If I may, Mr. Chairman, I'll start with my remarks.
Thank you for this opportunity to appear before the Standing Committee on Industry, Science and Technology. As you noted, my name is Janet King and I am president of CanNor, which is the short term for our agency. Joining me is Anja Jeffery, acting vice-president, as you noted.
CanNor's mandate is to foster economic development in Canada's northern territories: Nunavut, Northwest Territories, and Yukon. Our areas of business include economic development and diversification through contribution programs, the Northern Projects Management Office, as well as policy and advocacy.
The agency currently has 87 employees, 28 of whom are located in headquarters in Iqaluit, and the remaining employees work in our offices in Whitehorse, Yellowknife, and here in a liaison office in Ottawa.
This year's main estimates allocated $26.2 million to CanNor. Through budget 2016 CanNor received an additional $25.9 million in renewed funding for three of the agency's main activities and programs. In addition, CanNor received $3.2 million to deliver investments that will support projects to renovate, expand, and improve existing community and cultural infrastructure in the north, a program that we are pleased to deliver in collaboration with our sister development agencies.
Mr. Chair, I would like to set the stage by highlighting the context in which CanNor operates, exemplified by the unique challenges and opportunities that face northerners, their communities, and their way of life.
The northern economy has significant potential, but it is challenged by the following factors: first, its vast and remote geography, which accounts for 40% of Canada's land mass; second, its sparse and dispersed population, with half of its 117,000 residents being indigenous; and finally, its infrastructure is lacking. Of a total of 72 communities, 45 do not have year-round road access.
The public sector and resource development sector remain the biggest economic drivers, representing over 50% of GDP for the territories. The north's natural resource endowment will continue to be the foundation for economic growth. Declining commodity prices in recent years, as well as reduced investments, have, however, had a negative impact on the mining industry, and the north certainly felt that in 2015.
Over the medium and long term, it is expected that resource development will pick up again as new mines come online. The opportunity to diversify and to continue building a broad-based economy will nevertheless remain important to reducing the impact of boom and bust cycles. Critical investments in public infrastructure, including roads, airports, hospital renovations, and community facilities, will help the territories create jobs and serve as important foundations on which to build the economy.
I would be remiss, Mr. Chairman, if I didn't mention the complex social issues in the north, such as mental health, housing shortages, food security, and low educational outcomes, which impact the abilities of northerners to successfully partake in the economy.
Economic prosperity is strongly linked to the resilience of northern indigenous peoples and their communities. CanNor's work is shaped by these circumstances and the agency invests directly in the growth of indigenous businesses to support local economies. I'm pleased to report that 92% of the indigenous businesses that CanNor supported in 2011-12 were still operating after three years.
Partnerships are key to our success. The agency successfully leverages its contribution funding by aligning with federal, territorial, and other economic development partners. CanNor will continue to adjust to the realities, issues, and challenges faced by communities and businesses in the north.
Mr. Chairman, CanNor's priorities for the coming years are aligned with those of the government. Our core strategic investments in the northern economic development program, funded at $20 million per year, have as their objective strengthening and diversifying the northern economy. This program supports a broad range of activities and sectors, from fisheries in Nunavut, to biomass fuel in the NWT, and tourism in Yukon.
Looking ahead, CanNor will also focus the program on supporting the development of innovative technologies that can grow and diversify the northern economy. Innovation in the north often involves accelerating the uptake of existing technologies, such as solar or wind energy, by refining them to work under northern conditions. Innovative technologies and processes also include developing clean technologies that lower the environmental footprint associated with northern resource development. A northern innovation research and development cluster is poised for growth with the creation of Polar Knowledge Canada and the completion of the Canadian High Arctic Research Station in Cambridge Bay, which joins such established organizations as Yukon College's Cold Climate Innovation Centre.
We are committed to improving partnerships on all levels. North of 60, CanNor delivers on the government's commitment to improve livelihoods and create jobs for indigenous people. Our northern aboriginal economic opportunities program, at $10.8 million per year, provides investments for indigenous entrepreneurs and supports initiatives that help indigenous communities benefit from economic development opportunities.
Complementary to the indigenous focus of this program, CanNor also administers the northern adult basic education program, extended one year in budget 2016 with $4 million. Delivered in partnership with the three northern colleges, this program has so far helped around 2,500 indigenous northerners get the training they need so they can participate more fully in the labour market.
CanNor is also responsible for the Northern Projects Management Office, renewed over the next four years with $10 million in budget 2016. This office was established in 2010 to improve the environmental review processes for proposed major resource and infrastructure projects in the north. The office has a mandate to improve timeliness, predictability, and transparency of northern regulatory processes to foster a more stable and attractive investment climate in the territories. The office exercises this mandate by coordinating federal efforts in the northern regulatory review processes; providing advice and issues management to partners such as territorial governments, industry, regulatory boards, indigenous groups, and communities; and by overseeing crown consultations within indigenous communities.
As I mentioned, the mining sector currently faces challenges due to global economic circumstances. Nevertheless, shovel-ready projects are in development in the north. The Northern Projects Management Office is currently working with over 50 companies and tracking over 30 major projects that are either preparing for regulatory processes or are already in the process. These projects represent more than $21 billion in capital investment and over 9,000 jobs.
Let me conclude by noting CanNor's role as a federal voice for the territorial north. By continuously building with partners an understanding of the north and its unique circumstances, we strive to help foster and support a prosperous and resilient north, both within and outside the federal government.
Mr. Chair, this is a brief overview of CanNor's operating environment and of the agency's programs and services.
I will be pleased to answer the committee's questions.
Thank you. Merci. Qujannamiik. Mahsi cho.