Development discussed at AGM
Keynote speaker confident of NWT commodity future beyond diamonds
Walter Strong
Northern News Services
Published Monday, April 14, 2014
SOMBA K'E/YELLOWKNIFE
Where do we go from here?
Devolution is a new beginning with no guaranteed outcome was a common theme during two days of keynote presentations in Yellowknife surrounding the annual general meetings for both the NWT and Yellowknife chambers of commerce.
"Looking forward there is positive demand for our commodities, and for commodities over all," said Peter Vician, GNWT deputy minister of industry, tourism and investment.
"We can be confident that demand will continue, (even) beyond the diamond markets."
It's not a secret that mining is the largest private sector contributor economy in the Northwest Territories.
Vician pointed to the De Beers Gahcho Kue diamond mine project - the most advanced of any proposed mine project in the NWT - as a key near-term territorial economic driver.
Other mining projects under development in the NWT, standing as potential replacements for existing mines as they reach end-of-life, face a difficult investment market.
While the GNWT can't do anything about resource markets, it can foster a climate more amenable to mining and resource development, said Vician, pointing to existing economic development strategies.
Vician also drew attention to challenges the territory faces surrounding its human resources.
"Population drives how our government is funded through a fiscal grant," Vician said.
"It also has an inflationary impact."
Vician described the NWT as facing a declining, ageing population while at the same time feeling the pressure of a near-term demand for 1,700 new workforce participants by 2018.
"The NWT started to experience negative net migration in 2010, 2011, and 2012," Vician said.
"This is staggering, to think we're allowing our territory to vacate."
Targeting a net population increase of 2,000 people over the next five years is important not only to meet expected workforce demands, but if the NWT is going to benefit from new projects as they come into production.
A persistent fly-in-fly out workforce is another challenge the territory faces.
"(Between) 2006 and 2012, resident employment declined, while non-resident employment increased by 2,900," Vician said.
"We're not building a society with regional business bases.
"When we continually allow a slippage of spending outside the NWT, we lose the multiplier effect (of NWT jobs).
"A resident workforce is the best solution for our economy."
Part of the GNWT plan for reversing this trend is to develop the infrastructure and regulatory environment to make the NWT a draw to investors equal to its resource potential.
"Devolution will result in faster decision making," Vician said.
"Infrastructure will continue to be high priority."
