Job losses will be felt throughout the territory
NNSL (Oct 08/99) - The first step to countering the effects of 250 Giant mine job losses is to understand the impact that the loss represents.
After working with the union, business, labour and the GNWT to develop an estimate of the economic impact of the closure of Giant mine, Ile Royale management consultant David Connelly has released a study for all interest groups to use.
"The first notable conclusion is that the total revenue impact of the closure continues to grow until the year 2002/2003, then levels off at $19 million per year," Connelly said.
"The second is that while 13 per cent of these impacts are felt by Yellowknife and its schools, 65 per cent of the impacts are shared by the territory as a whole."
Of the total revenue loss of $19 million, the City of Yellowknife will feel $917,065 of that through loss of things such as property taxes and water/sewage rates paid by the mine. Based on the GNWT population grant and school taxes from the mine site, Yellowknife school boards can expect losses in the neighbourhood of $1,597,000.
"It's hoped that these numbers would be useful to social, community and economic interest groups as they consider any potential response to the closure of Giant mine," Connelly said.