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Study predicts huge infrastructure shortfall

Investment shortfall could reach $50 million a year, Conference Board of Canada says

ARTHUR JOHNSON

Nunavut would need an extra $40 million to $50 million a year to keep up with its infrastructure needs, a report commissioned by the Nunavut Association of Municipalities says. (FILE PHOTO)

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Nunavut's ability to take advantage of economic opportunities in mining, fishing, tourism and other areas is at risk because of a huge infrastructure investment shortfall, says a new study by the Conference Board of Canada.

The study says that with the current annual capital budget of $75 million, Nunavut "will incur an infrastructure investment shortfall of $40 million to $50 million annually for the next five years."

An absence of roads, ports and other facilities is already causing developmental distortions, the study says. "The lack of infrastructure has led to a concentration of exploration activities on or near coastal waters, while inland resources are left stranded.

"Minerals in the Kitikmeot and Kivalliq regions that are not on or close to the coastline require road access if any benefits are to be realized.

"Meanwhile, fishing interests may negotiate greater access to the turbot and shrimp quotas, but without an adequate fleet of trawlers and appropriate marine and processing facilities, the benefits from this activity will remain limited, including the overall number of jobs."

The study, billed as an "interim report" because of a lack of sufficient data to provide benchmarking standards that would allow Nunavut communities to make appropriate comparisons with other Canadian communities, was released this week by the Nunavut Association of Municipalities, which commissioned it.

While the impact of inadequate capital spending on the economy was a major focus, the study also painted a grim picture of a looming jobs crisis and a social structure already strained by housing shortages and a rising crime rate.

"With a median age of 22, Nunavut's labour force could be more than 50 per cent larger in only 20 years from today. If [Nunavut's] economic potential has not been realized or the social conditions throughout the territory have not improved by the time many of these youth reach adulthood, one could foresee a loss for Nunavut such as the emigration of young employable Nunavummiut to other areas of Canada."

Nunavut's housing shortage is already causing labour and social problems, the study says. "A lack of affordable housing impedes labour mobility that may affect industrial growth in the future. Even today it is resulting in unfilled positions throughout the GN, especially in decentralized communities.

"While the government is trying to limit the number of jobs that come with public housing in an attempt to alleviate problems of rising housing costs and market interference, this may have the effect of limiting its ability to grow."

The study also linked housing shortages to crime. "Family violence and other forms of assault are serious problems in Nunavut. Nunavut is the only jurisdiction in Canada to have a higher rate of violent crimes than property crimes. Overcrowding no doubt adds to the problems."

While much of the report deals in generalizations, the study's authors occasionally zero in on particular situations with a sharp eye for the telling detail. Some of Iqaluit's less savoury amenities come in for particular notice, with the study observing that "an adventure-tourism operator decided to have customers bypass Iqaluit due to garbage in the streets and burning at the nearby dump."

Comprehensive in the scope of its observations, the study is far more economical in its recommendations for how things might be improved. "Given Nunavut's inability to raise adequate funding to address all of its physical capital investment needs," the study says, "it must develop sound arguments to support requests for additional external investments (e.g., federal government, private sector)."

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