Richard Gleeson
Northern News Services

Yellowknife (Mar 27/00) - The territorial government has traded in its baseball bats -- the tool it has traditionally favoured in its relations with the federal government -- for salesmanship.

"The possibility is very real that for the first time in Canadian history we will actually have a 'have' territory, a territory that can live on the revenue it generates, with almost no federal dollars coming to it," said Premier Stephen Kakfwi.

Kakfwi was describing the message he and Finance Minister Joe Handley took to Ottawa last week. The two met with federal Finance Minister Paul Martin on Wednesday and Indian Affairs and Northern Development Minister Robert Nault on Thursday.

Handley and Kakfwi sold the NWT as a place where a small federal investment today will result in huge benefits to both the North and Canada as a whole.

The benefits would come from the royalties and taxes that would flow from oil and gas projects, including a Mackenzie Valley pipeline, and diamond mine development on the Barren Lands.

Kakfwi said the government made a deliberate effort to appeal to Martin's business background.

"It was important to find some way to approach Mr. Martin that would engage him and not just appeal to his sympathetic side," Kakfwi said.

"He's a businessman, a finance minister, he's got international credibility as a good manager. It was important to find an angle, a scenario that would captivate his attention and get his support. I think we found that."

Kakfwi said he told Martin the government needs help to seize the opportunities that lie ahead.

The formula financing agreement that determines the amount of funding the territories receives takes into account the number of people here as well as spending on municipal services in other provinces.

The downsizing of the territorial government, the closure of Giant and other mines, and reduced municipal spending in Ontario and Quebec have had the combined effect of reducing the federal grant, which makes up more than 70 per cent of the government's revenue.

"Just at a time when we need to maintain the level of service and support we give to communities and regions it appears we have to cut," said Kakfwi.

At a constituency meeting last week, Handley said Martin agreed to consider appealing to his cabinet colleagues to increase the grant if the territorial government was willing to produce a resource development strategy outlining the costs and benefits of increased resource development.

That strategy will be completed in the coming weeks, said Handley.

Kakfwi had sent a letter to Prime Minister Chretien earlier in the week, a letter he said Chretien referred to during a brief informal meeting at a dinner gathering. Chretien made a commitment to meet 'at the first opportunity,' the premier said.

"Perhaps in the twilight years of his prime ministership, in the next four years or whatever -- maybe he will be around a lot longer, I don't know -- he can see aboriginal people and Canada reap the benefits of his foresight and vision of the '70s."

Chretien served as the Minister of Indian Affairs and Northern Development for six years in the 1970s.