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Chamber of Mines blasts 'weak' GNWT recovery strategy that omits mining industry

The GNWTSA国际影视传媒檚 Emerge Stronger Plan for economic and social recovery from the Covid-19 pandemic makes little mention of the main driver of the NWTSA国际影视传媒檚 economy: mining.

SA国际影视传媒淵ou need to have a recovery plan that addresses the foundation of the economy. We werenSA国际影视传媒檛 consulted on this (plan). They didn't talk to us about it,SA国际影视传媒 said Tom Hoefer, executive director of the NWT and Nunavut Chamber Of Mines.

Tom Hoefer: said the chamber always supported the undoing of the superboards.
GNWT's Covid-19 economic and social recovery strategy presentation left out one of the biggest economic drivers in the NWT, says NWT & Nunavut Chamber of Mines executive director Tom Hoefer. NNSL file photo

That plan was presented in a livestream last Wednesday to the Standing Committee on Accountability and Oversight -- members of Cabinet and MLAs also joined the meeting.

RELATED REPORTING: MLAs tell Cabinet to focus on small business while rebuilding NWT economy

But Hoefer said the presentation was SA国际影视传媒渨eakSA国际影视传媒 and pointed to the sole SA国际影视传媒渙btuseSA国际影视传媒 reference to mining in the strategy, which came on a slide titled SA国际影视传媒淲hat is expected to be differentSA国际影视传媒 after the pandemic. It referred to the mining and oil and gas sectors as externally focused based on the global market.

Another slide titled SA国际影视传媒淩ole of Government in Economic RecoverySA国际影视传媒 advises the GNWT to SA国际影视传媒渞ecognize and plan for shifts including the digital economy (and) declining oil and gas sector." Hoefer finds that puzzling because mining, at approximately 35 per cent of territorial gross domestic product (GDP), dwarfs oil and gas.

"If youSA国际影视传媒檙e going to triage something then you should triage mining,SA国际影视传媒 he said. "Are you not in tune with the economy?"

When MLAs responded to the presentation on Wednesday, the only mention made of mining was by Frame Lake MLA Kevin OSA国际影视传媒橰eilly, who said the GNWT should focus on supporting small businesses and not SA国际影视传媒渟pend too much time on trying to help the diamond mines recover. We donSA国际影视传媒檛 have deep enough pockets. We need to shift the focus to small business where we have some influence, particularly when it comes to government spending.SA国际影视传媒

Frame Lake MLA Kevin OSA国际影视传媒橰eilly said during the standing committee livestream on Wednesday that the GNWT doesn't have deep enough pockets to help the diamond mines recover. Livestream screengrab

In response, Hoefer said if the government is on the same page as OSA国际影视传媒橰eilly then the recovery plan will be incomplete.

SA国际影视传媒淭here might be an association with Alternatives North. There's a group that's got this approach of not supporting the mining industry. That's not a way to diversify an economy. We should be looking at supporting all industries.SA国际影视传媒

Premier Caroline Cochrane, speaking to reporters in a teleconference on Tuesday, said the recovery plan presentation didn't make more mention of mines because it was a model, not a plan.

But she said the concerns of the mining industry won't be left out of the NWT's recovery strategy.

"The NWT & Nunavut Chamber of Mines are critical in the work as we go forward and theySA国际影视传媒檒l be sitting on our business advisory council. TheySA国际影视传媒檒l have a huge amount to say on the economic measures that we bring forward."

Feds offer little help for mining industry

The lack of focus on mining in the GNWTSA国际影视传媒檚 recovery plan comes at a time when the Northern minerals industry is receiving little, if any, federal support during the pandemic.

The NWT and Nunavut Chambers of Mines, along with its Yukon counterpart, raised the issue in a to federal Northern Affairs Minister Dan Vandal.

They pointed to the Canada Emergency Wage Subsidy (CEWS) programSA国际影视传媒檚 condition that companies must have lost 30 per cent of revenue from the same period last year as "problematic for many of our members" because of the realities of uneven revenue streams, non-revenue generating exploration activities and the seasonality of mining work.

More than a week later, to Finance Minister Bill Morneau outlining the hardships faced by the mining industry, "the largest private sector employer and contributor to the gross domestic product in all three territories.SA国际影视传媒

McLeod reiterated points made by the chamber of mines about the CEWS program and urged that a more creative approach be found to address the needs of non-revenue generating companies like mining firms.

Hoefer is concerned that the GNWTSA国际影视传媒檚 recovery plan seems to have glossed over the fact the mining industry hasnSA国际影视传媒檛 received federal aid.

SA国际影视传媒淲e're getting no reports that our industry is getting any of that. It flies in the face of helping the economy get going. We're not sure we're eligible for these subsidies. Despite (the mineral industry) raising $5 billion in revenue over the last 10 years in the three territories, that's not considered revenue and most of that was done by small exploration companies,SA国际影视传媒 he explained. SA国际影视传媒(The mines) are paying workers that they sent home to the Indigenous communities and they're dealing with more mitigations because of Covid. Is there some plan to help stop the bleeding?SA国际影视传媒

During her teleconference, Cochrane said support for mining has been on the agenda of most provincial and territorial premiers, who have been asking the federal government for more help.

"WeSA国际影视传媒檙e looking at moving forward. WeSA国际影视传媒檝e released economic packages for residents from the GNWT. The next package we'll be releasing will be more based on the work that we're doing with this economic and social recovery plan."

Potential solutions

Criticisms aside, the mining chamber's executive director believes there are options that the territorial and federal governments could pursue to include the mining industry in a recovery strategy.

One is the GNWTSA国际影视传媒檚 $1 million Mining Incentive Program (MIP) that offers funding to help companies enhance their exploration activities.

SA国际影视传媒淢aybe the government can double or triple (the amount). These are the things that have to be looked at. When things are really bad is it worth it to incent it to a higher degree?SA国际影视传媒

There is also the federal Mineral Exploration Tax Credit (METC), a 15 per cent non-refundable tax credit. Hoefer thinks it could be more effective in the NWT if the percentage was raised to take into account the higher costs of business operations in the territories.

SA国际影视传媒淲hy not make the METC four times higher in the North, so companies have a greater ability to raise money after this pandemic?SA国际影视传媒 he suggested.

Other proposals, like the Taltson Hydroelectricity Expansion Project, the Slave Geological Province Corridor Project and the Mackenzie Valley Highway could help catalyze investment even during the pandemic.

SA国际影视传媒淲e have to think about the short-term, medium-term and long-term,SA国际影视传媒 Hoefer said. SA国际影视传媒淒o we have to act more boldly now than before? I would say yes we do. We've really dragged our economy down. They're going to have to throw more horsepower behind getting us out of this slump. With the 2008-2009 recession, everyone worked hard to get out of that. We need those sort of bold actions again. We're probably in worse condition now than we were in 2008-2009.SA国际影视传媒





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