RNNR Committee Report
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Government Response to the Report of the Standing Committee RECOMMENDATION #1 The Committee recommends that the Government of Canada continue to support geoscience programs in order to improve the development prospects of northern energy and mineral resources, and specifically renew the geo-mapping for energy and minerals (GEM) program to another productive five-year term. Furthermore, the Committee recommends that the Government of Canada improve the infrastructure necessary to support geoscience initiatives in northern Canada. The Government of Canada understands the importance of geoscience knowledge to improve resource development prospects. Geoscience knowledge contributes to resource development by helping to guide investment decisions and enabling governments and industry to assess resource potential in Northern Canada. Obtaining high quality geological knowledge in Northern Canada’s remote environment is fundamental to reducing the investment risks and uncertainties associated with resource exploration and development. As a signature initiative of the Government of Canada’s Northern Strategy, Geo-mapping for Energy and Minerals (GEM) is helping to lay the foundation for effective exploration and economic development in the North, and enabling Northerners to make informed decisions about their future economy and society. In 2008, the Government of Canada announced $100 million in spending on the GEM program, an initiative to provide the geoscience knowledge necessary for private sector exploration companies to guide investment decisions. This investment will also help government to inform land-use decisions, allowing for responsible resource development without compromising conservation efforts or other land-use considerations. Renewed investment in GEM will be considered through the process of priority setting and fiscal planning of the Government. The Government of Canada is continuously working to improve research infrastructure in the North to support geoscience programming and knowledge building. Under the $85 million Arctic Research Infrastructure Fund, the Government of Canada supported research infrastructure at twenty sites across the three Territories and including community facilities and academic institutions. The Government of Canada has also made the commitment to build and operate the Canadian High Arctic Research Station in Cambridge Bay, Nunavut. The Station’s science program will focus on basic and applied research under priority themes that geoscience will support including Resource Development, Exercising Sovereignty, and Environmental Stewardship. RECOMMENDATION #2 The Committee recommends that the Government of Canada work to maximize the use of space-ground infrastructure in order to advance the utilization of satellite data. Furthermore, the Committee recommends that the government work with the international community to harmonize geo-reference standards in order to facilitate the sharing of geoscience knowledge between countries and organizations around the world. The Government of Canada recognizes the important role that satellite data plays in the development of the country’s resource potential and is maximizing its use of space-ground infrastructure. In 2010, Canada established the Inuvik Satellite Station Facility with the support of 14 national and international partners and stakeholders to increase access to satellite data over Canada, especially over the Canadian Arctic. Satellite data from this facility provides valuable information for northern economic development, monitoring land cover and land use from space, disaster management, climate change research and Arctic surveillance. On August 10, 2012, the Government of Canada announced funding of $38.9 million to equip Natural Resources Canada satellite station facilities with state-of-the-art antennae, including at the Inuvik facility. These satellite station facilities are strategically located across Canada to provide full coverage of Canada’s landmass and will support the next generation of satellites, including future Canadian missions. This funding also supports a data management system to house and safeguard satellite information and make it accessible to Canadians. The Government of Canada is working closely with the territories and the National Mapping Agencies of eight Arctic Nations to develop a plan for an Arctic Spatial Data Infrastructure that will provide the common standards, data, tools and policies to facilitate the sharing of data and information between domestic and international organizations. Natural Resources Canada’s GeoConnections program is a national initiative that supports the integration and use of the Canadian Geospatial Data Infrastructure (CGDI). The CGDI improves the sharing, access and use of Canadian geospatial information, and helps decision makers from all levels of government, the private sector, non–government organizations and academia make better decisions on social, economic and environmental priorities. A key element of the CGDI focuses on harmonization of standards in support of geospatial interoperability. For over 12 years, GeoConnections has worked with provinces/territories and federal agencies to develop standards, as well as with the international standards community and industry consortia to ensure Canadian requirements are reflected in international standards and that the CGDI has global compatibility. RECOMMENDATION #3 The Committee recommends that the Government of Canada, where there are willing partners, accelerate its work regarding unsettled land claims in northern Canada in order to protect the rights of Aboriginal communities as well as secure the investment environment for developers in the North. In particular, the Committee recommends that the government complete the implementation of the Nunavut Land Claims Agreement and other land claims, including the passage of the Nunavut Planning and Project Assessment Act. The Government of Canada understands the challenges presented by unsettled land claims, including increased uncertainty and risk for potential investors and instability and lack of opportunity for Aboriginal communities and will continue to meet our legal obligations and achieve the broader objectives of the treaties. To date, the Government of Canada has concluded modern treaties with 16 Aboriginal groups across Canada's North. The Government of Canada has also negotiated interim measures agreements with three others to facilitate development in unsettled areas of the Northwest Territories. Modern treaties have brought lands and resources certainty to all of Nunavut, over half of the lands of the Northwest Territories, and to the land claim areas of 11 of the 14 Yukon First Nations. Settled claims have facilitated the development of major resource development projects in all three of Canada's territories. Comprehensive claims deal with the unfinished business of treaty-making in Canada. These claims generally arise in areas of Canada where Aboriginal land rights have not been dealt with by treaty or through other legal means. In these areas, forward-looking modern treaties are negotiated between the Aboriginal group, Canada and the province or territory. These modern treaties are enshrined in legislation and provide a clear, certain and long-lasting definition of land rights for all Canadians. This includes certainty about the ownership, use and management of land and natural resources for all parties. The Government of Canada is moving toward a results-based approach to its participation in treaty and self-government negotiations that responds to past calls for change. The goal is to accelerate progress in negotiations by focusing resources on the most productive tables, promoting alternative measures, when appropriate, and streamlining processes. As a first step to achieve these goals, the Government of Canada has engaged with its negotiating partners to discuss these important issues. Negotiated agreements help to strengthen Aboriginal communities, creating new business, investment and job opportunities. The Government of Canada will work with willing partners to achieve more treaties in less time so that Aboriginal communities can begin to unlock these economic opportunities. In the absence of an agreement, the Government of Canada may consider options to improve access to other tools outside the negotiation process that address Aboriginal rights and/or promote economic development and self-sufficiency. This could include, for example, the development of consultation protocols with Aboriginal groups and provincial or territorial partners or interim steps toward self-government, such as participation in the First Nations Land Management Act. Comprehensive Land Claim and Self-Government Agreements have:
The Nunavut Planning and Project Assessment Act has been introduced in the House of Commons and is expected to receive Royal Assent shortly. RECOMMENDATION #4 The Committee recommends that the Government of Canada increase its support to mining training initiatives, particularly for First Nations and Inuit communities, in order to help develop the labour force required to support economic diversification and mining projects in northern Canada. The Government of Canada is committed to responsible resource development, and is already actively supporting training of Aboriginal peoples to take advantage of employment opportunities in the mining sector in the North. Human Resources and Skills Development Canada (HRSDC) has two demand driven labour market programs targeted to increase the labour market participation of Aboriginal peoples. Through these programs, HRSDC is supporting Aboriginal communities that are located near resource development projects, including mine training initiatives. The Aboriginal Skills and Employment Training Strategy (ASETS) is HRSDC’s main program for increasing labour market participation of Aboriginal people. The program aims to improve labour market outcomes by fostering partnerships with the private sector and provinces and territories to support demand-driven skills development through a network of employment centres across Canada that assist Aboriginal people to prepare for, find, and keep high-demand jobs now and in the long term. The Skills and Partnership Fund (SPF) is a flexible funding instrument that can support innovative projects aimed at increasing Aboriginal labour market participation. Launched in 2010, SPF fosters strong partnerships to address labour market demands in high-need sectors, such as energy and mining. Partners include industry, provincial and territorial governments, educational institutions, and service delivery providers. Labour Market Agreements and the Labour Market Development Agreements are designed to meet the labour market needs of the particular province or territory and increase labour market participation of those under-represented in the labour market. An annual funding formula is used each fiscal year to determine funding for each LMA and LMDA programs based on the overall program budget, the provincial/territorial population for the fiscal year, and the population of all provinces and territories for the fiscal year. While HRSDC cannot dictate that funding be directed at Aboriginal clients or towards mining training initiatives, the territorial LMAs and the LMDAs recognize that mining in the region has become a growing interest of the federal government and industry, and it is reasonable to conclude that they may direct funding towards mining training initiatives. The Government’s Northern Projects Management Office (NPMO), within the Canadian Northern Economic Development Agency (CanNor), works closely with the resource development sector, and territorial government and community partners, to assess workforce gaps and opportunities in fostering responsible resource development in Canada’s North. It is anticipated that over 9000 mining operations jobs will be created over the next ten years across the northern territories. This industry need highlights the importance of mining related training to prepare Northerners to take advantage of these opportunities. Through NPMO’s regular interactions with project proponents, it is able to respond to the economic drivers needed to ensure Northerners benefit from major projects. The Government of Canada has also recognized that the demographics of Canada’s North provide an opportunity to engage adults who lack basic workplace skills so that they too can benefit from and participate in the resource development boom. For this reason, the Government created CanNor’s Northern Adult Basic Education Program (NABEP) as part of Budget 2011. This program prepares working age adults to either enter the workforce directly, or to move on to additional vocational training before entering the workforce. Though CanNor’s Strategic Investments in Northern Economic Development (SINED) program, projects have been funded to support and build capacity in mine training across the territories. Examples include: “skills clubs” that give youth the opportunity to explore skills options and opportunities; supporting the purchase of mine training equipment by territorial mine training societies; and funding to territorial colleges to development mining technology and geosciences technology certification programs. RECOMMENDATION #5 The Committee also recommends that the Government of Canada continue to support research initiatives in northern Canada, in order to improve the prospects of mining development, as well as the overall economic prosperity of northern communities. The Government of Canada recognizes the need for rigorous science and technology research to support mining activities and major energy projects in northern Canada. Responsible resource development is the cornerstone of sustained economic activity in the North and the key to building prosperous Aboriginal and Northern communities. In August 2012, the Government announced its support for the construction and operation of the Canadian High Arctic Research Station (CHARS), and support for its Science and Technology Program. Located in Cambridge Bay, CHARS will be a year-round multi-disciplinary facility focusing on innovative research into environmental and resource development issues. CHARS will promote partnerships and collaboration among the Aboriginal, academic, public and private sectors, both domestically and internationally. Under the lead of Aboriginal Affairs and Northern Development Canada, CHARS is part of the Government of Canada’s Northern Strategy and will undertake science and technology (S&T) research that will support the responsible development of Canada’s North, inform environmental stewardship, and enhance the quality of life of Northerners and economic prosperity of northern communities. In the Arctic, the logistics of scientific research are both significant and costly. Terrestrial field logistics cost approximately 3 times as much as logistics in the South, and so logistical support comprises at least 20% of S&T budgets for Arctic science initiatives. Natural Resources Canada’s Polar Continental Shelf Program (PCSP) coordinates field logistics in support of advancing scientific knowledge and management of Canada’s lands and natural resources. PCSP provides safe, efficient and cost-effective logistics services to Canadian government agencies, provincial and territorial government agencies, northern organizations, universities and independent groups conducting research in Canada’s North. One of the Government’s key science and technology programs directed toward mining development is the Green Mining Initiative, which seeks to promote the development and implementation of green mining technologies and processes for sustainable mining in the North. Innovation, research and development, and science and technology will play a leading role in how effectively Canada is able to seize new resource opportunities and position itself internationally in the 21st century as a sustainable, responsible, and reliable producer. Natural Resources Canada is also conducting research on materials for transportation and pipelines so that they become more resilient to the changing environmental conditions in the North and help safeguard the environment and its inhabitants. RECOMMENDATION #6a The Committee recommends that the Government of Canada continue to address infrastructure challenges in northern Canada, particularly with regard to transportation and energy infrastructure, in order to improve the region’s economic development potentials. The Government is committed to advancing a future long-term plan for infrastructure that is affordable and sustainable and will focus investments on infrastructure that supports long-term economic growth and prosperity. In support of this commitment the Government has completed an engagement process, which included meetings with territories and provinces as well as key stakeholders such as northern municipalities and Aboriginal groups. Through the Building Canada Plan, launched in 2007, and infrastructure programs announced as part of the Economic Action Plan in 2009, the Government of Canada is making unprecedented investments in infrastructure in the North, including commitments exceeding $550 million for the territories through the Provincial-Territorial Base Fund. Key initiatives being supported through federal infrastructure programs include:
Transport Canada's Airports Capital Assistance Program (ACAP) also provides funding support for safety-related infrastructure investment at regional and local airports with regularly-scheduled passenger traffic. Since 1995, ACAP has contributed more than $67 million towards 45 projects at 23 northern airports. ACAP contributions are at least 85% of approved project costs for airports in the North (including the territorial capitals). Forty-five northern airports are currently eligible for the program. Further, Budget 2011 provided $150 million to support the Inuvik-Tuktoyaktuk highway. The Government also recently announced a contribution of up to $77.3 million under the P3 Canada Fund for the Iqaluit Airport. As we move forward, existing programs under the Building Canada Plan continue to provide a source of long-term, predictable funding for municipalities. More than 50 percent of Building Canada, or $17.6 billion over seven years, goes to municipalities to fund their priorities through the Gas Tax Fund and through the increased GST Rebate. The Gas Tax Fund doubled on April 1, 2009, from $1 billion to $2 billion per year. On December 15, 2011, Bill C-13, the Keeping Canada's Economy and Jobs Growing Act, received Royal Assent, thereby delivering on the Budget 2011 commitment to legislate the Gas Tax Fund as a permanent source of long-term sustainable funding at $2 billion per year, so that municipalities, including those in the North, can count on this stable funding for their infrastructure needs now and in the future. RECOMMENDATION #6b To facilitate the development of nuclear energy technology in Canada and harmonize nuclear energy liability terms with international standards, the Committee recommends that the Government of Canada ratify the Convention on Supplementary Compensation for Nuclear Damage. The modernization of Canada’s domestic nuclear civil liability legislation remains a high priority for the Government of Canada. The Government of Canada will continue to evaluate the benefits of joining an international nuclear civil liability convention to address the compensation and liability regime for nuclear damages arising from trans-boundary and transportation nuclear incidents. The Government is finalizing its analysis on this issue and plans to inform Parliament and Canadians soon of proposed next steps. RECOMMENDATION #7 The Committee recommends that the Government of Canada work towards clarifying the duty to consult policy, in order to improve Aboriginal consultation and engagement in resource development projects. The Government of Canada agrees that meaningful Aboriginal consultation and engagement in resource development projects is essential for responsible resource development in the North. In 2007, Aboriginal Affairs and Northern Development Canada (AANDC) released the Action Plan on Consultation and Accommodation, including new Guidelines on Consultation and Accommodation for federal officials that provide clearer and updated guidance on the legal duty to consult obligations. These Guidelines were updated in March 2011 following extensive engagement with 67 Aboriginal groups and individual communities across Canada. In 2008, key elements of a whole-of-government approach to Aboriginal consultation were introduced for major economic projects under the Major Projects Management Office Initiative. In the territories, this approach is supported by the Northern Projects Management Office (NPMO), the Crown consultation coordinator and keeper of Crown record for northern major projects, which was created in 2010. The Government’s plan for Responsible Resource Development will enhance consultation with Aboriginal groups. Program measures will ensure consistent, timely and meaningful Crown consultations for major projects including to:
The Government of Canada has also developed tools to assist federal officials in identifying the communities which they need to consult and is continuously training federal officials to support a sound and coordinated process. RECOMMENDATION #8a The Committee recommends that the Government of Canada continue to support capacity-building and infrastructure in northern communities, in order to help them meet the growing demand for essential services and improve community access. The Government of Canada recognizes that as the demand for infrastructure and services in communities grows in response to economic growth, it becomes crucial that community infrastructure facilities are maintained and expanded. Through the Economic Action Plan and the Building Canada plan infrastructure programs, which include the Gas Tax Fund, the Government of Canada is making unprecedented investments in infrastructure in the North, including support for capacity-building. In addition, the Government of Canada is committed to working with territories, provinces and key stakeholders such as northern communities and Aboriginal groups, to advance a future long-term plan for public infrastructure beyond the expiry of the Building Canada plan in 2014. With CanNor’s creation in 2009, the Government of Canada committed to a path to work with all of its northern partners, communities, territorial governments and industry to advance northern capacity. With almost $30M in contribution programs, the Strategic Investments in Northern Economic Development (SINED) Program, along with the suite of Aboriginal economic development programs, significant support is focused on Aboriginal and northern efforts to advance their communities and economies. Human capacity is an important part of these efforts and the 2011 launch of the Northern Adult Basic education program introduced another element. In July 2012, the Government announced the Community Infrastructure Improvement Fund (CIIF), a national program being delivered by regional development agencies. CanNor is delivering the program across the three territories with an allocation of $6.4 million over two years. At this time CanNor has invested in several community infrastructure improvements across the territories through the CIIF program. These projects included upgrades to water distribution systems in Iqaluit, updates to a power generating station in Qikiqtarjuaq NU, as well as improvements to community centres in several communities. Through its Northern Projects Management Office (NPMO), CanNor has launched a significant collaborative initiative to foster capacity building for Northerners by promoting community readiness around the unprecedented number of major resource development projects. The goal is to promote the full involvement of Northerners in resource development occurring near their communities through an approach that assesses community readiness, identifies strengths and gaps, and takes whole of governments approach, aligning and sequencing activities and initiatives with industry investments and plans. At this time memoranda of understanding are being signed with Aboriginal organizations and territorial governments to strengthen partnerships. Major project proponents are looking to coordinate their own plans with community readiness work. Federal departments are examining their programming together to consider how to align their investments and capacity. CanNor is also working with these partners to examine some key gaps in areas such as large scale infrastructure, connectivity and labour market capacity. RECOMMENDATION #8b Moreover, the Committee recommends that the Government of Canada continue to analyze territorial borrowing limits to determine if the current levels are appropriate to meet the current needs. The Government of Canada is committed to supporting the three territorial governments in developing their economic potential. An important aspect of the Government of Canada’s support to the territorial governments for the development of their economic potential is providing clear rules by which territorial governments may borrow to undertake investments in their future. The Government of Canada introduced amendments to the Yukon Act, the Northwest Territories Act and the Nunavut Act in June 2012 to allow the creation of new regulations that will ensure consistent treatment of borrowing across the three territories and with their Public Accounts. This will provide certainty to territorial governments as they plan for their future. The Government of Canada reviews a territorial borrowing limit following a formal request from the territorial government. When a review is requested, the Government of Canada assesses the territorial government’s ability to carry future debt based on its economic and fiscal outlook, including federal transfer support. Based on that assessment, the Government of Canada may change the territorial government’s maximum borrowing amount. Territorial borrowing limits were reviewed and increased in March 2012 for all three territories. They were increased from $575 to $800 million for the Northwest Territories, from $300 to $400 million for Yukon and from $200 to $400 million for Nunavut. This provides additional capacity for the three governments to borrow in support of their priorities, such as major infrastructure projects. RECOMMENDATION #9 The Committee recommends that the Government of Canada work towards reducing inefficiency and delays in the current regulatory process, in order to improve prospects of northern resource development. In particular, the Committee recommends that the Government of Canada work with provincial governments to harmonize the federal and provincial regulatory processes, in order to avoid duplication. The Government of Canada has introduced new processes, legislation and regulation to reduce inefficiency and delays in regulatory processes. To improve regulatory processes south of 60⁰, the Government of Canada is implementing its plan for Responsible Resource Development. Through the new Canadian Environmental Assessment Act 2012, and amendments to other related legislation such as the Fisheries Act, Nuclear Safety and Control Act, and National Energy Board Act, the government is modernizing the regulatory system for the review of major economic projects to ensure Canada’s regulatory regime is among the most efficient, effective and competitive in the world. Key elements include:
To improve regulatory processes in the territories, the Government of Canada announced the Action Plan to Improve Northern Regulatory Regimes to make regulatory frameworks strong, effective, efficient and predictable in May 2010.. In November 2012, the Northern Jobs and Growth Act was introduced to build on progress made through the Action Plan to create a more stable investment climate in the North by increasing the predictability and efficiency of the review process for major northern projects. The Act includes the new Nunavut Planning and Project Assessment Act and Northwest Territories Surface Rights Board Act, along with important amendments to the Yukon Surface Rights Board Act. In the coming months, additional legislative proposals will be introduced to further ensure the northern regimes are timely, efficient and effective. Taken together, these measures will strengthen accountability and ensure a more effective and efficient regulatory system, by implementing new tools to eliminate duplication between federal and provincial regimes and achieving the shared objective of one project, one review. RECOMMENDATION #10 The Committee recommends that the Government of Canada provide support to the Territories, in order to help improve their regulatory institutional capacity for reviewing resource development projects. The Government of Canada recognizes that partnerships with the territories are crucial to support the northern regulatory system. For this reason, territorial partners are included in almost all of the regulatory processes led by CanNor’s Northern Project Management Office (NPMO). The Nunavut, Northwest Territories and Yukon territorial project committees include the regulatory boards, governmental officials and some Aboriginal representatives from each territory. This same approach is used for Resource Development Advisory Groups. NPMO’s Resource Development Advisory Groups (RDAG) foster early collaboration by all involved parties in the regulatory process around an individual project. These meetings are organized when a proponent has a defined project and is actively preparing to submit applications to the regulatory process. Participants at RDAGs include the proponent, federal and territorial departments and agencies, review boards, and Aboriginal organizations. The process provides advice to proponents on the regulatory process, allows regulators to gather project specific information, while also serving as a forum for early issue identification and resolution. NPMO has also been signing bilateral memoranda of understanding with these territorial partners which allows a deeper relationship and level of cooperation on specific projects that move through the regulatory process. CanNor’s Strategic Investments in Northern Economic Development (SINED) program has also funded territorial government capacity building projects that support an efficient regulatory process for resource development. These project activities include, but are not limited to, base line research and the development of tools and resources to support the environmental assessment functions of territorial governments. |