Finance Committee on April 4th, 2017

[Hunter Tootoo, Independent, Nunavut, NU]

Thank you, Mr. Chair.

I think you hit the nail on the head in your opening comments when you talked about the lack of public infrastructure. To me, that's probably one of the biggest barriers to sustainable economic growth in all three territories. Canada put in the roads across the country. It put in the rail line. It put in the airports. It put in the ports on the east and west coast, but that didn't happen in the north. I think Canada needs to make a significant investment in infrastructure in the north beyond where they are right now.

Increasing your borrowing limit is just like giving you more rocks in a leaky boat. Recognizing that the territories have limited opportunities to generate own-source revenues and that because of the historic way that things have been rolled out we are so far behind, to me, that's an investment. It's expensive for some of the projects, like the Grays Bay project, or the Manitoba road and hydro project, and the deep sea port in Iqaluit. All these types of infrastructure projects cost a lot of money. You have to remember that a dollar down here is 33¢ up there because of the high cost of doing things. Investing in infrastructure in the north, or any investment in the north, as you pointed out, is an indirect investment into the southern economy.

Do you feel that the federal government needs to make a significant investment in infrastructure in the north in order to create a strong, stable, vibrant economy that will lead to the self-sufficiency of the territories and help with your problem of people leaving because there are no opportunities?

[Robert R. McLeod]

Certainly that's a very important element for us. It's a message we are constantly given. We recognize that we're a very small population. We are asked why the government should spend money in an area where there's a small population. I think it's very important because the north is part of Canada. We shouldn't be penalized for where we live.

I think investing in the north also helps provide for Arctic sovereignty. If everybody left the north, then I think it would be an issue. I think that the people who are there like living there. They think it's a good place to live, work, and invest. We'd like to keep it like that. With some more investment I think we can get economic development and more people to come and stay there.

[The Chair, Liberal, Wayne Easter]

Thank you, both.

I have one last question, Mr. Premier.

In your submission you point out that there are opportunities in exploration and mining related to minerals such as lithium, bismuth, and other rare earths. Rare earths are very important in this day and age, and are key components in the emerging green technology and digital sectors. You go on to say that two mines for those commodities have already received their environmental regulatory permits but can't get the required funding to commence operations.

What can the federal government do in that regard to help? I really do believe that is an opportunity for the north. It's an opportunity for the country as a whole. It would add to growth in our economy. What needs to be done there to hit the end goal?

[Robert R. McLeod]

We were in the situation where we had four mining projects that went through the regulatory process and were fully approved. All the permits were approved. Only one of them went ahead, and that was the Gahcho Kué diamond mine because they had the money and they were able to go into immediate construction. The Nechalacho rare earth project had to raise $1.6 billion to start construction. NICO gold and lithium project has to raise about $500 million to go ahead.

We are working with the federal government. The Tlicho all-weather road will help facilitate raising capital for the NICO project because the all-weather road will reduce their costs of building a road to the mining project. The federal government could find a way to help us work with these companies to access capital, perhaps with the infrastructure bank that's been talked about. We haven't heard the full details about that. That might be an opportunity.

Certainly, I've been to China five times. We always have mining companies along to try to find ways to raise capital. We think that, if the commodity prices improve and if we can find a way to work with industry to raise capital, that would certainly help go a long way.

Thank you, Mr. Chair.

[The Chair, Liberal, Wayne Easter]

Thank you very much, Premier, for your presentation.

Thanks to committee members for their questions. We will leave it at that.

Just for the committee's information, we do have another committee meeting right after votes around 3:30. To give members something to think about between now and then, the Minister of Finance has offered to come to committee on the 10th to appear before us on estimates and on the budget, not the budget implementation act because we won't have it by that time. If we want to accept that offer, we'll determine that at 3:30.

Thank you again, Mr. Premier.

This meeting is adjourned.