Evidence of meeting #26 for Indigenous and Northern Affairs in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was yukon.
A recording is available from Parliament.
10:55 a.m.
Bloc
Yvon Lévesque Bloc Abitibi—Baie-James—Nunavik—Eeyou, QC
Do you pay royalties to the territories for development activities? We know that these royalties are subject to tax credits, but couldn't the territories use these royalties to help you carry out development activities, in part? If they help you carry out development, then at the same time you would be creating more activity and in turn, more royalties, that is for sure. That is where I think you have a certain negotiating power with the territories.
10:55 a.m.
Vice President, Yukon Chamber of Mines
Yes, that's true.
That's true if the royalties that companies are paying were staying in the Yukon, but they're clawed back. So the revenues that are generated by royalties are collected by the territory. Some of it is shared with first nations, and it's capped at quite a very low level. Excess of that is then taken into account by the federal government for transfer payments, so at the end of the day the territory doesn't really keep that additional income from resource exploitation.
10:55 a.m.
Executive Director, Yukon Chamber of Mines
One of the programs the territorial government does run right now is called the Yukon mining incentive program, where they provide close to $2 million for low-level prospectors and small-scale exploration companies to conduct exploration work.
10:55 a.m.
Conservative
10:55 a.m.
Manager, Northern Canadian Operations, Canadian Association of Petroleum Producers
With the oil and gas industry on the exploration side, the way that companies are awarded licences is on the basis of a work commitment. It's not a fee that's paid, but it's a commitment to spend a certain amount of money, and that, in the case of the Northwest Territories, would be to the federal government. Certainly the expectation on companies is that as much of that as possible be spent in the north on local businesses.
10:55 a.m.
Conservative
The Chair Conservative Bruce Stanton
Thank you, gentlemen.
Just before we adjourn, on behalf of all members, I thank you all for this very informative presentation this morning.
Members, before you get away, you'll recall that this evening at 6:30 in the reading room, 237-C, there is a briefing on the question of the McIvor decision. The department will be providing a briefing to all interested members, not just committee members. So if you know colleagues who might be interested in this topic, please invite them to come by at 6:30.
We'll be back here on Thursday morning at nine o'clock for the Huron-Wendat. I'd draw your interest to the fact, members, that the Huron-Wendat committee will be an in camera committee, as will tonight's. The briefing is not open to the public. Your staff are also welcome to the session this evening. With that, we'll see you this evening.
Thank you again, all of you, and safe travels home.
The meeting is adjourned.
