Indigenous and Northern Affairs Committee on June 15th, 2010

[Anita Neville, Liberal, Winnipeg South Centre, MB]

Thank you.

[The Chair, Conservative, Bruce Stanton]

Thank you, Ms. Neville.

We're going to go to Mr. Payne. That will be followed by Mr. Bevington and Monsieur Lévesque.

Mr. Payne, go ahead.

[LaVar Payne, Conservative, Medicine Hat, AB]

Thank you, Chair.

I just wanted to do a follow-up. Unfortunately, our fellow member Monsieur Lemay is not here. I want to follow up on Canada's economic action plan and how that has impacted the north. In particular, I'd like to hear a few details around some community adjustment funds that have been placed in the north on those projects, as well as the RInC and how that has impacted the citizens of the north as well as the economic development.

[Michel Robillard]

Thank you.

With respect to the community adjustment fund, we have been working with the various communities in the north over the last eight months. We have spent roughly $5 million in each territory, with respect to CAF. All the funding related to RInC, so far, has been spent. We had, I believe, 19 projects totalling $1.7 million--all committed. It was the same with CAF. According to what project proponents are sharing with us, we have created 250 person-years under CAF and 16 person-years under RInC. Again, it's based on what project proponents are indicating in their PSR, project synopsis report. And it had a huge impact on the different communities.

A good example lately is we have invested $1.6 million in Nunavut for the Baffin business community development to support small businesses. That's only one example. Another good example is Qulliq Energy in Nunavut. We have replaced eight generators in eight communities, reducing the use of diesel by 1.6 million litres every year. So it has a huge impact in terms of economic benefits for the various communities.

[Patrick Borbey]

I would add that we also have the Arctic research infrastructure fund, which is part of the action plan, and that's certainly generating significant economic benefits. There are 20 different projects across the north. These projects are not just in the territories; they also include projects in Manitoba, in Churchill, projects in northern Quebec, and projects in Labrador. Again, about $85 million over two years is being invested. And again, those projects are all on track, notwithstanding the challenges of constructing or meeting construction timelines and costs in the north.

[LaVar Payne, Conservative, Medicine Hat, AB]

It sounds as if it's creating a lot of good employment--and a lot of action, as my friend says. I'm glad to hear that.

I'm wondering, Monsieur Robillard, if you could give us the current status of the agency's operations. And what are the specific goals over the next couple or three years?

[Michel Robillard]

Thank you for your question. Right now we have around 100 employees, of whom 67 are permanent employees. The rest are what we call our “transition team”, which is really casual employees and people who will be helping us to stand up the organization.

We have an office in the Yukon, and staffing is almost done. We are moving to our new accommodation in September, in downtown Whitehorse. In Yellowknife we are right now staffing the NPMO as well as the regional office, and we will be moving into our new accommodation around October.

In Iqaluit we have a plan to staff up to 51 positions over the next 20 months. You must understand that it's a phased approach, because we are still dealing with some challenges in terms of HR capacity, office accommodation, and housing. So you'll see our office moving from roughly 11 people up to 51 people in the next 20 months.

We have now a draft integrated business plan. We are currently working on our HR plan, including an Inuit employment plan, because we have specific challenges in the north.

If you read the RPP and the integrated business plan, you will see we have a clear objective over the next three years. Right now we are in phase one of the agency, which is the stand-up, and it will take another six months, I would say. Then after that we move to the second phase. We are already working on the second phase in terms of objectives. For instance, this famous framework to support the sustainable economic development in the north is part of our objective in the next year or two. We are looking at new programming. Michael just mentioned young entrepreneur development and women and business, for instance.

So not only are we administering our current program, but we are also looking at new programming in the future. So that's only a few objectives that we have right now.

[LaVar Payne, Conservative, Medicine Hat, AB]

I have one final question. Mr. Borbey may also want to chime in on this.

What suggestion would you have for the committee in terms of where we should focus our northern economic development?

[Michel Robillard]

There are many challenges in the north, a multiplicity of challenges, a multiplicity of stakeholders and partners. I would say the three main challenges, based on my experience, are infrastructure, capacity building, and the cost of doing business in the north. There are many others.

For me, capacity building is a real issue, because you may have a lot of good infrastructure, which is quite important, but you also need the human capital to support these infrastructures. So it's important in the future to invest and to develop and to work on this capacity building as well. I think it's an important issue for us.

[Patrick Borbey]

If I could add, I think the model for development in the north is perhaps a bit different from what we've lived through in the south. We have to respect that. We have to respect the fact that people want to see balance. They want to see development happen but in a sustainable way, so we won't leave a legacy of contaminated sites, which we are now cleaning up. So I think it's very important to northerners that we acknowledge that and act accordingly.

On the capacity, I agree and reinforce that again. Graduation rates that are significantly below the national average just won't cut it. There are many people coming out of the schools in the north who don't have the functional literacy to work safely in the workplace. That means they can't read labels and they can't protect themselves against hazards in the workplace. We've got to find some solutions. I think everybody is conscious of that. But what are the solutions that are going to work in the north and allow northerners to be able to fully participate in the economic opportunities?

[Michel Robillard]

If I may, Mr. Chair, I would add that skill development will help us reach the goal of economic diversification in the north. It's not only investing in resource projects, which is quite important, but also developing cultural industries, developing tourism, developing the traditional economy, developing social economy, and so forth. So skill development will help us reach this goal of economic diversification as well.

[The Acting Chair, Liberal, Larry Bagnell]

Thank you.

Mr. Bevington.

[Dennis Bevington, NDP, Western Arctic, NT]

Thank you, Mr. Chair.

Mr. Robillard, on the development of the infrastructure in the McKenzie Valley, you've put some money into the Tuk-Inuvik road. Is that correct?

[Michel Robillard]

We have provided funding up to $4 million to the Dempster, Rigley, Tuk-Inuvik highway for the development of the PSR, the project synopsis report, which is a key step toward--

[Dennis Bevington, NDP, Western Arctic, NT]

Okay, but with the Rigley north connection in the McKenzie Valley, did the money that was announced come from CanNor?

[Michel Robillard]

Four million came from CanNor.

[Dennis Bevington, NDP, Western Arctic, NT]

No. You said that was for the Dempster part.

[Michel Robillard]

Yes, it's for the Dempster, Rigley, and Tuk-Inuvik.

[Dennis Bevington, NDP, Western Arctic, NT]

Okay, so you actually put the money into the Rigley. The Dempster is not part of that; it would be part of the McKenzie Highway.

[Michael Nadler]

It's a connection to the Dempster.

[Michel Robillard]

Yes.

[Dennis Bevington, NDP, Western Arctic, NT]

From Rigley to the Dempster highway, that's the connection you're talking about.

[Michel Robillard]

Yes.

[Dennis Bevington, NDP, Western Arctic, NT]

Okay.

We've heard evidence here in the last couple of meetings, especially from the aboriginal pipeline group, that there would be an enormous cost saving to see that highway precede the development of a pipeline. Do you anticipate that the money you've put into that will bring this closer in the very near future? We need some decision-making on that. What was announced was a three-year study. Can you give me some more details on a three-year study right now on a road that has been well studied over probably about 30 years?

[Michel Robillard]

I will try my best, but I can come up with a more thorough answer.

We know that this project synopsis report is a key document to go further in potentially getting other funding if the decision is made to go ahead with this highway. So we've really been funding this PSR. CanNor did that. I believe it's an important step toward a potential solution or not, depending on what the PSR will bring. That's what I can say for now, but I can come up with a more thorough answer to your question.