreements with Aboriginal groups.

There can be no doubt that momentum is building in the North; a mood of guarded optimism is in the air. And while significant challenges remain, so too does a spirit of purposeful cooperation.

This symposium is a perfect forum for collaboration. I encourage everyone to speak openly and listen carefully. Gain a fresh understanding of the challenges before us, then design and implement collaborative solutions. Thank you.

Back to Index Page