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Government of the Northwest Territories
Four Year Business Plan
2008-2012
GOVERNMENT OF THE NORTHWEST TERRITORIES
INTRODUCTION
This four-year business plan is one element of overall planning within the Government of the
Northwest Territories (GNWT). The planning framework for the 16th Legislative Assembly has
several key elements.
The Strategic Plan identifies the vision and goals and priorities for action that were developed by the
Caucus of the 16th Legislative Assembly. The overall Strategic Plan also identifies the strategic
initiatives and associated actions that the government plans to undertake to advance the priorities.
This four-year business planning document provides the operational details behind the Strategic Plan
and summarizes other program and service, legislative and infrastructure initiatives that the
government plans to undertake over the next four years. The four-year business plan incorporates the
actions started in 2008-09.
The four-year business plan are supported by an annual business plan that will be produced each year
and provides detail on each department’s planned activities for the upcoming fiscal year and reports
on results to date. The annual plan also provides the opportunity to adjust the overall plan as
conditions change.
PLANNING FRAMEWORK
This section provides an overview of the various elements of the planning framework.
GNWT Strategic Plan
Late in 2007, the Caucus of the 16th Legislative Assembly undertook a process to identify a vision,
goals and priorities that would guide their work over the following four years. The vision, goals, and
priorities for action under the theme of Northerners Working Together are presented below.
Vision
Strong individuals, families and communities sharing the benefits and responsibilities of a unified,
environmentally sustainable and prosperous Northwest Territories
Goals
A strong and independent north built on partnerships
An environment that will sustain present and future generations
Healthy, educated people
A diversified economy that provides all communities and regions with opportunities and choices
Sustainable, vibrant, safe communities
Effective and efficient government
Priorities for the 16th Legislative Assembly for Each Goal
A strong and independent north built on partnerships
o Strengthen awareness of our northern identity and uniqueness by promoting our successes, our
culture, our arts, and our languages with a proud and unified voice.
o Achieve significant progress toward northern control over the administration of lands, the regulatory
system, and resource revenues.
o Build strong partnerships with northern governments on areas of common interest.
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GOVERNMENT OF THE NORTHWEST TERRITORIES
o Fulfill our implementation responsibilities for existing land claim and self-government agreements,
and make best efforts to reach final agreements in ongoing negotiations.
o Work toward a common vision for the political development of the NWT.
An environment that will sustain present and future generations
o Coordinate our efforts to ensure development is sustainable for our land and wildlife.
o Protect our water supply and quality.
o Advance alternative energy initiatives.
o Work proactively with residents, communities and industry on mitigation of climate change.
Healthy, educated people
o Focus on prevention by promoting healthy choices and lifestyles, and the role of personal and family
responsibility.
o Enhance early childhood education, and improve support for day care services.
o Improve support for children and adults with special needs and disabilities.
o Work with families, communities and schools to improve the physical and mental well-being of our
youth.
o Strengthen regional and local treatment and aftercare programs to address addictions and mental
health.
A diversified economy that provides all communities and regions with opportunities and choices
o Promote development that reduces regional and community disparities.
o Work with regional business corporations and other partners to identify new economic opportunities.
o Support the development of sustainable local economies through small businesses and community-
based sectors such as tourism, agriculture, arts and crafts, and the traditional economy.
o Build community human resource capacity with an emphasis on trades and entrepreneurial skills.
Sustainable, vibrant, safe communities
o Pursue initiatives to reduce the cost of living, and in particular energy costs.
o Improve transportation infrastructure to connect communities.
o Increase RCMP presence and strengthen the role of communities in prevention and enforcement.
o Support a healthy and sustainable voluntary and not for profit sector.
o Work proactively with communities on adaptation to climate change.
Effective and efficient government
o Complete a thorough analysis of the efficiency, effectiveness and value of current government
operations.
o Achieve greater effectiveness, efficiencies and a more client-focused, service-oriented approach
through better planning, coordination and communication between GNWT departments.
o Improve human resource management within the GNWT through training, career planning, and
encouraging innovation by employees.
o Explore new potential sources of revenue.
Based on the overall vision, goals and priorities and following an examination of the operating
environment, the government has developed five key strategic initiatives each of which includes a
series of specific strategic actions. These strategic initiatives and associated actions have been
developed to advance the overall priorities are listed below.
Strategic Initiative Actions
Managing o Continue to Develop Governance
This Land o Protect Territorial Water
o Work to Mitigate and Adapt to Climate Change Impacts
o Improve Environmental Monitoring Efforts
o Environmental Stewardship
Building o Expand Programming for Children and Youth
Our Future o Encourage Healthy Choices and Address Addictions
o Implement Phase II of the Framework for Action on Family Violence
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GOVERNMENT OF THE NORTHWEST TERRITORIES
o Strengthen Continuum of Care for Seniors
o Enhance Support for the Voluntary Sector
o Increase Safety and Security
Maximizing o Improve Skills for Living and Working
Opportunities o Support Diversification
o Promote the NWT as a Place to Visit and Live
o Maximize Benefits from Resource Development
Reducing the o Improve Quality and Cost of Shelter
Cost of Living o Improve Transportation Access to Communities
o Address Factors that Impact the Cost of Goods
o Support Individuals and Families
Refocusing o Conduct Program Review
Government o Change the GNWT’s Approach to Infrastructure
o Improve Human Resource Development in the NWT
o Strengthen Service Delivery
o Managing the Cost of Government
Four Year Business Plan
The four year business plan summarizes the activities the government plans to undertake over the
next four years and incorporates actions started in 2008-09. It outlines the major program and service
initiatives that departments plan to pursue related to their core business activities, describes the
departmental role in strategic actions and summarizes the key infrastructure investments and
legislative initiatives.
The role that each department/organization will play in operationalizing the actions outlined in the
strategic plan is also outlined. For each of the strategic actions listed in the previous section that the
department has involvement, a page has been included in the department’s business plan. This page
will outline the specific activities that the department will undertake under the action.
Annual Business Plan Update
The annual business plan prepared each year will detail the specific work that departments plan to
undertake during the upcoming fiscal year to advance their program and service initiatives and
strategic actions described in the four year business plan. The annual business plan will also outline
any changes to the four year business plan resulting from the need to respond to emerging issues.
Detailed information on the fiscal position and proposed budget for the upcoming fiscal year and an
overview of human resources and information systems will also be included in the annual business
plan update.
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GOVERNMENT OF THE NORTHWEST TERRITORIES
ENVIRONMENTAL SCAN
This section describes key territorial trends that helped define specific elements of the actions that
have been developed to advance the priorities identified in the Strategic Plan. Each department’s
business plan includes a strategic issues section which identifies specific issues that impact their core
business areas.
Demographic Change
A critical trend that drives demand for government programs and services relates to changes in our
population. Changes in the age structure of the population and different growth rates by community
can impact the type and location of demand for government programs and services. In the NWT,
population is also one of the main drivers of Territorial Formula Financing (TFF) between the GNWT
and the Government of Canada.
As shown in Figure 1, there has been virtually no change in the territorial population over the past
four years. Between 1991 and 2008, the overall population of the Northwest Territories has increased
by 11.8%, which compares with an overall increase of 18.8% for all of Canada over the same period.
Figure 1 - Overall Population
Northwest Territories, 1991-2008
No. 44,000
43,000
42,000
41,000
40,000
39,000
38,000
37,000
36,000
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
While the NWT continues to have one of the youngest populations in Canada, that pattern is
changing. As shown in Figure 2, the number of children under the age of five has declined since
1991. At the same time, the number of Seniors in the NWT has increased from 1,890 in 1991 to 3,650
in 2007. Seniors now outnumber pre-schoolers.
The age structure of the NWT indicates the growth in Seniors is likely to continue, with the
population over 60 years of age expected to reach 6,674 persons by 2024. On the other hand, it is
expected that the number of school-aged children will level out over the next few years and remain
relatively stable through to 2024.
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GOVERNMENT OF THE NORTHWEST TERRITORIES
Figure 2 - Age Patterns
Northwest Territories, 1991-2007
No. 4,500
Under 5 Yrs.
4,000
60 Yrs. & Over
3,500
3,000
2,500
2,000
1,500
1,000
500
-
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
With declining birth rates and the aging of the population, natural increase is playing a lesser role in
population growth in the NWT. Overall population growth for the territory is largely determined by
inter-provincial migration. Over the past four years, net interprovincial migration has averaged -595.
This value has been comprised of an estimated 2,260 persons moving to the Northwest Territories on
an annual basis and 2,854 migrating out of the Northwest Territories.
Cost of Living
A higher cost of living when compared with other areas of Canada is a reality for residents of the
Northwest Territories. There are also considerable variations within the Northwest Territories.
Smaller and more remote communities have considerably higher prices for food purchased from
stores and for other items like electricity rates, heating fuel and gasoline, and other consumer goods
like clothing and items for household operations. Housing prices are often higher in larger NWT
communities.
Data on living cost differentials describe the relative difference in prices for items like food, clothing,
household operations and private transportation for communities in the Northwest Territories and
Edmonton. These indexes do not consider shelter costs. The data on living cost differentials indicate
that the cost of living varies from, for example, about 18% higher than Edmonton for Yellowknife, to
48% higher in Inuvik, to more than 60% higher in places like Tuktoyaktuk and Aklavik.
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GOVERNMENT OF THE NORTHWEST TERRITORIES
Figure 3 – Living Cost Differentials
Selected Communities, 2005
170
160
150
140
130
120
110
100
In mid-2008, world prices for oil increased significantly. While there have been some reductions
more recently, the price increases have a particularly substantial impact in the Northwest Territories
where we are significantly reliant on fossil fuels for heating, electrical generation and transportation.
The annual inflation rate, which describes overall price increases, is produced by Statistics Canada
and includes Yellowknife. Figure 4 indicates that while the Yellowknife inflation rate has been
similar to Canada in most years, the year to date information for 2008 suggests significant
inflationary conditions.
Figure 4 – Annual Inflation Rate
Yellowknife and Canada, 1999-2008
4.5
4.0 Canada
Yellowknife
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*
* Year to date information to August 2008
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GOVERNMENT OF THE NORTHWEST TERRITORIES
Figure 5 provides monthly information on prices for heating fuel and gasoline in Yellowknife and the
recent price increases are apparent. Similar patterns of growth are in place for other NWT
communities.
Figure 5 – Heating Oil and Regular Gasoline Prices
Yellowknife, 2000-2008
160
140
120
100
80
60
40
Self-Service Regular Gasoline
20 Heating Fuel
0
2000-Jan
2001-Jan
2002-Jan
2003-Jan
2004-Jan
2005-Jan
2006-Jan
2007-Jan
2008-Jan
2000-Jul
2001-Jul
2002-Jul
2003-Jul
2004-Jul
2005-Jul
2006-Jul
2007-Jul
2008-Jul
High rates of growth in personal income have reduced the differences in average income, but the
average income in Yellowknife is still higher at $57,246 in 2006, compared with $47,879 in the
regional centers, and $33,667 in smaller NWT communities.
Figure 6 - Cumulative Growth in Average Personal Income
Northwest Territories, 1995-2006
%
60
Yellowknife
50
Hay River, Fort Smith, Inuvik
40 Other Communities
Consumer Price Index
30
20
10
0
-10
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
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GOVERNMENT OF THE NORTHWEST TERRITORIES
Looking at family income, there have been significant increases in the percentage of territorial
families with more than $75,000 family income. This value has increased from 38% in 1996 to 57%
in 2006. For comparison, 41% of Canadian families earn more than $75,000.
Energy
Overall electrical production increased in the Northwest Territories by 25% between 2000 and 2007.
This increase is composed of a 5% increase for utility use and 52% for industrial use reflecting the
increased electrical production associated with additional diamond mines.
Figure 7 - Electrical Production, Source
Northwest Territories, 2000-2007
mwh 750,000
Internal Combustion Gas Turbine Hydro
675,000
600,000
525,000
450,000
375,000
300,000
225,000
150,000
75,000
0
2000 2001 2002 2003 2004 2005 2006 2007
With the change in overall production, more of the NWT’s electricity is now produced from diesel
generators. The percentage of electricity generated by internal combustion has increased from 26% in
2000 to 43% of overall production in 2007.
Table 1 - Household Distribution of Average Monthly Electricity Usage, by Selected Communities
October 2007 to September 2008
_________________________________________________________________________________________________________________________
Less than 500 to 700 1,000 to 1,250 or
Total 500 kwh 699 kwh 999 kwh 1,249 kwh More kwh 700+
_________________________________________________________________________________________________________________________
(#) (%) (#) (%) (#) (%) (#) (%) (#) (%) (#) (%) (#) (%)
Behchokö 476 100 157 33 109 23 126 26 53 11 31 7 210 44
Whati 125 100 44 35 46 37 30 24 2 2 3 2 35 28
Detah 84 100 33 39 18 21 23 27 6 7 4 5 33 39
Fort Liard 168 100 87 52 54 32 21 13 3 2 3 2 27 16
Gameti 81 100 35 43 35 43 11 14 0 0 0 0 11 14
Ft. Smith 998 100 205 21 187 19 291 29 161 16 154 15 606 61
_________________________________________________________________________________________________________________________
Information on patterns of electrical consumption for selected communities is presented in Table 1.
This table shows that overall electrical consumption varies significantly by community and within
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GOVERNMENT OF THE NORTHWEST TERRITORIES
communities. The percentage of households consuming 700 kwh per month or more of electricity is
significant as this is the threshold for the Territorial Power Subsidy Program. Households in this
category vary significantly for the communities provided in this table, ranging from 14% of
households in Gameti to 61% of households in Fort Smith.
Economy & Labour Markets
Overall Economic Performance
The NWT has had the fastest growing economy in Canada in recent years. Between 1999 and 2007,
gross domestic product grew by 83% (2.2 billion in 1999 to 4.0 billion in 2007) in the NWT
compared to 26% for all of Canada. This growth is based on indicators of the economy that remove
impacts of price changes (chained 2002$).
This economic growth has largely been the result of the development of the three diamond mines and
the renewed interest in oil and gas exploration with the development of the proposal for the
Mackenzie Gas Project. There have also been considerable spillover impacts into other industries like
transportation, retail and wholesale trade, manufacturing and technical services like engineering and
accounting services within the NWT.
Examining the overall indicators of the territorial economy provided in Table 2, reveals the relative
share of various economic sectors to overall economic output, employment and investment.
Table 2 - Economic Indicators by Select Industries
Northwest Territories
_________________________________________________________________________________________________________________________
Annual - Employment - - Gross Domestic Product - Capital
Sales/Output Estimate Share Estimate Share Investment
_________________________________________________________________________________________________________________________
$million no. % $million % $million
Mining 1,412 1,500 7.0 1,221 31.3 800.0
Oil & Gas Production 552 100 0.5 226 5.8 100.0
Mineral Exploration 178 230 1.1 117 3.0 180.0
Oil & Gas Exploration 393 300 1.4 148 4.3 380.0
Retail Trade 679 2,045 9.6 115 2.9 9.7
Wholesale Trade 667 355 1.7 77 2.0 9.5
Professional & Technical Services 118 905 4.2 60 1.5 3.4
Accommodation & Food Services 117 1,340 6.3 75 1.9 15.2
Manufacturing 47 335 1.6 5 0.1 1.0
Construction 1,321 1,290 6.0 595 15.2 6.8
Transportation 414 1,805 8.5 240 6.1 83.8
Forestry 4 20 0.1 0 0.0 0.1
Commercial Fishery 0 20 0.1 0 0.0 0.3
Trapping 1 424 2.0 1 0.0 0.0
Public Administration .. 4,650 21.8 404 10.3 119.3
Health Services .. 2,000 9.4 141 3.6 13.5
Education Services .. 1,605 7.5 169 4.3 38.2
Other Services, nes 47 805 3.8 70 1.8 2.1
_________________________________________________________________________________________________________________________
Symbols: ‘..’ is not applicable.
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GOVERNMENT OF THE NORTHWEST TERRITORIES
As noted, the number of people involved in trapping is from a different source than other data on
employment. The estimate of 424 reflects the number of people that indicated that they trapped
frequently throughout the trapping season. An additional element of harvesting that has a significant
economic impact is hunting and fishing. An estimated 40% of households in smaller NWT
communities estimate that more than half of their household’s meat and fish is obtained through
harvesting.
An on-going challenge in the NWT economy is the leakage of economic benefits when development
occurs. Leakage occurs when some of the benefit of an economic activity accrues to jurisdictions
outside of the location where the economic activity occurs. While this is normal in an open economy,
it may be higher in the NWT as businesses have to purchase a higher percentage of their inputs and
services from businesses outside the NWT.
Table 3 examines the overall percentage of direct and indirect labour income generated by economic
activity that would be expected to accrue to the NWT compared with similar industries operating in
Alberta. For truck transportation, as an example, the NWT captures about 80% of the income
generated, whereas, Alberta captures 91% for truck transportation in that province.
Table 3 - Share of Total Direct and Indirect Labour Income Accruing to
Jurisdiction Where Activity Occurs, by Selected Industries
_____________________________________________________________________________________________________________
NWT Alberta
_____________________________________________________________________________________________________________
Oil and Gas Extraction 50.0 84.2
Diamond Extraction* 53.2 90.3
Residential Building Construction 47.0 77.2
Non-residential Building Construction 67.4 86.7
Printing 56.5 76.4
Wholesale Trade 79.0 90.2
Retail Trade 83.9 92.5
Air Transportation 67.2 85.2
Truck Transportation 79.5 90.9
Architectural, Engineering and Related Serv. 75.1 93.3
Traveler Accommodation 81.8 89.9
Food Services and Drinking Places 73.0 83.1
Automotive Repair and Maintenance 83.4 94.6
Elementary and Secondary Schools 93.2 98.2
Other Prov. & Terr. Government Services 84.6 89.8
_____________________________________________________________________________________________________________
* For comparison purposes, gold mining is used for Alberta.
The problem of leakage is exacerbated by the number of non-residents working in the NWT on a
rotational basis. It is estimated that by 2007 some $334 million in labour income was earned in the
NWT by non-residents. This represents over 3,000 jobs that could be filled by NWT residents that are
instead held by residents of other provinces and territories.
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GOVERNMENT OF THE NORTHWEST TERRITORIES
Figure 8 - Territorial Labour Income, by Residence
Northwest Territories, 1999-2007
$million 1950
Non-Residents
1750
NWT Residents
1550
1350
1150
950
750
1999 2000 2001 2002 2003 2004 2005 2006 2007
Labour Markets
With the economic boom in the NWT in recent years, the territorial labour market is operating at near
capacity. For 2007, the overall participation rate in the NWT was 77.9% (1st highest in Canada),
while the unemployment rate was 5.4% (6th lowest in Canada) and the employment rate was 73.6%
(1st highest in Canada). Unemployment levels (people not working and actively looking for work)
have averaged 1,300 over the past several years in the NWT.
While the overall NWT employment rate is the highest in Canada, there are significant differences
among communities. The employment rate in seven communities representing about three-quarters of
the territorial population averaged 76% in 2006 (Norman Wells, Yellowknife, Inuvik, Hay River,
Enterprise, Fort Simpson, and Fort Smith). For the other 26 communities, which represent 26% of the
territorial labour market, the employment rate averaged 46% in 2006.
The overall Aboriginal employment rate in 2007 for the NWT was 55.3%. Aboriginal employment
rates have shown continued improvements over time improving from 41.8% in 1989. The overall
Aboriginal employment rate for Canada was 53.7% for 2006.
There continues to be a strong linkage between employment opportunities and education. The
employment rate for NWT residents with high school or more in 2007 was 86.9% compared to 46.9%
for those that have not completed high school.
Social Conditions
Social conditions in the NWT have generally been improving, however there remains significant
differences between the NWT and the rest of Canada. Information is provided on trends in education,
crime and safety, health status, and housing in this section.
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GOVERNMENT OF THE NORTHWEST TERRITORIES
Housing
Longer-term trends indicate improvements in housing conditions in the NWT. The percentage of
households in core need has declined from 20% in 1996 to 16% in 2004. A household in core need is
defined as a household with some sort of housing problem and inadequate income to address the
problem.
Examining the housing problems by community type indicates differences in the problems
experienced in Yellowknife, regional centers and smaller communities. In smaller NWT
communities, the main problem is adequacy or quality of housing. An estimated 27% of households
in smaller NWT communities need major repairs. Suitability, or crowding problems, impact 16% of
households in smaller communities, while affordability is the least frequent problem in smaller NWT
communities.
In the regional centers of Hay River, Fort Smith and Inuvik there is lower frequency of housing
problems than in smaller communities. Adequacy, or housing quality, is the most frequent problem
with 13% of households reporting this problem. In Yellowknife, the frequency of housing problems is
less than other community types, although Yellowknife has the highest level of affordability
problems.
Figure 9 - Housing Problems, by Community Type
Northwest Territories, 2004
% 30.0
Suitability
25.0 Adequacy
Affordability
20.0
15.0
10.0
5.0
0.0
Yellowknife Hay River, Fort Smith, Inuvik Rest of Communities
Looking at changes in these indicators over time shows that crowding, which is the main suitability
problem, has shown continued improvements. This is particularly true in smaller NWT communities
where the percentage of households with 6 or more people has declined from 32% in 1981 to 12% in
2006. Declines in larger households have been apparent in regional centers and Yellowknife as well.
As noted, affordability problems are most common in Yellowknife. Some 44% of households in
Yellowknife reported spending more than $1,500 per month for housing at the time of the 2004 NWT
Community Survey. In comparison, 16% of households in Hay River, Fort Smith and Inuvik spend
more than $1,500 per month for housing and 5% of households in smaller NWT communities.
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GOVERNMENT OF THE NORTHWEST TERRITORIES
Information on housing quality suggests that the percentage of households needing major repairs has
remained relative unchanged, remaining between 12% and 17% over the past 25 years. As noted,
issues around housing quality are greatest in smaller NWT communities. Information for 2006
indicates some 29% of households in smaller communities indicated their house was in need of major
repairs. This compares with 20% of households in the Hay River, Fort Smith and Inuvik and 9% in
Yellowknife.
Crime and Safety
As shown in Figure 10, there has long been a gap in the violent crime rate between the NWT and
Canada. There was a notable increase in this gap starting in 2002. The NWT violent crime rate was
7.6 times the Canadian rate in 2007.
Figure 10 - Violent Crime Rate (Incidents per 1,000 persons)
Northwest Territories and Canada, 1985-2007
No./1000 80.0
70.0
60.0
50.0
40.0
Northwest Territories
30.0
Canada
20.0
10.0
0.0
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
The difference in the property crime rate between the NWT and Canada is less significant than for
violent crime. The NWT’s property crime rate has been declining over the past three years after also
increasing significantly around 2002.
Education
While a gap remains between the high school graduation rates in the NWT and Canada, there have
been improvements over time. The overall graduation rate for the Northwest Territories has increased
from 38% in 1994/95 to 56% in 2006/07. Overall education levels for the adult population in the
NWT are similar to the rest of Canada. However, significant differences still remain between
Aboriginal and non-Aboriginal residents. In 2007, 45% of Aboriginal people reported having a high
school diploma or a post-secondary diploma or degree. In comparison, 87% of non-Aboriginal people
report having a high school or higher level of education.
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GOVERNMENT OF THE NORTHWEST TERRITORIES
This pattern of highest level of schooling is changing with improved education results. Examining the
percentage of Aboriginal persons 20-29 years of age that have high school or more education
indicates that this has been steadily increasing from 34% in 1984 to 49% in 2006.
Health Status
Information on self-assessed health shows that the percentage of territorial residents who feel their
health is either excellent or very good has remained relatively stable over time. In 2007, some 52% of
NWT residents reported excellent or very good health, which was about the same as the 53% for
2001. Information on chronic health conditions and causes of death are also indicators of population
health. Data on chronic health conditions indicates similar incidence rates in the NWT as the rest of
Canada for invasive cancer, arthritis or rheumatism, asthma, and high blood pressure, and diabetes.
However, it should be noted that the incidence of diabetes has increased over time.
Examining the leading causes of death indicates that the NWT exceeds Canadian rates only slightly
for cancers and circulatory related deaths, while the death rate from injuries and respiratory illnesses
were about double the Canadian rate.
Lifestyle choices like eating habits, level of physical activity, cigarette smoking, alcohol use and use
of other drugs are important factors that influence health status. While levels of physical activity
among NWT residents are similar to the Canadian average, approximately 40% of NWT residents are
inactive. In 2007, some 26% of territorial residents reported eating five or more servings of fruit or
vegetables per day. This result was significantly lower than the Canadian average of 41%.
Smoking rates in the NWT have improved significantly over time, declining from 49% in 2001 to
40% in 2007. This decline is more apparent when examining youth between 1 and 24, where smoking
rates have declined from 57% in 2001 to 43% in 2007.
Information on alcohol use indicates that NWT residents are slightly less likely to drink than the
average Canadian, but people who drink alcohol in the NWT are much more likely to be heavy
drinkers. One measure of the level of heavy alcohol use is the percentage of drinkers that consume
five or more drinks more than once a month. This indicator shows that about 27% of territorial
drinkers fall into this category in 2007, which compares with 16% of Canadian drinkers.
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GOVERNMENT OF THE NORTHWEST TERRITORIES
OTHER CONSIDERATIONS
In developing the four-year business plan, other elements beyond the planning framework and the
scan of the operating environment need to be considered. The following sections provide an overview
of the current programs and services that support the goals of the strategic plan, describe the elements
of the key areas for the strategic initiatives, including linkages, and provide the overall fiscal
framework that the four-year business plan is being developed within.
Current Activities That Support the Goals
With operations expenditures exceeding $1.2 billion annually, the core services currently offered by
the GNWT are a critical element to advancing towards the vision and goals described by the 16th
Legislative Assembly. These programs and services provide an important context for considering
incremental investments. The following table provides an overview of operational spending that is
related to each of the goals developed by the Caucus of the 16th Legislative Assembly.
Total 2008/09
Goal Major Related Key Activities Spending ($000)
Healthy, educated people • Health Services Programs-HSS $175,476 $523,496
• K-12 Education and NWT Public Library Services-ECE
$156,624
• Community Health Programs-HSS $75,334
• Adult and Post-Secondary Education-ECE $36,431
• Program Delivery Support-HSS $31,363
Sustainable, vibrant, safe • Regional Operations-MACA $95,015 $464,018
communities • Income Security-ECE $69,901
• Highways-DOT $48,290
• Local Housing Organizations-NWTHC $37,945
• Community Justice and Corrections-Justice $33,826
• Law Enforcement-Justice $29,444
An environment that will • Forest Management-ENR $26,536 $56,942
sustain present and future • Wildlife-ENR $14,737
generations • Directorate and Administration-ENR $10,094
• Environment-ENR $5,575
A diversified economy that • Economic Diversification and Business Services-ITI $45,593
provides all communities and $17,249
regions with opportunities and • Tourism and Parks-ITI $10,646
choices • Corporate Management-ITI $6,661
• Minerals and Petroleum Resources-ITI $6,018
• Energy-ITI $5,019
A strong and independent • Official Languages-ECE $6,034 $16,839
north built on partnerships • Culture and Heritage-ECE $4,305
• Corporate Management-DAAIR $2,398
• Negotiating Land, Resources and Self-Government
Agreements-DAAIR $2,072
• Managing the GNWT's Intergovernmental Relationships-
DAAIR $1,424
Effective and efficient • Asset Management-PWS $49,229 $123,735
government • Employee Services-HR $11,663
• Treasury-Finance $8,283
• Corporate Human Resources-HR $7,689
• Management and Recruitment Services-HR $7,341
2008-2012 Business Plan Page 15
GOVERNMENT OF THE NORTHWEST TERRITORIES
Key Areas for Strategic Initiatives
The various actions being undertaken by the government are being developed and coordinated by
strategic initiative committees. This has been done to achieve an appropriate level of inter-
departmental collaboration, and to ensure that departments do not inadvertently work at cross-
purposes to each other. The linkages between initiatives are critical as well, since we operate in an
environment where virtually everything has some effect on everything else. This cross-government
coordination is carried out by testing all facets of our plan against themes of sustainability,
affordability, economic prosperity, and the future of the people of NWT.
Community sustainability is a critical theme of the plan and actions under all of the strategic
initiatives make a contribution. Supporting people where they live, reducing energy costs and better
connecting communities all contribute to the sustainability of our communities, but, for example,
ensuring an economy that is diversified, balanced and sustainable and taking steps to invest in our
children and youth and focus on prevention also contribute to sustainability.
The focus on children and prevention, while critical to achieving the goal of healthy, educated people,
also contributes to a strong, diversified and sustainable economy as our resident workforce continues
to increase overall skill levels and other issues impacting labour market participation are reduced. The
focus on children and prevention also has a significant role in government operations that are
affordable and effective. Improving social conditions lower the costs of treatment and increases
resources available for investing in the future.
We have to ensure that government operations are effective and affordable, but we also need ensure
our core services are available, accessible and of high quality for all residents regardless of the
whether they are delivered at a community, regional or territorial level. We also need to ensure our
programs are designed in a way that contributes to the well-being of our communities and supports
the self-reliance of our residents.
We need to maximize the opportunities presented by resource development and diversifying our
economy by supporting increased economic linkages, investing in education and skill development of
our current residents, and growing the population to reduce our dependence on a non-resident
workforce. This needs to be done within the context of protecting our environment and supporting
activities that protect our culture, identity and language. Increasing prosperity enhances self-reliance,
provides families with resources to make choices and is linked with improving social conditions,
strengthening our identity, and supporting affordable and effective government operations.
Fiscal Context for the Plan
At the start of the 16th Legislative Assembly, the GNWT faced several certainties: certainty in the
Territorial Formula Financing arrangements for the next five years; certainty that a resource
devolution agreement will not produce revenues for NWT governments in the immediate term; and
most important, certainty that without action now to bring spending growth in line with forecast
revenue growth, the GNWT will face even harder choices in the future.
In 2005, the GNWT laid out an approach to fiscal planning that would ensure long-term fiscal
sustainability, while allowing for a responsible level of debt to finance capital investment. The Fiscal
Page 16 2008-2012 Business Plan
GOVERNMENT OF THE NORTHWEST TERRITORIES
Responsibility Policy requires the GNWT to generate sufficient operating surpluses to fund at least
50 per cent of its capital investment.
The rising cost of delivering current program and service levels has meant there is less and less
money available for investment in badly needed infrastructure and in new strategic priorities.
Since 2000-01, GNWT revenues have been more volatile than operating expenditures. Between 2000-
01 and 2007-08, the GNWT experienced five years of operating surpluses and three years of
operating deficits. Revenues grew, on average, by 5.5 per cent and expenditures by 6.8 per cent. In
addition, the GNWT made capital investments of $703 million over this period.
Effective April 1, 2007, Territorial Formula Financing returned to longer term, predictable
arrangements, following three years of interim arrangements. The Territorial Formula Financing
Grant was projected to increase an average 4.0 per cent per year and own-source revenues were
projected to increase an average 3.1 per cent per year over the planning period.
Given revenue projections, allowing expenditures to grow by the projected 5 per cent per year in the
four-year period from 2008-09 to 2011-12 would have led to operating deficits and put the GNWT in
an unsustainable fiscal position.
Under this scenario, the GNWT would have been over the $500 million federally-imposed borrowing
limit by the end of 2011-12. Furthermore, the capacity to address aging infrastructure and the need for
more infrastructure requires significant capital investment. Finally, expenditure growth projections
were conservative and did not provide for additional funding for new spending on strategic priorities.
For the GNWT to adhere to the Fiscal Responsibility Policy, the projected growth rates in revenues
and expenditures needed to be brought into balance, either by quickening the pace of growth of
revenues – through tax increases or the introduction of new taxes – or by reducing the rate of growth
in expenditures, either through reductions to current spending or by postponing or eliminating
proposed new initiatives, or a combination of both.
To do this, the Fiscal Strategy adopted in early 2008 intended to realign $135 million in expenditures,
with $75 million to be reallocated to spending priorities. Forced growth was capped at 3 per cent,
excluding Collective Agreement adjustments, starting 2009-10 and $10 million in new revenues
annually was to be identified beginning 2009-10.
The overall primary objectives of this Strategy were to allow the GNWT to make the investments
needed in programs and infrastructure that will make a difference in the lives of NWT residents and
approach the Federal Government from a position of fiscal strength, rather than “need”.
These objectives become increasingly important in light of the very uncertain economic conditions
we are currently experiencing, both in financial markets and in the energy sector. The NWT
economy is still strong. However, we must ensure that we are able to respond to changes that may
result from international and national events.
Over the summer, Cabinet reviewed the fiscal strategy and concluded that some adjustments are
needed to ensure we stay on course. Based on concerns raised by MLAs and the public about the
impacts of expenditure reductions on government services, on staff, and on communities it became
clear that revenue options also needed to be explored further. Although, the GNWT remains
committed to the expenditure reductions already identified for 2009-10 and to finding ways to make
2008-2012 Business Plan Page 17
GOVERNMENT OF THE NORTHWEST TERRITORIES
government spending more efficient and effective, looking for alternatives to further large scale
spending cuts is a priority.
As stated earlier, this means looking at revenues. The revised Fiscal Strategy adopted in August
2008, identifies raising a further $30 million starting in 2010-11, bringing the total revenue target to
$40 million. Consultations to seek the views of NWT residents on how the GNWT can increase its
revenues were undertaken in September 2008.
The 2008 Budget spoke to the need to change with way we invest in infrastructure in order to get the
maximum value for our capital dollars. This year marked a start to the way the GNWT does its capital
budgeting by approving the 2009-10 Capital Estimates during the Fall Session of the Legislative
Assembly. This earlier approach to capital planning will ideally allow contractors to fit our projects
into their schedule, encouraging more bids and greater competition for GNWT projects.
Page 18 2008-2012 Business Plan
GOVERNMENT OF THE NORTHWEST TERRITORIES
DEPARTMENTAL COMPONENTS
This four year business plan includes a section for each department of the government including:
Section Department
1 Aboriginal Affairs and Intergovernmental Relations
2 Education, Culture and Employment
3 Environment and Natural Resources
4 Executive
5 Finance
6 Health and Social Services
7 Human Resources
8 Industry, Tourism and Investment
9 Justice
10 Municipal and Community Affairs
11 Northwest Territories Housing Corporation
12 Public Works & Services
13 Transportation
Information for the Northwest Territories Housing Corporation is included in this document.
Although the Housing Corporation is not technically a department, for simplicity, we use the term
department to refer to both the list of departments above and the Housing Corporation.
Elements included in each department’s section reflect the overall nature of the business plan. In
addition to describing the overall mission and goals for the department, information is also provided
on the major program and service initiatives planned over the four year period for each key activity in
the department and then details of the department’s role in specific actions for each strategic initiative
are described.
2008-2012 Business Plan Page 19
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