Manitoba needs northern strategy

In early March, the Prospectors & Developers Association of Canada held its annual mining convention in Toronto. Federal Natural Resources Minister Jim Carr gave the keynote address.

As the founding CEO of the Business Council of Manitoba, Carr understands the importance of the mining sector to Manitoba’s economy.

He knows large and mid-size companies account for 33 per cent of the metals, mining and energy sectors in Canada. Carr’s pledge to the association was, "to position the Canadian mining industry for long-term success," which includes "investing in innovation, ensuring regulatory stability, engaging with indigenous groups and supporting mineral exploration." While the devil is in the details, his pledge was welcome news.

This year’s convention was more positive compared with past years. There was a feeling commodities may be bottoming out and seeds of recovery are emerging. Canada is renowned for its natural resources. Now is the time to develop long-term strategies to make the most of it for Canadians. The southern portion of Canada enjoys superior access to community services compared with northern citizens because of infrastructure investment made during the last 150 years.

Yet, more than 80 per cent of our land mass lies to the north of the developed belt next to the United States. As the Free Press has observed more than once: "the majority of people in southern Manitoba, as the majority of Canadians, fail to appreciate the south will be the beneficiary of northern development."

Our natural resources present long-term potential. But building that capital-intensive infrastructure in the North requires long-term vision and sustainable plans that endure changes in government.

Quebec and Ontario are strategically positioning for the next cycle in commodities with their northern growth strategies. Plan Nord, launched in 2011 by former Quebec premier Jean Charest, is Quebec’s economic development plan "in the mineral resources, forestry, energy, bio food production and tourism sectors." Shelved by the Parti Québécois in 2012, it was revived by Premier Philippe Couillard. Couillard believes while northern Quebec may be rich in natural resources, wealth-creation opportunities will remain unrealized for First Nations and greater Quebec unless a long-term plan is implemented. Couillard, therefore, announced in 2015 a $1.3-billion investment in infrastructure over the next five years to leverage $22 billion in private-sector investment. Benchmarks for job creation will be overseen by the Société du Plan Nord.

Northwestern Ontario, including the Ring of Fire, holds the world’s richest supply of chromite, platinum, copper and nickel, estimated at $80 billion. In 2010, the provincial government created the Ring of Fire secretariat to "work and consult with aboriginal peoples, northern Ontarians and the mining industry to encourage responsible and sustainable economic development in the region."

While development has been very slow, Premier Kathleen Wynn’s government has pledged $1 billion in infrastructure funding and has an outstanding "ask" of the federal government for matching funding.

The Manitoba government introduced its northern development strategy in 2000. This initiative was to invest in the north’s strengths. In 2013, after 13 years in power with no strategic plan in place to guide northern Manitoba development and investments made in the billions of dollars for the construction of hydro projects, the NDP government announced its "opportunities north" consultation process. The stated purpose was to renew its focus on ensuring job creation and economic growth for the region. In 2016, after 16 years in power, Manitoba stakeholders still await a northern economic development strategy.

The mining sector provides direct and indirect jobs for 400,000 Canadians and injects more than $60 billion into the GDP. The potential for sustainable exploration and development, wealth creation and future contributions to our social well-being are limitless. But realizing the opportunities requires a long-term vision. Quebec and Ontario are comparatively better positioned than Manitoba to take advantage of the next resource cycle because of planning. With $9 billion left for allocation from the New Building Canada Fund and $120 billion to be earmarked by the federal Liberals in its new budget over the next decade, now is the time to develop long-term federal/provincial strategies for northern economic development.

Steve Demmings is the former founding CEO of the Thunder Bay Community Economic Development Commission.