Legislature(2011 - 2012)BARNES 124
03/17/2011 10:15 AM House ECON. DEV., TRADE & TOURISM
| Audio | Topic |
|---|---|
| Start | |
| HJR15 | |
| Presentation: "canada and Alaska: Partnership for Growth" | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HJR 15 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, INTERNATIONAL
TRADE AND TOURISM
March 17, 2011
10:23 a.m.
MEMBERS PRESENT
Representative Bob Herron, Chair
Representative Kurt Olson, Vice Chair
Representative Wes Keller
Representative Steve Thompson
Representative Berta Gardner
Representative Chris Tuck
MEMBERS ABSENT
Representative Neal Foster
Representative Reggie Joule
Representative Cathy Engstrom Munoz
OTHER LEGISLATORS PRESENT
Representative Lance Pruitt
Senator Lesil McGuire
COMMITTEE CALENDAR
HOUSE JOINT RESOLUTION NO. 15
Relating to collaboration with the Yukon and the Northwest
Territories through the Pacific NorthWest Economic Region and
its Arctic Caucus to address common issues.
- MOVED CSHJR 15(EDT) OUT OF COMMITTEE
PRESENTATION: "CANADA AND ALASKA: PARTNERSHIP FOR GROWTH"
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: HJR 15
SHORT TITLE: SUPPORT ARCTIC CAUCUS
SPONSOR(s): REPRESENTATIVE(s) HERRON
02/02/11 (H) READ THE FIRST TIME - REFERRALS
02/02/11 (H) EDT
02/22/11 (H) EDT AT 10:15 AM BARNES 124
02/22/11 (H) Heard & Held
02/22/11 (H) MINUTE(EDT)
03/17/11 (H) EDT AT 10:15 AM BARNES 124
WITNESS REGISTER
STEPHEN ROSE, Director of Policy and Planning
Department of Economic Development
Government of Yukon Territory
Whitehorse, Yukon
Canada
POSITION STATEMENT: Testified in support of HJR 15.
KEVIN TODD, Director of Investment and Economic Analysis
Government of Northwest Territories
Yellowknife, Northwest Territories
Canada
POSITION STATEMENT: Testified in support of HJR 15.
SENATOR LESIL MCGUIRE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Described her experience with the Pacific
NorthWest Economic Region (PNWER).
DENIS STEVENS, Consul General
Consulate General of Canada
Seattle, Washington
POSITION STATEMENT: Testified during the hearing on HJR 15;
provided a PowerPoint presentation titled, "Canada and Alaska:
Partners for Growth.
JENNIFER LOTEN, Consul
Consulate General of Canada
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the presentation
titled, "Canada and Alaska: Partners for Growth."
ACTION NARRATIVE
10:23:03 AM
CHAIR BOB HERRON called the House Special Committee on Economic
Development, International Trade and Tourism meeting to order at
10:23 a.m. Representatives Herron, Keller, Olson, Tuck,
Gardner, and Thompson were present at the call to order.
Representative Pruitt and Senator McGuire were also present.
HJR 15-SUPPORT ARCTIC CAUCUS
10:24:02 AM
CHAIR HERRON announced that the first order of business would be
HOUSE JOINT RESOLUTION NO. 15, Relating to collaboration with
the Yukon and the Northwest Territories through the Pacific
NorthWest Economic Region and its Arctic Caucus to address
common issues.
10:25:45 AM
STEPHEN ROSE, Director of Policy and Planning, Department of
Economic Development, Government of Yukon Territory, said the
Government of Yukon Territory (YT) sees the Pacific NorthWest
Economic Region (PNWER) and its Arctic Caucus as important
mechanisms for collaboration in pursuing common goals and
objections for Alaska and YT; in fact, YT government's Minister
of Economic Development is very supportive of PNWER and has been
very active in PNWER over the past several years. The YT
government supports the passing of HJR 15 in order to advance
discussion, networking, and collaboration within PNWER's Arctic
Caucus, and to promote a pan-northern approach to Alaska and
YT's respective federal governments. Yukon Territory and Alaska
have a long history as trade partners and have an extremely
close relationship historically, socially, and economically;
their economies are interlinked, as Yukoners and Alaskans cross
the border each way for goods, services, work, and recreation.
This resolution will enhance the collaboration between the
respective jurisdictions and create a stronger alliance through
which to pursue the common goals of the regions. Yukon
Territory forms the corridor between Alaska and the rest of
North America, and therefore shares a number of key
infrastructure priorities, including the development of port
access, highway systems, alternative energy sources, and
telecommunications services, and PNWER provides a forum for
addressing these shared interests. The Arctic Caucus is a
unique approach and has great potential to benefit those living
and working in the North, and who are dealing with issues
surrounding cold climate, remoteness, and the need for a
sustainable economy through investment in transportation and
communication infrastructure. Yukon Territory government
projections indicate that its population and economy will
continue to grow, furthering its need to develop and maintain a
strong and competitive infrastructure to meet these projections.
Yukon Territory's all-weather road system is connected to
Alaska, Alberta, British Columbia, and NWT, and leads to
tidewater access through Alaska, which is a prerequisite to the
viability of many resource development projects in the
territory. Yukon Territory government is participating in the
development of the Yukon Ports Access Strategy with the Skagway
Port Development Committee, and believes this to be an important
step towards meeting YT's commitment to secure tidewater access
to the Asian market in support of its resource industry. The
Alaska Highway is a fine example of shared transportation
infrastructure, as it is a Canada/U.S. collaboration, and of
critical importance to each of their jurisdictions. This
highway enables year-round tourism and commercial transportation
to Alaska, and provides critical logistical support for
construction and operation of the proposed Alaska Highway
Natural Gas Transmission System to transport Alaska North Slope
gas to the mainland United States. Yukon Territory government
is also committed to expanding YT's energy infrastructure that
will provide an energy alternative to Yukoners, and also provide
mine sites with lower-costing green energy that will reduce
reliance on diesel power. The Alaska Highway Pipeline Project
(AHPP) will provide options for gas-fired electrical generation
which would remove current constraints to electrical generation.
Expanding its energy infrastructure remains a priority for the
YT government, and will lead to the sustainable development and
competitiveness of the PNWER region. Access to reliable and
affordable telecommunication services is another important
infrastructure component for those living and working in the
Arctic regions. This access is provided through a 2,000
kilometer fiber optic link between Whitehorse and Edmonton,
Alberta, completed in August 2009. Unfortunately this fiber is
vulnerable to breach or impairment by human activity and natural
events. The YT government is looking to build a second fiber
optic link to the south that would enable an almost immediate
switch-over of voice and data traffic, with no degradation in
service, thus improving the level of availability and
reliability to institutions, businesses, and consumers. Some of
the routes being considered for the second fiber optic link
would pass through the State of Alaska. Telecommunications is
an area of interest for PNWER, and YT continues to move forward
on improving this important aspect of infrastructure. Mr. Rose
said he appreciated the opportunity to be part of the
committee's discussion on this resolution. Promoting and
communicating a harmonized message detailing the common needs of
the Arctic Caucus is important to the welfare of Alaska and YT.
10:31:22 AM
CHAIR HERRON noted the many treaties and agreements between
Canada and the U.S., beginning with the first in 1873. He asked
how the resolution will help the two countries move forward in
the Arctic region.
10:32:26 AM
MR. ROSE opined agreements that encourage communication allow
for additional focus on common issues.
REPRESENTATIVE TUCK asked whether education is a subject of
common interest.
MR. ROSE said education has always been of interest to YT; in
fact, YT takes part in Arctic discussions with the university,
and would be very supportive of interaction in that area.
10:33:42 AM
KEVIN TODD, Director of Investment and Economic Analysis,
Government of Northwest Territories (NWT), stated he was
representing the Minister of Industry, Tourism, and Investment,
Government of NWT, and expressed his government's support of HJR
15. The Arctic Caucus allows Alaska, YT, and NWT to discuss
northern issues and present a unified Arctic voice. It also
provides a forum for the three governments to share information
and develop regional policies related to the Arctic and Arctic
development, and for coordination of federal policies. The
opportunity to share information and discuss areas of mutual
concern is valuable in the unique North; furthermore, presenting
a unified front between Alaska and NWT allows them to raise
their collective profile within PNWER and with both federal
governments. The first Arctic Caucus forum held in Barrow in
December 2010, covered common issues such as northern
development, infrastructure, search and rescue, and tourism
promotion. As a result, an Arctic partnership for growth has
been created between Canada and Alaska. Mr. Todd restated his
government's support for HJR 15, which he said will promote
greater regional collaboration, enhance domestic and
international markets, leverage regional influence, and achieve
continued economic growth while maintaining the region's natural
beauty and environment.
10:36:34 AM
CHAIR HERRON understood a second Arctic Caucus meeting will take
place in Yellowknife in August.
10:38:01 AM
REPRESENTATIVE TUCK asked whether the government of NWT has
introduced or passed a similar resolution.
MR. TODD said he was unsure about a formal resolution; however,
the Arctic Caucus has been discussed by the legislature and
there is strong support from government officials. In response
to Chair Herron, he said the Arctic Caucus meeting will be held
around August 19, 2011.
10:40:47 AM
SENATOR LESIL MCGUIRE informed the committee that she and others
have been working with PNWER for over a decade in order to grow
the partnership between Canada and Alaska. It is fortunate to
"live right next door" to another government that shares valued
aspects such as democracy, rights for women, the equality of all
people, the development of resources, and challenges with their
respective federal governments. She thanked Chair Herron for
his leadership at the first Arctic Caucus meeting in Barrow, and
spoke of the residual effects of that meeting. Senator McGuire
stated her support for HJR 15, and noted that a copy has been
provided to the U.S. Department of State. She opined the Arctic
Council and the Arctic Caucus are opportunities to balance the
sensitivities of the indigenous population, whale migrations,
and development.
10:43:31 AM
CHAIR HERRON declared the Arctic Caucus came about because of
the leadership of Senator McGuire.
CHAIR HERRON closed public testimony.
10:44:11 AM
REPRESENTATIVE TUCK turned attention to page 2, line 12, of the
resolution and asked Senator McGuire whether the challenge of
providing an adequate education is missing from "the list of
common problems."
SENATOR MCGUIRE acknowledged that many issues were brought up
through PNWER, including "access to education." She suggested
that the committee could add access to education to the list of
challenges on page 2, lines 12-18, because the delivery of
distance education is a problem common to both governments.
CHAIR HERRON advised that a conceptual amendment would be
appropriate.
10:46:07 AM
REPRESENTATIVE KELLER urged the addition of "and workforce
development," to the conceptual amendment because PNWER also
recognizes this as a common problem, and it is closely tied to
education.
CHAIR HERRON surmised a conceptual amendment could include
education and workforce development.
REPRESENTATIVE TUCK agreed.
REPRESENTATIVE GARDNER asked whether a representative of the
Canadian government would confirm that providing access to
education and workforce development are issues for YT and NWT as
well.
10:47:26 AM
DENIS STEVENS, Consul General, Consulate General of Canada,
confirmed that those are issues that are very important to the
people in the northern territories and their governments.
Although the federal government of Canada is not a member of
PNWER, it takes a great interest in its proceedings, and Mr.
Stevens attends PNWER meetings as an observer.
CHAIR HERRON also noted that the Northern Waters Task Force has
addressed the issue of marine pilots. He suggested that a
conceptual amendment could include "jurisdictional licensing of
marine pilots in their respective countries."
10:50:02 AM
REPRESENTATIVE OLSON moved to report HJR 15, Version 27-
LS0477\M, as amended, out of committee with individual
recommendations and the accompanying zero fiscal note. There
being no objection, CSHJR 15(EDT) was reported from the House
Special Committee on Economic Development, International Trade
and Tourism.
^Presentation: "Canada and Alaska: Partnership for Growth"
Presentation: "Canada and Alaska: Partnership for Growth"
10:50:14 AM
CO-CHAIR HERRON announced that the final order of business would
be a presentation by Canadian Consul General Denis Stevens
titled, "Canada and Alaska: Partners for Growth."
10:50:40 AM
DENIS STEVENS, Consul General, Consulate General of Canada,
advised that Canada and Alaska enjoy an economic, energy, and
security partnership that is grounded in shared values and
friendship. This partnership is very important to Canada and
grows increasingly important to Canada and the U.S. with the
complicated world challenges of today. For example, the
economic downturn has had profound effects on residents of both
countries, especially in the manufacturing and resource sectors.
The emergence of competition from other parts of the world means
Canada and the U.S. need to stimulate economic growth and
promote job creation as partners; however, these changes must
occur while maintaining a safe and secure North America. Mr.
Stevens continued to explain that Canada and the U.S. also share
membership in multilateral economic and political organizations
such as the United Nations (UN), the Group of Eight (G8), the
North Atlantic Treaty Organization (NATO), and world trade
organizations which are mechanisms that help the countries
respond to current and future global challenges. Turning to the
subject of trade, he stated Canada is the largest buyer of U.S.
goods and this exchange of trade supports over 8 million jobs in
the U.S. Approximately 1 million Canadians are employed by U.S.
companies, and approximately 557,000 Americans are employed by
Canadian companies. These affiliations create efficiencies,
save costs, and account for 30 percent of the bilateral trade in
goods. Canada and the U.S. are each other's most important
energy partners, and trade oil, natural gas, and electricity in
an environmentally responsible and secure manner; in fact,
Canada is the largest supplier of imported oil to the U.S.
10:57:25 AM
MR. STEVENS then focused his discussion on Alaska, and noted
that about 3,500 jobs in Alaska are supported by Canadian
companies; furthermore, 5,000 Alaskans are indirectly employed
by Canadians. The overall value of Canada and Alaska's
bilateral trade is $866 million as of 2009, making a total of
24,000 Alaska jobs dependent on the Canada-Alaska trade
relationship, mostly in the fields of oil, gas, and tourism.
Most of the jobs related to Canada's economy are in oil and gas,
mining, retail, transportation, and tourism. In addition,
Canada is Alaska's fourth largest export market, with a "huge"
potential for future growth. Currently, the largest percentages
of Alaska's exports to Canada are in ore concentrates, and fish
and seafood.
REPRESENTATIVE GARDNER asked whether ore concentrates are
exported for processing.
10:59:58 AM
JENNIFER LOTEN, Consul, Consulate General of Canada, said no.
11:00:09 AM
SENATOR MCGUIRE requested that Mr. Stevens provide a list of
recommendations on what the legislature can do to improve trade
between Canada and Alaska.
CHAIR HERRON recognized Ms. Loten's contributions to the
consulate general in Anchorage.
11:01:30 AM
MR. STEVENS agreed that the consulate staff in Anchorage is
dynamic and effective. He returned to the subject of jobs, and
pointed out that the jobs supported by trade with Canada are
often in rural and remote communities, and involve partnerships
with Native corporations and local government. Fishing and
mining jobs have had a positive impact on all regions of Alaska;
in fact, Canada is Alaska's largest partner in mining, as last
year Canadian mining companies spent $163 million on exploration
and $300 million on development. During the period between 1981
and 2008, Canadian companies spent $3.9 billion in exploration
and development, which was 70 percent of all of the mining
expenditures in Alaska. Mr. Stevens observed that Canadian
mining companies are committed to working with local populations
to ensure environmentally responsible development around the
world.
11:04:16 AM
REPRESENTATIVE TUCK said the ore storage buildings at the Red
Dog Mine are the largest such facilities in the state.
MR. STEVENS stated that the Red Dog Mine is the largest employer
in the Northwest Arctic Borough, and paid taxes to the borough
in the amount of $6.7 million in 2010. The mine is an active
part of community life in Kotzebue and provides training and
mentorship for youth, and steady employment. The Fort Knox gold
mine paid $4.6 million in property taxes to the Fairbanks
Northstar Borough in 2010; in addition, the mine purchases
electric power, which lowers the rates for consumers in the
Fairbanks area. He stated that future mining in Western Alaska
is expected in the Donlin Creek area. Canada strengthens other
sectors of Alaska's economy by importing $86 million worth of
seafood and investing in the industry. In the manufacturing
sector, he pointed out that companies such as Capitol Glass
Northerm Windows and the Alaska Commercial Company are Canadian-
owned. Finally, Alaska's tourism industry is linked to Canada
by cruise ship traffic, the Alaska Highway, and the Alaska
Marine Highway System (AMHS); as a matter of fact, Canadian
visitors to Alaska spent over $75 million in 2009. Mr. Stevens
displayed a map that showed the common boundaries between
Alaska, British Columbia (BC), Canada, and Yukon Territory (YT),
Canada, and described the transportation links that travel
across the adjacent land.
11:09:25 AM
MR. STEVENS advised that the Arctic is rapidly changing and
Canada looks forward to exploring with the U.S. safe and
sustainable transit of the Arctic waters, in addition to its
plans to establish a deep-water fuel and docking facility in the
high Arctic. He opined it is important for the Arctic partners
to continue with the recommendations of the Arctic Marine
Shipping Assessment by the Arctic Council on how to manage
Arctic waterways and the movement of vessels in the high Arctic.
The far north is part of Canada's heritage and its future, and
its government recognizes the opportunities and challenges of
northern issues. Canada has a comprehensive Arctic policy
framework that consists of two components: the Northern
Strategy establishes the basis for Canada's engagement in the
north and for a dynamic and sustainable economy; the Arctic
Foreign Policy recognizes that the U.S. is Canada's major
partner in the region. The Arctic Foreign Policy also makes
explicit Canada's commitment to its international partners for
advancement of the region in economic and social development.
Mr. Stevens observed that Alaska's investment in infrastructure
in the north will strengthen Alaska's role. Furthermore, Canada
is looking forward to working with Alaska to advance their
shared objectives in the Arctic, and he stressed that PNWER's
Arctic Caucus is a welcome forum for the exchange of ideas in
the north, as is the Northern Waters Task Force. During this
period of global uncertainty, the relationship between Canada
and Alaska is the foundation for strengthening both countries.
In fact, the Canadian and U.S. federal governments have promised
to work together on the Beyond the Border initiative to enhance
common security, while accelerating the flow of goods and
services between the two countries. He referred to important
past agreements and efforts to pursue future links regarding
border security; in fact, 300,000 people cross the border
between the U.S. and Canada every day. Mr. Stevens spoke of
Canada's long and valued relationship with the U.S., and noted
that the consulate general in Anchorage has been a fixed
presence in Alaska since 2004.
11:15:45 AM
REPRESENTATIVE GARDNER asked whether mining at the proposed
Niblack mine on Prince of Wales Island includes rare earth
elements.
MS. LOTEN advised that the mine is in its development stages,
therefore, the details are closely held.
11:16:30 AM
REPRESENTATIVE GARDNER asked whether the Canadian National
Railway (CN) Aqua Train takes passengers.
MR. STEVENS said he didn't believe so.
11:16:55 AM
REPRESENTATIVE GARDNER observed the U.S. does not have a self-
image as an Arctic nation, and asked whether the Canadian
northern communities raise the issues of their economic
development. Alaska is often explaining its different needs -
such as education requirements, mail delivery to remote
communities, and permitting problems - to its federal government
and the nation.
11:18:08 AM
MR. STEVENS responded that Canada is large country with a small
population, and each province and territory feels that the
federal government does not understand all of the distinct
realities of each area. However, the north is a part of
Canada's identity and the government is aware that Canadians
care about the northern areas; in fact, northern leaders have a
prominent voice in the national discussion.
11:19:21 AM
MS. LOTEN agreed that Canadians understand that the north is
part of what their nation is, even though this understanding
does not mean that the federal government, which is located in
the southernmost area of Canada, always knows what the
differences between north and south imply. Another important
difference with Alaska is that Canada has three leaders to
represent the perspective of the northern regions, thus the
north does not stand alone, as in Alaska. She concluded that
the North in Canada is better represented, in addition to a
public perception of inclusion and priority.
11:21:05 AM
CHAIR HERRON recalled his experience at the Arctic Caucus. He
observed that Alaska and Canada are intricately connected, and
benefit from their close relationship.
11:24:38 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Economic Development, International Trade
and Tourism meeting was adjourned at 11:24 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HJR 15 - Alaska Arctic Caucus - PNWER.pdf |
HEDT 3/17/2011 10:15:00 AM |
HJR 15 |
| HJR 15 - Arctic Caucus Proceedings.pdf |
HEDT 3/17/2011 10:15:00 AM |
HJR 15 |
| HJR 15 - LG testimony 2.22.11.docx |
HEDT 3/17/2011 10:15:00 AM |
HJR 15 |
| HJR 15 - Sponsor Statement.pdf |
HEDT 3/17/2011 10:15:00 AM |
HJR 15 |
| Canadian Consul General Denis Stevens Bio.doc |
HEDT 3/17/2011 10:15:00 AM |
|
| EDT - Consul Stevens Presentation - Canada and Alaska Partners for Growth (3.16.11).pdf |
HEDT 3/17/2011 10:15:00 AM |
|
| HJR 15 - Fiscal Note (Zero).pdf |
HEDT 3/17/2011 10:15:00 AM |
HJR 15 |