Indigenous and Northern Affairs Committee on April 2nd, 2009

[The Chair, Conservative, Bruce Stanton]

Good morning, members.

We are going to commence with our thirteenth meeting this morning. We are still waiting on two of our witnesses, and I'm sure they will be along shortly, but that will allow us to begin with our continuing consideration of the topic of northern economic development.

We're delighted to have with us here this morning representatives of each of the three territories. I must thank the delegations for doing this on relatively short notice, for coming here to help our committee scope the potential study that we're considering and will be looking at in the weeks to come.

I'd like, first, to introduce our first two witnesses. We'll eventually have three presentations this morning and then we'll open it up for questions.

We have with us this morning Rosemary Keenainak, from the Government of Nunavut, along with director, Mr. Ed McKenna. We also have Mr. Peter Vician, the deputy minister for the Department of Industry, Tourism and Investment for the Government of the Northwest Territories. We will properly introduce the other delegations when they come. That is not to leave out Mr. Singer, who is here also, the director for the Department of Industry, Tourism and Investment, again with the Government of the Northwest Territories.

We will begin with Ms. Keenainak. It's roughly a 10-minute presentation. We will each do that.

Do you have the text that you circulated to the members?

[Rosemary Keenainak, Deputy Minister, Department of Economic Development and Transportation, Government of Nunavut]

We only have it in English, so we gave copies to the translators.

[The Chair, Conservative, Bruce Stanton]

That's fine.

Okay, we'll proceed, then, Ms. Keenainak.

[Rosemary Keenainak]

Qujannamiik. Thank you, Mr. Chairperson.

Ullaakkut. Bonjour. Good morning.

Tavvauvisi Nunavummi. Greetings from Nunavummiut.

I want to begin by thanking the committee for this invitation to the Government of Nunavut to appear before you as a witness and for the opportunity to speak briefly on the subject of northern economic development. I hope our presence here today will be helpful to the committee in the development of your study of our economies in the territories.

I am very proud to be here as an Inuk deputy minister for the Department of Economic Development and Transportation with the Government of Nunavut. With me today is Ed McKenna, director of policy, planning, and communications for the department.

Minister Peter Taptuna wanted to be here with you today. He has asked me to convey his regrets that he was not able to be here. I am sure you are aware that this is a momentous week in Nunavut and in our capital, Iqaluit. Yesterday was our birthday as a territory. It marks the achievement of a major milestone as the government celebrates its tenth anniversary. Minister Taptuna's official duties have kept him in Iqaluit, where yesterday there were celebrations, feasts, and a special sitting of the Nunavut legislative assembly.

I am sure you have noticed the many stories about Nunavut in the media over the past few days. I hope that in these stories you have noted the comments by Premier Aariak and others in Nunavut about our territory and its future in Canada. A principal theme in this commentary from home has been that the creation of Nunavut has perhaps, more than anything else, contributed to our continuing self-reliance. What was achieved in 1999 was the opportunity for Inuit and all Nunavummiut in the Nunavut Settlement Area to take control of our destiny.

We faced many challenges in 1999. We have dealt with these, and much has been accomplished, but many of these challenges persist today. No one can do for us what we must do for ourselves. The creation of Nunavut ten years ago makes it possible for us to find our own solutions.

This is no less true for the development of our economy. Despite the current downturn in the national and international economy, we expect economic performance in Nunavut to be comparatively flat but still improving, with some economic growth in the year to come.

It is true that we have seen a decline in mineral exploration activity in 2008 from the record level achieved in 2007 of $338 million, and we anticipate a further decline in 2009. However, investments in mine development in Nunavut continue, and more than $430 million was spent on construction last year at the Meadowbank gold project, near Baker Lake. The mine is expected to open on schedule in 2010.

Another gold project, at Hope Bay, may begin construction within three to five years. We are optimistic that the very large Mary River iron ore project on north Baffin and the Chidliak diamond project, both on Baffin Island, will begin construction within a decade. Within 15 years, there could be as many as six mines operating in the territory, providing up to 1,500 jobs, and many more during the construction phase.

Developments in the mining industry in Nunavut will be the major determinant of economic performance in the territory in the next 20 years, but other sectors will contribute as well. Our fishery is small but growing, with good markets for turbot and char. Communities on Baffin Island in particular are increasingly interested in participation in this industry. With the expansion of quota allocations in our adjacent waters in the past year and the development of small craft harbours, their involvement will grow.

Our tourism industry has greater potential than we have been able to realize in the last ten years, and the economic downturn and rising transportation costs will not allow much growth in the next few years. Nevertheless, it is a sector that we believe justifies additional investment and that has potential for rapid growth when the current recession ends.

Cultural industries in Nunavut create products as varied as stone sculptures and feature films. The outlook for the arts and cultural sectors in Nunavut over the next 10 to 15 years is very positive, as their growth will track growth in the mining sector. We also anticipate a boost in international interest in our cultural industries and in tourism as a result of the 2010 Olympic and Paralympic Games and the international promotion of the iconic inukshuk logo.

I do not want to paint a picture of our economic performance in the next few years that simply glosses over some of the major challenges we will face. Climate change and the controversy over polar bear populations impact our sport hunting industry. Commercial harvests of caribou and muskox have been curtailed to ensure the sustainability of the herds, and our shrimp fishery has declined due to rising operating costs. Many people in our communities are feeling the impact of the anti-sealing campaign in Europe and even here in Canada, led by animal rights groups.

Mineral exploration by junior mining companies will decline significantly in 2009, as I said, and mining projects that we anticipated might be started in five years will not get under way for a decade or more. However, public investment in Nunavut through our own government and through programs for housing and other infrastructure and private investment in the Meadowbank gold mine should allow our economy to remain stable, if not experience some small growth as measured by real GDP.

I know that some of you were able to visit Nunavut in June of last year and meet with the Nunavut Economic Forum. I am pleased to note that your visit included a trip to Pangnirtung, my home community. I know you have heard about the institutional strength we bring to economic development in Nunavut through the ongoing partnership of governments, Inuit organizations, and the private sector, all of whom participate in the Nunavut Economic Forum.

I know too that the forum board members have spoken to you about the Nunavut economic development strategy and its goal for economic development in Nunavut, a high and sustainable quality of life for all Nunavummiut.

To achieve this goal, we look at indicators not only for economic performance but for our progress in social and environmental terms as well. While we are optimistic about our economic future, we are very aware, as only those of us who live in Nunavut can be, of the challenges we face in social development and in protecting our land and our wildlife.

Those media reports I referred to earlier have in some cases stressed the persistence of social problems in Nunavut--I just read one this morning--including the struggles of our young people and the enormous amount of work that needs to be done in education and training. The principal challenge for those of us who work in economic development is to link our economic performance, which is improving, to our social and environmental performance to strengthen our society and protect the environment.

This is one of the principal concerns of our new government. The importance of making social progress is a priority included in the new mandate announced by Premier Aariak just yesterday called Tamapta, which means all of us. Improvements in education and training outcomes is the first priority of the new government. Our goal is to have more graduates and to reduce the gap between unemployed people and job opportunities.

What role can the federal government play in supporting us in this endeavour? First, it can help us to make up the infrastructure deficit in our communities through investments in housing, water and sewer facilities, broadband, small craft harbours, roads, and airports. For some of this infrastructure, as you know, the federal government is providing significantly increased funding, but in other areas, particularly with transportation infrastructure, we have a long way to go to catch up with the rest of Canada.

The investment in the development of small craft harbours in Pangnirtung, for example, is very welcome, but it is only one among seven communities that have been identified as needing these facilities in the short term. All our communities are marine communities, but they are largely without the infrastructure they need to connect to the economic opportunities in the fishery and tourism.

I know you have heard this before, but it bears repeating. In Nunavut we are at an early stage in the development of our economy, one that has already been attained in southern Canada through investments in basic economic infrastructure.

Second, we need federal investments in sectors in addition to mineral exploration and mining. We are extremely conscious in today's economy of the need for economic diversification, and investments in our fishery, tourism, cultural industries, and our land-based economy are needed to ensure that our people continue to have options for sustainable livelihoods, for employment income, and for business development. The federal government is making some important investments in these areas, but there is a growing concern that in Nunavut we are increasingly dependent on targeted federal programs that are available only for a short term. Our young population and the rate of population growth in Nunavut will continue to place pressure on government services and the need for community infrastructure. We will not be able to keep up with the growing demand without the continuation of these federal programs.

We welcome the federal initiative to establish a new northern economic development agency for the territories. It is our expectation that the new agency will help to bring stable, ongoing investment in Nunavut's economy, as well as create an advocate in Ottawa to ensure the territories remain a development priority and that federal programming and investment is responsive to our distinctive economic needs.

The agency will also provide for us in Nunavut, and for each of the territories, the federal presence we need in our territorial capitals that will be the basis for the partnership with our governments in the development of our economies.

[The Chair, Conservative, Bruce Stanton]

Ms. Keenainak, could you summarize towards the end? If there's some—

[Rosemary Keenainak]

I'm almost done. I can talk faster.

[The Chair, Conservative, Bruce Stanton]

Great. Thank you.

[Rosemary Keenainak]

I can do it in both languages, but I'll just do it in English.

This presence cannot be achieved through a single federal department, although in Nunavut we enjoy a productive relationship with the regional office of Indian and Northern Affairs. But each of the territorial governments has strong bilateral relationships with a number of the federal departments whose regional and head offices are strung out across the country. A regional development agency will place senior public officials in the territories whose focus will be the territories, with whom we can work to design and deliver programming appropriate to our economies.

Keeping people in our communities is critical to our future in Nunavut, and in terms of the contribution these communities can make toward our national sovereignty it is critical to Canada too. Our people in our coastal communities are the guardians of the Northwest Passage. Ensuring that our people continue to be self-reliant, that there is strong local participation in major resource development projects, that we have access to and control over our resources, and that investments continue to be made in our infrastructure and in social development are our tasks in Nunavut. For this we need a vigorous federal partner focused on territorial priorities. To be self-reliant, to do what must be done for ourselves, we need the type of broadly based, independent federal partner a regional development agency can be.

The last page. It's only half a page.

We are encouraged that the new economic development agency initiative holds promise for this type of government-to-government relationship. For this reason, the territorial premiers joined together to establish principles and objectives for the agency and provided these to Minister Strahl in early February, with the recommendation that a federal-territorial working group be established.

We continue to look forward to the opportunity to meet with the federal government and to work in partnership on the creation of a new northern economic development agency.

Thank you. Merci. Qujannamiik.

[The Chair, Conservative, Bruce Stanton]

Thank you, Ms. Keenainak.

We continue with Deputy Minister Peter Vician.

You have ten minutes.

[Peter Vician, Deputy Minister, Department of Industry, Tourism and Investment , Government of the Northwest Territories]

Good morning. Thank you, Mr. Chairman and committee members, for the opportunity for the Government of the Northwest Territories to appear and present its perspectives on critical issues facing Canada's Northwest Territories.

On behalf of the Government of the Northwest Territories, particularly the premier, the Honourable Floyd Roland, and my minister, the Minister of Industry, Tourism and Investment, the Honourable Bob McLeod, we're pleased to appear before you.

We have prepared a presentation deck, which I understand will be circulated upon translation. My apologies, Mr. Chair, for not having that ready this morning. I'll make reference to that.

The Northwest Territories is over 1.4 million square kilometres in area. It's the third largest jurisdiction in Canada, surpassed only by Nunavut and Quebec. Total population is a little over 43,000 people. Over 50% are aboriginal and about 49% are non-aboriginal. There are 33 communities. The majority of the population in the NWT is located in the capital city of Yellowknife, with smaller communities having a larger percentage of the aboriginal population.

Over half the communities are accessible by all-weather roads, and all mines and most communities are accessible by winter roads. I think recent stories on the Discovery Channel make you understand some of the interesting part of that. All communities have airports of varying sizes, from simple landing strips to major airports, such as in Yellowknife.

The NWT is vast. It is the third largest jurisdiction in Canada. It is also a land of rivers and lakes and many opportunities.

While the NWT economy has grown, it is less diversified in 2007 than it was in 1999. Mining and oil and gas sectors have increased, along with construction, while the share of most other industries has decreased. The change in GDP shows the significant impact of the development of the NWT diamond mine industry on the economy. At this point, our GDP rests at around $4 billion per year.

In terms of opportunities, oil and gas and mining opportunities are a major possibility and are part of the future of the economic road map for the territory.

I've provided in the presentation a map that outlines the basic sedimentary and oil and gas basins of North America. Those maps, for your benefit, will show you that the gas fields do not stop at the Northwest Territories-Alberta border.

The Beaufort Sea is one of North America's largest undeveloped fields and has no access to market without a pipeline. Proven and likely gas reserves are in the order of 120 trillion cubic feet, and that's significant. It's almost half of what Alberta, B.C., and Saskatchewan combined have today. We've done comprehensive reporting over a number of years that shows the significant impact the development of Arctic natural gas will have on the benefits and long-term sustainability of North America's energy supply.

In terms of mining, the mineral resources and the benefits of mineral resources extend well into the territories as well. I've provided in the presentation maps that show how, in the Slave Geologic Province, which is an extension of the Canadian Shield, diamond mine potential and other base metal and other property potential will provide economic sustainability for the Northwest Territories.

Diamonds, of course, are a current NWT export priority, and the diamond mines like Diavik, Ekati, and Snap Lake will provide future jobs and opportunities for years to come, even through the tough economic conditions that exist today.

Although our economy is driven by non-renewable resources at this time, the NWT has significant renewable resources that offer opportunities for diversifying our economy, and that's a key issue today for us to speak to you about.

Our large river systems offer a number of hydro opportunities. Trapping and subsistence harvesting offer support for lifestyles that do not appear in the GDP figures. Ecotourism, aurora viewing, fishing and hunting, and general touring have significant potential. The Mackenzie and areas south of Great Slave Lake have significant forestry resources. And our relatively short growing season is countered by long hours of sunshine. Community gardens have become very popular, so our agriculture base does have a future.

In terms of economic opportunities, the Mackenzie Valley pipeline is the most immediate and significant development that will enhance and expand the NWT economy. As mentioned earlier, it will provide both direct and indirect benefits, not only to the Northwest Territories but to all provinces, other territories, and Canada overall. Oil and gas and minerals have been the economic drivers of the Northwest Territories, and they will continue to be the primary drivers in the future. Our tourist attractions contain many opportunities, aurora borealis tourism being one of the key ones in recent years.

In terms of gaps and challenges, we need to diversify our economy. We need to deal with a limited infrastructure and what it limits in terms of development. We need to deal with economic disparities between large and small communities and between aboriginal and non-aboriginal residents.

In terms of additional challenges, although we have tremendous mineral potential, similar to that in Ontario and Quebec, the level of development is low. Unlike provinces, we lack access to royalty revenue required to make large-scale investments in our economy. We lack devolved powers from Ottawa to the north, which also contributes to what we believe is the regulatory complexity of the Northwest Territories.

In terms of critical success factors, we see a series of factors that will make a change for the future. Number one is devolution. That will help address the regulatory problems and provide the necessary revenues to address development needs in the NWT, and although resource development drives our economy, we are faced with increased demand for government services without the added revenues from those developments.

Partnerships are a priority with the federal government particularly and also with aboriginal claim groups.

Regarding capacity building, without revenues from resource development, the GNWT and aboriginal governments lack the necessary resources to deal with the developments that will maximize the benefit of those futures.

Other critical success factors are investments in infrastructure, economic diversification—the diversification of our economy into other areas besides the non-renewable resource areas—and improved federal coordination, a key priority in terms of how the NWT public interest can be served for both territorial and Canadian benefit.

Finally, let me conclude with our recommendations. We have three key recommendations for you today.

Number one is northern management of non-renewable resources and devolution. Northern decisions need to be made by northerners. Until devolution of province-like powers over lands and resources are assumed by the GNWT, we will not be able to realize our full potential.

On partnerships, the northern economic development agency is an opportunity to address federal coordination issues as well as to help focus NWT economic development needs. The three territories have provided their vision of principles and objectives for such an agency. We look forward to engaging with the federal government on this in the near future.

On infrastructure, major infrastructure development will likely be beyond the means of the GNWT even with resource revenue sharing. The benefits of development, however, are Canada-wide and deserve national support.

As I hope you've seen from this short overview—and I hope you will gain a better understanding when I am able to circulate the deck—the Northwest Territories has tremendous potential to be a significant part of the Canadian economy. Support of the recommendations presented would constitute an investment by Canada that will have significant benefits for the NWT and all Canadian residents.

Let me conclude by inviting the committee to visit the Northwest Territories, its people, its beauty, and its future.

Thank you, Mr. Chair.

[The Chair, Conservative, Bruce Stanton]

Thank you, Mr. Deputy Minister.

Please now welcome the delegation from Yukon.

Thank you for your attendance here this morning. We got off a little bit late and we didn't do proper introductions.

We are delighted this morning, members, to have Harvey Brooks, deputy minister for Yukon, particularly the economic development portfolio, and also Monsieur Trudeau, who was actually able to attend on Tuesday, if I recall. We're glad to have you back here, Mr. Trudeau. We have Mr. Steve Rose, also from the department.

We will go for 10 minutes, Mr. Brooks, then we'll go to questions from members after your presentation.

Merci beaucoup.

[Harvey Brooks, Deputy Minister, Yukon Department of Economic Development, Government of Yukon]

Thank you.

Good morning. It's a great pleasure to have this opportunity to speak to you. I bring greetings from our premier, Dennis Fentie, and also my minister of economic development, Jim Kenyon. Good morning as well to my fellow representatives from the north.

Canada's north has entered a new era. We're experiencing massive social, political, environmental, and economic change, and with that change comes influences that reach beyond our northern borders. We are increasingly making the decisions that will shape the evolution of the territories in the years ahead and create benefits that will affect all Canadians. We are mature, responsible governments and believe that our northern institutions—federal, territorial, aboriginal and municipal—work in partnership with one another. We see a north where the governments have the fiscal capacity to govern and respond effectively to those we serve.

I'd like to begin with Yukon's economic strengths, challenges, and vision for the future. I'll follow that with Yukon's position in respect to the Government of Canada's commitment to establish a regional economic development agency for Canada's north.

Yukon has seen both its tourism and mining sectors affected by the global economic downturn. However, the economy for Yukon remains strong, with a commitment by the Yukon government to stimulate and diversify the private sector economy.

In addition to natural resource development, Yukon is focused on a number of strategic industries, including film and sound, research and development, information technology, tourism, arts and culture, agriculture, forestry, manufacturing, oil and gas, and small business development. For this fiscal year, the Yukon government has tabled a budget of $1.003 billion. This budget responds to the current economic situation by making strategic long-term investments that accomplish short-term targets, including local employment and spinoff benefits for Yukon retailers and suppliers.

Yukon's infrastructure investments create immediate stimulus and long-term economic growth. Some of these investments include building sustainable infrastructure in Yukon communities, including water and sewer systems; enhancing our major highways to support the economic future of Yukon's natural resources; major upgrades to the Whitehorse airport terminal building to maintain its status as an international airport; expanding the existing cell phone service to additional areas; and expanding hydro-generated power to support Yukon communities and the mining industry, while reducing our carbon footprint. These priorities are determined locally and are supported by the federal stimulus package.

To support Yukon's natural resource development, the Yukon government supports a number of incentive programs. These programs, combined with current geoscience databases and a single regulatory process—Yukon Environmental and Socio-economic Assessment Act, or YESAA, as you heard on Tuesday—have made Yukon a worldwide competitor for investment in the mining sector.

Members may recall information about the McCrank report presented to you on Tuesday by Indian and Northern Affairs. You'll note that Yukon's regulatory process, YESAA, was only marginally included in the report, essentially because it is effective. It has drawn praise from the industry. Project proposals are submitted to YESAA and coordinated through first nations, territorial, and federal regulatory processes. The brief discussion about YESAA serves to illustrate another important point. Each territory has unique issues to deal with. Thus, it's important for a new body like the northern agency to remember that one size does not fit all.

Yukon understands that financing and equity investments for major private sector initiatives will come from outside partners, whether from B.C., Alberta, the U.S., Europe, or Asia. Yukon has a strategy for improving the investment climate for responsible development and pursuing investment attraction from a variety of areas. We've already seen some substantial capital investment from Chinese companies and we continue to build our relationship with the Asian region. Yukon's reputation is growing internationally and we have spread the message that Yukon is open for business.

The Yukon government places great importance on partnerships with first nations. The Yukon government is committed to strengthening and sustaining positive relationships with all Yukon first nations governments and the citizens and communities they represent. We believe it's vital to engage first nations in the development of the north. To date, 11 of Yukon's 14 first nations have self-governing agreements in place, and some have already taken advantage of investment opportunities in various industry sectors across Yukon. Community participation is critical to ensure that sustainable development can occur with supportive local involvement.

Capacity development is a priority for first nations, and the Yukon government continues to work with all Yukon first nations and their respective agents in key areas of capacity development to further their participation in the Yukon economy.

Yukon government is assisting with initiatives through the northern strategy trust and also with the creation of an office with the executive council of Yukon government to promote first nation capacity development.

The Department of Economic Development has been working with several Yukon first nations and first nation development corporations to establish regional economic development plans. The creation of a northern economic development agency has come at an opportune time.

Yukon was pleased when the Government of Canada announced its intention to create a northern economic development agency. This means that Canada sees and understands the enormous economic potential in Canada's north and is ready to strategically invest in the resources and the people of the north.

Yukon believes that while the economic development needs of Canada's northern regions have similarities, the geographic, political, and economic realities in the territories make for very unique and specific situations that should not be ignored. Yukon differs from our territorial neighbours because since the 2003 devolution of authorities, the Yukon government has been solely responsible for public lands and resource management over water, forestry, and mineral resources.

Yukon also is unique in being the only territory to have year-round highway access. The Alaska Highway connects us to Alberta and B.C., and our highway connection to Alaska gives us year-round deepwater port access.

We have a single regulatory regime, YESAA, that processes development applications in a streamlined and timely manner. It is Yukon's position that the new agency should be a stand-alone organization with a decentralized decision-making process unique to each territory and responsive to the unique economic development needs of the Yukon. It is also our position that the new agency should complement existing territorial economic development programs and support a partnership approach.

Yukon, along with the Northwest Territories and Nunavut, has developed principles and objectives for initiating discussions with the Government of Canada. These principles and objectives address the importance of efficiency, flexibility, cooperation, partnerships, responsiveness, and progression in the design and operation of the new agency.

The Yukon supports a mandate that promotes the development and diversification of the unique economies within Yukon, the NWT, and Nunavut. We would also like to see a mandate that will advance the interests of the three territories in national economic policy, program and project development, and implementation. To do this, the new agency must work in cooperation with the economic development programs and initiatives developed by the governments of the territories.

I would like to begin by exploring some of the principles we put forth.

We believe the agency should be based in the territories and staffed by resident employees who have familiarity with the operations and economies of the territories. We would love the agency to be structured and resourced as a multi-faceted, stand-alone business unit within a federal department--as are other regional development agencies in Canada--developing policy, delivering programs, and coordinating other federal programs that support territorial economic development.

Our position is that the decision-making authority regarding projects or programs should be collaborative within each territory and in Yukon should include first nations governments. Federal funding should be coordinated with territorial investment and development, avoiding duplication between levels of government and minimizing administrative overhead.

We would like to see a program that is flexible and invests in a wide range of initiatives, including people, enterprises, infrastructure, research, promotion, and planning. We support a partnership approach at the strategic planning level, as it would be effective in ensuring a collaborative approach in achieving mutual objectives.

The programs should complement existing territorial economic development programs and support a partnership approach. We believe that the territorial share of federal programming related to other initiatives should not be diminished by the creation of a regional development agency.

The programs should add to the current level of investment. The programs should in no way limit the obligations of the federal government to provide access and allow the participation of the residents of the territories in existing federal programs.

Finally, Yukon would like to see programs that respond to the unique needs and strategic priorities of each territory.

We look forward to continued collaboration and the start of discussions on the new structure, principles, and implementation of the agency, and we are eager to hear the ideas and concerns of our partners on this tremendous economic initiative in Canada's north. To this end, it is Yukon's recommendation that a federal-territorial working group be established to jointly develop the concept and structure of the agency.

In conclusion, Yukon sees the future benefits of moving forward on this initiative in partnership with the northern territories and the Government of Canada. We look forward to providing more detailed input on the structure and operations of the new agency shortly. I look forward to the establishment of the federal territorial working group that will provide us with a structured forum in which to move forward.

Thank you for your attention. I believe there has been time allocated for questions.

[The Chair, Conservative, Bruce Stanton]

Thank you, Mr. Brooks.

We have representatives from the three territories here this morning. We will have three five-minute rounds of questioning. That will allow more members to ask questions. We will start with Mr. Bagnell.

Mr. Albrecht, do you have a question?

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

I have a point of order. I recognize that we don't have translation for the other two submissions, but the Northwest Territories has maps available. It would be helpful for me to see those maps, if the committee members would agree to have those decks circulated.

I beg the indulgence of the committee to see those maps.

[The Chair, Conservative, Bruce Stanton]

Is there consent to circulate documents that are not in both official languages, the maps?

Mr. Lemay.

[Marc Lemay, Bloc, Abitibi—Témiscamingue, QC]

The maps, okay, but I am not willing to have the other documents circulated until they are available in both languages.

[The Chair, Conservative, Bruce Stanton]

I could maybe check with Deputy Minister Vician. Are the maps integral to the document—or are the maps separate, so we could have them circulated? Are they part and parcel of the documents you have with you?

[Peter Vician]

Thank you, Mr. Chairman.

The maps have text integrated into them, so my apologies, as they would have English text on them.

[The Chair, Conservative, Bruce Stanton]

Does the committee agree these can be circulated? Oui ou non?

[Marc Lemay, Bloc, Abitibi—Témiscamingue, QC]

Not if they are not translated, no.

[The Chair, Conservative, Bruce Stanton]

All right, we will continue, beginning with Monsieur Bagnell, for five minutes.

[Larry Bagnell, Liberal, Yukon, YT]

Thank you all for coming.

As the official opposition critic for the north and the Arctic, it's very helpful for me to hear how the federal government can help you.

I just have one question for all three territories. Basically, how can the federal government help you better in your aspirations to develop oil and gas? I will just put that into a bit of context, because as you said, you're each different.

In the Yukon, Harvey, what are you expecting from the Beaufort?

Second, the federal government, at times, has not paid enough attention to the Alaska Highway pipeline. What can we do there?

I know that Peter said the only way out for the gas was a pipeline, but I think the wording should have been “the way we would like it in our territories is to have a pipeline”. But there are significant projects under way for LNG. If it goes out that way, it would escape us and we'd lose a lot of revenues.

Also, Peter, could you comment what more we could do to help with the Mackenzie Valley pipeline? Do you agree with the streamlining of the local regulatory environmental processes?

And in Nunavut, Rosemary, I know that historically you had a country food base. I'm curious to know how strong that is. The reason I ask is that the witnesses I called before the transport committee in the last two weeks explained that we don't yet have the technology to clean up an oil spill under ice. So if a spill were to occur, it could have a somewhat devastating effect for some time on the marine life, and country foods, in particular, for Nunavummiut.

So I'm wondering to what extent country foods are still part of the economy and about your aspirations in oil and gas development.

Harvey, do you want to start?

[Harvey Brooks]

Thanks very much for the question.

The members may not be aware that Yukon actually has substantial oil and gas reserves that have been indicated, and measured, in some instances. Because the gas fields—essentially the newer ones—are stranded without access to a pipeline, their development remains delayed. Those are essentially in the Eagle Plains area of Yukon, but also in and around Whitehorse itself. We do have a functioning gas field in the southeast part of Yukon, which is connected with a pipeline into British Columbia. We also have indications that some of the offshore gas activity that may be possible in North Yukon would be of interest to us as well.

The potential development of the Alaska Highway pipeline project would fundamentally change the nature of Yukon's economy, as perhaps the single largest project that could impact the future of Yukon. Not only would it provide the promise of available natural gas for power production and allow the responsible development of our mining activity and other activities that need power generation, but it would also unleash the oil and gas sector in Yukon for the development of our own oil and gas reserves. This would allow the private sector to really explore that.

There is a fair amount of exploration that's going on now, but it's limited, because the principals understand that it'll be some time before they can economically ship that product into the southern regions.

So this is critical to the long-term future. Some capacity to connect to the southern markets is essential before people will spend money to explore and develop. As was mentioned in regards to the other territories, the Yukon is relatively unexplored. It's almost a case that, dollar for dollar, the money you put into exploration will unearth greater and richer natural resources under the ground. We saw that in Alaska following several years of increased exploration. So as markets become more available, we will be able to deliver and have industries that will develop along those lines.

We also support the Mackenzie Valley pipeline project and see benefits from that to the Yukon; but it won't have the same impact in terms of providing us with access to available and well-priced natural gas, nor will it allow us a capacity to access southern markets with our gas production.

[The Chair, Conservative, Bruce Stanton]

Thank you, Mr. Brooks.

Now Mr. Lemay has the floor for five minutes.

[A voice]

I think he's expecting a response from all three.