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Carney announces $35 billion in Arctic defence spending

Prime Minister Mark Carney speaks at the 440 Transport Squadron hangar in Yellowknife. Emily Blake/Cabin Radio

Prime Minister Mark Carney has announced a historic $35 billion in Arctic defence and infrastructure spending in the Northwest Territories and across the North.

“This is a historic day and this historic day has been a long time coming,” Carney said at the 440 Transport Squadron hangar in Yellowknife on Thursday.

As part of the investment, several projects are being referred to the Major Projects Office, including the Mackenzie Valley Highway, which could connect Yellowknife to Inuvik; the Taltson Hydro Expansion Project, which will double the hydro capacity of the NWT; and the Arctic Economic and Security Corridor, which would connect Yellowknife to the proposed Grays Bay Port.

Construction of the Mackenzie Valley Highway could begin as early as this summer, Carney said.

“Ever since I was a kid in Fort Smith I’ve been hearing about the possibility of the Mackenzie Valley Highway, and I’m not that young. For decades there have been a series of false starts and endless assessments. That record ends today,” the prime minister said.

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“We will build this highway in partnership with territorial and Indigenous governments, so that the benefits promised nearly 70 years ago, are felt in the communities directly.”

The bulk of the investment – $32 billion – will be spent in the Canadian Armed Forces forward operating locations of Yellowknife, Inuvik and Iqaluit, and at Goose Bay in Newfoundland and Labrador.

These investments will pay for airfield upgrades, new or repurposed hangars, ammunition and fuel facilities, buildings and equipment for accommodations, warehousing, IT, and general support.

“This will also build both military power and economic strength. It will enable the Canadian Armed Forces to defend the Arctic without the help of Allies, allowing Canada to take control of our Arctic security,” a Thursday press release stated.

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As part of this new funding, the Inuvik Airport and the Rankin Inlet Airport will each be getting upgrades to allow for larger aircraft to land.

“What we’re doing is creating projects that are – if you will – force multipliers. Their construction will unleash new career opportunities, higher paycheques, faster trips, stronger communities, and they will make large investments possible by connecting the Canadian North and Arctic,” said Carney.

“We are securing every corner of this terrain, unlocking its vast resources, and delivering the strong, connected network of communities that Northerners deserve,” Carney was quoted as saying in the Thursday release.

“In this new era, we cannot rely on other nations for our security and prosperity. We are defending and building together, the true North, strong and free.”

Carney said he’s heading to Norway on Thursday evening to strengthen partnerships with northern allies, and to England next week to discuss reinforcing collective defences.

On Thursday afternoon, the Sahtu Secretariat, Gwich’in Tribal Council and Pehdzéh Kı̨ First Nation issued a joint press release expressing their support in principle for the Mackenzie Valley Highway.

Collectively, they also expressed their commitment to work together to advance the project and said they are working on a joint Memorandum of Understanding.

“Work by SSI, GTC, and PFKN to advance this proposed project will occur through a co-designed process with the governments of Canada and Northwest Territories and deep engagement with their respective communities to protect the land, water, wildlife, culture and Indigenous ways of life, and secure long-term economic, employment, and training opportunities,” the release said.

Emily Blake contributed reporting.