Introduction
1.1 The NDA – Background, Context and Priorities
In 2002, the Government of Saskatchewan and the Government of Canada were signatories to the Northern Development Accord. The Accord, witnessed by the Interim Northern Development Board Corporation, was established to formally commit all parties to work towards a common set of goals for northern Saskatchewan. The goals outlined in the Accord focus on a strong, diversified, sustainable economy through infrastructure development, training and employment, and increased business opportunities. The intent of the Accord was to support the creation of self-reliant communities and increase the participation of Northerners in the economy.
As a response to the Accord, the Northern Development Agreement (NDA) was established to promote and support a long-term economic development strategy for northern Saskatchewan. The purpose of the NDA was.
- To enhance the economic opportunities available to Northerners, promote and support the sustainable economic development of northern Saskatchewan and encourage the full participation of Northerners in the Canadian economy; and,
- To provide an opportunity for appropriate representatives of Northerners to directly participate in establishing the priorities to be pursued by the Agreement and to play a significant role in the decision-making process.
The NDA is a five (5) year, $20 million program. Each of the federal and provincial governments committed $10 million to the program. The program is administered using a tripartite approach between the Government of Canada (Western Economic Diversification, WD) the Government of Saskatchewan (Saskatchewan Northern Affairs, SNA) and the Northern Development Board Corporation (NDBC). The NDBC provides administrative and operational support to the program and is the first point of contact for fund applicants.
1.2 Economic Context
At the launch of the NDA, and during the term of the program, the economic environment in the North has been influenced by changes in forestry, mining and by population growth. Figure 1.1 provides a summary of the influencing indicators and trends.
Figure 1.1 Economic Indicators and Trends
Population Trends
- The Northern Administrative District (NAD) represents approximately half of Saskatchewan's total area, yet has a relatively small population of less than 40,000 people.
- According to Saskatchewan's "Health-Covered" Population for 2005, 36,955 live in the region, representing 3.6% of the province's overall population.
- The Northern population is growing. Between 1998 and 2005, the population in the region grew by 5.8% compared to a decline of 1.1% provincially.
- The population is young. Forty-three (43%) percent of the region's population consists of people under the age of 20.
- Aboriginal and First Nation's represent 83.6% of the population of northern Saskatchewan compared to 13.3% provincially.
Economic Indicators
|
|
Northern Administration District
|
Saskatchewan
|
|
Employment Rate
|
41%
|
64%
|
|
Unemployment Rate
|
24%
|
6%
|
- The most common employment positions in the Northern Administration District are: Sales and Service Occupations (25%); Occupations in Social Science, Education and Government Service (17%); and Trades, Transport, Equipment Operators, Related Occupations (17%).
Major Industries
Mining
- Northern Sask. produces uranium, gold, and base metals (i.e. copper, iron, lead, etc.).
- The mines located in Northern Sask. produce 30% of the world's production of uranium – however, there have been production delays due to mine flooding in the past two years.
Oil and Gas
- Oil production has doubled in the last 10 years.
- Saskatchewan accounts for 18% of the total production of oil in Canada – 2nd largest oil producer in Canada behind Alberta.
- Oil and gas drilling represents one of the few remaining sectors where new employees can obtain training on the job.
- According to the Athabasca Regional Issues Working Group Fact Sheet 2005, it is expected that oil and gas operations in the Athabasca/Fort McMurray region will be hiring about 6,000 new workers to fill new permanent positions between 2005 and 2014.
Forestry
- More than half of the province's total area is forestland. The commercial forest stretches from Prince Albert to the northern edge of the province.
- Forestry exports were strong in 2004 and 2005. By October 2005, exports of forestry products were valued at $710 million.
- More recently, the forestry sector has experienced increasing pressure from disputes on Canadian softwood duties to competition for markets from cheaper woods and bio-engineered products causing a down-turn in the industry.
- At one time, nearly 6,000 individuals worked in the forestry industry - these individuals have been affected by closures (Weyerhaeuser) and restructuring (Meadow Lake Pulp).
Sources:
- 2001 Census, Statistics Canada
- Health Covered Population 2005, Saskatchewan Health
- Northern Saskatchewan Training Needs Assessment Report 2006. Produced by Northlands College, the Northern Labour Market Committee, Saskatchewan Advanced Education and Employment and Saskatchewan Learning
- Saskatchewan Bureau of Statistics
1.3 Strategic Priorities
Projects funded as part of the NDA contribute to at least one of five strategic priority areas. These priority areas are broad in scope and provide for a significant degree of flexibility in funding support.
a) Economic Infrastructure – This Agreement, through the partnership between Northerners and the provincial and federal governments will attempt to improve access to key economic sectors through:
- enhanced partnerships between government and industry;
- improving access;
- forming partnerships with local employers thereby increasing business development;
- improving transportation, energy, communications systems and services;
- improving zoning, planning, services and facilities (water & sewer, land use, recreation); and
- increasing availability of adequate housing.
b) Innovation – It is anticipated that this Agreement would accept proposals to look at innovation, research, and development opportunities that would:
- expand innovation and research;
- increase northern presence by the National Research Council and Saskatchewan Research Council; and
- improve specific technical training and research.
c) Realizing Employment Opportunities – Northern Saskatchewan is poised to expand in the areas of tourism, mining and forestry. Further training in these areas will ensure Northerners can take advantage of labour and business opportunities through:
- training and practical experience that will be gained through incubator models in specific sectors of the northern economy;
- increased participation of Northerners in public service employment; and
- enhanced northern entrepreneur's ability to provide goods and services to industry and the public sector.
d) Capacity Building – Capacity building, depending on its context, can be defined in a variety of ways. According to developmental research it is clear that individual improvement increases self-reliance. In order for a group of individuals to improve or build upon their capabilities, it is essential that adequate training and development resources are available. Possible training opportunities must include:
- business and accounting skill development;
- expanding educational approaches to improve access, retention and completion rates;
- strengthening adult education and literacy programs to improve the labour market opportunities for mature Northerners; and
- improving entrance rates to post-secondary institutions.
e) Investment Attraction – The key to realizing economic benefits for any region of Saskatchewan is partnerships between government and industry. Large-scale investments lead to employment, skill training and a host of other potential opportunities. Investment opportunities can:
- develop the potential of northern economic sectors ;
- establish partnerships among governments, communities and industry to promote economic growth and diversification.
- increase northern participation in, and the benefits from, economic development activities.
- strengthen northern businesses' access to financial and business support services; and
- enhance northern entrepreneurs' ability to provide goods and services to industry and the public sector