WHAT WE HEARD and RECOMMENDATIONS REPORT of the NWT Economic Opportunities Strategy Advisory Panel

Tabled Document 76-17(4) tabled on May 30, 2013 WHAT WE HEARD AND RECOMMENDATIONS REPORT OF THE NWT Economic Opportunities Strategy Advisory Panel SUBMITTED TO NWT Economic Opportunities Strategy Governance Committee Canadian Northern Economic Development Agency Agence canadienne de développement économique du Nord WHAT WE HEARD AND RECOMMENDATIONS – REPORT OF THE EOS ADVISORY PANEL TABLE OF CONTENTS LETTER OF TRANSMITTAL . .3 EXECUTIVE SUMMARY . .5 LIST OF ACRONYMS . .10 1 . INTRODUCTION . 11 1 .1 Background to Development of the Strategy . 11 1 .2 What We Did . .12 1 .3 State of the NWT Economy . .12 2 . WHAT WE HEARD BY THEME AND SUB-THEME . .15 2 .1 Renewable Resources and Small Business . .15 2 .1 .1 Traditional Economy . .15 2 .1 .2 Commercial Fishing . .16 2 .1 .3 Agriculture . .17 2 .1 .4 Forestry . .18 2 .1 .5 Manufacturing . .19 2 .1 .6 Fine Arts and Crafts . .19 2 .1 .7 Tourism . .20 2 .1 .8 Recommendations for Renewable Resource Development and Small Business . .20 2 .2 Non-Renewable Resource Development . .23 2 .2 .1 Mining . .25 2 .2 .2 Oil and gas . .25 2 .2 .3 Regulatory and Land Certainty . .26 2 .2 .4 Recommendations for Non-Renewable Resource Development . .27 2 .3 Our Most Important Resource: People . .28 2 .3 .1 Education and Training . .31 2 .3 .2 Employment and Work Readiness . .31 2 .3 .3 Aurora College . .32 2 .3 .4 Training and Employment Opportunities Database . .32 2 .3 .5 Recommendations for Our Most Important Resource: People . .34 2 .4 Infrastructure . .34 2 .4 .1 Transportation . .36 2 .4 .2 Energy . .36 2 .4 .3 Communications . .37 2 .4 .4 Communities . .38 2 .4 .5 Recommendations for Infrastructure . .38 WHAT WE HEARD AND RECOMMENDATIONS – REPORT OF THE EOS ADVISORY PANEL 2 .5 Government Policies and Programs . .39 2 .5 .1 Import Substitution Policy . .39 2 .5 .2 Government Economic Incentives . .40 2 .5 .3 Government Business Programs . .41 2 .5 .4 Recommendations for Government Policies and Programs . .42 3 .0 Recommendations . .45 APPENDIX A: List of Recommendations . .47 APPENDIX B: Advisory Panel - Biographies . .53 Cover photos: Bill Braden; Aurora, James Mackenzie 3 WHAT WE HEARD AND RECOMMENDATIONS – REPORT OF THE EOS ADVISORY PANEL LETTER OF TRANSMITTAL To succeed, any economic strategy for the Northwest Territories will need to be responsive to changing circumstances and address, in some way, business opportunities in all regions of the NWT . In order to capitalize on the many extraordinary economic opportunities that exist, however, we must first know where they are - and what is needed to translate them into investment, business growth, training and jobs for our people and communities . In our capacity as an independent advisory body to the Economic Opportunities Strategy Governance Committee, we sought to engage NWT residents, their governments and the private sector in a series of discussions on exactly this subject . Between December 2012 and February 2013 we held over 80 public forums and meetings in all regions of the NWT . We met and talked with hundreds of informed and insightful residents encouraging them to speak frankly about barriers and impediments but, most importantly, asking for their suggestions about economic opportunities . People responded . We were impressed with the high level of interest and enthusiasm . Many expressed a sense of immediacy and a desire for action . In addition to documenting our engagements, this report includes our considered advice towards the eventual development of the NWT Economic Opportunities Strategy . We encourage the Governance Committee to consider these observations and recommendations as fundamental to the success of its strategy - and to include in their document a formalized plan to ensure and oversee the implementation and delivery of this strategy for a minimum of two years . Above all else, we have prepared our report on the principle that economic opportunities and development must be considered in terms of the benefits they will bring to the NWT and its people . We know that this strategy cannot in itself address all of the issues that exist in our territory’s challenging economic environment . Instead, it is only one of several strategies that must be brought together in order to realize the 17th Assembly’s vision of: “strong individuals, families and communities sharing the benefits and responsibilities of a unified, environmentally sustainable and prosperous Northwest Territories .” NWT Economic Opportunities Advisory Panel WHAT WE HEARD AND RECOMMENDATIONS – REPORT OF THE EOS ADVISORY PANEL Photo Bill Braden 5 WHAT WE HEARD AND RECOMMENDATIONS – REPORT OF THE EOS ADVISORY PANEL EXECUTIVE SUMMARY Background The Northwest Territories (NWT) is on the brink of political and economic transition . As NWT residents take stock and consider the opportunities and challenges that lie ahead, one of their foremost questions is how and where to grow the NWT economy . While the NWT abounds with economic opportunity, it is challenged to convert this potential into real and tangible economic development – the kind that can supply jobs and economic benefits at the community and territorial level . Regional economic disparity is growing but population isn’t and the NWT’s once-new and emerging diamond industry is today approaching middle age . The lingering impacts of a global economic recession serve as a reminder that, even with a wealth of natural resources, the NWT’s resource-dependent economy is vulnerable to the “boom and busts” of the world economy . There has never been a more important time to address these challenges . Land claim and self-government negotiations, regulatory improvements, and the transfer of authorities over northern lands and waters to the Government of the NWT are all occurring simultaneously . Meanwhile, the last NWT economic development strategy, On Common Ground, was released over a decade ago . The need for a strategy to diversify and strengthen the NWT economy was recognized by the 17th Legislative Assembly in its vision: Believing in People and Building on the Strength of Northerners . In the spirit of collaboration embraced by its Members, work to prepare this strategy the NWT Economic Opportunities Strategy, began in 2012 under the responsibility of the Minister of Industry, Tourism and Investment and guided by a partnered Governance Committee comprised of the NWT Chamber of Commerce, the Northern Aboriginal Business Association, the NWT Association of Communities, Canada’s Northern Economic Development Agency (CanNor) and the Government of the Northwest Territories’ (GNWT) Department of Industry, Tourism, and Investment (ITI) . An independent four-member Economic Opportunities Advisory Panel was tasked with engaging NWT residents, the private sector, governments and other key stakeholders in a series of discussions about the economy . Their findings, observations and recommendations, reflected in this report, will serve to guide the development of the NWT Economic Opportunities Strategy . 6 WHAT WE HEARD AND RECOMMENDATIONS – REPORT OF THE EOS ADVISORY PANEL Themes The results of the Advisory Panel’s engagements and discussions are compiled and represented under five broad themes . 1 . Renewable Resources and Small Business; 2 . Non Renewable Resource Developments; 3 . Our Most Important Resource: People; 4 . Infrastructure; and 5 . Government Policies and Programs . Many elements of these themes, like the economic opportunities and barriers that they highlight, are inter-connected: tourism and mining are more viable if a network of well- maintained roads is in place; business ventures in agriculture, alternative energies and the traditional economies can have a net benefit on the cost of living; and northerners need functional literacy, life skills and a healthy lifestyle to secure the jobs and income that will underpin our territory’s economic growth . Common to each of these themes - as it was to engagements in every single region, is awareness that the cost of doing business in the NWT is prohibitive to attracting development . NWT residents, however, are equally resolute that solutions can be found . There is a collective desire to realize more effective uses for renewable resources like power, wood pellets, farm produce and fish . In addition to local employment, economic initiatives based on these under-utilized resources have added value in import substitution (i .e . replacing goods and services currently being transported at a cost from southern Canada .) Similarly, there is an urgency to reduce the number of jobs that continue to “leak south” while much of the NWT’s emerging work force remains under-educated or unprepared for work . Renewable Resources and Small Business The economic health of the NWT will hinge on its diversity and there is a pressing need to realize the incredible and varied potential that exists outside of our territory’s rich non- renewable resource sector: in areas such as the traditional economy, commercial fishing, agriculture, forestry, manufacturing, arts and crafts and tourism . Strong support exists for the GNWT’s Genuine Mackenzie Valley Fur Program (GMFP) and its centralized government purchasing of product and guaranteed income support . It was often highlighted as a model for other renewable resource industries including fisheries and arts and crafts . In 2012, NWT commercial fishermen harvested less than 20% of the available harvest . While Great Slave Lake holds a huge and sustainable resource capable of supporting many people, the industry barrier

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