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PoliticsFinance7TuesdayJune32014PublicinvolvementkeytorobustHeritageFundgroupByJACKDANYLCHUKMaintainingpublicinterestintheNWTHeritageFundmaybethegreatestchallengeforthosewhowanttheter-ritorialgovernmenttocon-tinuetosockawayaquarterofresourceroyaltiesforfu-turegenerations.Apublicdiscussiononthenewheritagefunddrewfewerthan20peopletothePrinceofWalesNorthernHeritageCentrelastweekonawarmeveningbusywithmeetingsgardeningandslo-pitch.SparseasitwastheturnoutencouragedSarahDaitchaFortSmithna-tiveandoneofsixgradu-atestudentschosenforanActionCanadaprojectthatdevelopedapositionpaperontheheritagefund.Ithinkthereisinterestindifferentpartsoftheter-ritoryDaitchsaidinanin-terviewwithTheJournal.PeopleneedinformationtogetinvolvedandIthinkthereisanappetitefordetailsonthefundandhowitsbeingmanaged.Toestablishandmain-tainarobustfundtheAc-tionCanadapaperrecom-mendedindependentover-sightstatutoryrequire-mentsfordepositsandwithdrawalstransparentfinancialdisclosureandcitizeninvolvement.Theterritorialgovern-mentlaunchedthefundwithacontributionof5percentofroyaltyrevenuebutbowedtopublicpressureandincreasedannualpay-mentsto25percentwhichwilladduptomorethan400millionin20years.Thefundismanagedin-ternallybynancedepart-mentofcials.Whilethatstrategymayhavesuitedthemodest5percentannualcontributionDaitchsaidherhopeisthatthegovernmentwilladoptadifferentstruc-tureforoversight.Witha25percentcon-tributionthefundwillac-cruerapidlyandwithittheneedforexternaloversightDaitchsaid.Thefundnowholdsjustover500000.Basedonwhatpeoplesaidlastweekandduringcommunitymeet-ingsontheterritorialbudgetpeoplewanttoseeallthedetailsonthefundaguar-anteedcontributionandtheywantexternaloversight.Informalagreementsoncontributionsandwith-drawalscouldunderminethefundDaitchsaidandcitedAlbertasheritagefundasanexampleofwhatcanhappenintheabsenceoflegalrequirementsforan-nualdeposits.Continuityfromgovern-menttogovernmentrequiresregulationandlegislationDaitchsaid.Thatmakesitpossibleforthepublictoholdthegovernmenttoac-count.Aninformalagree-mentisntenough.StrongeconomicgrowthforecastforNWTin2014ByMEAGANWOHLBERGEconomicgrowthintheNorthwestTerritoriesisex-pectedtobestrongin2014ledbybothpublicandpri-vateinvestmentinminingandtransportationinfra-structureaccordingtotheConferenceBoardofCana-dassemi-annualTerritorialOutlookreport.ThereportwhichcameoutlastTuesdayforecastsgrowthacrosstheboardforCanadasthreeNorthernterritoriesbasedonalong-termdemandforminingworld-wide.Uncertaintyintheglobaleconomyhashurtcommoditypricesandcloudedtheout-lookfortheminingindustryintheterritoriessaidboardassociatedirectorMarie-ChristineBernard.How-everwithlong-termglobaldemandformineralsandmetalsexpectedtoremainpositivethereisstillasolidbusinesscaseformanyoftheminingprojectsintheNorth.FortheNWTalonetheGDPisexpectedtoadvanceagainby1.7percentin2014followinga1.9-percentin-creasein2013.NWTsexistingminingoperationshavelongpassedtheirpeakproductionthusminingoutputisexpectedtocontractin2014.How-everhighpublicsectorin-vestmenttogetherwiththeanticipateddevelopmentofanewdiamondmineandthreenewmetalminesthisdecadewillhelptheNWTeconomygrowandgeneratenewjobsbetween2016and2019thereportforecasts.RealGDPacrosstheNWTNunavutandYukonisexpectedtogrowby3percentforthesecondconsec-utiveyear.Nunavutseconomyisex-pectedtogrowthemostwithanincreaseof4.4percentforecastforthisyeardespitepredictionsthatminingexplo-rationisexpectedtofallanadditional7percentin2014.StrongergoldproductionattheMeadowbankminearamping-upinconstructionactivityattheMaryRiverironoreprojectandanumberofpublicinfrastructureproj-ectswillcontributetooverallgrowththeboardpredicts.InYukonwhoseeconomyonlygrewby1.3percentlastyearprospectsareimproving.Theboardestimatesthatthenumberofminingcompa-niesinvestingininfrastruc-tureexplorationandequip-mentinanefforttostartorresumeoperationssignalsariseinGDPamountingto3.7percentin2014.TheTerritorialOutlookpublishedtwiceayearex-aminesthescaloutlookofeachterritorybyindustryandlabourmarketandisfundedbytheboardsCen-trefortheNorth.HighpublicsectorinvestmenttogetherwiththeanticipateddevelopmentofanewdiamondmineandthreenewmetalminesthisdecadewillhelptheNWTeconomygrow.ConferenceBoardofCanadaPoliticsFinanceActionCanadafellowshostapublicdialogueontheNWTHeritageFundlastweekinYellowknife.PhotoRobertWilson