Innovation in Canada s Resource Sector: Yellowknife Roundtable SUMMARY REPORT AUGUST ppforum.ca

Transcription

1 Innovation in Canada s Resource Sector: Yellowknife Roundtable SUMMARY REPORT AUGUST 2011 ppforum.ca

2 Public Policy Forum Building Better Government The Public Policy Forum is an independent, not-for-profit organization dedicated to improving the quality of government in Canada through enhanced dialogue among the public, private and voluntary sectors. The Forum s members, drawn from business, federal, provincial and territorial governments, the voluntary sector and organized labour, share a belief that an efficient and effective public service is important in ensuring Canada s competitiveness abroad and quality of life at home. Established in 1987, the Forum has earned a reputation as a trusted, nonpartisan facilitator, capable of bringing together a wide range of stakeholders in productive dialogue. Its research program provides a neutral base to inform collective decision making. By promoting information-sharing and greater links between governments and other sectors, the Forum helps ensure public policy in our country is dynamic, coordinated and responsive to future challenges and opportunities. 2011, Public Policy Forum Albert St. Ottawa, ON K1P 5G4 Tel: Fax:

3 Overview The Public Policy Forum convened this roundtable as part of a national series dedicated to exploring innovation in Canada s resource sector. The purpose of these events is to engage senior leaders in a focused discussion about the future competitiveness of Canada s resource industries. The morning roundtable was hosted by BHP Billiton in Yellowknife, from 9:30 11:30 a.m. The roundtable was moderated by Garnet Garven, Senior Fellow of the Public Policy Forum. Peter Vician, Deputy Minister, Department of Industry, Tourism and Investment, Government of the Northwest Territories opened the discussion with an overview of the unique challenges and opportunities for innovation in northern Canada. A complete list of roundtable participants is included as an appendix to this report. Discussion Each roundtable in this series has been held in a different region of Canada facing distinct circumstances, and the Yellowknife roundtable was no exception. With local GDP projected to nearly double over the next 10 years 1, the opportunities being pursued in the Northwest Territories are plentiful and centre largely on developing capacity and expanding the activities of the resource sector. Gold and diamonds in particular, as well as oil, natural gas, and rare earth elements, are the industries anticipated to experience the highest growth. As current activities intensify and the number of new projects and mines expand, innovation will be essential to ensuring the efficient and sustainable development of these resources. Some successful examples and practices to date include the remediation of the Giant Mine, and the 1 Conference Board of Canada Forecast improvement of water and energy use in mines, leading to low emission rates and improved water treatment facilities. Opportunities identified for generating higher value from the resource sector include: geosciences research, diamond upgrading facilities, development of communications infrastructure, and investment in training and technology. However, to fully recognize the opportunity for these types of new and expanded activities, a culture and environment that supports innovation must be built. The following sections represent the issues and ideas presented at the roundtable for doing so. Participants at the Yellowknife roundtable Investing in Human Capital Achieving the growth projection for the region over the next ten years depends upon the ability to draw from a reliable and skilled workforce. The difficulty in attracting new workers to the region coupled with the need to enhance the skills and education of the current population base means that we must find new ways to build the human capacity necessary to support new and diverse activities. Participants noted that some companies in the region had success connecting with aboriginal groups and other employee groups to provide training opportunities. As well, it was noted that many companies have been successful in developing on-site training programs, harnessing the 1

4 internal capacity and expertise of the company to train skilled technical staff using state of the art simulators. Further, the establishment of the Mine Training Society, a partnership between mining companies, local communities, and Aboriginal and territorial /provincial governments, is a positive indicator that the issue of skills development and training is being approached by all involved in the mining industry. Additionally, capacity building through education is an important aspect of human capital investment, especially in the North. Unique challenges in realizing higher levels of education (such as general educational development (GED) completion rates and the need to expand the appeal of science-based education) contribute to a need for alternative education arrangements, such as enhanced capacity for adult education. Further, past job readiness programs by Human Resources and Skills Development Canada (HRSDC) in partnership with local private sector companies, have been successful in training new employees. These types of innovative arrangements for developing human capital should be explored further. Collaboration Participants at the Yellowknife roundtable Participants agreed that greater opportunities for collaboration are essential for advancing innovation in the region. It was suggested that a Northern Innovation Council could be established, to provide an annual forum for leaders to meet and discuss their activities, and to coordinate collaborative activities. Looking to a specific issue, the Mine Training Society is an example of cross-sectoral collaboration between the public, private and academic sectors. Within the private sector, collaboration in health and safety standards has also been achieved by leading companies in the region. More generally, it was agreed that the sector as a whole would benefit from having a place to meet and share best practices, and to develop opportunities for collaboration in all areas. Incenting Research and Development It was suggested by participants that the role of governments is to support innovation, and the role of business is to drive it forward. Therefore, governments must look for ways to support and incent innovative enterprises, encouraging industry to take risks and take advantage of new opportunities. While government has been increasing its funding for research and development, the private sector has not kept pace. What this may suggest is that while funding is important to R&D capacity, there may be other activities needed to support it as well. Participants praised the Geo-Mapping for Energy and Minerals (GEM) Program, launched by the Government of Canada in 2008, as a program that will devote significant resources to developing the geosciences knowledge needed by industry to guide their activities in the region. This publicly available resource is an example of the type of activity that the government is undertaking to lay the ground for enhanced private sector activities in the area. Research led by academic institutions was also discussed, especially in colleges. Participants identified an opportunity to enhance the amount of applied research being undertaken by colleges. For example, during the International Polar Year, , 40 research projects were undertaken, demonstrating that there is significant potential in this area. Further, given the unique human resources challenges in the 2

5 area, developing hands-on, applied research opportunities in colleges may also tackle the need for alternative education and a more meaningful learning environment. Supportive Infrastructure The challenges felt most uniquely in the North relate to the lack of communications infrastructure, and to a certain extent the need for general infrastructure investments as well. Communications technology in the North lags behind the rest of Canada, indeed behind many places in the world, and as result the sector faces challenges in business operations capabilities that are taken for granted in other parts of Canada such as disseminating information across a company. There is a fundamental need to improve communication linkages in the North, to support business activities and provide real-time linkages. This includes creating reliable telephone networks and wireless internet connections. While communications technology was clearly indicated to be the most pressing infrastructure need, on a more general level infrastructure investments in roads and ports was also mentioned. The importance of supporting the fuel and transportation needs of the region and sector was identified by participants, who indicated that the lack of infrastructure is a significant challenge to the private sector. Actionable Recommendations Develop more training and education opportunities, sensitive to the challenges that traditional education systems have had in the region Invest in developing Information and Communications Technology (ICT) systems in the North Develop forums for greater collaboration and partnerships through knowledge sharing and dissemination of best practices Establish a Northern Innovation Council or annual forum to share ideas and best practices Evaluate mechanisms for government to support research and development in a variety of settings, through a variety of means (financial and other) 3

6 Thanks to our partners The Public Policy Forum would like to thank our valued member organization for hosting this roundtable: The Public Policy Forum would like to thank the following organizations for their support of this study: 4

7 Innovation in Canada s Resource Sector: Phase Two Yellowknife Roundtable August 26, 2011 Participant List Darrell Beaulieu Chairman Northern Aboriginal Business Association Mitch Bloom Vice-President, Policy and Planning Canadian Northern Economic Development Agency Julie Cafley Vice-President Public Policy Forum Robert Doherty President NWT & Nunavut Construction Association D. Tim Doyle Executive Director Yellowknife Chamber of Commerce Garnet Garven Senior Fellow, Western Canadian Office Public Policy Forum Dan Hewitt President Consulting Engineers of the Northwest Territories Morag Howell Area Manager Yukon, Northwest Territories and Nunavut Region USC Sandvik Mining and Construction Canada Inc. Alasdair Martin Acting President Diavik Diamond Mines Inc Trish Merrithew-Mercredi Regional Director General Northwest Territories Region Aboriginal Affairs and Northern Development Canada Don Montalbetti Head of Projects, EKATI Diamond Mine BHP Billiton Canada Inc Phil Moon Son Executive Director NWT & Nunavut Construction Association Chuck Parker President NWT Chamber of Commerce Gordon Van Tighem Mayor City of Yellowknife Peter Vician Deputy Minister Industry, Tourism and Investment Government of the Northwest Territories John Walsh Director General Science Policy Evidence and Analysis Natural Resources Canada Sarah Wright Cardinal President Aurora College 5

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