Yellowknife (May 16/03) - It's doubtful driving licensing and registration in Yellowknife will return to the private sector, although it remains intact in most parts of the territory.

The GNWT Department of Transportation ended its six-year experiment with privatization in Yellowknife earlier this year after it was unable to persuade anyone to take over the licensing and registration office.

The department was forced to take it over, and is now occupying a space at the Lang Building.

The office is where one goes to renew their driver's licence and vehicle registration or obtain general ID cards among other services.

TC Enterprises, the company who previously held the contract, asked to be relieved last November, said Daniel Auger, DOT superintendent for the North Slave region.

The problem -- no one has been able to make any money at it.

"There wasn't the volume to make it a stand alone business," said Auger.

The original idea behind privatizing the service was so the department could save some money and streamline its operations.

While it's uncertain how much the department has saved through privatization Auger believes taking over the office will not cost the government additional money.

DOT plans to use the service fees originally charged by business -- averaging about $5 per client -- to offset the costs of taking back the licensing office and the three employees required to run it.

To renew a Class 5 licence currently costs $85, and even though Yellowknife South MLA Brendan Bell said he was told the transfer would be 'revenue neutral' he's not holding his breath.

"'We'll see what happens," said Bell.

Frame Lake MLA Charles Dent said he hopes more caution should be exercised with other privatization efforts in the future.

"As far as I can see the semi-privatization in liquor stores sure hasn't brought the prices down, has it?"