To the Northern Business Community
Yellowknife, Northwest Territories
November 16, 2012
Check against delivery.
Thank you for that kind introduction.
I am always glad to have the opportunity to come North, and to meet with those who are helping to drive the North's economy, creating jobs and economic opportunities not just for those who live and work here, but for all Canadians.
Our Government's priority is straightforward: jobs and economic growth…
…And I'm pleased to say that Canada remains in good shape on both fronts, especially when we look at the situation facing countries around the world. Overall we have fared better than many countries.
Statistics Canada recently announced that over 7,000 full-time jobs were created in October. Since July 2009 Canada has seen over 820,000 net new jobs created. 90% of those are full-time, and three-quarters of those jobs are in the private sector.
But we are not immune to the ongoing uncertainty in Europe and the U.S., which is affecting Canada's economy.
Our Government will continue to control what we can – namely our spending.
We will continue to take action to create jobs and economic growth.
And we remain committed to returning to balanced budgets in the medium term despite economic uncertainty beyond our borders.
That is why we will continue to implement Economic Action Plan 2012, which includes measures to grow our economy.
We will remain focused on taking the steps necessary to strengthen our economy.
That's why I'm pleased to be here today to talk with you, the men and women who help drive the mining industry, a cornerstone of the northern economy.
Currently, the mining and energy sectors are responsible for about one-quarter of the northern GDP and approximately 5,000 jobs.
Canada's North is home to world class natural resources representing tremendous economic potential.
According to some estimates, one-quarter of our known reserves of conventional oil and gas can be found in the north…
And projects are underway to mine diamonds, gold, silver, tungsten and base metals, with many more projects in various stages of proposal and review.
In Yukon, the GDP grew 5.6% last year; while it grew by 7.7% in Nunavut.
In the Northwest Territories, however, the GDP declined by almost 6%. This was driven in part by a significant decline in mining, and oil and gas extraction.
Yet the future of the mining industry in the North remains bright.
The number of mines in operation continues to grow and exploration activities are on the rise. In all, there are more than 25 projects in the works for the North, representing $21 billion in potential investment in the mining sector.
If developed, these projects would create thousands of direct jobs, as well as thousands more in the manufacturing, transportation and services sectors.
High commodity prices, sophisticated mining technologies, and the incorporation of sustainable energy sources into extraction projects – like the wind turbines at Diavik – are helping make northern resource development more feasible than ever before.
This helps attract investment, which leads to jobs and economic growth…
…That is good for the North and it is good for Canada.
During his trip to the North this past August, Prime Minister Harper stated that Our government is committed to ensuring that Northerners benefit from the tremendous natural resource reserves that are found in their region. For the benefits to flow, it is necessary to get resource projects up and running in an effective and responsible way and to put agreements in place with territorial governments to ensure that revenues generated by these initiatives stay up North.
To this end, our Government has taken steps to improve regulatory regimes in the North.
Last week I introduced the Northern Jobs and Growth Act in the House of Commons.
The proposed legislation builds on our Northern Strategy and our 2010 Action Plan to Improve Northern Regulatory Regimes.
If passed into law it will help improve the conditions for investment in, and development of, the North's resources in a responsible manner.
It includes the Nunavut Planning and Project Assessment Act and the Northwest Territories Surface Rights Board Act. It also includes amendments related to the Yukon Surface Rights Board Act.
These measures fulfill outstanding legislative obligations under the Nunavut Land Claims Agreement as well as the Gwich'in and Sahtu Land Claim Agreements.
They also respond to calls for improvements to regulatory processes in the North.
The Northwest Territories Surface Rights Board would provide a single mechanism for resolving disputes related to access for the entire NWT.
The legislation would also fulfill Canada's legislative obligations under the Nunavut Land Claims Agreement by clarifying the roles and responsibilities of the Nunavut Planning Commission and Nunavut Impact Review Board.
As this Chamber pointed out in its press release last week: The Northern Jobs and Growth Act will help to strengthen the regulatory framework and will provide certainty to the investment climate in Nunavut and the Northwest Territories…[and] it will help fill the outstanding gaps in legislation prior to the devolution of non-renewable resources to the northern governments.
Similarly, the Government of Nunavut acknowledged the proposed legislation as an important milestone in establishing an effective and streamlined regime [for] resource management.
I am pleased that the introduction of the Act has been well received by territorial governments as well as by industry.
I firmly believe that this positive reception is a result of the efforts made to solicit the input of a wide variety of groups and individuals, some of whom I know are here today.
But while the reception has been positive, we know that we still have work to do.
We will continue to consult with the territorial governments and with representatives of First Nations on further improvements to the regulatory regimes in the North.
These improvements include actions contemplated in our 2010 Action Plan to Improve Northern Regulatory Regimes, such as Land and Water board restructuring in the Mackenzie Valley, and the ability of the Minister to provide policy direction to Boards in the Northwest Territories.
We also intend to consult on improvements such as:
- time limits for completing environmental assessments and water licenses;
- authority to establish regional environmental studies;
- consolidation of federal decision-making responsibility;
- clarification of roles and responsibilities related to Aboriginal consultations;
- increases in fines for permit and licensing offences; and
- authority to allow for cost-recovery for environmental impact studies.
Measures such as these will help encourage investment while ensuring resources are developed responsibly so that northerners today and tomorrow can achieve the prosperity they seek.
Under the leadership of Prime Minister Harper, our Government has made the North a priority.
We recognized that it is fundamental to Canada as it was, as it is today, and to the Canada of tomorrow. The North's abundance of natural resources could potentially fuel Canada's prosperity for decades to come…
…And the concrete steps we have taken with the Northern Jobs and Growth Act are key to unlocking that potential.
Improved regulatory regimes will enable you to take advantage of the tremendous opportunities generated by resource development.
Looking to the future, our Government will continue to put forward measures that will help create the conditions for jobs, growth and long-term prosperity in the North.
We will encourage Northerners to take advantage of employment and training opportunities, and to design and implement projects that meet the needs of their communities.
We will work to finalize and implement devolution agreements and to strengthen governance mechanisms.
And we will do this in consultation with Aboriginal groups, territorial governments and industry.
The North is poised to realize its potential by taking advantage of resource development projects that are supported by effective regulatory regimes. The Northern Jobs and Growth Act will make this a reality.
Thank you.
