Your Weekly Newsletter

…… AUGUST 25, 2023 …...

The disruption to business activity in certain regions of the Northwest Territories this summer is without parallel. Forced closures, supply chain disruptions, shipping irregularities, staff displaced, and community evacuations have already sent shivers through budget spreadsheets.


Now, with almost 70% of the NWT’s populace sent fleeing from the nightmarish fire, ash and in some cases, total destruction of property and livelihoods, thoughts are turning to what happens when the smoke clears.


Private businesses play a vital role in driving innovation and growth in any economy, including the public-sector dominated NWT.


Business owners will have to contend with lost income during the evacuations, spoiled inventory, cancelled orders, staff resignations, cash-strapped consumers and those fixed lease and utilities costs. There haven’t been reports of widespread looting or vandalism.


"I know a lot of retail businesses were struggling by prior to this, so if I was struggling to pay my bills, and then I have this interruption, there will be more struggles going forward,” NWT Chamber President Newton Grey said this week. “We are standing with our members and we will continue to look for opportunities for them.


"We understand that starting over is going to be tough. But the NWT Chamber is committed to be there with them in doing the heavy lifting — for the long term."


For example, after discussions this week with senior members of the Industry, Tourism and Investment (ITI) department, it was agreed the NWT Chamber can act as a collection point for concerns or ideas from our members. Send emails to ED James O’Connor, who will organize them and make sure they reach the proper person in the GNWT.


This is the time when many SMEs will look to government for help, what with this unplanned, undreamed of disruption to operations. If it didn’t come after almost three years of pandemic restrictions or closures, the situation might not be as dire.


But a silver lining could be that templates for support programs hammered together during the COVID crisis can be recycled for use now. Such as the Operational Support Funding announced in the fall of 2021, which provided up to $5,000 for businesses impacted by public health measures such as gathering limitations.


That 2021 short-term funding through GNWT’s Support for Entrepreneurs and Economic Development (SEED) Program helped cover ongoing operational costs such as rent and utilities. There was also funding specific to licensed tourism operators and tourism-related businesses.


Governments normally work best when they step out of the way of private business, but it is at times such as this that the territorial and federal governments need to support the efforts of those businesspeople and entrepreneurs who strive to build an economy that benefits all Northerners.


The NWT Chamber can tell its members the GNWT is working right now on structuring a program to provide some operational support to the business community to assist with some of those aforementioned fixed costs. Finance and ITI Minister Caroline Cochrane told the evening media conference earlier this week she plans on making an appropriation request to the 19th Assembly on Monday, describing the fire suppression costs alone as “astronomical."


The NWT Chamber expressed concerns and provided suggestions to ITI officials this week, including: pro-rated commercial rent for the time closed; maintenance crews needing to first ensure the safe re-entry of residential suites; and ensuring any compensation to employees for lost wages is only for returning staff who first work a minimum number of hours to qualify.


President Grey said that he has already heard of employees of NWT businesses accepting positions in Alberta and emphasized a serious effort has to be made to not only continue to attract new workers, but to re-attract existing residents.


Also up for discussion was to confirm if communication was ongoing with feds, who in 2020 came up with the Northern Business Relief Fund for SMEs through Canadian Northern Economic Development Agency (CanNor). That grant had an application cap of $100,000.

Another query concerned how the GNWT’s Disaster Assistance Policy (DAP) through the Municipal and Community Affairs (MACA) department, that may be implemented after a widespread disaster to cover the essential basic needs of residents, small businesses, non-profit organizations and local authorities, will come into play. We’ll have to wait to hear from MACA.


The NWT Chamber Board of Directors and staff extend their sympathies to families and friends of firefighters who have been killed or injured and to all residents who have been forced out of their homes and from their businesses in 2023, with some losing their livelihoods and cherished possessions. 


We invite our members to remain in touch, submit your questions, concerns of suggestions about the evacuation order and the eventual return. And if you know of another business who would benefit from being a member of this chamber, tell them about us! Click here to see our information-packed colourful website or here to go right to our application form.

Staying in touch and being informed through local media

The unprecedented destruction and evacuations in the NWT — including its capital of Yellowknife and second-largest community of Hay River — has generated news headlines from around the world.


But the most impactful coverage will be from the private businesses who have been covering the regions for decades. Those newspapers and broadcast or web-based radio stations which have reliably provided trusted local news from city councils, Indigenous communities, the schools, arenas and ball parks are now trying to cover a massive natural disaster that has impacted their family, friends, neighbours and businesses.


You will usually see samples of the work of these local journos in this newsletter each week, as the business community certainly does benefit from their editorial coverage and advertising platforms.


This at a time when the federal government and Meta — parent company of Facebook and Meta — along with other tech giants have decided to slap fight each other with local news dissemination being the victim.


One example of a media outlet having to adapt to changing and challenging times is Northern News Services (NNSL) and their owners, Black Press Media.


Due to the wildfires, NWT Chamber member NNSL has shut down its printing press, but will continue to deliver news through its main website, including free PDF versions of the newspapers during this extraordinary period.


Group Publisher Mike Bryant, a new member of our board, also notes the launch of a daily newsletter, with top stories and links to the NNSL homepage.


So please support these local businesses — which also include CKLB 101.9 FM The Voice of Denendeh, True North 100.1 FM, Cabin Radio, Up Here and Up Here Business, l'Aquilon and Radio Taïga 103.5 FM — as they do their best to provide news and advertising opportunities for you, as their staff are dispersed across several provinces and territories.


They run as small businesses, non-profits, or are part of regional or national chain. Regardless, they need your readership, financial support, and ad buys more now than likely ever before.


You will miss them should they one day be gone.

Executive Director James O’Connor had begun writing his next submission on behalf of the NWT Chamber to News/North. But as of deadline this week, it remained unfinished: Where do you start? Stop? So here is that unfinished piece. There will be much more to write about for News/North for its Labour Day edition.


Our hearts are with those who have lost their homes and livelihoods. We remain standing strong with our neighbours and those incredible people working to save our communities.


The severity of setbacks and challenges faced by businesses trying to provide goods or services in the NWT have proven too much for some and the sector has declined in numbers.


In April 2015, there were 1,053 active businesses in the NWT. Eight years later, in spring 2023 that number went down by 98, to 955 going concerns. How many will remain standing one year from now?


In addition to developing a product or service that can be marketed and adopted by consumers in 33 communities across 1,144,000 square-kilometres, being in business in the NWT in recent years included:

  • Two years of spring flooding. 
  • The federal Carbon Tax.
  • High cost of raw materials.
  • Pandemic restrictions, closures.
  • High taxes and inflation.
  • Thawing permafrost.
  • Shortage of skilled, unskilled workers.
  • Vancouver port strike.
  • The current wildfire evacuations.


This year, the GNWT cabinet deemed the economy had recovered from the pandemic. Oh, but then added it had just “returned to its pre-pandemic path of slow decline." 


As Finance Minister Caroline Wawzonek stated in her Budget Address earlier this year: "Maturing diamond mines, labour shortages, and a lack of economic diversification will continue to dampen economic growth."


She added: "The possibility for a prosperous future lies within our collective hands; not only those of elected leaders but residents across the territory.


"We face our economic challenges because the alternative is unacceptable and not who we are." 


Then hell opened up a few months after that strugglingly optimistic political speech and wildfires consumed land, property and lives. 


At present, nearly 70% of the NWT’s population from a half-dozen communities is under evacuation orders, most taking up some form of residence in Alberta, BC or Manitoba. How many won’t return?


If a person doesn’t have strong roots in the NWT, wouldn’t the many jobs and bright lights of the big cities in the warmer South be attractive? But I digress.


Those Northwest Territonians who could afford to self-evacuate are burning through thousands of dollars cash for gasoline, vehicle, maintenance, hotels, food, that might never be fully restored by government. Or if so, it will be some time from now.


Could they be given some form of quick blanket bridge reimbursement that could be fine-tuned with receipts at tax time? We do that now for our two tax-deductible trips south annually?


If it’s agreed that the primary duty of government is the safety and security of the populace, we should be so very thankful for the good work in short time performed.


Sure, there were hiccups — and who decided which handful of stores were to remain open in Yellowknife? — and a full post-mortem this winter by the incoming 20th Assembly will be required.


But heroes abound. Look at the considerable strength and leadership shown by mayors Mayor Rebecca Alty of Yellowknife and Kandis Jameson of Hay River, and Fred Daniels of Fort Smith, just to name just a couple.


Then there was Mayor Michael St Amour, who saw 90% of his community of Enterprise — Gateway to the North — reduced to twisted steel and ash.


First responders, the Armed Forces, woodland firefighters from across the NWT, Canada and other countries, the construction workers and heavy equipment operators who did what many thought were impossible on the western edge of Yellowknife.


Cabin Radio reported today from the moment the GNWT decides the fires are no longer a threat, it’ll take an estimated five days to get priority people back and then begin bringing everyone else home


There will be so many stories to tell, with so many more chapters to be written. Stay safe. Stay strong. See you soon.

The Hay River Hub’s normally colourful masthead, as seen above, has taken on a sombre look as the weekly publication continues to report about the twice evacuated town. the neighbouring KFN and Fort Smith. The long-running local news source for the community and region assembled some striking images in its latest edition.

QUOTE(S) OF THE WEEK:

"We're gonna rebuild and we're gonna be there stronger."


— Enterprise Mayor Michael St Amour to CBC North.

"I ask residents not to believe everything they read on social media."


— MACA Director of Corporate Affairs Jennifer Young this week to NNSL while asking people who haven’t evacuated Yellowknife to leave, but those who don’t will not be arresting or fined.

City and GNWT workers, military personnel and local contractors have been working together to build firebreaks and install sprinkler systems to protect Yellowknife. In this video, one version posted to TikTok, Peter Houweling, owner and general manager of Kavanaugh Brothers Ltd. thanks some of them.

"Just wanted to take a moment to give a shout out to my fellow NWT reporters who are working so hard during all of this and have not gotten enough credit.


"Please show them so much love!"


  • The folks at NNSL especially Eric Bowling who has been an absolute machine churning out stories and working to get information out despite the Meta news ban. The fact that he normally single handedly produces a newspaper in Inuvik alone is awe inspiring.
  • The small team at Taiga Radio has been providing much needed local French coverage.
  • CKLB, which has always focused on communities and Indigenous programming, has also been publishing regular updates on the wildfire situation to keep folks informed.
  • Lots of reporters from CBC North have not only being doing vital reporting for northerners but have been contributing to numerous national TV, radio and web platforms to provide much needed local context and accuracy to national reporting.

"Of course I have to thank my fellow Cabin Radio reporters who I would have crumbled without."


— Veteran local reporter Emily Blake, now with Cabin Radio, in a post to Facebook.

>> FRIDAY FUTURES >>

The CanArctic Business Mission originally scheduled for next week, is now being re-scheduled to a later date this fall. U.S. Ambassador to Canada David L. Cohen will join the Business Mission, the final date and agenda for which is still being confirmed.


A first for Yellowknife, 10 to 15 U.S. companies specialized in developing solutions in dual-use infrastructure, energy and power generation, mining exploration and remediation, and mental health and healthcare will be here to explore opportunities and meet local businesspeople. The event will be free for NWT companies to attend.

The NWT Chamber of Commerce had planned to celebrate its 50th Anniversary with a day-long conference and dinner at the end of September.


However, the 50th Anniversary Conference & Dinner: Blueprint for Building a Stronger NWT is being re-booked for a date in late October. More details about this exciting event to follow soon!

The next NWT Chamber Board meeting is pending TBA


You can now find the archive of the NWT Chamber's newsletters here

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