Thank you, Paul, and Mr. Chair.
The isolation of Nunavut's communities creates many barriers for the emergence and sustainability of small business. A lack of capacity, both in terms of human resources and infrastructure, threatens the viability and sustainability of small business. The lack of buildings and of the capital to erect those buildings limits business start-ups and business growth.
Markets are limited due to the lack of infrastructure to bring products to a larger audience. Freight costs are prohibitive to profit margins. An absence of roads and deep-sea ports impairs opportunities to reduce shipping costs in both directions. The acquisition of the inventory required for business is triple the cost of doing business in southern Canada. Barging in goods restricts you to the small window of our shipping season, and often causes expensive delays and lost contracts.
Energy costs are one of the highest cost components of any business and of living in the north. Renewable energy sources need to be developed to reduce the costs of living and doing business in Nunavut. There is a shortage of human resources in the north as well. The Government of Nunavut is the largest employer of skilled labour. It is difficult for business to compete with that. Not every community can provide training facilities and/or courses required to fill the demand for the various skilled labour positions.
Taking the appropriate training means being away from your family and community for extended periods of time. This is not always feasible. Professional business and support services are also not readily available. Many communities do not even have banking services. Nunavut is still very young in terms of an established business community. Learning to navigate business procedures and other government requirements, often coupled with a language barrier, can be daunting to any potential business owner.
These are just a few of the issues. We've expanded on these and more in the brief previously submitted. Nunavut still needs to build capacity and create infrastructure before sustainable growth can take place. The pending land use plan and the NUPPAA legislation to implement it will clarify the procedures and streamline the process of how land use will be managed. This will create a welcoming environment for industry to invest in. This will not alleviate all of the barriers; however, partnering small business with industry can have positive results for both parties.