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GOVERNMENT OF NEWFOUNDLAND AND LABRADOR 2002-03 Annual Report Department of Labrador and Aboriginal Affairs

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Page 1: 2002-03 Annual Report - Newfoundland and Labrador · 2002-03 Annual Report Department of Labrador and Aboriginal Affairs 2 Ministers’ Transmittal Letter In accordance with government's

GOVERNMENT OF

NEWFOUNDLAND AND LABRADOR

2002-03 Annual Report

Department ofLabrador and Aboriginal Affairs

Page 2: 2002-03 Annual Report - Newfoundland and Labrador · 2002-03 Annual Report Department of Labrador and Aboriginal Affairs 2 Ministers’ Transmittal Letter In accordance with government's

2002-03 Annual Report Department of Labrador and Aboriginal Affairs

www.gov.nl.ca/laa

TABLE OF CONTENTS

1. Ministers’ Transmittal Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2. Departmental Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

a. Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3b. Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3c. Lines of Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3d. Structure and Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

3. Shared Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

4. Highlights and Accomplishments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

5. Key Achievements and Priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

a. Strategic Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16b. Priorities and Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16c. Progress and Accomplishments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

6. Opportunities and Challenges Ahead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

7. Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

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Ministers’ Transmittal Letter

In accordance with government's commitment to accountability, we hereby submit the 2002-03

annual performance report for the Department of Labrador and Aboriginal Affairs (DLAA). This report

was prepared under our direction, and addresses the Department's activities and outcomes from April 1,

2002 to March 31, 2003.

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Departmental Overview

Vision:

To increase the effectiveness of provincialgovernment management and implementation inmatters impacting on Labrador and to facilitate therelationship between the provincial governmentand Aboriginal groups in Newfoundland andLabrador.

Mission Statement:

To promote and enhance the economic and socialdevelopment of Labrador for the benefit of allresidents, through the administration, coordinationand provision of leadership for governmentprogramming, the advancement and assessment ofdevelopment opportunities, funding sources andsocial issues, and the development of a goodworking relationship between the Aboriginalgroups in Newfoundland and Labrador and theprovincial government.

Lines of Business:

The lines of business of the DLAA are bestdesignated, as the name suggests, into areasrelating to Labrador Affairs and to AboriginalAffairs. DLAA brings a degree of regionalrepresentation to government that challengesdepartments to find new ways of working togetherto ensure policies and programs are appropriatefor Labrador.

Labrador Affairs: This portion of theDepartment’s mandate focuses on economic andsocial development initiatives that impact the wholeof Labrador. The principal tasks in the field ofLabrador Affairs include the advancement of socialand economic development in Labrador, managingfederal-provincial agreements related to Labrador,and monitoring and evaluating government servicesand activities in Labrador.

Aboriginal Affairs: This portion of theDepartment’s mandate focuses on policy andplanning related to Aboriginal land claims and self-government policies and negotiations. The principaltasks in the field of Aboriginal Affairs includedeveloping policy for Aboriginal issues, negotiating,implementing and managing land claims and self-government agreements, conducting consultationsand providing public information and education inmatters related to the land claims process. TheAboriginal Affairs unit is involved with mattersrelated to the Miawpukek First Nation (Mi’kmaqof Conne River), the Innu and Inuit of Labrador,the Federation of Newfoundland Indians and theLabrador Métis Nation.

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Structure and Location:

The structure of DLAA for the period April 1, 2002 to March 31, 2003 is as follows:

Labrador Office:

Office of the MinisterOffice of the Deputy MinisterOffice of the Assistant Deputy Minister (Labrador Affairs)Resource Planning & Development DivisionProgram Coordination & ImplementationDivision

21 Broomfield St.P.O. Box 3014, Stn. BHappy-Valley-Goose Bay, NL A0P 1E0Telephone: (709) 896-1780Facsimile: (709) 896-0045E-mail: [email protected]

Newfoundland Office:

Office of the MinisterOffice of the Assistant Deputy Minister (Aboriginal Affairs)Policy and Planning DivisionLand Claims Division

6th Floor, East Block P.O. Box 8700Confederation Building St. John’s, NL A1B 4J6Telephone: (709) 729-4776 Toll Free: 1-877-788-8822Facsimile: (709) 729-4900E-mail: [email protected]

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Shared Commitments

DLAA is expected to play a lead role with otherprovincial government departments as it relates tomajor issues involving Labrador and mattersinvolving Aboriginal peoples in the province.

In particular, the Department collaborates with theDepartments of Health and Community Services,Education, Human Resources and Employment andJustice and the RCMP in matters relating toprograms and services in Labrador.

DLAA works extensively with the Department ofJustice in policy and planning and developingagreements with the federal government andAboriginal groups.

The Department maintains an important relationshipwith Indian and Northern Affairs Canada (INAC)and Health Canada to ensure that the needs ofAboriginal groups in the Province are addressed.While the Province provides programs and servicesof general application to all of its residents on thesame basis, the Government of Canada has afiduciary and constitutional responsibility forAboriginal people under section 91(24) of theConstitution Act, 1867.

DLAA consults with the Department of Works,Services and Transportation on issues related to theTrans-Labrador Highway and other transportationservices and infrastructure in the region.

The Department plays an important role in theVoisey’s Bay Project, working with the

Departments of Mines and Energy, Environmentand others to reach and implement agreements withthe Labrador Inuit Association (LIA) and InnuNation to enable the project to proceed prior to thefinalization of their respective land claims.

The Department assists negotiators on Labradorand Aboriginal issues related to a potential LowerChurchill Hydro development.

The Department reviews all development activitieswithin Labrador through the InterdepartmentalLand Use Committee (ILUC) and reviews allenvironmental registrations in Labrador to ensurethat Aboriginal claimant groups are adequatelyconsulted on projects that are within areas thathave land claims accepted for negotiation.

The Department also plays an important role in allmajor issues in the Labrador region, including thosethat fall under the primary jurisdiction of otherprovincial departments.

The Department chairs the Labrador RegionalCouncil, a committee of provincial governmentdepartments and agencies, that coordinatesprovincial government activities in Labrador.

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Highlights and Accomplishments:

New Minister/Executive:

Torngat Mountains MHA Wally Andersen wassworn-in as the new Minister of Labrador andAboriginal Affairs on February 17, 2003, replacingErnie McLean, who announced he would not seekre-election.

On February 21, 2003, Premier Roger Grimesannounced the appointment of Sterling Peyton asDeputy Minister of the Department. Kevin Lanewas appointed as Assistant Deputy Minister(Labrador Affairs) on March 12, 2003.

Labrador Inuit Land Claim:

During the 2002-03 year, the Department wasinvolved with the Labrador Inuit Association (LIA)and Canada in negotiations toward a Final LandClaims Agreement. Also, the parties were involvedin finalizing a number of associated agreements,including an Implementation Plan, a FiscalFinancing Agreement, a Tax Treatment Agreementand a Land Appendix. In July 2002, the Voisey’sBay Interim Measures Agreement was signed withthe LIA and Canada. This Interim MeasuresAgreement will eventually be replaced by aVoisey’s Bay Chapter in the Final Land ClaimsAgreement.

Inuit Communities Agreement:

The Contribution Agreement between theGovernment of Canada and the Government of

Newfoundland and Labrador for the Benefit ofthe Inuit Communities of Labrador, wasoriginally signed in 1986, amended in 1999 and2002, and covers the fiscal period up to March 31,2004. The Province’s contribution was based onthe proportion of non-Aboriginal residents in thefive communities.

The total budget for the 2002-03 fiscal year was$18,177,295 with a provincial contribution of$3,378,495 and a federal contribution of$14,798,800. DLAA co-chairs the Agreement’sManagement Committee with the federalgovernment (INAC). The Agreement providesfunding for the administration and delivery ofsupplementary provincial programs and services toassist in the improvement of the standard of livingand the socio-cultural development within the Inuitcommunities.

The 2002-04 Agreement identifies funding for agroomer for Makkovik ($270,000); housing foreducation professionals ($500,000); LabradorSchool Board culturally diverse programming($400,000); and recreational programming/sportsand leadership development ($120,000). Fundsfor community development and infrastructure areanticipated to flow through the Labrador InuitAssociation upon the ratification of the final landclaims agreement.

Northern Coastal Labrador Strategic Initiative:

In March 2002, the Province announced $3 millionfor housing initiatives under the North CoastStrategic Initiative. The Department has played a

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lead role in the three-year funding commitment of$23 million for the Northern Coastal LabradorStrategic Initiative announced in March 2000. TheInitiative comprised $7.7M for housing, $9M forwater and sewer, $6M for roads, and $300,000for wharves. It expired on March 31, 2003. Thepurpose of the Initiative was to improve housingconditions and water and sewer infrastructure,upgrade community roads, and reconstructcommunity wharves in an attempt to address thesocial and economic issues affecting Labrador’sInuit communities. The Department chaired anadvisory committee that oversaw the administrationof this initiative.

Labrador Innu Land Claim:

During the year, the Department has worked withthe Innu Nation and Canada on land claimnegotiations focused on the Chapters of anAgreement in Principle.

In July 2002, the Province signed a Memorandumof Agreement (MOA) with Innu Nation on theVoisey’s Bay development. This Agreement willeventually be replaced by a Voisey’s Bay Chapterof the Land Claims Treaty that is not yetcompleted.

Innu Healing Strategy:

The Province continued to work cooperatively withthe federal government and the Innu Band Councilsand Innu Nation to assist with the development oflong-term healing strategies. The social issues in theInnu communities are complex and have developed

over a long time. Therefore, strategies should focuson long-term solutions to have any real impact.

The Province presented the final installment of a $1million contribution in 2002-03 to the Innu HealingFoundation to help build sportsplexes in Natuashishand Sheshatshiu with the remainder of thenecessary funds being raised from federal andprivate sector donations.

Innu Registration and Reserve Creation:

The Department continued to work with the federalgovernment and the Innu Band Councils and InnuNation to fulfill the federal commitment to registerthe Innu under the Indian Act and to establishreserves at Sheshatshiu and Natuashish. OnNovember 21, 2002 Canada established theMushuau Innu First Nation and the SheshatshiuInnu First Nation as bands under the Indian Act.The Department is facilitating the necessary landtransfers and negotiating arrangements for thefederal government to assume funding responsibilityfor programs and services. DLAA has reachedagreements with the federal government for fundingon Child, Youth and Family Services forSheshatshiu and Natuashish. Agreements forfunding in Natuashish on Education, IncomeSupport and the Natuashish Airstrip were alsoreached. Discussions are ongoing about theeventual Innu administration of programs andservices on the reserves. The registration processand reserve creation, with the relocation of DavisInlet to Natuashish, will hopefully lead to improvedsocial conditions in these communities.

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Relocation of Davis Inlet:

The Department has been working with the federalgovernment and the Mushuau Innu to facilitate therelocation from Davis Inlet to Natuashish (SangoBay). The federal government has contributed$153 million towards the relocation project. TheProvince participated in discussions to ensure asmooth transition in service delivery from onecommunity to the other. The move to the newcommunity took place from December 2002 toJanuary 2003.

Labrador Métis Nation (LMN):

The Province has been supportive of the LMN inits desire to access federal programs and servicesfor which they are eligible.

The Province has also called on the federalgovernment to make a decision on the LMN landclaim.

Federation of Newfoundland Indians (FNI):

On April 12, 2002, the Province, FNI and theGovernment of Canada announced exploratorydiscussions to determine if there is a basis fornegotiating FNI access to certain federal Aboriginalprograms and services. Discussions continuedthroughout the summer. The federal representative,former cabinet minister Marc Lalonde, submitted areport to the Minister of Indian and NorthernAffairs Canada in September 2002. The Provinceand FNI are awaiting a federal decision as to howthe process will proceed.

Miawpukek First Nation (MFN):

The Department has indicated it is prepared toparticipate in self-government discussions betweenMFN and the federal government in mattersimpacting provincial jurisdiction.

The Department has also held discussions withMFN regarding the potential expansion of theConne River Reserve to meet the housingexpansion and economic development needs of theBand.

The Department began discussions with theDepartment of Justice and MFN toward anAboriginal Justice Strategy Agreement to supportAboriginal justice programming at Conne River.

Voisey’s Bay Project:

The Department played an active role in concludingthe necessary agreements to allow the Voisey's BayProject to proceed. The Department participatedin negotiations led by the Department of Mines andEnergy toward the Statement of Principles betweenthe Province and Inco/Voisey's Bay NickelCompany (VBNC), which was signed and ratifiedin June 2002. The Statement of Principles formedthe basis for the subsequent Voisey's BayDevelopment Agreement, which was signed inOctober 2002.

The Department concluded a Voisey's BayMemorandum of Agreement (MOA) with the InnuNation and a Voisey's Bay Interim MeasuresAgreement with Canada and the Labrador Inuit

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Association (LIA), which define rights of the Innuand Inuit in the project area during the life of theproject. The Department also worked with theDepartment of Environment and the Department ofMines and Energy and LIA and Innu Nation inconcluding the Voisey's Bay EnvironmentalManagement Agreement (EMA). The EMA,signed by the Province, Canada, LIA and InnuNation, provides for the establishment of anEnvironmental Management Board to provideadvice on permits, plans and other regulatorymatters pertaining to the Mine and Mill.

The above agreements, along with the Impacts andBenefits Agreements (IBAs) Inco/VBNC enteredinto with the LIA and Innu Nation, enabledcommencement of the $2.9 billion capital project inthe Summer of 2002.

The Department helped facilitate the establishmentof the Environmental Management Board, whichwas initially chaired by Mr. Bill Flowers. InFebruary 2003, Mr. Sean Dutton, AssistantDeputy Minister of DLAA, was appointed InterimChair while the Parties conducted a search for areplacement. The Board established an office inHappy Valley-Goose Bay and provided advice toMinisters on numerous regulatory matters pertainingto the environment.

Inco/VBNC committed to spend $55 million in theProvince in the 2002-03 fiscal year, the majority ofwhich was related to work at the Voisey's Bay site.Inco/VBNC has also implemented an adjacencypolicy, which provides that first preference forhiring at the Voisey’s Bay site would be provided

to qualified Aboriginal people, second preferenceto qualified Labradorians, and third preference toqualified residents of the island portion of theprovince.

It is anticipated that the Mine and Mill at Voisey'sBay will be completed by 2006, and ahydrometallurgical nickel/copper/cobalt processingfacility will be completed at Argentia by the end of2011.

The Department continues to work with Mines andEnergy to monitor the Mine and Mill project toensure commitments made to the people of theprovince are kept, particularly with respect to theresidents of Labrador.

Lower Churchill Hydro Development

On August 1, 2002, Premier Roger Grimes and theHonourable Bernard Landry, Premier of Québec,announced that they had reached consensus on thefundamentals of any agreement that may bereached between the two governments ondevelopment of the Gull Island hydro resourceproject in Labrador. Significant progress wasmade during the year on negotiations toward suchan agreement with Québec and Hydro-Québec, aswell as on a possible Impacts and BenefitsAgreement (IBA) with the Innu Nation. TheDepartment participated in IBA negotiations led bythe Labrador Hydro Project team and otherdiscussions with the Innu Nation regarding landclaim implications for the project. The Departmentalso provided advice to the provincial negotiatingteam concerning the development agreement, with

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a view to maximizing benefits for residents ofLabrador. The Department facilitated consultationswith key stakeholders in Labrador, including aPremier’s Roundtable discussion in Happy Valley-Goose Bay on November 27, 2002.

Negotiations between the Province and Québec, aswell as IBA negotiations with the Innu Nation, werelater put on hold while government explored theimplications of federal climate change policies fordevelopment of the Gull Island project. Inparticular, the Province is interested in potentialfederal incentives for new hydro development anda possible role for the federal government in theproject.

5 Wing Goose Bay:

DLAA, in cooperation with various departments,facilitated efforts to enhance training at 5 WingGoose Bay, primarily through the expansion of thePractice Target Area.

On July 17, 2002, the Province indicated itssupport for the report on the management ofmarketing of 5 Wing Goose Bay, released July 9,2002 by the Standing Senate Committee onNational Defence. The maintenance and expansionof the NATO flight training program in Labrador isa priority for the Government of Newfoundland andLabrador which will continue to be vigorouslypursued.

The current MOU governing the foreign militaryflight training program is scheduled to expire in2006. The Province was successful in obtaining

agreement from the Minister of National Defenceto establish a Federal - Provincial Goose BayMarketing Committee with a view to developinginitiatives geared toward enhancing 5 Wing andensuring its future viability.

Iron Ore Mining:

Labrador West mining activity by the Iron OreCompany of Canada and Wabush Minescontributes greatly to the provincial economy.DLAA works with the Department of Mines andEnergy to monitor this activity. Ensuring thisindustry is retained remains a priority ofGovernment.

Forestry Agreement

The Province continued to work with Innu Nationunder the Forestry Process Agreement signed in2001, which provided funding to the Innu Nation towork with the Department of Forest Resources andAgrifoods (DFRA) and interested stakeholders toaccomplish the Agreement’s objectives. Thepurpose of the Forestry Process Agreement is todeliver a five year ecosystem based forestmanagement plan for Forest Management District19, to monitor interim plans and standards forcurrent or proposed timber harvesting projects, andto begin negotiations on a long term co-management arrangement between the Innu Nationand the Government of Newfoundland andLabrador. The Agreement expires in April, 2003 .

On October 3, 2002, the Province, as representedby the Ministers for DFRA and DLAA, and the

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LMN signed a Memorandum of Understanding(MOU) regarding forest development in Labrador.

Under this agreement, the Province providedfunding to the LMN to hire a Forest Planner andForest Technician to provide input into Labrador’sforest ecosystem management, and help ensurecontinued sustainable and prudent development ofthe forest resource in the region.

Northern Agrifoods Development Strategy:

Upon extensive public consultations in the Fall of2002, DFRA, in partnership with DLAA,proceeded to develop the Northern AgrifoodsDevelopment Strategy which identifiesopportunities and initiatives to further enhance theagrifoods industry and its economic benefitsthroughout Labrador.

From this, the Agricultural Policy FrameworkImplementation Agreement, a newfederal/provincial cost shared five year agreementwill allocate $1.5 million to a Northern AgrifoodsInitiative. This initiative is to encourage thedevelopment, diversification and commercializationof a northern agriculture industry.

Trans-Labrador Highway (TLH):

In March 2002, the Province announced details ofits commitment to build Phase III of the Trans-Labrador Highway between Happy-Valley-GooseBay and Cartwright. The Province intends to investabout $100 million, or $17 million a year, to buildPhase III over a six-year period. The Province has

made a commitment to consult with the Innu Nationbefore any planning or work is done on Phase IIIand will also seek input from other stakeholders,including the LMN. The project is subject to anenvironmental assessment, which began in 2002-03. The Department is a participant on thescreening committee for this project.

A total of $17 million was approved in March2002, to continue construction of the TLH tocomplete Phase II from Red Bay to Cartwright.Labrador Transportation Initiative Agreement:

In March 2002, the Province approved $3 millionfrom the Labrador Transportation Initiative Fundto build an access road from the TLH to Pinsent’sArm. A further $1.8 million was announced toimprove roads in the southern Labradorcommunities of Port Hope Simpson andCartwright, and to finish upgrading roads inCharlottetown and Mary’s Harbour. Another$300,000 was approved to finish upgrading roadsin Rigolet and $500,000 for continued resurfacingof the North West River road.

Labrador Marine Transportation Services:

On March 22, 2002, the Province announced thereconfiguration of the Labrador coastal marineservice. Under the reconfiguration, thesouthernmost marine terminal will move fromLewisporte to Cartwright.

The Province also announced that it will invest $2.2million in wharf and terminal upgrades to improveshore-based marine infrastructure at St. Barbe,

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Norman Bay, Black Tickle, Postville andCartwright.

Labrador Regional Council:

The Labrador Regional Council (LRC) iscomprised of regional directors and managers whohave agreed to meet and address issues of mutualconcern in Labrador. The Labrador RegionalCouncil was established in June, 1998. As a groupof senior officials from provincial departments andagencies in Labrador, the regional council providesan opportunity to facilitate both informationexchange and the coordination of activities in aneffort to improve the efficiency and effectiveness ofprovincial services and programs offered inLabrador. This forum is modeled and consistentwith principles of public service reform currentlyunderway in the public service.

The Department chairs the LRC and serves as apoint of contact, as well as holds the coordinatingand facilitating roles for resolution of issuespresented at the Labrador Regional Council.

Torngat Recreation Commission (TRC):

The TRC is an excellent example of partnershipbetween government and the North Coastcommunities. The TRC was officially incorporatedon January 14, 2003, and is comprised of a boardof Recreation Directors representing the six NorthCoast communities. The mandate of the TRC is“to develop a delivery mechanism to buildLeadership Capacity in the six North Coastcommunities, through Community Partnerships,

Training, Community Activities and SportProgramming”. The TRC has received fundingfrom the following: DLAA, through the InuitPeople’s Agreement; Department of Tourism,Culture and Recreation; Strategic Social Plan forLabrador; the Community Mobilization Program;and the Mushuau Innu Band Council. The twoprograms that are offered by the TRC are theCommunity Capacity Building/LeadershipDevelopment program and the Intra-LabradorTravel Subsidy program.

Tourism:

In April 2002, a Tourism Destination DevelopmentPlan for Labrador was released, with the conceptof rejuvenating Destination Labrador as amechanism for product development and marketingLabrador. With major investments in infrastructure,like construction of the Trans-Labrador Highwayand development of a winter snowmobile trailsystem, Labrador's tourism industry is poised forsignificant growth. Destination Labrador is in theprocess of trying to secure funding to implement thedevelopment plan.

Gateway Labrador Complex:

In March 2002, the Province and the AtlanticCanada Opportunities Agency (ACOA)announced funding of $710,826 to assist in thecompletion of a new interpretation centre. The newGateway Complex will provide tourist informationand house an interpretation centre which willintroduce visitors to the rich cultural history of

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Labrador. The centre will be located at the TLHentrance into Labrador, located in Labrador West.

Access North - Labrador 2002:

The Province contributed $700,000 in funding forthe Access North-Labrador 2002 celebrations.Celebration activities were organized incommunities across Labrador between June andNovember, 2002. The Department, along with theDepartment of Tourism, Culture and Recreation,was a major promoter of Access North-Labrador2002, the fifth in a series of major celebrations heldby the Province since 1997. This celebrationhighlighted Labrador’s tourism product, by focusingon the region’s culture, history and people. It alsorecognized the important contribution of theMoravian Church to the people of Labrador’sNorth Coast over the past 250 years. Some ofAccess North’s objectives were:

• to develop a program to enhance theeconomic development of Labradorthrough the tourism sector;

• to communicate to the province, thecountry, and the world the cultural legacyof the Labrador region; and

• to celebrate the achievements of theLabrador Winter Trails Inc. and positionthe entire Labrador region as a primedestination for snowmobile-based tourism.

The Department was instrumental in providingfinancial support and resources to ensure thesuccessful post-launch of the program.

Provincial Court:

On March 21, 2002, funding was announced torenovate the Provincial Court in Happy Valley-Goose Bay to include a second courtroom andaccommodations for Prosecutions, Victim Servicesand Probation Services. Proposals were called fora new building to house the Supreme Court inHappy Valley-Goose Bay.

Departmental Human Resource Plan andTraining Initiatives:

In the Fall of 2002, through the direction of theTreasury Board Secretariat, all provincialgovernment departments developed DepartmentalStrategic Human Resource Plans. The processwas an excellent exercise for Labrador andAboriginal Affairs, providing focus for future humanresource planning. One of the significant results ofDLAA’s Plan, particularly for the Labrador Unit,was the training and development component.Through consultation with staff, training anddevelopment needs were identified andincorporated into the overall plan.

The demand for departmental training in Labradorwas so great that further consultations were heldwith the Centre for Learning and Development. Inthe past, accessing training for Labrador publicservants was costly due to the travel required. ThePlan identified an opportunity for the Centre forLearning and Development to deliver training inLabrador. Since then, training has beencoordinated by Labrador and Aboriginal Affairs in

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conjunction with the Centre. Offerings have beenmade available to all departments in Labrador,which has resulted in very positive responses.

Strategic Social Plan:

DLAA works closely with the Strategic Social PlanLabrador Regional Steering Committee inLabrador. The Department provides administrativesupport and accommodations for the RegionalPlanner in Happy Valley - Goose Bay.

Health Labrador Corporation OperationalReview:

On January 10, 2003, the Province announced anoperational review of Health Labrador Corporationto be conducted by the consulting firm Deloitte andTouche. DLAA was represented on the SteeringCommittee for this review. The review wasintended to identify efficiencies in the acute,transportation, and community sectors, develop afinancial recovery plan, and makerecommendations to facilitate a plan for theretirement of the corporation’s debt. Transition House Program:

In March 2002, the Province approved anadditional $250,000 for the Transition HouseProgram, with a significant portion to enhanceservices in Labrador West and coastal Labrador.In addition to the enhancements, the funding willalso support training and security at a number oftransition houses in the Province, including LibraHouse in Happy Valley-Goose bay, the Family

Crisis Shelter in Labrador City and the NainWomen’s Shelter.

Moving Toward Safety: Responding to FamilyViolence in Aboriginal and NorthernCommunities of Labrador:

DLAA was consulted in the preparation of thisreport which was released in March 2003. Thereport was commissioned by Health andCommunity Services and the Women’s PolicyOffice to identify alternatives to traditional shelterservices for Aboriginal families and northerncommunities.

Addressing Recruitment Concerns:

In March 2002, the Province announced that itwould maintain funding of $800,000 to fund arecruitment and retention bonus to attract teachersto coastal Labrador communities.

Aboriginal Cadet Development Program:

In an effort to increase the number of Aboriginalpeople in the RCMP, the Government ofNewfoundland and Labrador agreed to participatein the national Aboriginal Cadet DevelopmentProgram (ACDP). Cost-shared by HumanResources Development Canada, the RCMP andthe Province, the ACDP permits Aboriginal peoplewho do not initially meet RCMP basic entrancerequirements, but are otherwise suitable applicants,a maximum of two years to upgrade their skills.Twelve students in Labrador were able toparticipate. The Province provided 25 percent of

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the total program costs over two years, to amaximum of $150,000 a year.

Labrador Travel Subsidy:

The Labrador Travel Subsidy was increased by$180,000 in the middle of the 2000-01 fiscal year.The Province has maintained the Subsidy at its newlevel of $427,000 to permit students living inLabrador to increase their participation in athletictournaments throughout the Province.

Northern Development Ministers’ Forum:

Since its inception, Newfoundland and Labradorhas participated in the Northern DevelopmentMinisters’ Forum through DLAA. Other northernregions represented at this Forum include theYukon, North West Territories, Nunavut, BritishColumbia, Alberta, Saskatchewan, Manitoba,Ontario and Quebec.

DLAA leads the Forum’s priority project onRecruitment and Retention of Professionals in theNorth and presented a report entitled Recruitmentand Retention Best Practices Inventory at theSeptember 2002 Forum in Peace River, Alberta.A supplementary report and a comprehensivecontact listing of human resource professionals willbe presented at the July 2003 NorthernDevelopment Ministers’ Forum in Iqaluit.

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Key Achievements and Priorities

Strategic Issues:

The Department of Labrador and AboriginalAffairs strives to enhance the effectiveness ofprograms and services for the Labrador region andto ensure that the needs of Aboriginal groups in theprovince are met as fully as possible. The strategicissues facing the Department are focused asfollows:

Labrador Affairs:• to maximize the benefits from economic

initiatives and resource developments inLabrador for the region;

• to ensure that Labrador communities receiveprograms and services on the same basis asother communities in the province that aresimilar in size and circumstance; and,

• to ensure that appropriate amounts of federalfunding allocated to the Province are utilized inLabrador.

Aboriginal Affairs:• to ensure that negotiated land claims and self-

government agreements with the Labrador Innuand Inuit are beneficial and acceptable to allresidents;

• to facilitate improved relationships between theprovincial government and Aboriginal groups;

• to ensure that the federal government isresponsive to the needs of Aboriginal groups;and,

• to ensure that provincial government policy isappropriate for and relevant to the needs ofAboriginal groups throughout the province.

Priorities and Strategies:

Like a central agency, the Department coordinatesand facilitates all Government activities relating toLabrador Affairs and Aboriginal issues. Thepriorities for the Department are to enhance theeffectiveness of programs and services within theLabrador region, to ensure that the Labradorregion benefits from social and economic initiatives,to ensure that resource development occurs in amanner that maximizes benefits and is respectful ofAboriginal land claims and to ensure that the needsof Aboriginal groups in the province are met as fullyas possible.

It is important to recognize that the Province doesnot offer Aboriginal specific programming.

The principal tasks of the Department in the field ofAboriginal Affairs are:• developing policy for Aboriginal issues;• negotiating land claims and self-government

agreements;• implementing and managing land claims

agreements once achieved; and• carrying out consultations and providing public

information and education in matters related toland claims.

The principal tasks of the Department in the field ofLabrador Affairs are:

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• developing policies and programs related tosignificant issues of government interest inLabrador;

• managing federal-provincial agreements relatedto the development of Labrador; and

• managing federal-provincial agreements for theInuit communities of Labrador.

As a result of these fundamental activities, theDepartment’s objectives cannot always bemeasured in numbers, but rather involve thesuccessful negotiation and implementation ofagreements and settlements and trustworthyrelationships with Aboriginal groups in the province.

The Department’s key priorities to achieve its goalsare:

• to work with all provincial governmentdepartments and the federal government toensure policy, programs and decisions areappropriate for Labrador and the Aboriginalgroups in the Province;

• to ensure that the people of Labrador share inthe benefits from the development of resourcesof their region;

• to remove the uncertainty surrounding landsand resources in Labrador through thesettlement of land claims with the Innu and Inuitof Labrador; and,

• to work with the federal government to ensurethat Canada meets its constitutional andfiduciary responsibility for Aboriginal peoplesin Newfoundland and Labrador.

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Progress and Accomplishments:

STRATEGIC ISSUE PRIORITIES PROGRESS/ACCOMPLISHMENTS

1. To maximize thebenefits from economicinitiatives and resourcedevelopments inLabrador for the region.

To ensure that the peopleof Labrador share in thebenefits from thedevelopment of resourcesof their region.

Voisey’s Bay ProjectIn June 2002, the Province and Inco Ltd. signed a Statement of Principles to developthe Voisey’s Bay mineral deposit in Northern Labrador and to establish a processingfacility in Argentia.

In July 2002, the Province signed the Voisey’s Bay Interim Measures Agreement withthe LIA and Canada.

In July 2002, the Province signed the Memorandum of Agreement with Innu Nation onthe Voisey’s Bay development.

In July 2002, the Province signed the Voisey’s Bay Environmental ManagementAgreement with the LIA, Canada and the Innu Nation.

In October 2002, the Province and Inco Ltd. signed the Voisey's Bay DevelopmentAgreement.

Lower Churchill Hydro DevelopmentThe Department worked closely with provincial negotiators pursuing the potential LowerChurchill Hydro Development on issues related to Aboriginal groups and Labrador’sinterests in the project. The Department also facilitated consultations with keystakeholders in Labrador, including a Premier’s Roundtable discussion in Happy Valley-Goose Bay on November 27, 2002.

Trans-Labrador HighwayIn March 2002, the Province announced details of its commitment to build Phase III ofthe Trans-Labrador Highway between Happy-Valley-Goose Bay and Cartwright. TheProvince intends to invest approximately $100 million, or $17 million a year, to buildPhase III over a six year period. Work on Environmental Assessment began in 2002-03.

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2. To ensure thatLabrador communitiesreceive programs andservices on the samebasis as othercommunities in theprovince that are similarin size and circumstance.

To work with all provincialgovernment departmentsand the federal governmentto ensure policy, programsand decisions that areappropriate for Labradorand the Aboriginal people inthe Province.

Health Labrador Corporation Operational ReviewOn January 10, 2003, the Province announced an operational review of HealthLabrador Corporation to be conducted by the consulting firm Deloitte and Touche.

Addressing Recruitment ConcernsIn March 2002, the Province announced that it would maintain funding of $800,000 tofund a recruitment and retention bonus to attract teachers to coastal Labradorcommunities.

Labrador Travel SubsidyThe Province maintained the Labrador Travel Subsidy at its new level of $427,000 topermit students living in Labrador to increase their participation in athletic tournamentsthroughout the province.

3. To ensure thatappropriate amounts offederal funding allocatedto the Province areutilized in Labrador.

To coordinate and negotiatevarious funding andprograms and servicesagreements with thefederal government and/orAboriginal groups.

Inuit Communities AgreementThe Contribution Agreement between the Government of Canada and theGovernment of Newfoundland and Labrador for the Benefit of the InuitCommunities of Labrador has been amended to cover the 2002-03 and 2003-04 fiscalyears, which includes an additional $8.7 million in federal infrastructure funds.

Labrador Transportation InitiativeThe Province approved $3 million from the Labrador Transportation Initiative Fund tobuild an access road from the TLH to Pinsent’s Arm. A further $1.8 million wasannounced to improve roads in the southern Labrador communities of Port HopeSimpson and Cartwright, and to finish upgrading roads in Charlottetown and Mary’sHarbour. Another $300,000 was approved to finish upgrading roads in Rigolet and$500,000 for continued resurfacing of the North West River road.

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4. To ensure thatnegotiated land claimsand self-governmentagreements with theLabrador Innu and Inuitare beneficial andacceptable to allresidents.

To negotiate land claimstreaties and self-government agreementswith the relevant parties.

To remove the uncertaintysurrounding lands andresources in Labradorthrough the settlement ofland claims with the Innuand Inuit of Labrador.

Land Claims NegotiationsThe Department was involved with the LIA and Canada in negotiations toward a FinalLand Claims Agreement. Also, the parties were involved in finalizing a number ofassociated agreements, including an Implementation Plan, a Fiscal FinancingAgreement, a Tax Treatment Agreement and a Land Appendix.

In July 2002, the Province signed the Voisey’s Bay Interim Measures Agreement withthe LIA and Canada.

In July 2002, the Province signed the Memorandum of Agreement with Innu Nation onthe Voisey’s Bay development.

Negotiations are ongoing with the Innu Nation and Canada the Department has workedwith the Innu Nation and Canada on land claim negotiations focused on the Chaptersof an Agreement in Principle.

5. To facilitate improvedrelationships between theprovincial governmentand Aboriginal groups.

To work with all provincialgovernment departmentsand the federal governmentto ensure policy, programsand decisions that areappropriate for Labradorand Aboriginal people in theProvince.

To give Labrador and Aboriginal people in theProvince a stronger voicein government.

ForestryThe Province continued to work with Innu Nation under the Forestry ProcessAgreement signed in 2001, which provided funding to the Innu Nation to work with theDepartment of Forest Resources and Agrifoods and interested stakeholders toaccomplish the Agreement’s objectives.

On October 3, 2002, the Province, as represented by the Ministers for the Departmentsof Forest Resources and Agrifoods as well as Labrador and Aboriginal Affairs, and theLMN signed a Memorandum of Understanding (MOU) regarding forest developmentin Labrador. Under this agreement, the Province provided funding to the LMN to hirea Forest Planner and Forest Technician to provide input into Labrador’s forestecosystem management, and help ensure continued sustainable and prudentdevelopment of the forest resource in the region.

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6. To ensure that thefederal government isresponsive to the needsof Aboriginal groups.

To work with the federalgovernment to ensure thatCanada meets itsconstitutional and fiduciaryresponsibility for theAboriginal groups ofNewfoundland andLabrador.

Innu Registration and Reserve CreationThe Department continued to work with the federal government and Innu Nation tofulfill the federal commitment to register the Innu under the Indian Act and to establishreserves at Sheshatshiu and Natuashish. On November 21, 2002, Canada establishedthe Mushuau Innu First Nation and the Sheshatshiu Innu First Nation as bands under theIndian Act.

Miawpukek First NationThe Department has indicated it is prepared to participate in self-governmentdiscussions between MFN and the federal government in matters impacting onprovincial jurisdiction.

The Department has also held discussions with MFN regarding the potential expansionof the Conne River Reserve to meet the housing expansion and economic developmentneeds of the Band.

The Department began discussions with the Department of Justice and MFN towardan Aboriginal Justice Strategy Agreement to support Aboriginal justice programming atConne River.

Labrador Métis Nation (LMN)The Province supports the LMN in its efforts to gain access to those federal programsand services for which they are eligible.

The Province has also called on the federal government to make a decision on the LMNland claim.

Federation of Newfoundland Indians (FNI)On April 12, 2002, the Province, FNI and the Government of Canada announced

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7. To ensure thatprovincial governmentpolicy is appropriate forand relevant to the needsof Aboriginal groupsthroughout the province.

To work with all provincialgovernment departmentsand the federal governmentto ensure policy, programsand decisions that areappropriate for Labradorand Aboriginal people in theProvince.

Aboriginal Cadet Development ProgramThe Province of Newfoundland and Labrador has funded up to $150,000 per yearfor two years to enable 12 students to participate in the national Aboriginal CadetDevelopment Program (ACDP).

Northern Coastal Labrador Strategic InitiativeThe Department has played a lead role in the three year funding commitment of $23million for the Northern Coastal Labrador Strategic Initiative.

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Opportunities and Challenges Ahead:

The Department of Labrador and AboriginalAffairs faces a number of opportunities andchallenges, particularly when it comes to Aboriginalland claims and self-government, and its role inprojects such as Voisey’s Bay and the LowerChurchill.

Government is committed to ensuring that thepeople of Labrador share in the development of theregion's resources.

The successful conclusion of land claims willcontribute to the economic and social well-being ofAboriginal peoples, other Labradorians andNewfoundlanders. Beyond land claims, there willbe a need to work cooperatively for the future ofthe Labrador region.

The development of Voisey’s Bay, a rich resourcein the midst of a region that has such high levels ofunemployment and social challenges, can helpprovide the jobs, spin-offs and resources toimprove the standard of living for North Coastresidents.

The potential development of the Lower Churchillpower project represents a major untappedresource in Labrador, offering the opportunity todevelop a significant block of competitive energywithout causing major harm to Labrador'senvironment.

Opportunities and challenges ahead include:

• co-ordinating and providing leadership forgovernment programming in Labrador;

• assessing and advancing developmentopportunities, funding agreements and socialissues;

• implementing land claims and self-governmentagreements;

• facilitating the creation of Reserves atSheshatshiu and Natuashish;

• securing federal funding for education andincome support in Sheshatshiu and operation ofthe Natuashish nursing station;

• negotiating agreements to enable Innu tomanage programs on Reserve once they havethe capacity to do so;

• urging the federal government to make adecision on the outstanding land claim of theLMN;

• lobbying the federal government to support theLMN and the FNI in gaining access to federalprograms and services for which they meet theeligibility requirements; and

• working with the Department of Works,Services and Transportation and stakeholdersto reconfigure the Southeast Coastal ferryservice to meet the transportation needs of theresidents of Southern Labrador.

Much has been accomplished in Labrador in 2002-03, but the Province recognizes that more workneeds to be done. The Department is wellpositioned to deal with the many opportunities andchallenges facing the province in respect ofAboriginal people and in particular the Labradorregion.

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APPENDIX A - FINANCIAL STATEMENTS

DEPARTMENT OF LABRADOR AND ABORIGINAL AFFAIRSStatement of Expenditure and Related Revenue

FOR THE YEAR ENDED 31 MARCH 2003

Estimates

Actual Amended Original $ $ $

1.1.01 Minister’s Office 446,385 449,700 372,700 1.2.01 Executive Support 483,206 536,000 528,500 2.1.01 Aboriginal Affairs 1,136,351 1,445,100 1,549,100 2.1.02 Labrador Affairs 670,805 691,700 640,200 2.1.03 Inuit Agreement 4,445,577 4,548,800 4,580,600

Less Revenue - Federal (4,276,436) (4,377,900) (4,377,900)

Total Department 2,905,888 3,293,200 3,293,200

Please refer to Volume III of the Public Accounts which were previously tabled in the House of Assembly,for detailed financial information.