Evidence of meeting #35 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was economic.
A video is available from Parliament.
6:55 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Okay, I take it that the plans and priorities were actually developed prior to the budget, so prior to your having any indication—
6:55 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
I understand.
We can talk about another element that you actually talked about in your presentation, which is broadband. It's a major problem. I can see why it's a much bigger problem in northern Canada. My understanding is that for the coverage of most of the territory, we cannot rely on regular infrastructure. We have to rely on satellite coverage, which has been studied in the past and is still being studied by the CRTC. What is the solution?
I do have this satellite problem in my own region because we have very low density, and many communities rely on satellite, and they actually come to me because the coverage itself doesn't fulfill the promises that were made to them by the providers. I expect it's the same for the north, and it's becoming more of a problem because of the lag between high-speed Internet through the traditional infrastructure and what's called high-speed Internet or high-speed coverage with satellite. The gap is becoming wider and wider, which is making those regions a lot less competitive by the minute. How do we deal with that?
7 p.m.
President, Canadian Northern Economic Development Agency
We support advancing the communications capacity of the north in a variety of ways, but first I need to be clear. In Yukon, it's fairly efficient. There's a lot of land-based fibre and so on, except for one community in Yukon. In the N.W.T., it's a bit mixed. The southern part is more connected. The north is served by satellite. In Nunavut it's entirely satellite-based, so it's the most exposed, in terms of reliable, fast, cost-effective connectivity. As you note, this is essential to truly participate in the modern economy and to compete. We understand all of that.
We've worked in supporting feasibility studies for different technologies to apply. On the connectivity side, we work closely with our colleagues in Innovation, Science and Economic Development to deeply understand the northern challenges through the studies we've funded.
In June, with my departmental colleagues, I co-chaired a round table in Nunavut with the diverse stakeholders there to look at possible solutions, to understand what their interest would be in the connectivity fund announced in budget 2016, and to look at how to be ready to apply for that funding.
7 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
What is the reality for cell coverage? It would rely on the same technology, basically. Cell coverage and the ability to communicate by cellphone in areas that probably still have land lines are actually also important to be competitive. I saw you move your head. Are you not really knowledgeable on this issue?
7 p.m.
President, Canadian Northern Economic Development Agency
I'm not technically knowledgeable but I do know how people use and need that kind of connectivity. Whether it be for long distance education, which is very desirable in some of the far-flung communities, for health care, or for the world I focus most on these days, which is doing real-time business, having access to useful cellphone coverage is essential.
7 p.m.
Liberal
The Chair Liberal Wayne Easter
Thank you very much, Guy.
It's a problem everywhere. You run into bad cellphone coverage even on P.E.I.
Mr. Ouellette.
7 p.m.
Liberal
Robert-Falcon Ouellette Liberal Winnipeg Centre, MB
Thank you very much for coming, Ms. King, Mr. Spence, and Mr. Miller.
Have you heard of the Internet cable that's being strung from Asia to Europe? It's going right through the Arctic Circle and is essentially the northwest passage for Internet.
7 p.m.
President, Canadian Northern Economic Development Agency
It was previously known as the Arctic fibre project. The Arctic fibre project has been bought out by another consortium. I think right now, this summer, they're laying cable in Alaska and beginning to build their fibre network there.
7 p.m.
Liberal
Robert-Falcon Ouellette Liberal Winnipeg Centre, MB
Is the federal government participating in this project in any way?
7 p.m.
President, Canadian Northern Economic Development Agency
At this point we are not participating. It is one of a number of proposals and possibilities that are out there that are being developed and pursued as possible solutions to the connectivity problem.
7 p.m.
Liberal
Robert-Falcon Ouellette Liberal Winnipeg Centre, MB
I understand they have nodes you can hook into in order to get the high speed. I think the speed is 30 terabytes per second, which would probably largely exceed anything the Northwest Territories, Nunavut, and Yukon would ever need. When you're laying the cable originally, you actually have to build the nodes so you can hook into them later. Right now, it's very cheap to do that, because they're building it, but if you wait until it's done and then you show up 15 years later and say you'd like to hook in, the costs will be enormous, because there will already be this large amount of data going back and forth.
When I'm looking at that, I'm thinking to myself that this is an opportunity. Do you know if the government intends to look into this infrastructure project, which could be transformative for Nunavut and northern parts of the Northwest Territories as well as Yukon, and which is being built right now?
September 22nd, 2016 / 7:05 p.m.
President, Canadian Northern Economic Development Agency
It's my understanding that the business case for that was submitted to different parts of the federal government a couple of years ago. It was a very expensive project. They did go ahead to prove the feasibility of the project, if I understand correctly. If I recall correctly, they actually had the permitting done for where the cable would actually touch land, so they did a lot of homework.
It was a very expensive project. I can note that now there are other competing ideas out there as well, including fibre.
7:05 p.m.
Liberal
Robert-Falcon Ouellette Liberal Winnipeg Centre, MB
Even just to create the nodes with the ability to hook in later on, if they had the money.... If you don't do that now, the costs will go up enormously in the future.
7:05 p.m.
Liberal
7:05 p.m.
President, Canadian Northern Economic Development Agency
I do understand that the case and the proposal were submitted to the departments that could be engaged in funding it.
7:05 p.m.
Liberal
7:05 p.m.
Liberal
Robert-Falcon Ouellette Liberal Winnipeg Centre, MB
It sounds like a budget ask, yes.
I was wondering as well if you could talk about roads. You were talking about how, if you want to go up into Northwest Territories, you have to go into Yukon in order to come back into the Northwest Territories through the northern side and from east to west and back east again. Roads are important because you can't get resources out unless there are roads. Have you heard very much about what's going on with that?
7:05 p.m.
President, Canadian Northern Economic Development Agency
We hear a lot about roads, and my colleague Mr. Spence hears a lot about roads in the major project world as well. Again, in Yukon, all communities are connected by road, except for one. There's a desire to continuously strengthen and extend that road network. They have the Dempster Highway that goes up to Inuvik and is going to be connecting to the Arctic Ocean with the Tuktoyaktuk highway.
The N.W.T. has a road network in the south, but no roads in the north. Nunavut has no roads, of course.
In the N.W.T. there's also a significant interest in three road corridors, which I believe they're talking about right now. One is to extend up the Mackenzie Valley, connecting the suite of communities, connecting Yellowknife to Inuvik and Tuktoyaktuk. That's one corridor that the GNWT is pursuing with enthusiasm.
There's a road to Whati, a Tlicho community that is looking forward to being connected with an all-weather road. A lot of these have winter roads, but it would be beneficial to have an all-weather road. That would also connect to a mining project there and allow it to become developed as well.
There is interest, both by the Government of Nunavut and the GNWT in another significant corridor that would connect the Coronation Gulf down to the road network on the east side of the Northwest Territories as well.
There are several significant corridors that are being considered, researched, and pursued.
7:05 p.m.
President, Canadian Northern Economic Development Agency
They are in desperate need. They're expensive. Building up there is very expensive and seasonal, so they are in need of funding.
7:05 p.m.
Liberal
Robert-Falcon Ouellette Liberal Winnipeg Centre, MB
But they would be transformative for the economy.
7:05 p.m.
President, Canadian Northern Economic Development Agency
They would be profoundly transformative for the economy, as well as for the social health of the communities that could be connected.
