Thank you very much.
Thank you to the members of the committee for the opportunity to present. I am going to start, and then my colleague, Ross Hornby, will complete.
In January 2011, GE Canada launched a partnership with the Canadian Chamber of Commerce focusing on Canada's remote communities, and looking at them through a business lens. We conducted 11 cross-country round tables and an online survey that allowed us to hear from 500 business stakeholders. Our aim in so doing was to better understand the challenges of business, the successes, and the investment intentions of business in Canada's remote communities.
As you know, most of Canada's natural resources are in remote areas—our oil and natural gas, metals and minerals, forests and hydroelectric sites, and other untapped resources. These primary industries stimulate other sectors, such as construction and commercial services. With global demand for natural resources increasing, our remote communities are among the brightest spots in our economy. The relative attractiveness and strength of these communities are key enablers to effectively realizing Canada's economic opportunity.
We highlighted our study findings in a document called Remote. Resource Rich. And Ready. Feedback from our study suggests that Canada is at a tipping point. Our work noted abundant optimism; 93% of respondents believe remote communities will play an important role in Canada's economic future. We heard too that investing in remote areas shouldn't be seen as a subsidy for poorer regions, but as something that's vital to ensure Canada's overall prosperity for decades to come.
While there's optimism, our study also raised challenges in terms of attracting and growing businesses in remote Canada. Three major factors emerged.
The first is infrastructure. This includes affordable, reliable energy efficiency; reliable wireless broadband connectivity; affordable, efficient transportation; and access to clean and abundant water. These become the building blocks to business investment.
Next is the availability of a skilled workforce. Remote communities have significant labour issues. Future growth could exacerbate existing conditions and limit business investment opportunity. Businesses noted that while they're willing to train workers, poor literacy and numeracy are barriers.
There is also a need to match skills and training programs with market requirements. Too often, it was noted, these are out of step. One remote community, for example, had a lot of hair and aesthetic programs, but offered no training support for required mining skills-related training.
Tied to workforce availability and readiness is the third challenge: education. For instance, high school dropout rates are up to three times higher in remote communities. In Nunavut, barely 25% of youth graduate high school. Over the next decade, 400,000 aboriginal Canadians will reach working age. Improving graduation rates will help Canada develop a highly skilled homegrown workforce and the workforce needed in the resource sector. We heard there is often a significant difference in the education level achieved in remote communities versus the rest of Canada.
Another concern is that on a per-student basis, the federal government provides considerably less to first nations than the provinces in education. That was noted by business as well. Other barriers include a lack of connectivity, which places youth at a disadvantage for online learning and access to information.
Lastly, students in remote communities who want post-secondary education often must leave their communities to do so. This can be costly and stressful—a big disincentive.