Doug Ashbury
Northern News Services

NNSL (May 06/98) - Decisions made today will be critical to Yellowknife's economic future, Nexus Group President and chief executive officer Peter Allen said.

Allen, who heads a Yellowknife-based economics consulting company, compares the city's current position to the onset of gold mining here 50 years ago.

"We are at a significant time (but) we've been here before."

Allen believes choices made now will influence life in Yellowknife for the next 50 years.

There is a shift away from government but the city has yet to develop a manufacturing sector. Much interest has been directed at developing a secondary diamond sector in the North.

The city has to decide if it wants to be a "bedroom community" for mines or if it wants to become a "knowledge capital."

"If Yellowknife becomes a bedroom community then we are in competition with other NWT communities," he said. But if the city becomes a knowledge capital its competition is south of 60.

Allen spoke Monday at the two-day Yellowknife Chamber of Commerce economic conference at the Explorer.

But competing with south of 60 will be tough under the current economic conditions in Yellowknife.

According to a Nexus study, employees of BHP and similar mines will save about $7,500 yearly by living in Edmonton or Winnipeg and commuting to Yellowknife.

As well as government and mining, Yellowknife has developed a service sector.

But growth in the service sector depends on growth in government and or mining, Allen said.

Allen also said despite efforts to de-centralize away from Yellowknife to communities like Hay River, Fort Smith, Inuvik and Norman Wells, growth has still followed the capital.

On population, Allen said that after division, 44 per cent of the new western territory's population will live in Yellowknife.

And most people come to Yellowknife to work. A big part of the population is of working age, he said.

Most of the jobs lost in Yellowknife are in government. But, diamond mines will all but wipeout the job losses of the last three or four years, said Allen.

On gold, Allen said the depressed gold price is likely temporary.

Gold had recently jumped to over $310 US but has declined to around $302 US.