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SOMBA K'E/YELLOWKNIFE - Mark Carney, governor of the Bank of Canada, didn't mince words when he came to the city Wednesday to speak at a Yellowknife Chamber of Commerce luncheon.

Carney, who returned to his hometown of Fort Smith for the NWT Chamber of Commerce annual general meeting earlier this week, told local businesses the recession was likely to last into the second half of this year.

Mark Carney, Governor of the Bank of Canada, told a group of Yellowknife businesspeople that current economy activity is falling at the sharpest rate since the Great Depression. He maintained, however, plans are in place to ensure Canada, and the North, see light at the end of the tunnel. - Guy Quenneville/NNSL photo

"The global economy is facing a crisis of confidence, triggered by the most severe financial meltdown since the Great Depression; fanned by sharp falls in trade, manufacturing output and financial wealth; and intensified by steep increases in unemployment," Carney warned in his speech.

Even though it looks bad, concerns over the economy should not be boundless, said Carney, who spoke to packed room at Yellowknife's Explorer Hotel.

"My message today is simple: there is a plan to restore confidence and growth, we are implementing it, and it will work," he said.

This was a comforting piece of news for Yellowknife Chamber of Commerce president Jon Jaque.

"It was really reassuring to hear in such plain view that the global economic crisis is understood and there's a plan," he said.

The only uncertainty, said Jaque, is exactly what time-frame those plans are following.

"Unfortunately, the exact timing of the recovery is uncertain and the global recovery itself may be more muted than usual," said Carney.

Jenni Bruce, Chateau Nova hotel manager, said while the mood of Carney's speech was positive, "it was a little unfortunate to hear this whole recession is going to last a bit longer than anticipated."

She added it would have been nice to hear more references to the North.

"It could have been a bit more customized to us because we are in a unique economic situation," she said.

Jaque said key members of the GNWT met Carney to "get perspective on how they should govern with respect with the global crisis and how we fit into it in the North."

But Doug Witty, owner of Force One, agreed Carney didn't address the North enough.

"I had some Northern-related questions ... I was curious to find out how they felt Canada was doing regionally," said Witty.

Witty added he felt Carney and other key people in attendance, like Finance Minister Michael Miltenberger, likely saw "their mission as being strong and consistent - and to get their message out."

"It was interesting but I'm not sure if it was horribly enlightening," he said.

Past recessions haven't much impacted the North, Witty added, but he expects this time around "we're probably going to see it."

Witty said he will not be replacing staff members who are leaving his boat and snowmobile dealership Force One, and will run his summer season with a smaller staff.

"There's some uncertainty out there and we need to be cautious just like every other business," he said.