Finance Committee on Oct. 25th, 2011

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Okay.

My second question is for Ms. Babcock. I read many reports from many federal agencies. The problems of infrastructure affect all of the great Canadian north and not just Yukon. If you have a problem for the Canadian Coast Guard, a problem with the development of small communities, and problems for telecommunications, do you request a specific program of infrastructure for all of the Canadian north, or just for Yukon?

[Sandra Babcock]

Today it's just for Yukon. We do work with our colleagues in the other two territories, as well as in northern Labrador. We talk about these infrastructure issues, and we know they exist across the north.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Yes, the problems are the same.

Is a specific program for the great north a possible solution?

[Sandra Babcock]

Open up the wallets.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Presently you have many federal programs and many investments in defence, for the Canadian Coast Guard, for the northern governments. You don't have one development plan for the great north.

[Sandra Babcock]

We do not have a comprehensive strategy. The creation of CanNor has been an asset to the north. It's not been without its challenges. However, it's very new in its life, so we look forward to working with them in terms of accessing dollars or doing the types of studies that need to be done so that we can develop our road map going forward.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Thank you very much.

My last question is for the representative of the tourism industry. Presently in the great north, is the price of an airplane ticket a problem, or is it just a small problem for a few agents?

[Krista Prochazka]

The cost of the ticket is a problem for the entire north. It is a challenge not only in terms of growing international tourism but also in terms of getting Canadians up here. There are a number of times when it is cheaper to fly to Germany from Whitehorse than it would be for me to go to Ottawa or Windsor to see my family. While that's great for building our European market, in terms of growing our key market segments in southern Canada and throughout the U.S. and the rest of the world—because we are active in Southeast Asia as well, as are our partners in the Northwest Territories and to a lesser extent in Nunavut—the cost of that ticket becomes a significant deciding factor.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

It has been interesting for me. Thank you very much.

[The Chair, Conservative, James Rajotte]

Thank you.

Mr. Van Kesteren, go ahead, please.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

It's been a very interesting trip for all of us. I know this is fascinating to me.

I listen to you—no debt, no territorial tax. This is heaven. This is free-market heaven, and I think about how this has evolved. With respect to your road structure, the Alaska Highway was part of that, so you benefited from what the Americans did, but you also benefited from the movement of the logging industry. I say this because it appears to me that your success has been through entrepreneurship. Your success has been through the free-market system.

You've mentioned and we as a government have talked about a strategy for the north. What would you envision that to be? Are you looking for the government to map out which direction you should go in light of what I've just said, in light of your history, or are you looking for just a commitment from the government to do what's necessary to continue this incredible evolution?

I have another question for later.

[Philip Bousquet]

For the northern strategy, it makes sense for the government to look at where that private sector investment is going, where the opportunities are. Our sector focuses on mineral exploration and mining. When you look at Nunavut, NWT, Yukon, mining is a major industry in each of the territories. There are particular actions that the federal government has taken and can continue to take to assist that investment. We focused on a few that would be public investments.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

Can I just interrupt for a minute?

The federal government invested $77 million in infrastructure, in the hydro-electric project. The Prime Minister opened it, the largest GIF project ever completed. Is that the sort of thing you're looking for from the federal government?

[Tara Christie]

We are looking for partnering with industry. Each of our territories in the north has unique needs, and certainly you need to work with the territorial governments. But being available to partner once projects are conceptually developed, to help get that initial capital, is a really important role for the federal government. The Mayo B project is great; it's certainly adding to our infrastructure, but with three operating mines, it's simply not enough. We're already tapping out our capacity. We need low-cost power for our communities, as well as for our mines and other economic opportunities. We need to start thinking ahead and getting a bit ahead on our infrastructure, because we are falling behind in roads, power, and broadband.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

The hydro commission in Ontario, I don't think I want to know how many billion dollars in debt they are. What's the situation here in the Yukon? Is it like your territorial government? Is it debt-free, operating on the plus side?

[Sandra Babcock]

I know they sold debentures for the Mayo B project as well as for transmission lines. I probably shouldn't be speaking to this, but I don't believe they carry debt. It has to go through public utilities, so I think there are some concerns about that.

[Krista Prochazka]

The Yukon does not have enough energy, and we're facing an energy crisis. So while that may currently be the case, there are some significant investments that will need to happen if we are going to be able to keep the lights on in a few years.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

I'm just going to ask a question. Obviously you do a lot of border crossings. There must be some trade, and you have to get to the ports in Alaska. How is the border-crossing situation in Alaska?

[Krista Prochazka]

I would say the border crossing that is our biggest challenge is the Little Gold Creek border crossing between Dawson City and Tok, Alaska. The hours of that border crossing were significantly shortened late last summer, and that has caused tremendous challenges, particularly in a town like Dawson City. It's a challenge for both mining and tourism. People arrive at the border five minutes after closing, with no cellphone and no pay phone, no place to stay, no place to drive to.

[The Chair, Conservative, James Rajotte]

We can come back to this during my round.

Mr. Mai, you are next, please.

[Hoang Mai, NDP, Brossard—La Prairie, QC]

Thank you, Mr. Chair.

Thank you all for being here this morning.

I'll start with the Chamber of Commerce. You mentioned the lack of an economic development strategy. We agree with that and agree also that we need to invest more in infrastructure. We know there is $500 billion sitting in the private sector. Maybe you can find ways for the private sector to invest more.

Regarding strategy, we agree with you.

You mentioned clean and renewable or reliable energy. Can you expand on that and say how it would benefit the Yukon?

[Sandra Babcock]

As Tara mentioned earlier, we are facing future serious shortages in energy—not that we won't have energy, but we will have to rely on burning diesel fuel to supply our energy needs. That is not what the people of the Yukon are wanting. As you see, we live in a beautiful part of the country, and we'd like to keep it that way.

In terms of investing in the Yukon, I have to come back to the economic development strategy and to developing the road map to see where and how best to spend public dollars to bring Yukon into a sustainable economy, as opposed to the boom and bust economy we have experienced in the past.

[Hoang Mai, NDP, Brossard—La Prairie, QC]

Is there some type of energy that you would want to see pushed forward?

[Sandra Babcock]

Yukon enjoys eight sedimentary basins of natural gas. Much of this resource has to be further explored, but in the Eagle Plains area, which is north of Whitehorse, there are substantial findings that have been proven true, and work is currently being done looking at the feasibility of liquefying the natural gas to support the residential and commercial population of the territory as well as the industrial users. That's one thing.

In terms of transmission, because we are on a stand-alone grid, I think the possibility of connecting with the B.C. grid or even the Alaska grid system should be investigated.

Another energy possibility in the much longer term, and a very expensive one, would be increased hydro.

[Hoang Mai, NDP, Brossard—La Prairie, QC]

Thank you very much.

This is for the Prospectors and Developers Association. You mentioned in your recommendations something that the CRA could do that was already recommended back in 2007 and on which nothing has been done. Can you expand on that? You say it's at no cost for the government and is something that can really help the industry. Can you expand on that to tell us maybe why nothing has been done, or why it hasn't been cleared?