Mr. Chair and members of the committee, it's a pleasure to be here today to discuss the role and mandate of Fisheries and Oceans and the Canadian Coast Guard and the contributions we make to northern economic development.
My name is David Burden. I am the Associate Regional Director General for the Central and Arctic Region of Fisheries and Oceans Canada. Joining me today are Mr. Wade Spurrell, Assistant Commissioner, Canadian Coast Guard, Central and Arctic Region and Mr. Barry Briscoe, the Regional Director of Oceans, Habitat and Species at Risk.
I would like to start off by first providing a little background and context. Fisheries and Oceans Canada is mandated to develop and implement policies and programs for Canada's scientific, ecological, social and economic interests in oceans and fresh waters.
DFO's activities in Nunavut and the Northwest Territories in support of economic development include science, such as the Canadian Hydrographic Service's activities to support stock assessment, emerging fisheries, and safe and accessible waterways, which are carried out using our coast guard fleet assets; fisheries management, in cooperation with institutions of public governance established under the land claim agreements; small craft harbours, to support existing and emerging fisheries; oceans, focusing on ecosystems management, such as marine protected areas and large ocean management; and finally habitat management, or more precisely, major project monitoring and environmental assessment in support of resource development.
I understand your committee is looking for a regional perspective on the north, and I think we can provide that. While the Central and Arctic Region is responsible for our program delivery and operations in Ontario, Manitoba, Saskatchewan, and Alberta, our operations also include Nunavut and the Northwest Territories, as well as the Yukon North Slope. This is one of the largest regions in any government department, extending from Prescott, Ontario, in the east to the British Columbia and Alaska borders in the west.
My remarks today will focus on the work Fisheries and Oceans Canada is undertaking in the support of the economic development in Nunavut and the Northwest Territories.
The economic drivers in the north come from the use and extraction of land- and water-based resources, and the absence of traditional agricultural and forestry sectors places a higher level of importance on aquatic and land-based renewable and non-renewable resources, such as the fishery, mining, and oil and gas resources.
Another element that is fundamental to our program activities is the northern land claims process. The land claims agreements legislate authorities and the responsibilities of the partners and insist on user involvement in shared decision-making. This, of course, ensures that opinions are heard in a consultative process and that decisions integrate traditional knowledge with scientific knowledge. Making users part of a decision makes it relevant to the circumstances and has the added benefit of giving ownership and community support to the decision.
Overlaid against this regulatory and governmental complexity, we must also contend with climate change, receding polar ice, rising global demand for resources, and the prospect of longer economic shipping seasons—all factors that will reshape the north in the coming decades and create both new opportunities and challenges. While there remains some debate as to how quickly some of these challenges will occur, there is broad agreement that they will be transformational and will affect significantly the work of a number of federal government departments and agencies, including Fisheries and Oceans Canada and the Canadian Coast Guard.
With this as a backdrop, let's look at some of our work.
Environmental assessment in support of economic development initiatives is an important focus for our department. There are currently seven major projects under active environmental assessment in Nunavut and the Northwest Territories. As well, the department is engaged in the pre-environmental assessment stage for an additional 15 projects. Our participation in the environmental assessments conducted in the north ensures that the review of potential impacts upon fish and fish habitat is transparent and receives the benefit of public input.
Merging regulatory responsibilities with economic prosperity objectives is often challenging, particularly when communities rely on land- and water-based natural resources as their economic drivers. In the Northwest Territories, DFO is responsible for environmental monitoring for three diamond mines. In 2008, the total value of the mineral, oil, and gas shipments from existing operations in the Northwest Territories was nearly $2.8 billion. DFO has a cross-sectoral team, with dedicated resources working on the proposed 1,400-kilometre Mackenzie gas pipeline. The panel hearings, as this committee will know, have been completed, and the joint panel report is pending.
We are also actively engaged in environmental assessments for mining projects in the north with expected capital costs of $7.5 billion and employment of more than 4,000 people. Environmental assessments for projects of this magnitude are time-consuming and costly, particularly in the Arctic, where travel and meeting with local stakeholders is logistically difficult and very expensive.
Fisheries and the oceans are also of immense importance to the north. Specifically, in the East Baffin communities, life essentially has evolved for centuries around marine and mammal populations and continues to do so. Income from the harvest of seal pelts has been thwarted by public and media stories that view the seal harvest as inhumane, and international markets have been depressed because of the European Union ban, which has significantly affected prices.
The Government of Canada regulates the seal hunt on the basis of sound conservation principles and ensures it is conducted in a safe and humane manner. The government has made every effort to counter the misinformation upon which anti-sealing campaigns are based, and it will continue to do so in the most appropriate manner.
The recreational fishery in the Northwest Territories and Nunavut is also very important. In 2005 more than 5,600 anglers, many of whom were non-residents, contributed more than $17 million to the northern economy.
A commercial fishery is also being developed in the eastern Arctic. The main species harvested are Greenland halibut or turbot, northern shrimp, and Arctic char. Moving farther westward, in the Northwest Territories the main species harvested are whitefish, lake trout, northern pike, and walleye. The estimated landed value in 2006 for freshwater fisheries from Great Slave Lake was approximately $610,000. The Great Slave Lake fishery has been a viable fishery since 1945, but economic factors have depressed the fishery over the last decade.
Although these fisheries are small in comparison to those in other areas of Canada, they are equally important in the north. The fishing sector represents one of a limited number of emerging economic and employment opportunities in the north. Commercial fishing in the Arctic Ocean has been limited by a lack of harbour infrastructure. As part of the economic action plan, the government has allocated an additional $17 million to expand harbour facilities at Pangnirtung, to enable additional development of this commercial fishery as well as to meet domestic and re-supply needs in the community.
Fully 99% of the landed value of the Arctic fishery comes from the emerging fishery in Nunavut. For the Nunavut economy, the landed value of the commercial fishery accounts for about 5% of Nunavut's GDP. When government expenditures on goods and services are removed, this is equal to the same period in Newfoundland, in which the fishery contributed 4.8% to the provincial economy.
The presence of the Canadian Coast Guard in the Arctic is critical to the north, and this will become increasingly important in the coming years with expected growth in marine traffic. The coast guard has full responsibility to respond to ship-source marine spills that occur north of 60, and swift response to spills, however small, is critical given the fragile nature of the marine ecosystem in our Arctic.
In addition to rapid air transportable kits in Hay River, the coast guard has some 11 Arctic community packs positioned strategically throughout the north that can be deployed as required. This year with the health of the oceans initiative, its environmental response infrastructure will be further enhanced with shore kits, beach flush components, additional containment boom, and small vessels.
I would also like to underline the general involvement the coast guard brings to economic development in the north. For several years, the coast guard has been involved with re-supply and bringing materials to the Arctic that are inaccessible to commercial vessels.
Last, although certainly important, is sovereignty. For several months of the year, the coast guard vessels are often the sole federal marine presence seen in Canada's Arctic. Once the agency's new polar class icebreaker comes on stream in about eight years, the presence will be lengthened to a full nine months a year.
Coast guard icebreakers are making it possible to map Canada's continental shelf in support of our claim to extend this country's exclusive economic zone under the United Nations Convention on the Law of the Sea. If we are successful in defending our claim, this will further the economic opportunities in our northern waters.
Mr. Chairman, I hope l've been able to give you some sense of the way in which our department and the Canadian Coast Guard are working to contribute to the economic development of the Arctic. We would be pleased to take any of your questions.
Thank you.