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AANO Committee Report

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APPENDIX B: GOVERNMENT OF CANADA
SUPPORT FOR NORTHERN TERRITORIES ECONOMIC DEVELOPMENT

Table B-1: Government of Canada Support for Community and Business Development Programs

Program

Funding Allocation (2007-2008)[1]

Community Economic Development Program (CEDP)

Provides core financial support for Aboriginal communities for public services in economic development. The financial support is intended for community economic development planning and capacity development initiatives, development of proposals and leveraging financial resources, and carrying out economic development activities.

Allocated to each region’s core funding. Regional offices further distribute the funding to address commitments under existing Alternative Funding Arrangements (AFAs), and to support other Aboriginal communities according to the regional allocation plan, on the basis of population and/or remoteness. One-time allocations can also be provided to address disincentives to aggregation of community organizations due to initial one-time costs of establishing working relationships/plans.

Northwest Territories: $3,512,009

Nunavut: $2,658,910

Yukon: $463,901.

Community Economic Opportunities Program (CEOP)

Funds can be accessed for projects which lead to community benefits such as employment, greater use of land and resources, enhanced infrastructure, and a better economic climate. Some projects may include: assessing community investment readiness; opportunity research, identification, assessment and evaluation; feasibility studies; professional services (legal, accounting, engineering, planning, financial, architectural) to provide due diligence; early stage engagement of investors; community engagement; negotiations; project planning; and environmental assessments.

Allocations based on a review by INAC of individual projects, which is directly related to the community economic benefits and the need for funding that has been demonstrated in the application.

Funding is restricted to not exceed $3,000,000. As well, funding will not exceed two-thirds of the total project cost for economic infrastructure projects or 80% of the total cost for all other types of projects. Recipients must provide at least 10% of eligible project expenditures.

Northwest Territories: $2,485,426

Nunavut: $528,240

Yukon: $341,325.

Community Service Support Program (CSSP)

This program funds the implementation of national and regional plans to deliver support services to Aboriginal community economic development organizations. The support services are intended to increase the economic capacity with community organizations to carry out one-time projects and ongoing activities related to development.

Potential recipients identified by regional program management and asked to submit a proposal. Funding allocated to the regions based on their share of the total Aboriginal population.

Northwest Territories: $218,519

Nunavut: $239,575

Yukon: $168,000.

Aboriginal Business Development Program (ABDP)

Provides financial support and advice to Aboriginal-controlled businesses, including: planning, support, start-ups and acquisitions, expansion, and marketing. ABDP also works in partnership with a network of Aboriginal financial institutions to enhance available debt financing for Aboriginal small businesses. New initiatives such as Loan Loss Reserves and Major Resource and Energy Developments.

Funding is allocated based on review of individual projects.

CanNor provides $2.3M for ABDP across the three territories.

Strategic Investments in Northern Economic Development (SINED)

SINED is a five-year program providing targeted support for economic development projects. SINED focuses on strengthening the driver sectors of the territorial economies, economic diversification and encouraging Northerners’ participation in the economy.

$90 million over five years (1 April 2009 to 31 March 2014):

- Targeted Investment Program provides $22,261,667 per territory. Investment plans are established for each territory, with the advice of northern governments and stakeholders, and updated annually.

- The Innovation and Knowledge Fund provides $2,500,000 per territory. These investments assist territorial residents to participate in and benefit from innovation, and the knowledge-based economy.

- Partnership and Advisory Forums funding of $100,000 per territory, per year, previously only allocated in the Northwest Territories is now available to each territory, totaling $500,000 per territory over five years.

- Pan-Territorial Fund of $5 million over five years ($1.25 million per year from years 2 to 5), used for projects that include multiple territories or a territory and one or more provinces.

Community Adjustment Fund (CAF)

Four objectives: economic diversification, capacity development, enhancing economic infrastructure base, and building the knowledge base.

The Agency has received $32.8 million over two years for the three territories.

Sources: Based on information obtained from INAC: December 2009; Summative Evaluation of INAC's Economic Development Programs, April 2009; and CEDP Guidelines. Information for CanNor programs from: SINED, and CAF.

Table B-2: Selected Federal Support for Infrastructure in Northern Communities

Federal Program

Yukon

Northwest Territories

Nunavut

Transportation and Communities

Building Canada Fund1

$182.9M over 7 years, ending 2013-2014

- $175M, plus per capita

- 75% maximum federal

$185.8M over 7 years, ending 2013-2014

- $175M, plus per capita

- 75% maximum federal

$182.7M over 7 years, ending 2013-2014

- $175M, plus per capita

- 75% maximum federal

Gas Tax Fund1

$37.5M over 5 years per territory, ending 2010-2011; plus $60M per territory over 4 years, ending 2014-2015; additional funding expected thereafter.

Canada Strategic Infrastructure Fund2

$120M for 4 projects, ending 2012-2013

- Project-based, with 50% maximum federal

$72M for 2 projects, ending 2012-2013

- Project-based, with 50% maximum federal

$47.8M for 3 projects, ending 2012-2013

- Project-based, with 50% maximum federal

Infrastructure Stimulus Fund3

$3.8M for 14 projects; ending 2010-2011

- 50% maximum federal

$5M for 21 projects; ending 2010-2011

- 50% maximum federal

$3.6M for 2 projects; ending 2010-2011;

- 50% maximum federal

Recreational Infrastructure Fund4

$1.2M for 7 projects, ending 2010-2011

- Project-based, with 33% federal contribution

...

$567,000 for 4 projects, ending 2010-2011

- Project-based, with 33% federal contribution

Renewable Energy

Green Infrastructure Fund5

$71M for 1 project6, 2009-2010 to 2010-2011

- Project-based, with 50% maximum federal

...

...

ecoEnergy

...

$426,700 for 5 projects, 2008-2009 to 2009-2010

- Grant system

$750,000 for 1 project7, 2008-2009

- Grant system

Clean Energy Fund

...

$10-20 million each for 2 geothermal projects

- Project-based, through Request for Proposals

...

1.     Source: Infrastructure Canada, Infrastructure Framework Agreement; Yukon, NWT, and Nunavut.

2.     Source: Infrastructure Canada, Canada Strategic Infrastructure Fund.

3.     Source: Infrastructure Canada, Infrastructure Stimulus Fund.

4.     Source: CanNor, Infrastructure Programs; and Canada’s Economic Action Plan.

5.     Source: Infrastructure Canada, Green Infrastructure Fund.

6.     Federal government investment in Yukon infrastructure through Mayo B hydro facility and Carmacks-Stewart Transmission Line.

7.     According to information provided by Indian and Northern Affairs Canada on May 20, 2010, federal government provided $750,000 to Qulliq Energy Corporation for the extension and upgrade of residual heat recovery systems in Arviat, Iqaluit, Baker Lake, and Rankin Inlet.

Map B-1: Canada’s Economic Action Plan: Aboriginal and Northern Investment Announcements

map of Aboriginal and Northern Investment Announcements

Source: Government of Canada, Canada’s Economic Action Plan, Year 2—Budget 2010: Leading the Way on Jobs and Growth, March 4, 2010, Chapter 5, p. 226.

Table B-3: Inventory of Northern Infrastructure

Type

Yukon

NWT

Nunavut

Transportation

All-weather roads

(2008 length)

4,800 km

Except for Old Crow, all communities connected

2,200 km

For communities:

- 20% year-round highway access;

- 65% no highway access for 2 months/year during transition from ferry to ice crossings;

- 13% winter roads; and

2% - no access

Except for one 21-km road between mining community of Nanisivik and Arctic Bay, no road infrastructure

Winter roads

(2008 length)

No major winter roads

1,450 km public

570 km private (oil and gas and mining development)

Few private winter roads for mine resupply

Airports (2008 #)

29 (13 airports and 16 aerodromes)

Operated by Government of Yukon

27 community-based airports, plus several privately-operated air strips

All 26 communities rely on air transport system for essential needs. Only 2 airports have paved runways

Marine (2008)

No existing marine infrastructure (Alaska ports are strategic link)

Rail/truck to barge marine resupply system for communities and industrial operations (privately owned). Four communities depend on system for bulk commodities.

All communities have beach landing sites, with 1 port not connected to a community

Energy

Hydro-electric dams

4 large dams

5 large dams, supplying 75% of total energy generation

None

Diesel facilities

19

26

27 stand-alone diesel plants in 25 communities; managed by Qulliq Energy Corporation; owned by Government of Nunavut

Energy Transmission

2 electricity transmission lines; 1 natural gas pipeline originating in NWT, picking up gas from 3 Yukon wells, and taking gas into B.C.

2 electricity transmission lines

1 major pipeline from Norman Wells to Alberta

None

Communications

Microwave radio, fibre optic cable, satellite (# of communities)

7,354 km network of microwave radio

3,250 km network of fibre optic cable

Satellite services covering some northern and eastern NWT communities

Satellite services covering all Nunavut communities

Source: Adapted from National Round Table on the Environment and the Economy, True North: Adapting Infrastructure to Climate Change in Northern Canada, 2009, Table 11.

Table B-4: Selected Major Federal Programs in Support of Aboriginal Education and Labour Market Development

Federal Program

Description

Dates In Effect

Funding

Human Resources and Skills Development Canada (HRSDC)

Aboriginal Skills and Employment Training Strategy

Strategic priorities:

- Demand-driven skills development;

- Partnerships with the private sector, provinces and territories, and across whole-of-government; and

- Accountability for improved results.

Programs to be designed and delivered by Aboriginal organizations to help Aboriginal people to prepare for, obtain and maintain meaningful and sustainable employment, assist Aboriginal youth to make successful transitions from school to work or to support their return to school, and support child care programs.

Apr 2010-Mar 2015

$246M annually, all PTs

Aboriginal Skills and Employment Partnership

Objectives:

- Sustainable employment for Aboriginal people leading to lasting benefits for Aboriginal communities, families and individuals;

- Promote maximum employment for Aboriginal people on major economic developments through a collaborative partnership approach;

- Increased skill levels in the Aboriginal workforce;

Increased direct and indirect employment for Aboriginals across Canada;

- Decreased Aboriginal unemployment and dependency on social assistance;

- Improved skill levels (i.e. literacy, numeracy, computer skills, post-secondary certification);

- Increased Aboriginal business opportunities;

diversified workforce within communities.

Jun 2007-Mar 2012

$96M in 2010-11

$42M in 2011-12

Aboriginal Skills and Training Strategic Investment Fund

Economic Action Plan initiative to strengthen partnerships between Aboriginal employment service organizations and employers through training-to-employment programs related to concrete job opportunities. It will also support greater investments in training for individuals facing barriers to employment such as low literacy and essential skills.

Objectives:

- Entering into a number of training-to-employment projects leading to concrete, guaranteed job opportunities by establishing partnerships with small and medium-size employers;

- Supporting projects to assist Aboriginal people with barriers to employment, including literacy and essential skills challenges; and

- Supporting pilot projects to test innovative approaches to Aboriginal labour market programming as well as projects that are national in scope.

Apr 2009-Mar 2011

$45.1M in 2010-11

Source: HRSDC, 2010-2011 Report on Plans and Priorities.



[1]              CanNor provides $9.5M annually for the Community Economic Development Program, the Community Economic Opportunities Program, and the Community Service Support Program.