NWT biz leaders issue challenge to ‘entrenched thinking’ as economy flails

“It is time to ask hard questions and be honest about why the NWT is at the back of the pack.”

 – NWT business leaders’ open letter

The NWT business community is calling for an end to blame shifting and for “concrete actions that show the Northwest Territories is open for business” from all sectors to become a net contributor to Canada while improving quality of life for residents.

In an open letter released over the weekend, three business lobby groups argue it is time for the NWT to take control of its economic destiny.

“This will require courage,” reads the letter, signed by the Yellowknife and NWT chambers of commerce and the NWT & Nunavut Construction Association.

“The courage to be honest about what has not worked, to challenge entrenched thinking, and to embrace real change, not tinkering.

“It will require collaboration across public governments, Indigenous governments, communities, regulators, industries, and not-for-profits, grounded in trust and shared purpose.”

Without providing concrete suggestions or possible solutions, the letter appears to suggest national security and the “ability to responsibly develop and manage” our resources as being the key to future economic success.

“Demonstrating that Canada is capable and willing to sustainably utilize the North’s resources is a critical part of asserting sovereignty in an increasingly competitive Arctic.”

The business groups state “the first step is to stop pointing fingers and making excuses.”

They continue: “We must acknowledge that we, collectively, are responsible for the current state of our economy. This decline began long before the recent downturn in diamond prices, before COVID-19, before evacuations, and before recent global disruptions.”

The Yellowknife Chamber of Commerce lists several Indigenous business groups as members, including Denendeh Investments Incorporated, the Det’on Cho Group of Companies, and Tłı̨chǫ Investment Corporation.

The business groups point to a report on NWT Bureau of Labour Statistics numbers showing the NWT’s economic performance peaked in 2007, with a slow downturn ever since. This as Nunavut and Yukon have comparatively thrived.

“This is not the time for more reports and show over substance,” reads the letter. “It is time to ask hard questions and be honest about why the NWT is at the back of the pack. Change will be difficult and disruptive, but it is necessary if we are to build a stronger, more self-reliant future for the North and the next generation.”

The business groups also point to the federal government “signalling a willingness” to invest in nation-building infrastructure they say can drive near-term economic activity while laying the foundation for a sustained, generational resource economy in the North.

“If approached collaboratively, this moment presents a rare opportunity to diversify, stabilize, and shift from long-term dependence toward becoming a net contributor to Canada. That outcome is not guaranteed; it depends on partnership, trust, and a shared commitment to act.”

The GNWT has been pushing several major infrastructure projects that require significant federal investment for many years over several Assemblies.

When CKLB staff recently sat down with Minister of Crown-Indigenous Relations Rebecca Alty, the former Yellowknife Mayor was asked about the status of the Mackenzie Valley Highway, the Arctic Economic Security Corridor, and Taltson Hydro expansion/grid connection.

“The Arctic and economic security corridor has been referred to the Major Projects Office, which is an important step … they’re working on a strategy … they are working with the territorial government as well as Indigenous governments to really map out what would be required. So still, in that planning phase.

“The Mackenzie Valley Highway … the territorial government’s doing the the applications, and there’s some money that’s been committed by the federal government to build one bridge, the Great Bear River Bridge. So working with the territorial government to to continue to advance some of the smaller work on the Mackenzie Valley Highway that benefits both the winter roads as well as the the all season road.”

And Taltson? “So that one, the territorial government is still working, and we are looking at, you know, is it combining the Taltson and the Arctic Economic Security Corridor? Does that make sense to kind of bundle them, them together?”

It’s clear the NWT’s economy is now experiencing a period of contraction and transition, with several structural and external factors hindering its growth.

The GNWT has acknowledged the most significant drag on the economy is the impending closure of its major diamond mines by 2030, a crisis exacerbated by a lack of immediate, large-scale replacement projects.

There are also chronic labour shortages of both skilled and unskilled workers. That can only be eased in the short-term by bringing in more foreign or out-of-territory workers, and in the long-term by educating and training NWT residents.

That leaves the tax regime and regulatory burdens, which would have to be substantially reduced to make the NWT more appealing to major investors. Any changes will surely be challenged by environment advocates and anti-development forces concerned over the changing climate.

The slow pace of settling land, resources, and governance agreements with Indigenous governments has historically also created obstacles for large-scale, long-term development, the GNWT has acknowledged.

CKLB will seek reaction to the business group’s letter from the GNWT.

Returning to the business leaders’ letter in which they argue the NWT’s weak economy over a decade, “is proof that what we have been doing for a generation has not worked and that continuing down the same path is not an option.”

A strong economy: “Gives individuals purpose, routine, and a sense of adding value, which in turn strengthens physical and mental health, families, and community cohesion. When people are able to contribute meaningfully through work and economic activity, communities are stronger and more resilient. When the economy is healthy, the benefits extend well beyond the marketplace and support the overall social fabric of the Northwest Territories.

“If our economy continues to decline, the opposite will be true. We will become increasingly dependent on federal transfers and handouts, eroding our autonomy and limiting our ability to shape our own future.”

The letter is signed by: Mark Henry, president, Yellowknife Chamber of Commerce; Newton Grey, president, NWT Chamber of Commerce; and Evan Schellenberg, president, NWT & Nunavut Construction Association.

  Open Letter From NWT Businesses For Call For Action