Nathan VanderKlippe
Northern News Services

Yellowknife (Oct 21/02) - Territorial leaders are contemplating pulling out of federal devolution talks before they have even begun in earnest.

Jim Antoine: Hopeful Finance Canada could send a representative to the talks

RWED Minister Jim Antoine said Friday that the federal government has not given its negotiator, David Peterson, a mandate to negotiate on the full financial impact of devolution talks.

Without that mandate, the territory could be left with additional powers but no way to make sure extra money stays inside NWT borders.

"This is absurd. If that's all we're going to be negotiating, then it's probably going to be a show-stopper," said Antoine.

Bob Simpson, the lead negotiator for aboriginal groups, agreed.

"We may get a whole bunch of resource royalties but the federal government may reduce their transfer payments to the territorial government," he said.

"So on the one hand you get more revenues, but they're taking back a large portion of that, so you only end up with 20 cents on the dollar -- that's the way the formula works now."

Antoine and Finance Minister Joe Handley lobbied federal Finance Minister John Manley on the matter last week, but Manley refused to give Peterson the right to negotiate what are called "net fiscal benefits."

"Canadians south of the 60th parallel view us as a colony, so maybe it would be a good idea to recommend that we send our own King Joe (Handley) down to Canada," said Tu Nedhe MLA Steven Nitah, who called for Antoine to seek an alternative solution. "Mr. Manley wants a made-in-Canada monarchy, so maybe King Joe would work."

MLAs on both sides of the house called it a critical issue, with Antoine saying his government was not aware of the matter until last month, when Peterson made his first trip to the NWT.

Simpson said negotiators had known far before, however, saying "It's always been on the table. It's even reflected in the memorandum of intent on devolution that we endorsed in Inuvik last May."

Yellowknife South MLA Brendan Bell said he was surprised by the announcement.

"I feel like there's been some sleight of hand and I'm certainly offended by it," said Yellowknife South MLA Brendan Bell. "To our way of thinking, with control comes some of the revenues that flow from these things, and they're saying, 'Oh, no no, that's up to Finance Canada.' "

Antoine said he was hopeful Finance Canada could send a representative to the talks, which are scheduled to pick up again with a three-day session in Yellowknife starting Nov. 4.