Handley says agreement almost final
Richard Gleeson
Northern News Services
Yellowknife (Mar 30/01) - More federal money will be injected into territorial coffers this year, but just how much the government is not yet saying.
"We've figured out a way to get some investment dollars to us," said Finance Minister Joe Handley last Friday.
"(Federal Finance Minister Paul Martin) is willing to look at our formula (financing agreement) and different ways of interpreting some things in it," Handley said.
The territorial formula financing agreement with the federal government is used to calculate the amount of the annual grant Ottawa provides the territories.
Typically, the grant amounts to more than 70 per cent of GNWT revenues.
Handley said he anticipates agreement on the new interpretation, which would provide additional dollars this fiscal year, being finalized within a week.
"We're not going to be getting a big cheque for $230 million, but we will be getting something," Handley said.
The promise of more cash flowed from a one-hour March meeting with Martin in Yellowknife.
Both ministers emerged from the meeting optimistic. Handley said Martin indicated the federal government was willing to progress on resource royalty sharing and up the territorial borrowing limit of $300 million.
When it comes, the extra cash and extra borrowing capacity will be used to advance a non-renewable resources development plan the territorial government provided to Ottawa last spring.
The strategy, which focuses on developing the roads and other infrastructure that fosters oil and gas and mining development, calls for $100 million in territorial funding and another $230 from the federal government.
So far the federal government has contributed $3.4 million from its Aboriginal Economic Development Fund toward the strategy.
Western Arctic MP Ethel Blondin-Andrew said the lack of action is not indicative of a lack of federal interest in the North.
"Mr. Martin is cognizant of all the issues," said Blondin-Andrew.
