NORTH OF 60 - ECONOMIC OVERVIEW

Contents

  • Health of Small and Medium-Sized Enterprises
    • Business Confidence
  • Investment Trends:  NWT GDP – Projected
    • Capital Expenditures – 2016 Intentions
  • Population
    • Population Trends
  • Labour Availability
    • T4 Earnings Residing Elsewhere
  • Mining Sector Trends
  • Game Changers

 

Business Confidence

Surveyed our membership twice in the past two years to get a snapshot of concerns and confidence:

  • Over the next 12 months 65.3% of respondents indicate the economy will decline while only 3% feel it will improve;
  • Over the next 36 months 52.8% feel it will continue to decline and only 21% feel it will improve;
  • Hiring intentions have flat-lined for the last three years in a row.

 

 

Population Trends

Population growth has flat-lined over past five years

  • 2011 = 43,501
  • 2015 = 44,253

2014 City of Yellowknife Citizen Survey

  • 18% of respondents plan on retiring over the next five years.
  • Among these respondents 47% plan on moving someplace else.
  • 60% of those who plan to move attribute this to the “high cost of living” in Yellowknife.

Extrapolate:  60+ in six largest centres

  • 3,362 X 47% = 1,580 people leaving in next five years

Past five years

  • In-migration vs. Out-migration = (2006)
  • Births vs. Deaths = 3081

Labour Availability

  • Over the next 15 years, the Conference Board forecasts a need for 28,000 new NWT workers (base case).
  • 75% will require college, apprenticeship or university education.

T4 Earnings Residing Elsewhere

 

Mining Sector Trends

  • The global resource sector is increasingly distressed
  • The world is not remotely focussed on the NWT…there is too much other low hanging fruit elsewhere
  • Many companies are looking inward, not outward
    • Focussing on their balance sheets and their cost of production
    • Being pressured by shareholders to keep their credit ratings high
  • The job of the GNWT is to be really aggressive in letting the world know we are here by promoting us as a destination that is highly favourable 

Ernst & Young

 

Game Changers

Chamber Recommendations for the 18th Legislative Assembly

  • Streamline the regulatory process
    • Complete the transfer of authorities from Ottawa
  • Develop a Nation Building business case for infrastructure funding from the Federal Government
    • Construct the Mackenzie Highway and an all-weather road into the Slave Geologic Province
  • GNWT does not have the resources to do everything
    • Aggressively pursue private sector investment by providing every possible incentive
  • Collaborate with the Feds to do what’s necessary to settle land claims
  • Define what makes the NWT distinctive or create a distinction and market it to resource developers globally
    • Cause investors to take a second look at the NWT
  • Do something about the cost of electricity
    • Variable speed generation in small communities
  • Aggressive population growth incentives
    • Forgivable loans:  $5,000 per year over five years
  • Work to Revise the Federal Income Tax Act
    • Income Tax sharing with jurisdictions where earnings occur
  • We need to:  Accept and eliminate the narrative that “the government will always be there to rescue us”

 

 

 

 

Community Chambers

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