NWT Chamber supports federal budget
January 27th, 2009
The NWT Chamber of Commerce is applauding Federal Finance Minister Jim Flaherty’s approach to Budget 2009, which was unveiled earlier today in Ottawa.
“The government is clearly concerned about keeping Canadians working and it has taken some impressive steps toward ensuring that is the case,” said Ann Marie Tout, NWT Chamber President. “There are some excellent initiatives contained in this document demonstrating that Mr. Flaherty and everyone involved listened to what your NWT Chamber, and other similar organizations around the country, had to say.”
Budget 2009 followed up on Environment Minister Jim Prentice’s earlier comments about making a clear commitment to the proposed Mackenzie valley pipeline with the following statement which was welcomed by the Chamber:
“Private sector investment that develops natural gas resources in Canada’s North will bring jobs and economic opportunities to Northern Canadians and new energy supplies to market. Investments in a Mackenzie gas pipeline are currently being considered that would unlock natural gas reserves in the Mackenzie region. Budget 2009 provides $37.6 million in 2009-10 to departments and agencies in support of environmental assessments, regulatory coordination, science, and Aboriginal consultations related to the Mackenzie Gas Project.”
“Hopefully this announcement will help speed up the process for the pipeline that so many of us in the NWT are desperately awaiting,” said Tout.
The North is enjoying an unprecedented level of attention on the national stage which was continued in Budget 2009, she added.
“Certainly Indian and Northern Affairs Canada Minister Chuck Strahl deserves a great deal of credit for his efforts to understand and champion the issues that matter to so many Northerners,” said Tout.
In addition to a $90-million, five-year extension to the Strategic Investments in Northern Economic Development program, the Federal Government also plans to spend $50 million over the next five years to create a regional economic development agency for the North.
“That is a huge step forward that will help put us on an equal footing with the rest of the country,” she said.
The exact location of this proposed regional institution has yet to be determined.
“We feel the only logical place for the headquarters would be somewhere in the NWT,” said Tout. “We have direct transportation links to both Nunavut and the Yukon, the resident expertise and the ideal geographic location that would be critical for this agency is to operate in an efficient manner.”
Some of the other budget highlights benefiting the NWT include:
- Extending for one year the temporary 15 per cent mineral exploration tax credit to help companies raise capital for mining exploration;
- $50 million over two years in dedicated funding to support the renovation and construction of social housing units through the Canada Mortgage and Housing Corporation;
- Up to $200 million on a cash basis to dredge the approaches and accelerate the repair and maintenance of harbours across Canada, including core harbours in the NWT;
- A commitment to help fund a Yellowknife Bypass Road;
- the commitment to build a world-class, High Arctic research station beginning with $2 million to undertake a feasibility study as well as up to $85 million over the next two years to invest in maintaining or upgrading existing Arctic research facilities, and;
- $1 billion over five years to support clean energy technologies.
On December 15, 2008, the NWT Chamber of Commerce submitted its recommendations to the Federal Government and highlighted four areas in which Ottawa needed to invest in the North to keep businesses afloat and residents employed during these troubling economic times.
“Obviously those items were not addressed specifically today, but I’m satisfied with what has been included,” said Tout. “We wanted infrastructure, support for hydroelectric development, assistance for the mineral exploration industry and regulatory reform; three of those concepts are in there, just through means other than what we had suggested – and the money to help the pipeline is an unexpected bonus.”
The fact the NWT Chamber’s recommendations weren’t included due to their lack of “shovel-readiness” underscores the problems with our current regulatory regime which remains an issue of extreme concern for us, she added.
“It is just as important for Ottawa to streamline the current regulatory process sooner rather than later,” she said. “All of the funding in the world won’t spur development if exploration companies don’t have confidence in their ability to move through the permitting process in a timely manner.”
To download a complete copy of Budget 2009, follow this link to the NWT Chamber website: http://www.nwtchamber.com/docs.php, where it is available as a PDF our documents section. In association with the network of community Chambers of Commerce in Fort Simpson, Behchoko, Norman Wells, Fort Smith, Hay River and Yellowknife as well as the Northern Aboriginal Business Association, the NWT Chamber of Commerce represents the interests of more than 865 members. For more than 35 years, it has been the only pan-territorial voice of businesses across all sectors of the Northern economy.
