Northern economic development - overview presentation

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CanNor - One of the seven RDAs

Vision

A strong, diversified, sustainable, and dynamic economy for Northerners and Indigenous peoples, communities, and businesses across Canada's territories, guided by the Agency's Pan-Territorial Growth Strategy and in contribution toward Canada's prosperity.

Created in 2009, from then Aboriginal Affairs and Northern Development Canada (now  Crown‑Indigenous Relations and Northern Affairs Canada)

120 FTEs based in four offices:

  • Iqaluit (Headquarters)
  • Yellowknife
  • Whitehorse
  • Ottawa (liaison office)

$104.6M Budget*, including $81.2 M in grants and contributions

M = million.
*Includes Budget 2021 Investments

Territorial Economies

Forecasted GDP Change

Source: Conference Board of Canada (2021).

Text alternative for Forecasted GDP Change

This graph illustrates forecasted GDP changes between 2019 and 2023 in the Yukon, the Northwest Territories, and Nunavut.

Yukon Northwest Territories Nunavut
2019 +0.7% -8.1% +6.5%
2020 +1.3% -14.2% +7.4%
2021 +11.1% +14.2% +11.2%
2022 +4.7% +1.8% +3.2%
2023 +5.9% -2.8% +5.0%

Nunavut

  • Population: 39,536 (86% Indigenous)
  • GDP growth in 2020
  • Significant Inuit participation in the land-based economy
  • Mining sector is important
  • Progress on infrastructure (e.g. broadband) but gaps remain (e.g. housing and roads)
  • Skills gaps in key economic sectors

NWT

  • Population: 44,991 (51% Indigenous)
  • GDP contracted in 2019 and 2020 
  • Strong mining sector and expertise but existing diamond mines are aging
  • Economic opportunities in mine remediation economy and critical minerals mines
  • Strong Indigenous business sector

Yukon 

  • Population: 42,596 (23% Indigenous)
  • GDP growth in 2020 
  • Labour shortages are a barrier
  • New mining projects on the horizon
  • Strong local innovation ecosystem
  • Well-developed roads and infrastructure relative to NT and NU

CanNor's Pan-Territorial Growth Strategy

Skilled Workforce

Strengthen the northern workforce and equip Northerners with the tools, skills, and experience they need to succeed in the workforce, now and into the future.

Infrastructure Investments and Development

Leverage upcoming investments and the ongoing operation of major infrastructure projects to maximize local and regional economic opportunities.

Resource Development

Support the sustainable development of the mining and energy sectors throughout the development cycle, in a manner which increases community capacity, maximizes jobs and wealth within the territories, and produces positive economic impacts in communities.

Diversification and Innovation

Foster the sustainable growth of other economic sectors with a focus on strengthened entrepreneurship and northern innovation.

CanNor delivers unique programs tailored for the North

CanNor-specific programming

  • Inclusive Diversification and Economic Advancement in the North (IDEANorth): $18.2M* per year ongoing; $60M over five years (2019-20 to 2023-24).
  • Northern Aboriginal Economic Opportunities Program (NAEOP): Supports development for Indigenous communities and businesses. $10.8M* per year ongoing
  • Northern Isolated Community Initiatives Fund (NICI): Supports community-led projects for local and Indigenous food production. $12.5M* over five years (2019-20 to 2023-24).
  • Northern Adult Basic Education Program (NABEP): Enhances literacy and workplace skills through programs delivered by post-secondary educational institutions. $4.5M* per year

Temporary supports during the Covid-19 pandemic

  • The Northern Business Relief Fund (NBRF) and the Regional Relief and Recovery Fund (RRRF) provided direct support of approximately $31.4M* to territorial SMEs during the pandemic. These funds reimbursed fixed costs for businesses that were forced to reduce operations due to public health measures. Additionally, NBRF and RRRF provided approximately $11.8M* in indirect support through Community Futures networks.

M = million.
*Funding amounts on this page include grant and contribution funding only.

… while also delivering national programs

  • Regional Economic Growth Through Innovation: $2.1M* over five years (2018-19 to 2022-23). Supports the development of regional innovation eco systems and business scale-up. 
  • Jobs and Growth Fund: $20.2M* over three years (2020-21 to 2022-23) for green economy transition, fostering an inclusive recovery and enhancing competitiveness.
  • Canada Community Revitalization Fund: $15.1M* over 2 years (2021-22 to 2022-23) to stimulate local economies, create jobs and improve the quality of life for Canadians from coast to coast to coast
  • Tourism Relief Fund: $6M* over 2 years (2021-22 to 2022-23) to help local tourism businesses in adapting their products and services to public health measures, support their recovery and position them for growth.
  • Regional Air Transportation Initiative: $2.5M* over two years (2020-21 to 2021-22) to ensure the regional air transport ecosystem remains operational and adapts to new pandemic realities to support businesses and communities.
  • Women Entrepreneurship Strategy: $2.8M* over five years (2018-2019 to 2022-2023). Supports women-led businesses.

M = million.
*Funding amounts on this page include grant and contribution funding only.

… and services that are specific to the territories

Northern Projects Management Office (NPMO)

  • Established in 2010 to improve the efficiency of the federal environmental review process for proposed resource development and infrastructure projects in the territories. NPMO's functions include:
    • Coordinating federal departments' participation in the regulatory phases of major projects in the North;
    • Providing issues management and pathfinding services around regulatory processes for Indigenous organizations and industry proponents; and
    • Overseeing and coordinating Crown consultations in relation to major projects.

Pilimmaksaivik, the Federal Centre of Excellence for Inuit Employment in Nunavut

  • Supports the implementation of Article 23 of the Nunavut Agreement (Inuit Employment within government).
  • Office responsible for coordinating a federal government-wide approach to building a representative (85% Inuit) public service in Nunavut.

CanNor fosters economic development through multiple levers

  • Delivers a suite of economic development programs, including Indigenous-specific programs
  • Funding that supports sector development, business development, ecosystem support and individual projects
  • Funds small and medium-sized enterprises (SMEs), Indigenous organizations, and other not-for-profit organizations with a role in territorial economic development
  • Builds partnerships that leverage investments
  • Coordinates federal participation in territorial environmental review processes
  • Maintains a Crown consultation record for major projects
  • Funds skills development opportunities
  • Champions the interests of Northerners and Indigenous peoples

Opportunities for growth and well-being exist

Indigenous Participation in Northern Economies

  • Support for more economic development capacity 
  • More capital investments to support growth
  • Increased Indigenous business participation in major projects including infrastructure

Resources

  • Renewable energy projects and critical minerals used in the green economy offer long-term growth opportunities across all territories
  • Largest economic driver but declining exploration investments is a concern
  • Interest from investors (Indigenous, foreign, southern Canada) if better supported

Tourism

  • One of the sectors most impacted by the pandemic
  • Strengthened by unique natural assets and Indigenous cultural tourism and global demand for these experiences
  • Marketing support to bring back tourism and enhancement for visitor safety and experience

Knowledge economy

  • Better access to high-speed connectivity to help digital economy 
  • Creation of the Yukon University, forthcoming NWT polytechnic university open opportunities
  • Increasing interest in Arctic research, cold climate technology

Food production

  • Commercial fishing offers economic diversification opportunities
  • New opportunities for local food production , transformation and export exist within the northern context
  • Technological and process innovations and infrastructure (e.g. Ports) is key to sector growth

2021-22 Agenda for CanNor

  • Economic Recovery and Stabilization funding (e.g., Tourism and community revitalization) – Project applications being submitted and reviewed.
  • Expression of Interest 2022-23 – CanNor will launch an Expression of Interest (EOI) process in Q3-Q4 (TBC) for its grants and contribution programming.
  • Sunsetting Program – Seek a decision on the future of the Northern Adult Basic Education Program (NABEP) and the next steps with regard to CanNor's role in developing a skilled northern workforce.
  • Stakeholder and Partner Engagement – Provide guidance to eligible applicants on CanNor's path forward toward more predictable support for Indigenous economic development capacity under the the Northern Aboriginal Economic Opportunities Program (NAEOP).
  • Major Resource Projects – Through its Northern Projects Management Office, CanNor is involved in the following projects, which are currently going through northern regulatory processes:
    • Kudz Ze Kayah Silver-Zinc Mine Project (BMC Minerals), Yukon
    • Coffee Gold Mine Project (Newmont Goldcorp), Yukon
    • Mary River Iron Ore Mine increased production (Baffinland), Nunavut
    • Meliadine Gold Mine water license (Agnico Eagle), Nunavut

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