…with an average annual growth rate almost three times the national average. This rapid increase has led to higher income levels in the territory and a labour market operating at close to full capacity.

Looking ahead, the NWT will see the completion of the Snap Lake diamond mine later this year, along with additional investment at the Diavik and Ekati mines. A fourth diamond mine is under assessment. These developments will result in continued strong growth in our economy, placing increased pressure on an already tight labour market and on the NWT’s industrial and social infrastructure. Other opportunities, like the Mackenzie gas project, will bring significant economic benefits but also increase pressure on the territorial economy.

Even with good news about the NWT economy, there are some important challenges ahead. Fiscal resources are limited and that affects this government’s ability to take steps now to ensure the full potential of economic growth across the territory is achieved while managing its impact and preserving the values that are important to northerners.

Since February 2006, the Department of Finance has been working on a macroeconomic policy framework for the NWT. Last fall, I announced a broad consultation process, including a series of roundtable discussions, asking Members of the Legislative Assembly, government departments, the business community, aboriginal and community governments, social and environmental organizations, recognized experts and individual residents for their input into the development of this framework.

I would like to take this opportunity to thank everyone who participated in the economic roadmap consultations for their valuable contributions. Participants told us that the future economy for the NWT should be balanced, diversified and sustainable, based on multiple industries, building on the traditional economy in the North and involving big and small businesses, large and small communities.

Participants also identified four key priorities for government action and investment:

Education is the key to ensuring NWT residents can benefit directly from the jobs and business opportunities created by development;

Communities -- especially smaller communities -- need the capacity to plan, address issues, and make decisions about economic development;

Improving and expanding infrastructure, especially transportation infrastructure, is essential for people to access jobs in other locations, to reduce the costs of living and doing business and to grow economies in smaller communities; and

Protecting the NWT’s environment means paying attention to the special features of the NWT, including its natural beauty and diverse ecosystems.

Based on the results of the consultations and on economic studies and analyses undertaken in recent years, the GNWT has completed a macroeconomic policy framework. The framework provides a reference point for the GNWT to evaluate the individual and combined impacts of different policy options, to help coordinate policy development and to guide overall fiscal and other policy decisions. Most important, it will provide a roadmap for achieving the kind of balanced, diversified and sustainable economy people in the NWT want and expect.

This framework is meant to improve the economic impact of government decisions. Based on a vision for a future economy that is balanced, diversified and sustainable, it will be used to guide future decisions about government spending, investment, taxation and borrowing. Putting measures in place to track progress and ensure accountability is an essential part of a policy framework. The document lays out indicators of progress so that the government’s policies can be assessed against overall economic results.

Later today, I will be tabling both the final report on the consultations and the macroeconomic policy framework.

---Applause