Yellowknife (Sep 24/03) - Indian Affairs minister Robert Nault has the final say on De Beers' Snap Lake diamond project, Western Arctic MP Ethel Blondin-Andrew said last Friday in a speech to the Yellowknife Chamber of Commerce.

"Minister Nault has the ultimate authority," Blondin-Andrew said after a question from City Councillor Kevin O'Reilly about De Beers' refusal to provide diamonds to Northern gem processors.

In her speech, Blondin-Andrew touched on the Snap Lake project and Premier Stephen Kakfwi's recent threat to withdraw support from the Mackenzie Valley Pipeline if an agreement on resource revenue sharing is not reached with Ottawa.

O'Reilly said De Beers officials had promised to provide diamonds to Northern cutters and polishers but "now I read in the paper they're reneging on that promise."

Blondin-Andrew said that her "interest is to see that Northerners see the benefit" of the mine and was confident that the project will go ahead.

"Ethel needs to use her authority so that Northerners benefit," O'Reilly countered.

"I'm really quite perturbed they've reneged on this commitment."

Chamber president David McPherson asked Blondin Andrew about Premier Stephen Kakfwi's threat to withdraw support for the Mackenzie Valley Pipeline.

"Kakfwi expressed a threat to withdraw support from the pipeline if there is no agreement on devolution," said McPherson.

Blondin-Andrew said that "threatening creates instability -- you can't threaten and walk away" and urged patience in reaching an agreement over the transfer of federal powers to the territorial government.

"I'm a big believer in incrementalism," she said.

"Devolution is critical; it provides province-like authority for oil and gas and other non-renewable resources. I don't think you can achieve everything in one step."