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Electricity cost 'too great' to attract new investment Economic co-ordinator sees barriers to increasing business opportunitiesThe South Slave region gets the spotlight in this second installment of a six-part series on the economic needs and potential of each of the territory's regions. Lyndsay Herman Northern News Services Published Monday, January 21, 2013 What the South Slave region has in abundance is ideas and potential but what it seems to lack are the means to implement them.
What's holding Hay River's manufacturing potential back is crippling power rates, according to Jordan Stackhouse, economic coordinator for the Town of Hay River. "Hay River especially has the advantage in being the distribution hub for the rest of the territory and certainly there are hundreds of trucks a month that are going back down south empty that we could definitely take advantage of," Stackhouse said. "I think the big caveat right now is that, compared to Alberta right now, our power rates are up to five times higher. So it's nearly impossible to attract any type of investment in terms of manufacturing simply because the cost is too great." Stackhouse said the potential pellet mill that would be constructed in Enterprise could bring some life back to manufacturing in Hay River. Developing a tourism industry in Kakisa is a top priority for Terry Simba, the manager of training for Noda Enterprise Ltd., the economic development corporation for the band. Simba said they would like to set up cabins, train guides, and build the capacity to run an attractive tourism operation but is struggling to find information on available supports. In addition to funding, it would also be helpful for someone to come into the community and help them identify which types of training would be the most beneficial, she said. A lack of roadways is stifling tourism possibilities near Fort Smith, according to David Poitras, chief of the Salt River First Nation. During an NWT Economic Opportunities conference at the Denendeh Investment Inc. annual general meeting last Wednesday, Poitras said tourism is hampered by Fort Smith being a dead end in the road system. He asked if the GNWT would support the construction of a road south to Alberta from Fort Smith, adding that it would also provide an escape route for residents in the case of a forest fire. He also said he would like to see the territory's new economic strategy promote balance between economic development and environmental protection in order to preserve traditional economy. Industry, Tourism and Investment Minister David Ramsay said the South Slave region has been particularly successful in agriculture and the success is one the department would like to encourage across the territory through a continuation of the Growing Forward program. Stackhouse said taking advantage of the region's distribution advantages could help it see more economic benefits from projects that take place outside of the region. Tamerlane's Pine Point project, located 42 km east of Hay River, has secured the required permitting but an update on the project was not available by press time. Fact file south slave by the numbers Population: 7,807 people - 18 per cent of NWT Employment rate: 53 per cent - highest in Enterprise with 74 per cent - lowest in Fort Providence with 36 per cent Median income: $41,838 Top employment industries: 22 per cent public administration, 13 per cent retail trade, 10 per cent health care and social assistance, 10 per cent educational services, 24 per cent 'other' Source: NWT Opportunities
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