Dave Sullivan
Northern News Services

Hay River Reserve (Mar 11/02) - Plans to turn a former abattoir into an oil and gas centre is getting federal government help.

The Department of Indian and Northern Affairs will give the Hay River Reserve $441,000 to build a grocery store in the abattoir building, a failed business which cost taxpayers millions a few years ago.

Renovations began last year, when the reserve bought the abandoned property for $300,000. Then the territorial government chipped in a $288,000 grant for an oil patch company joint venture owned by Doug Cardinal and Harry Deneron to set up on the same lot.

The latest $441,000 goes entirely to the reserve, which will run the new store.

It is within Hay River's town boundary, just off Mackenzie Highway.

An existing store on the reserve will continue to operate for at least five more years, said economic development officer Al Mailo.

The town of Hay River has just one full-size grocery store, a Northern.

"I think this probably will provide for some healthy competition, but I don't think it's going to ruin anybody's business," said Liberal MP Ethel Blondin-Andrew. She was on hand for the March 5 funding announcement.

The 6,000 square-foot store will sell groceries to the public but be connected to oil and gas by focusing on bulk sales to work camps and barge orders.

"The project will create local jobs and provide new economic development opportunities for the region in the oil and gas industry," said Chief Pat Martel.

He and others are pinning hopes that oil and gas companies will gravitate to the area.

"We're positioned as a First Nation to look at industries that want to establish in the Northwest territories," Mailo said.

Blondin-Andrew said "If anything happens with oil and gas, Hay River is physically located in the right place to grab a lot of the opportunities."