Local Development and Capacity Building Panel - Common Concern for the Arctic

1. Local Development and Capacity Building Panel - Common Concern for the Arctic Russel Shearer Director, Northern Science and Contaminants Research Indian and Northern Affairs Canada

2. Economic and Social Development Environmental Protection Sovereignty Governance Protecting our Arctic sovereignty as international interest in the region increases. Encouraging social and economic development and regulatory improvements that benefit Northerners. Adapting to climate change challenges and ensuring sensitive Arctic ecosystems are protected for future generations. Providing Northerners with more control over their economic and political destiny. Government’s Integrated Northern Strategy • ”Our Government will bring forward an integrated northern strategy focused on strengthening Canada’s sovereignty, protecting our environmental heritage, promoting economic and social development, and improving and devolving governance, so that northerners have greater control over their destinies.“ Speech from the Throne, October 16, 2007

3. Resource development • ~1/3 of Canada’s hydro-carbon potential remains untapped • Diamonds could generate $5B in royalties over next 20 years Economic and Social Development • Increased demand for energy and minerals has led to record level commodity prices rendering previously expensive resource fields attractive • And new technologies making extraction more feasible • Regulatory impediments to sustainable development and resource management • Many challenges including inadequate infrastructure and human capital deficits • Challenging socio-economic situation from many measures including health • poor health and social outcomes limiting participation of Northerners in workforce • Land claims and self-government agreements, and ensuring implementation, are essential elements to advance the Northern economic agenda • Socio-Economic • Young, rapidly growing population • Highest crime rates in territories • Life expectancy in the territories — 5 to 10 years shorter than Cdn average • 25% high school graduation rate in Nunavut

4. Governance • Governance • Public Sector jobs in the North >2X Canada’s average • Territorial revenues from transfers: 91% in NU, 83% in Yukon, 74% in NWT (Canadian average is 19%) • Transfer of federal government responsibilities (devolution) to territorial governments will help realize aspirations of northerners, increase local decision-making. • Aboriginal land claims, self-government agreements are well advanced and are an important pre-condition • Governance, social development are foundational to real progress on capacity -building • Some challenges to new governance regimes under stress: complex governance and regulatory regimes, human capacity challenges • Demographic strains • 11% unemployment rate in NU • Suicide rates — highest in Canada

5. Active mines Deposits/Advanced mining projects Producing wells Discoveries (developed?) Unexplored potential Existing oil pipeline Proposed gas pipelines Mining and Oil & Gas - Tomorrow • Mining • 24 projects under consideration with potential 10,000 mining jobs • Oil and Gas • MGP key to gas production in the North (projected $500 M annual royalties) • Vast potential for expanding exploration (High Arctic, Beaufort). New and effective exploration, geo-science investment, competitive tax policy and regulations are needed to realize potential and to minimize missed opportunities

6. Infrastructure - Tomorrow Northwest Passage Alaska Gas Pipeline Nanisivik Port Mary R. Mine, RR and Port Mackenzie Gas Pipeline Mackenzie Highway Extension Bathurst Port Bathurst Port Road Small Craft Harbour Railway line Hydro-electric project Hydro transmission line Hydro Line from Manitoba Nunavut-Manitoba Highway Exciting possibilities are on horizon for the North in areas of renewable energy supply, broadband connectivity, transportation enabling development, and harbour construction promoting the northern fishery .

7. Land Claims - Today The settlement of claims provides Aboriginal people of the North with harvesting rights, capital transfers, participation in land and water management and ownership of large tracts of land (16% approx. of land area). The settlement of the Nunavut Land Claim resulted in the creation of a new territory. Nunavut will celebrate its tenth anniversary in 2009.

8. On the horizon • Providing Northerners with more control over their destinies through land claim agreements, devolution of powers to Territorial Governments and socio-economic and capacity-building programs • Labour market/skills development programs that maximize Aboriginal participation in economic opportunities • Investments in major economic and energy development infrastructure projects resulting in benefit agreements with northern communities • Realization that more can be done, but tempered by emerging fiscal realities • Raise standards for health, education and housing in the North to equal southern standards

9. THANK YOU

10. ANNEX A Page 1 of 1