Mr. Chair, and committee members, thank you for coming to Yellowknife and providing us with an opportunity to speak with you today.
The NWT Chamber of Commerce is the largest business organization north of 60 and we've long been a champion of devolution. We firmly believe the closer the authority is to the affected jurisdiction, the better the overall decision-making in the interests of that jurisdiction. As part of our preparation for this address, we polled our members to get a collective opinion regarding our position. With few exceptions, our members of the chamber network from Hay River to Inuvik support the points we wish to leave with you today.
First and foremost, the business community of the Northwest Territories supports the legislation as a whole and wishes to congratulate the federal and our aboriginal and territorial governments for their hard work and foresight in moving related agreements and this legislation forward. Is Bill C-15 perfect? No. Nothing visionary is ever perfect. In our view Bill C-15 is indicative of the vision shared by the people of the NWT.
To reinforce that statement I wish to refer to a poll conducted in early March 2013. The research was commissioned by an independent third party and conducted by an independent research firm. The methodology included interviews with 400 NWT adults balanced between larger centres and small communities. The key finding of that research was that nearly 7 in 10 respondents were either in favour of the devolution agreement or not opposed to it, while fewer than 2 in 10 were opposed. Clearly devolution of resource land and water authorities is a vision shared not just by the NWT business community but also by the vast majority of NWT residents.
We know some groups would have us roll back the hands of time and leave things as they were. While we respect their voice and thank them for their contribution, we disagree. We believe it's time for the NWT to make meaningful progress towards its maturity as a larger, more important contributor to the nation that is Canada.
We support the overarching intent and spirit of proposed amendments to the MVRMA and believe they are a positive step toward development and resource management in the NWT. We also believe there is more work to be done and challenges to be addressed. The NWT ranks very high in resource potential but very low with regard to mining and oil and gas investments because of regulatory infrastructure and other issues.
In short, Mr. Chair, we have a lot riding on the success of devolution and the efficacy of regulatory reform.
I think we would all agree that it's difficult to optimize devolution of authorities without effective legislation and regulations. Therefore in the limited time we have, I will focus on the five key points of MVRMA reforms that we hope will be addressed by the federal government.
First, the NWT Chamber of Commerce advocates for clear criteria to define projects of public concern and subsequently advocates for the NWT's regulator to make that determination rather than Ottawa. Specifically, there needs to be statutory criteria for the expansive interpretation of what might be of public concern in section 125 of the MVRMA. Clear criteria do not exist for determining public concern and that leaves the regulator with an open-ended obligation to accept such interventions without regard for merit.
There's an underlying belief that AANDC does not have authority to amend section 125 because it may violate land claim agreements. We believe that section 125 can be amended without contravening land claim agreements and in a manner that would better align the MVRMA with those agreements. The critical point here is to establish criteria for defining projects of public concern or thresholds that limit interventions to those of merit. As importantly, we believe the determination for defining a project of public concern should continue to reside with the territorial regulator, which would filter interventions through the new criteria.
Second, the NWT Chamber of Commerce advocates for more specificity with regard to referral of projects to preliminary screening in section 124 of the MVRMA. None of the amendments to the MVRMA address the issues related to preliminary screening of applications. Too often, proponents are ordered to undertake environmental assessments regardless of the scale of projects. We're aware of simple exploration drilling applications being referred to EA. When the process costs more than the project, proponents have no choice but to withdraw their applications.
Such actions only drive investors out of the NWT. For a variety of reasons, we are already one of the most costly jurisdictions in the country in which to undertake exploration and project development. It makes no sense to burden resource investors with process costs that are unwarranted.
To be clear, we are not advocating for the elimination of the environmental assessment process; we are advocating for a more reasonable definition for project referral to an EA, perhaps based on the scale of projects.
Third, the NWT Chamber of Commerce advocates for environmental assessment and environmental impact review decision-making caps of not more than one year for simple applications, including brownfield projects, and not more than two years for greenfield projects.
We are aware of projects taking far too long to get to approval. De Beers' Gahcho Kué project took seven years to receive approval. In fairness, the proponent slowed the application process during the global recession of 2008. However, the uncertainty related to regulatory decisions in the NWT is one of the major concerns of mining and oil and gas executives around the world. Capital goes where it can grow, so investors move on to other jurisdictions that provide greater certainty. We are fortunate that De Beers is committed to northern projects and is very well capitalized. Other investors would not take the chance on a regulatory process that has no defined decision-making caps.
The duration and cost of the decision-making process affects every applicant, including the crown. It took more than two years for the Northwest Territories Power Corporation to receive a water licence renewal for the Taltson power plant. The plant has been operating since 1965. The corporation filed for a 15-year licence renewal, which is standard. The facilities were not being altered. Stream flows were not being altered. Yet the crown corporation was subjected to a costly two-year process, a cost that ratepayers had to pick up.
The current legislation and regulations need to be tightened up so that common sense may prevail. In our view, that begins with decision-making caps. The Yukon Territory provides applicants and investors with decision-making certainty through the Yukon Environmental and Socio-economic Assessment Board. The NWT must absolutely provide the same degree of certainty.
Fourth, the NWT Chamber of Commerce supports the creation of a single regulatory board for the entire NWT. We realize that this is a point of contention. However, in our view, federal legislation enables the government to create a single board with overarching authority. Notwithstanding that local boards have some merit, we don't believe the volume of applications in the NWT warrants multiple boards. Smaller boards don't have the resources to review complex applications. A single board would afford appropriate resources.
When powers were devolved to the Yukon, the Yukon environmental and socio-economic board was created as a central decision-making body for the territory. YESAB retained a local presence by establishing six designated regional offices that act as entry points for applicants. The same could happen in the NWT, where regional boards exist today. In that manner, a local presence and community ties are maintained when reviews take place in a central organization with the technical capacity to manage them efficiently.
Fifth, the NWT Chamber of Commerce advocates for a single-window application process for the NWT resource exploration and development projects—that is, a one-stop window for land and water use permits as well as licences.
Again, when powers were devolved to the Yukon, the right to issue mining licences remained with the federal government. In discussion with our industry colleagues in the Yukon, it seems that was an oversight. We have the opportunity here to ensure that the authority to issue licences resides in the NWT.
We are advocating for a single application window. In simple terms, when an application arrives for a resource exploration or development project, it triggers the system to address all aspects of the application concurrently, including all related federal and territorial authorities. This model is employed elsewhere in Canada. It creates vast efficiencies relative to the current system, where federal and territorial authorities work in a disintegrated fashion that leads to inconsistencies and regulatory duplication.
In the past 30 years, the transfer of responsibilities to the Government of the Northwest Territories has taken place for several programs and services, including the delivery of health care, social services, education, administration of airports, and forestry management. In our view, Bill C-15 is the next logical and single biggest step forward in history in the devolution of powers to our territorial government.
We are a resource-based economy. Managing our resources effectively and creating a healthy investment climate will support a strong local and national economy, and provide significant benefits to all of our communities and all of our residents.
Bill C-15 is a new beginning for the Northwest Territories.
That concludes our remarks, and again, thank you for the opportunity.