2024 - Ministerial transition binder

Welcome letter

The Honourable Gary Anandasangaree
Minister Responsible for the Canadian Northern Economic Development Agency
House of Commons
Ottawa, Ontario

Dear Minister,

Congratulations on your appointment as Minister Responsible for the Canadian Northern Economic Development Agency (CanNor) which serves Nunavut, the Northwest Territories, and Yukon as one of seven (7) federal Regional Development Agencies.

Based in the North, for the North, CanNor's mandate is focused on building diversified and dynamic economies that foster long-term sustainability and prosperity across the territories which contributes to Canada's success. CanNor has a committed team across four offices in Iqaluit (headquarters), Yellowknife, Whitehorse, and Ottawa, who work together with partners to leverage opportunities and address challenges.

CanNor plays a key role as an investor, advocate, convenor, and pathfinder to facilitate the creation of high-quality jobs, an increase in competitive businesses, the development of a skilled workforce, and investments in economic diversification and innovation. CanNor fully supports the advancement of Indigenous economic reconciliation while working to close the North's infrastructure gap, advance sustainable resource development and secure Arctic sovereignty.

As CanNor celebrates its 15th anniversary, it has approved over $650 million in investments towards more than 2,000 projects through its suite of targeted funding programs for non-profits, Indigenous organizations, other levels of government, businesses, and economic development corporations.

In recognizing CanNor's unique role in the North, it offers two unique services: Pilimmaksaivik, the Federal Centre of Excellence for Inuit Employment in Nunavut, and the Northern Projects Management Office, which supports impact assessment for proposed large projects. These services provide CanNor additional tools to deliver on its core mandate of advancing economic development in the territories.

On behalf of everyone at CanNor, I welcome you and look forward to assisting you in your new role as our Minister.

Sincerely,

Jimi Onalik
President

Minister's First Key Messages about CanNor

• I am pleased to become the Minister Responsible for the Canadian Northern Economic Development Agency (CanNor) during the year of its 15th anniversary.
• The North contributes to a strong Canadian economy across multiple sectors, including tourism, fisheries, natural resources, agriculture and food systems, as well as arts and culture. I know the North holds vast potential to strengthen the Canadian economy even further.
• Our government understands the North is vital to Canada. We are committed to fostering a sustainable, diversified, and innovative northern economy, working in partnership with Territorial Governments, Indigenous Governments and Partners, local communities, businesses, and entrepreneurs. A thriving North means a thriving Canada.
• With its headquarters in the North, CanNor is uniquely positioned to understand and respond to northern realities. We want to empower more businesses, entrepreneurs and innovators to put their ideas to work, creating good-paying and meaningful jobs and keeping the North and Canada at the economic forefront.
• Nunavut, the Northwest Territories, and Yukon are open for business and ready to maximize their business potential. We will continue to collaborate, to leverage opportunities and address challenges to support vibrant and inclusive territorial economies.

CanNor and the Territories 101

Canada's territories are home to:

• 0.32% of Canada's population spread across 40% of the nation's landmass.
• A high proportion of Indigenous Peoples: 53.3% of the population in the territories identified as Indigenous in 2016, versus 4.9% across Canada.
• A younger population: 60% of the northern population is under 40, compared to 48% of the Canadian population.
• Most of the coastline: Most of Canada's coastline (the longest in the world at 243,042 km) is in the North, with very little infrastructure compared with the South.

Population by territory:

• Yukon: 42,596
• Northwest Territories: 44,991
• Nunavut: 39,536

Compared to the provinces, the populations of the Yukon, the Northwest Territories, and Nunavut are quite small. However, they are spread across a sizeable portion of Canada's territory.

Sources: Statistics Canada, Census 2021; Statistics Canada, Census 2016

The resource sector is the cornerstone of the northern economy, with the mining industry contributing to 21% of the GDP in 2023.

GDP by Sector, 2023:

• Public Sector 35%
• Mining, Quarrying, and Oil and Gas Extraction 21%
• Construction 9%
• Real Estate, Rental, & Leasing 10%
• Retail Trade 4%
• Transportation & Warehousing 3%
• Arts, Information, & Culture 2%
• Accommodation & Food Services 2%
• Other 14%

The territorial economies have:

• A higher-than-average unemployment rate (as of June 2024) for Nunavut (8.1%) and NWT (6.5%), compared to the national average of 6.4% while Yukon had the lowest unemployment rate in Canada (3.1%)
• Lower rates of employment among Indigenous populations (as of 2023): 50.1% of the Indigenous population was employed compared to 78.2% of the non-Indigenous population.
• Significant differences among the three territories, with Yukon having a relatively developed transportation network and mature economy, Nunavut facing greater challenges, and the Northwest Territories somewhere in the middle.

Sources: Statistics Canada Labour Force Survey 2024, Statistics Canada, Table 14-10-0446-01; Statistics Canada Table 36-10-0402-01

Government of Canada

• Inuit Nunangat Policy: Inuit Nunangat Policy
• Arctic & Northern Policy Framework: Arctic and Northern Policy Framework
• Canadian Critical Minerals Strategy: The Canadian Critical Minerals Strategy

We also take into account the priorities of Territorial and Indigenous partners, Industry and impacted stakeholders, such as:

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A circle featuring various logos of territorial governments, industrial groups, municipalities, and Indigenous groups, with arrows pointing in a clockwise direction.

Here is the breakdown:

• Territorial Governments:
  • Government of Yukon
  • Government of Northwest Territories
  • Government of Nunavut
• Industry:
  • NWT & Nunavut Chamber of Mines
  • Yukon Chamber of Mines
  • Yukon Chamber of Commerce
  • NWT Chamber of Commerce
  • Baffin Regional Chamber of Commerce
• Municipalities:
  • City of Yellowknife
  • City of Iqaluit
  • Town of Fort Simpson
  • Town of Inuvik
• Indigenous groups:
  • Inuit Tapiriit Kanatami
  • Dene Nation
  • Council of Yukon First Nations