Transcript Slide 1

Canadian Northern Economic
Development Agency
(CanNor)
Building a Strong North Together
May 2014
Canada’s Northern Strategy
The Government has a vision for the North and is
taking action to ensure that vision comes to life – for
the benefit of all Canadians.
To meet the challenges and opportunities of a
changing North, the Government established an
integrated Northern Strategy (2009) and is taking
concrete action in four priority areas:
• Exercising our Arctic sovereignty
• Promoting social and economic development
• Protecting our environmental heritage
• Improving and devolving Northern
governance
World-leading Arctic science and technology
underpin the Northern Strategy and help ensure
sound decision-making.
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Geopolitical Landscape
Governments and Aboriginal organizations all have a role
Federal Government
Territorial Governments
• Responsible for management of Crown
land and resources north of 60°
• Powers transferred through devolution of
land and resource management
responsibilities
Aboriginal Groups
• Comprehensive land claims and selfgovernment agreements: the North’s legal
framework for land and natural resource
development on settled Aboriginal lands
• Each claim includes provisions for
economic development and the
participation of Aboriginal people in the
economy
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The Northern Economy
•
While each territory and region is unique, there are some shared
characteristics:
–
Natural Resources: resource development is a key driver
–
Public Sector: Government work and federal transfers
remain important
–
Traditional Economy: Hunting, trapping, fishing, and
traditional arts and crafts continue in many communities
–
New Sectors: Tourism and transportation are developing
–
Cyclical: Changes in commodity prices can have a big
impact
–
Public and private sector and Aboriginal governments
are key all partners and need to work together
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Northern Opportunities
Northern Transportation Linkages
North-South Linkages
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•
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Many jobs in southern Canada depend on the North
Northern natural resources are an important part of
Canada’s – and the world’s – economy
Climate change can bring new opportunities
(e.g., transportation); with adaptation needs and risks
to infrastructure
Possibilities for Future Northern Economic Infrastructure
Natural Resources
•
•
An estimated 13% of the world's undiscovered oil and
30% of its undiscovered gas lie in the Arctic; many of
these deposits are in Canada
Canada’s North has one of the world’s most diverse
series of mineral deposits (e.g., base metals, gold,
diamonds, rare earths)
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Northern Opportunities
Foreign Involvement in Major Projects in the North 2010
Increasing Foreign Investment = Opportunity
•
International corporations are investing in major natural
resources projects and exploration in the North
Part of Global Governance and the World
Economy
•
•
The territories are part of the circumpolar world through
political and economic linkages
Canada is the Chair of the Arctic Council 2013-15
Diversification and Business Development
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2500
80
2000
70
60
1500
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40
1000
30
20
500
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0
0
Yukon
Northwest Territories
No. of Establishments per 1000 Population
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GDP per Business
Establishment
($ thousands)
•
Aboriginal business community in the North is getting
stronger, and has a tradition of working in partnership
Comprehensive land claims and First Nations
self-government are a platform for development
Number of Establishments
per 1000 Population
•
Number of Business Establishments Relative to Territorial
Population and GDP, December 2009
Nunavut
GDP per Business Establishment ($ thousands)
Northern Challenges
Public and private sector employment in the
territories (2006)
Skills and Capacity
•
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Northern Aboriginal workforce is small and does not
always have the skills and expertise needed
Importing skilled workers from the South significantly
increase the labour costs paid by northern employers
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Public
Private
Self-employed
80
%
60
40
20
Community and Entrepreneurial Capacity
•
•
More people work for the public sector in the North than
for the private sector, or are self-employed
Entrepreneurship can increase wealth and private sector
employment, but starting a business in the North is
challenging
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Canada
Yukon
NWT
Nunavut
Territorial Real GDP by Sector 2008
35%
33%
30%
25%
20%
Need to Close Knowledge Gap
•
•
•
15%
Canada is developing knowledge about geo-science and
environmental sustainability in the North
Linking public and private sector science
Canadian High Arctic Research Station targeted for 2017
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15%
15%
11%
10%
5%
5%
3%
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Northern Challenges
Global Investment Climate for Petroleum
Development: 2009 Survey
Investment Climate
•
Investment is challenging due to regulatory processes,
lack of public infrastructure, and high cost of doing
business in the North – coupled with a competitive
global market for capital.
Most attractive
Least
2nd Quintile
3rd Quintile
4th Quintile
Capital and Infrastructure
N
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With so many players, communities, governments,
business, and regional institutions must work together
to take advantage of economic opportunities
50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
N
•
Capital spending on construction, machinery and
equipment, per capita, 2006-2010
fo
un
dl
an
d
Community and Regional Readiness
Fraser Institute company survey
an
ad
a
•
There are significant gaps in community, economic,
telecommunications, and transportation infrastructure
However, businesses are investing in critical
infrastructure for major projects and other development
C
•
Actual 2006
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Actual 2007
Actual 2008
Preliminary 2009
Intentions 2010
CanNor
• CanNor created by Prime Minister in August 2009, as part
of Canada’s Economic Action Plan
• Key deliverable under Economic and Social Development
pillar of Canada’s Northern Strategy
• Mandate to foster
Iqaluit (HQ)
economic development
Yellowknife
in Canada’s North
Whitehorse
• CanNor’s Goal:
A strong, diversified,
sustainable and dynamic
economy for all Northerners
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Building a Strong North Together
• CanNor five-year Strategic Framework addresses key
challenges and opportunities
• 3 key priorities for
2013-2018:
– An engaged and skilled
northern workforce;
– Enabling infrastructure;
and
– Community capacity
• Partnerships are key to success
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Building a Strong North Together
• CanNor’s building blocks to acheive its priorities:
– Business and community
development through contribution
programs and services
– Leadership and advocacy to align and
leverage opportunities among partners
and stakeholders, and advance major
projects
– Socio-economic research and policy
development to ensure evidencebased programs, services and activities
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Contribution Programs
•
The Strategic Investments in Northern Economic Development program
focuses on strengthening key sectors such as resource development, tourism,
fisheries, cultural industries and community and business development. Its
goal is to promote economic diversification and encourage Northerners’
participation in the territorial economies ($18.2M/year).
•
Northern Aboriginal Economic Opportunities programs build capacity and
support economic development within Aboriginal communities and businesses
($10.8M/year).
•
Northern Adult Basic Education Program, launched in February 2012, this
5 year program helps Northerners develop the basic workplace skills needed
to enter the labour market or take further vocational training ($6.6M/year).
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Leadership & Advocacy
Working with partners, CanNor serves as a
centre of expertise on economic
development in Canada’s North
The Agency promotes Northern interests
both within and outside the federal
government – in Ottawa, across Canada
and around the world
CanNor brings a Northern lens to national
policies and strategies, while advancing a
coordinated and planned approach to
economic development in the North
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Northern Projects Management Office
• Established in 2010 with mandate to support
communities and industry in advancing
northern resource development.
– Provides issues management, path-finding and
advice to industry and communities
– Coordinates the participation of federal departments
and agencies in the regulatory review process
– Works directly with Aboriginal communities to
support them in the resource development process
– Publicly tracks the progress of projects to bring
transparency, timeliness and effectiveness to the
regulatory system
– Coordinates Aboriginal Crown consultation and holds
the official consultation record
– Undertakes northern resource development policy
initiatives
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Major Projects in Various Regulatory Phases
Once in production, the 33 projects moving
through the regulatory process represent:
 over $27 billion in capital investment,
 over 10,000 long-term direct operating jobs
NPMO Project List – January 2014
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Policy & Research
•
Policy and research provides empirical evidence and analysis to guide all
of CanNor’s activities, programs, services
•
Effective performance measures to demonstrate value for money
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Northern Economic Index measures the state of economic development in
Canada's three territories.
Northern Economic Diversification Index (EDI) measures the state of economic
diversity in Canada’s northern territories.
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Building a Strong North Together
• CanNor is delivering on its priorities
• Partnerships are key to success
• Focus programs, services and
activities on three priority areas:
– an engaged and skilled workforce,
– enabling infrastructure, and
– community capacity
• Facilitate resource development opportunities and foster strong,
sustainable northern businesses
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Thank you
Merci
Qujannamiik
Mahsi’ Choo