Evidence of meeting #127 for Indigenous and Northern Affairs in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was north.
A recording is available from Parliament.
Liberal
The Chair Liberal MaryAnn Mihychuk
We'll get back to you with questions, so maybe you can continue to make your points at that time.
It is question time now. We start with MP Yves Robillard.
Marc-Aurèle-Fortin, Lib.
I will share my time with Mrs. Jones.
I want to thank the witnesses for their excellent presentations.
My first question is for the people from Nunatsiavut.
In your opinion, how could the north stop the economic leakage of federal funding when it comes to infrastructure projects?
Kate Mitchell First Minister, Nunatsiavut Government
I'm not exactly sure if I understand your question. How can we slow down the leakage? In my opinion—and I think we've made it quite clear—there is a great lack of infrastructure. If you look at housing or in regard to airstrips and things like that, these are services that we don't have, that are not up to the standards of any other part of Canada.
To me, it's not how we can stop the leakage. I think it's Canada's responsibility. Our people deserve no less than any other Canadians.
Marc-Aurèle-Fortin, Lib.
How can the Arctic policy framework address investment and procurement opportunities in the north?
First Minister, Nunatsiavut Government
I'm not involved in that, Johannes, Arctic infrastructure.
Labrador, Lib.
I think he's asking if there's enough funding going into important areas.
Marc-Aurèle-Fortin, Lib.
How is the strategic...I don't know how to say it. Could we have it translated?
For our translator, I'll repeat it again.
Comment le Cadre stratégique pour l'Arctique peut-il aborder les possibilités d'investissement et d'approvisionnement dans le Nord?
First Minister, Nunatsiavut Government
In our opinion, it hasn't looked at the supply. We're lacking in marine infrastructure, there are no roads and we don't have adequate airstrips. I don't know how else to answer your question.
President, Nunatsiavut Government
I'll try to answer it.
The Nunatsiavut government is a new government. We are 13 years into self-government, and so we have not been able to apply for funding opportunities to help us with our infrastructure issues. Labrador has been in existence for some time, but the infrastructure that the Province of Newfoundland and Labrador has provided for the northern Labrador communities is outdated and old. We are here today to seek support in getting the state-of-the-art or new infrastructure other Canadians enjoy across Canada.
Marc-Aurèle-Fortin, Lib.
Okay.
How does our procurement in the north contribute to the economic growth of companies and communities in your region?
Liberal
The Chair Liberal MaryAnn Mihychuk
All right. Would you like to respond quickly to the question by video conference?
President, Northwestel Inc.
I think generally that a lot of the funding that we see gets matched by the territorial government and essentially the private sector. I think we look for programs in the private sector in the telecommunications area where we can get territorial government funding and then also have private sector capital that goes into a project.
We have examples in Yukon and the Northwest Territories, and most recently Nunavut, in which there's a multiplier impact on funding. In the telecommunications area, that's one of the formulas that seems to have worked quite well in trying to bring funding to the north and get the maximum potential for northern residents.
Labrador, Lib.
Thank you.
First, I want to thank President Lampe, Minister Mitchell and Mr. Shaw for being with us today.
I think your messages are falling in line with what we've heard from most presenters we've had at our committee, which is that there is an infrastructure deficit across the north, whether it's in communities or in business investment and opportunity.
Here is one of the questions I want to ask the Nunatsiavut Government today. Knowing that federal transfer dollars normally go though the Province of Newfoundland and Labrador and that the priorities for the province are set there, including the northern region, how do you feel about how that fiscal formula works? Could we do it in a way that would be more effective for Inuit governments in the north?
I would like to hear your views on that particular piece.
President, Nunatsiavut Government
Thank you, Yvonne.
In simple terms, we as Nunatsiavut are now starting to deal directly with the federal government, and that is, for us, a much better way of dealing with the infrastructure needs that we have in Nunatsiavut.
When the Province of Newfoundland and Labrador provided funding for infrastructure or needs for the communities in northern Labrador, we got lost within the general populations of Newfoundland and Labrador. It was a challenge to get to the housing needs, and right now we are in a housing crisis because we could not get the funding that we needed to help northern Labrador, Nunatsiavut.
It's the same for marine services infrastructure. As I said earlier, those opportunities were also lost within the general terms of the provinces. They were for health care, social needs and things like that. We are just starting to come out of those dire needs that we have had over the years.
Conservative
Arnold Viersen Conservative Peace River—Westlock, AB
Thank you, Madam Chair.
Thank you to our guests for being here today.
Mr. Shaw, I was just wondering about what drives your business, particularly in Yukon. How do you take on projects? How do you make those decisions?
President, Northwestel Inc.
Typically, if you look at our revenue base, you'll see it's one-third residential, one-third government business, and then one-third wholesale. That is generally how our revenue is structured. When we look at a business case, we look at all the revenue potential. We look at the capital costs and the ongoing costs for maintenance in the investments.
Some of the investments we make in long-haul fibre have longer payback periods of 10, 12 or 15 years. In the case of a residential service in a community, we try to look for an economic return on those projects, and typically government funding has helped fill in those shortfalls when we've identified a shortfall.
Generally, that's how we approach the business in all the different territories where we operate.
Conservative
Arnold Viersen Conservative Peace River—Westlock, AB
When you talk about this wholesale bit, who would be some of your clients?