N.W.T. Premier R.J. Simpson spoke about the territory's big challenges – from illegal drugs to finances – during his first territorial address on Tuesday.

His speech came the day before the 20th Legislative Assembly's first session of the calendar year was set to begin.

"The number one issue I hear about is the increasing presence of illegal drugs," said Simpson, who also serves as the territory's minister of justice.

Simpson said drug-related crimes have risen significantly since the pandemic.

He said creating a seven-person crime reduction unit within the RCMP last year was a step toward increasing public safety. The unit targets drug trafficking and organized crime and fills a gap in resources for in-depth investigations, he said.

Simpson said the government is also introducing three new pieces of legislation to give the RCMP and communities better tools for dealing with crime.

A piece of legislation known as SCAN (which stands for Safe Communities and Neighbourhoods) will allow authorities to shut down properties that are actively harming communities, including homes being used for drug trafficking. New trespass legislation, meanwhile, will make it easier to remove people from properties if they are not allowed to be there and are involved in criminal activity.

That'll help in cases where drug trafficking in apartment buildings has put people at risk, he said.

Finally, civil forfeiture legislation that Simpson plans to introduce would allow police to permanently seize cash and property linked to illegal drug activity, even if no criminal charges are laid.

Simpson said currently if an individual is arrested with drugs intended for trafficking with large amounts of cash, the money is seized. However, if that person is not convicted, the money is returned to them.

But Simpson also acknowledged the territory can't enforce its way out of a drug crisis. He encouraged those struggling addiction to seek support.

Simpson also addressed another challenge — the territory's finances.

He said his government has taken a pragmatic financial approach and introduced a fiscal responsibility strategy last year to work on reducing debt. The goal was to find $150 million a year through spending cuts and revenue increases.

Simpson said the government hasn't reached that goal. However, by striving toward it, he said the territory has kept a financial crisis at bay.

Simpson said climate change is underscoring the need for the Mackenzie Valley Highway project.

He spoke about last summer's wildfire evacuations of Fort Good Hope, about visiting Fort Good Hope and Norman Wells, where he met with evacuees and discussed the Sahtu's challenges with local leaders.

"I also met with local leadership and the Chamber of Commerce to discuss the growing impacts of barge disruptions and the additional strain caused by the wildfire response. I've carried those conversations with me ever since," Simpson said.

Simpson says the cancelled barges and the resulting rising cost crisis have shaped work with the Sahtu's leadership, MLAs and the federal government.

He says this led to nearly two million dollars in funding to help keep supplies moving and to lower fuel and heating costs for residents in Norman Wells.

Simpson says the Mackenzie Valley Highway has been in talks for decades, but this year's drought and critically low river levels have put it in the national spotlight.