Canadian Northern Economic Development Agency (CanNor) - 2020-21 Departmental Results Report

Relief and Recovery initiatives in response to COVID-19:

In the early days of the COVID-19 pandemic, CanNor responded quickly through the design and delivery of the Northern Business Relief Fund (NBRF). This provided short term relief for small- and medium-sized enterprises' (SMEs) ongoing operational costs. Territorial SMEs impacted by economic disruptions due to COVID-19 could receive assistance in the form of a non-repayable grant ranging from $2,500 to a maximum of $100,000.

Primary relief and recovery efforts this year were guided through the launch and delivery of the Regional Relief and Recovery Fund (RRRF), which provided assistance to businesses and communities that required additional support to cope with the pandemic. In the North, this meant focused stabilization support in key sectors including, but not limited to, tourism, fisheries, the mining supply chain, local food production and processing, regional innovation ecosystems and community infrastructure, as well as support to Community Futures Networks in Nunavut and Northwest Territories, and relevant partners and stakeholders in Yukon.

From the two above-mentioned initiatives, CanNor entered into agreements to support over 560 territorial SMEs through the end of 2020-21, providing approximately $31.2 million in relief and recovery funding. This funding served to maintain an estimated 1,685 jobs across the territories – jobs that otherwise may have been lost. These numbers include:

• Over 270 unique agreements to support Yukon SMEs, totaling approximately $14.7 million in relief and recovery funding and an estimate of over 650 jobs maintained.
• Approximately 250 unique agreements to support Northwest Territories SMEs, totaling about $11.7 million in relief and recovery funding and an estimate of approximately 820 jobs maintained.
• Approximately 50 unique agreements to support Nunavut SMEs, totaling about $4.8 million in relief and recovery funding and an estimate of approximately 220 jobs maintained.

CanNor's relief and recovery initiatives provided significant support to women-owned, Indigenous-owned, and tourism-related enterprises. According to data collected by the Agency, the impact of NBRF and RRRF on the aforementioned groups was as follows. Note that numbers add to more than the totals cited above, due to the fact that some enterprises fall under more than one category. Through these programs, CanNor supported:

• Over 200 enterprises majority-owned by women, totaling about $8.1 million in relief and recovery funding and an estimate of approximately 680 jobs maintained.
• Over 100 enterprises majority-owned by Indigenous people, totaling about $6.5 million in relief and recovery funding and an estimate of approximately 390 jobs maintained.
• Over 320 enterprises in tourism and related industries, including tourism operators and outfitters, arts, entertainment, recreation, accommodations, food services, and transportation, totaling about $21.4 million in relief and recovery funding and an estimate of approximately 890 jobs maintained.

Since the launch of the RRRF in April 2020, the six RDAs and nearly 270 Community Futures Organizations have delivered over $1.7 billion to nearly 23,700 businesses and organizations, helping to preserve over 188,000 jobs across the country.

Departmental Result: People and Communities Participate in the Economy in the Territories

CanNor is committed to working with its partners and stakeholders to build strong and economically sustainable northern communities for residents across Canada's territories. Recognizing the unique challenges facing these communities, many of which are small and remote, CanNor works with its community partners to identify optimal areas for investment. This includes supporting their participation in and benefitting from major projects occurring in their areas, fostering capacity and skills development at both the organizational and individual levels, and making investments to improve local infrastructure. CanNor delivers several programs that help communities create the conditions necessary for economic growth and development.

In 2020-21, CanNor worked with Indigenous communities to increase their capacity to participate in and benefit from economic opportunities. Through the Northern Aboriginal Economic Opportunities Program's (NAEOP) Community Readiness and Opportunities Planning (CROP) fund, CanNor was able to provide 23 unique Indigenous communities with approximately $6.5M across 40 projects to enhance economic infrastructure, increase employment, and improve conditions for community economic development. For example:

• In Watson Lake, Yukon, CanNor provided $900,000 to First Kaska GP, the economic development arm of the Liard First Nation. First Kaska GP has the opportunity to become a major contractor for road maintenance, equipment operations at mines, and local construction work. With CanNor support, First Kaska has been able to hire new employees and leverage further funding for the purchase of equipment.
• In the Northwest Territories, CanNor provided $220,000 to the Inuvialuit Community Economic Development Organization in support of regional strategic planning and capacity development programs for Inuvialuit beneficiaries. This included a Cruise Ship Strategy for the Inuvialuit Settlement Region, food processing projects, and reindeer herding initiatives.
• In Nunavut, CanNor partnered with the Qaujigiartiit Corporation to support the Inuusirvik Community Wellness Hub. With $225,000 in CanNor funding, Qaujigiartiit is completing the engineering, architectural, and geotechnical drawings and documents needed for the construction of the Hub, to be built in downtown Iqaluit.

CanNor renewed the Northern Adult Basic Education Program (NABEP) during fiscal year 2020-21. NABEP is an education support program designed to help adult Northerners receive focused training to equip them to participate more fully in the labour market. The program is delivered through Yukon University, Aurora College, and Nunavut Arctic College. In 2020-21, CanNor contributed $4.5 million to these institutions to deliver an enhanced and culturally appropriate curriculum that responds to the needs of Indigenous and non-Indigenous Northerners, increasing the availability of skilled labour across the territories.

2020-21 marked the second year of CanNor's Northern Isolated Community Initiatives (NICI) fund, which supports food security in territorial communities. This program strengthens regional food systems in the territories, reduces food insecurity, and seeks out creative solutions to nutritional challenges. Through NICI, CanNor supported 22 food-related projects across the territories in 2020-21 with approximately $1.8 million in funding.

For example:

• In Nunavut, CanNor provided $107,500 to the Amaruq Hunters and Trappers Association to develop and build a country food processing plant. Once completed, this facility will also include a retail storefront to sell traditional Inuit country food.
• In the Northwest Territories, CanNor provided $329,500 to the Community Garden Society of Inuvik to purchase, install, and operate a container-housed hydroponic garden system. This system will make possible the cultivation of year-round fresh produce for local residents and businesses.
• In Yukon, CanNor provided $27,000 to Yukon Valley Farms in order to support the construction of a flour mill which will allow for the manufacture of value-added products. As a result of this project, Yukon Valley Farms will diversify its product offerings to meet the needs of local consumers while also helping reduce reliance on food imported from the South.

Under a multi-year funding agreement, CanNor is investing in the construction of a Regional Training Centre in Pond Inlet, Nunavut. This project supports the implementation of an Inuit Impact Benefit Agreement with the Qikiqtani Inuit Association (QIA), which was signed in support of the establishment of the Tallurutiup Imanga National Marine Conservation Area. In 2020-21, CanNor invested approximately $1.1 million toward this project. Although construction was delayed due to COVID-19, QIA completed a needs assessment for the training centre, which captured programming needs and ensures that the training centre will meet those needs when built. Further funding through 2023 will continue to support the construction of this facility.

Departmental Result: Businesses are Developing in the Territories

In 2020-21, CanNor continued to support the growth and expansion of SMEs in the North. The Agency achieved this objective by providing training, advisory services, and dynamic and flexible contribution programs for businesses and communities. These programs support capacity building and ultimately encourage a competitive and diverse northern business sector with a strengthened capacity for innovation.

The Inclusive Diversification and Economic Advancement in the North (IDEANorth) program is CanNor's largest funding program and the Agency's primary tool for delivery on its northern economic development mandate. IDEANorth aims to help foster the conditions for long-term sustainable economic development in the North by strengthening territorial economic diversification and innovation, as well as Northerners' ability to take advantage of economic opportunities.

In 2020-21, IDEANorth supported projects that fostered the sustainable growth of a diverse range of sectors including mining, tourism, and fisheries in a manner which increased community capacity and helped maximize jobs and the retention of wealth within the territories.

In addition to CanNor's relief- and recovery-related programming highlighted above, IDEANorth in 2020-21 provided $15.1 million toward 72 projects across the territories, of which $7.2 million went toward 16 small-scale infrastructure projects. These projects supported a variety of northern industries and businesses, ranging from multipurpose infrastructure to clean energy. For example:

• In Yukon, CanNor provided $775,000 to the Selkirk Development Corporation for its Minto Resort revitalization project. This funding will go toward refurbishing the Minto Resort camping and recreational vehicle facility, elevating the level of service available, and scaling up the Minto Resort to become a more prominent tourism destination.
• In Lutsel K'e, Northwest Territories, CanNor provided $587,400 to support the revitalization and rebranding of the Lutsel K'e Dene Frontier Lodge. This First Nation-owned lodge will become the 'Gateway to Thaidene Nene,' a newly-established National Park Reserve on the east arm of Great Slave Lake. With CanNor's support, the Frontier Lodge will offer a revamped selection of services, accommodations, and authentic Indigenous cultural experiences.
• In Nunavut, CanNor supported the Hamlet of Pond Inlet with $487,500 to fund the purchase of a rock crusher that enables the community to produce its own aggregate for infrastructure projects. The crusher has already facilitated the resurfacing of approximately 12 kilometres of the hamlet's roads, and has brought about employment and training opportunities for local heavy equipment operators.

Through NAEOP's Entrepreneurship and Business Development (EBD) fund, CanNor provided approximately $3.9 million to 14 Indigenous-led projects. This includes $2.4 million in funding to three Alternate Service Delivery partners and $372,000 in funding to two external delivery partners, which in turn supported Indigenous businesses across the territories. Alternate Service Delivery partners are third-party Indigenous service providers with direct community linkages. CanNor's financial support afforded these Indigenous service providers with greater capacity to cultivate a culture of Indigenous entrepreneurship and increase the number of sustainable Indigenous businesses.

The remainder of NAEOP-EBD funding was delivered directly by CanNor to applicants. For example:

• In Nunavut, CanNor provided $45,000 to the Silou Energy-Efficient Residential Units Pilot Project, a 100% Inuit-owned business, to carry out the construction of a four-unit energy-efficient residential apartment complex. This project was borne of a preliminary study conducted in 2018 and serves as a pilot for the future design and construction of low-cost prefabricated residential apartments units in Baker Lake, Nunavut.
• In the Northwest Territories, CanNor provided $175,000 to Beaver Enterprises – a subsidiary of the Acho Dene Koe First Nation in Fort Liard – to acquire heavy equipment necessary for highway maintenance contracts, as well as other public and private contracts across the Dehcho region. Beaver Enterprises Limited Partnership is the largest private sector employer in Fort Liard.
• In Yukon, CanNor provided $720,000 to Iyon Kechika Contracting (IKC) – the economic development arm of the Daylu Dena Council – for the purchase of Watson Lake-based Bluestone Holdings, a seller of sand, gravel, concrete, and related products. This purchase allowed IKC to expand its range of construction supply and related service activities.

While the majority of the Agency's programming is unique, CanNor also operates programs common to all RDAs.

The Regional Economic Growth through Innovation (REGI) program has been supporting business growth and innovation, helping regions to diversify with the goal of building stronger and more innovative communities across Canada though the RDAs. In 2020-21, CanNor entered into funding agreements for 16 projects under the REGI program, totaling approximately $1.6 million.

• In the Northwest Territories, for example, CanNor provided $99,000 under REGI to the Great Slave Bottling Company to fund the purchase of specialized bottling, labeling, and operating equipment. This equipment will be installed in a newly-constructed facility that will allow for greater production, and will help facilitate compliance with food safety standards.

The Women Entrepreneurship Strategy (WES) is a whole-of-government strategy that continues to work toward the goal of increasing the number of women-owned businesses in Canada. In Spring 2020, 48 existing recipient organizations of the WES Ecosystem Fund were allocated $15 million in additional funding to enhance support to women entrepreneurs impacted by the COVID-19 pandemic; they were able to increase women entrepreneurs' online and export promotion capacity. RDAs will report on specific results under the Ecosystem Fund. Other federal partners in WES, including Export Development Canada, met their targets early and have set new targets. In 2020, Export Development Canada increased support available through their Women in Trade Investment Program to $100 million and has committed $43 million of the $100 million to date. In 2020-21, CanNor funded four projects through WES totaling approximately $758,000.

• In Yukon, CanNor provided $45,200 to Yukon Soaps to fund the construction of a new soap manufacturing plant in Mayo. CanNor's support will allow the company to purchase new equipment to help increase production and meet growing demand.
• In Nunavut, CanNor provided $603,800 to Pauktuutit Inuit Women of Canada's Enhancing Inuit Women in Economic Development project. This project fosters the creation of an Inuit Women in Business Council, sustains the Inuit Women in Business Network, and prepares Inuit women to engage in procurement opportunities.

Departmental Result: Efficient and Predictable Environmental Review Process in the Territories

The mining sector is a major driver of economic growth in the territories. It fosters growth in related sectors including communications, energy and transportation infrastructure, and commercial services. At CanNor, the Northern Projects Management Office (NPMO) works with industry, northern governments, communities, Indigenous groups, and other partners to promote sustainable and responsible resource development across the territories, supporting economic growth and long-term prosperity for Northerners and all Canadians.

The NPMO works to facilitate the environmental review process by coordinating federal input for proposed major resource development and infrastructure projects in the territories. NPMO has a mandate to improve the timeliness, predictability, and transparency of northern regulatory processes to foster sustainable resource development and a more stable and attractive investment climate.

In 2020-21, through NPMO, CanNor coordinated the Government of Canada's participation in seven territorial environmental assessments: four in Yukon, one in the Northwest Territories, and two in Nunavut. CanNor coordinated these assessments and, in doing so, contributed to their keeping within legislated timelines despite the difficulties that arose from COVID-19. The Agency also maintained the crown consultation record for these assessments, and worked to advance Crown Consultation Assessment Reports for three proposed major projects.

Through these activities, in 2020-21, NPMO facilitated approximately 332 interactions within the territories between federal departments, industry proponents, regulatory boards, and Indigenous groups, including participation in board-organized public hearings and technical meetings. This number is a marked increase over the approximately 100 interactions facilitated in 2019-20, and is a product of additional roles taken on by NPMO in response to COVID-19 as the Agency sought to navigate an economic recovery and coordinate consultation efforts with Indigenous governments.

During the past year, NPMO developed and implemented several initiatives in response to COVID-19 specifically. These included the establishment or continuation of:

• A Pan-Territorial Mineral Sector Committee to understand the impacts experienced by the mineral sector and what will be required for a post-pandemic recovery;
• A Board Forum through which regulatory boards across the territories came together to discuss opportunities to improve regulatory processes and best practices to engage Indigenous peoples and organizations during the pandemic; and
• In the Northwest Territories, a regulatory dialogue between industry, regulatory boards, and Indigenous governments and organizations to examine how regulatory processes could be streamlined for exploration projects.

Pilimmaksaivik

CanNor hosts Pilimmaksaivik, the Federal Centre of Excellence for Inuit Employment in Nunavut. Pilimmaksaivik is responsible for coordinating a whole-of-government approach to building a representative public service in Nunavut, including meeting its obligations under Article 23 of the Nunavut Agreement. Pilimmaksaivik does this by reducing barriers for recruitment, designing and delivering cultural competency training, and coordinating workplace wellness activities.

Overall Inuit representation across federal departments and agencies operating in Nunavut rose to 48% in 2020-21, up from 46% the year before. Representation increased across all occupational groups except for scientific positions, which remained stable. Notably, there has been an increase in the seniority of Inuit employees over the previous year. Inuit representation at the senior level had climbed to 23% up from 18%. Similarly, the percentage of Inuit occupying intermediate-level positions had climbed from 29% to 34%.

Pilimmaksaivik operates the Inuit Learning and Development Program (ILDP), a pre-employment and job training initiative aimed at helping Nunavut Inuit develop skills for potential jobs in the federal public service within the territory. Nine participants completed the program in December 2020, and received offers for continued employment with the Government of Canada  At the conclusion of 2020-21, eight graduates of the third cohort were still employed within the federal public service, in addition to six from the previous two cohorts.

Pilimmaksaivik oversees the Education Support Fund, which provided financial support to 12 Inuit employees from five departments and agencies pursuing post-secondary studies that correlate with Government of Canada positions in Nunavut. It also oversees Sivuliqtiurnmut Ilinniarniq, a leadership training initiative that prepares Inuit employees to take on supervisory or manager-level employment. At the conclusion of 2020-21, 11 participants were poised to successfully complete the program by June 2021. Of the 19 previous graduates, seven had received promotions in the Government of Canada within the same fiscal year; three more were promoted afterward, and two participants accepted positions with the Government of Nunavut.

Throughout the year, Pilimmaksaivik continued to provide cultural and wellness support to Inuit employees across the Government of Canada via one-on-one counselling sessions. The counselling program was revamped during 2020-21, and employees used 109 counselling sessions in total, 55 of which were used by Nunavut Inuit employees specifically.

Additionally, Pilimmaksaivik organized cultural 'learn-to' events for federal employees, based on best practices for retention of Inuit employees.