Officials monitoring U.S. financial debacle

Officials with the territory's Department of Economic Development are keeping a close watch on the slow-down of the U.S. economy.

Officials with the territory’s Department of Economic Development are keeping a close watch on the slow-down of the U.S. economy.

Speaking to about 100 people at the Opportunities North conference at the High Country Inn this morning, Harvey Brooks, the territory’s deputy minister of

Economic Development, said the impact the recent stock market meltdown will have on the territory remains unknown.

Brooks’ presentation focused on how the Yukon fits into the global economy.

Over the past few years, the territory has seen significant growth in mining, construction and tourism which has created high economic standards and a high standard of living, he said.

With the U.S. markets having fallen significantly recently and the significant slowdown in that country’s economy, Brooks said it will likely be another month before Yukoners have a sense of what could come from the situation.

At that time, both Canada and the U.S. elections will have occurred, giving locals a better idea of where each government is headed economically.

What could take even longer is finding out what form the U.S. financial system will take.

“That will take some time,” Brooks said.

He noted the mineral demand in Asia, specifically China, is impacting the territory.

The Yukon benefits from being closer to Asia than many other regions supplying minerals. There’s been a number of agreements between corporations mining and exploring in and near the Yukon and Asian firms looking for minerals.

“China seems to be a very good fit for us,” he said.

While China’s a long way from the U.S., there could still be an impact for the territory from the fallout of the U.S. economy though, Liberal Leader Arthur
Mitchell pointed out during the question and answer period that followed.

Mitchell questioned how much of China’s need is based on its own internal needs for the country and how much is to be used in the goods it exports to other countries like the U.S., which will likely see a decrease in demand for the goods coming from the fallout.

Brooks said that’s one of the questions the department will be exploring over the next few months to determine what the impact could be on the territory.

“Clearly, these are critical things,” he said, noting it’s also not easy to figure out.

Other international situations impacting the Yukon are the potential Alaska Highway natural gas pipeline project and gasoline prices around the world.

Whether it’s from the U.S. economy or the higher fuel prices, the tourism sector in the territory will likely be impacted, the audience was told.

As for investment to tap resources in the Yukon, the territory is well-positioned in terms of land claims settlements and a clear regulatory process through the Yukon Environment and Socio-economic Assessment Act.

It also benefits from being connected through its road network, air access, broadband network and so on, he said.

While there’s uncertainty right now in the global market, he noted the Yukon benefits from a clear vision of where to go.

“The future does look bright,” Brooks said as he wrapped up his presentation.

The business and investment conference is being hosted by the Yukon Chamber of Commerce over the next three days with representatives coming from the Northwest Territories, Alberta, B.C. and Alaska, along with local officials.

Former prime minister Joe Clark is scheduled to speak Thursday evening.