Federal Budget Sees over $3.7 Billion Invested in Canada's North2-02481 Ottawa, Ontario (March 25, 2004) - The tabling of this week's Federal Budget represented initial and sustainable investments in the vast potential of Canada's North. The budget provisions amounted to over $3.7 billion committed to Northern Development."Tuesday's budget is tangible proof of the government's commitment to achieving the goals of the Speech from the Throne. The commitments in the Speech promised the pursuit of an effective Northern Strategy. These investments are exactly what's needed to bring this strategy to life in a sustainable way," said the Honourable Andy Mitchell, Minister of Indian Affairs and Northern Development. "It builds on expenditures in past budgets and the recent increases in my department's Main Estimates. This helps lay the groundwork for sustainable growth in the North," said the Minister. The specific investments in Aboriginal affairs announced in the 2004 Federal Budget included $90 million over five years to support the Northern Strategy. The strategy aims to ensure that economic development opportunities are developed in partnership with Northern Canadians. It is estimated that this investment will yield positive benefits for the 50,000 First Nations people, Métis and Inuit living in the North. $75 million was also committed by the government over three years to ensure that the Federal Government and regional authorities can respond in a timely, responsible and effective manner to the tremendous opportunity of pipeline and oil and gas development in the North. This will facilitate the regulatory processes and provide assistance for scientific assessment of oil, gas and pipeline developments in fragile Northern environments.In addition, $3.5 billion was provided to fund the cleanup of federal contaminated sites, with over 60 per cent of this amount expected to be spent in the North.The pursuit of a new Oceans Action Plan was also announced, which aims to maximize the potential of Canada's coastal and offshore areas. Initial funding was provided in the amount of $70 million over ten years for seabed mapping of the Arctic continental shelf . The net result for the Canada's North is the achievement of greater certainty of its sovereignty over any mineral or hydrocarbon resources the shelf holds, as well as the ability to enforce Canada's environmental laws over the area."We recognize that the North's success is Canada's success. The government's investments in Northern economic development will generate returns for Northerners, both Aboriginal and non-Aboriginal," said Larry Bagnell, Parliamentary Secretary to the Minister of Indian Affairs and Northern Development, with Special Emphasis on Northern Economic Development, and Member of Parliament for the Yukon."The Government also recognizes the vast potential of Northern energy development for the North and for Canada overall. A Mackenzie Valley pipeline will open up a whole new petroleum region for the country," added Ethel Blondin-Andrew, Minister of State (Children and Youth) and Member of Parliament for Western Arctic."These budget measures reflect the government's belief in the potential of the North", said Nancy Karetak-Lindell, Member of Parliament for Nunavut. "There is great potential in the North, and with it comes opportunities for training and employment, thereby enhancing the economic prospects of Northern Aboriginal people," she added.The recently-tabled Main Estimates for fiscal year 2004-2005 saw Indian and Northern Affairs Canada receive about a 9 per cent increase in its funding, amounting to $495 million in new monies. As a result of this, the department's funding allocation now stands at approximately $5.8 billion.These funding increases are shared across numerous business lines, including:$226.4 million for land claims;$84.4 million to meet increased demand for ongoing programs and services for First Nations and Inuit, representing 2 per cent growth in such programming;$80 million for implementation of the First Nations Water Management Strategy;$65.9 million for First Nations education (including special education and programs for students living on-reserve);$26 million for the Capital Rust Out initiative which addresses infrastructure on First Nations reserves;$12 million for Northern Food Mail Service."These increases, together with the budget measures introduced yesterday, are proof of the government's commitment to a new and vigorous approach to Northern and Aboriginal affairs. This budget is fair, responsible and disciplined. With these tight fiscal restraints we will continue to work with Aboriginal and Northern leaders to figure out how we can apply our resources to bring about better and more sustainable results,"said Minister Mitchell.Minister Mitchell said "This is only the beginning - in the coming months as we continue to work with Aboriginal leadership, we will begin to find new and better solutions to our shared priorities: housing, education, continued and sustainable economic development and the pressing need to reduce the gap in Aboriginal living conditions. Taken together, these measures are reasonable and pragmatic investments, which we will build over time. We're looking to a longer-term strategy which can bring about further and sustainable dividends in improved quality of life for Aboriginal people". For more information, please contact:Christine AquinoDirector of Communications Office of the MinisterIndian Affairs and Northern Development(819) 997-0002
