Hay River (May 17/04) - Premier Joe Handley has a generally upbeat view of the NWT economy.

Speaking at the annual banquet of the NWT Chamber of Commerce last week in Hay River, the premier listed the strengths of the economy, while noting some social problems.

Premier Handley

Handley said the proposed $7.6 billion Mackenzie Valley gas pipeline has big potential. "It's a huge opportunity for us."

The premier noted he is working with the federal government to ensure the pipeline is built, and it has caught the interest of Prime Minister Paul Martin.

"He's paying close attention to it," Handley said. "It's very much on his radar screen."

Martin has named Deputy Prime Minister Anne McLellan to oversee the federal government's role in the project.

The premier admitted his favourite business sector is tourism, noting it has tremendous potential and puts the NWT on the map.

The GNWT is committed to supporting the tourism industry and ensuring it thrives, he said.

Tourism has faced a number of challenges recently, he noted, listing SARS, mad cow disease and uncertainties in the world. "But I think people are going to survive and do quite well," he said.

The premier said he is also proud and appreciative of what the diamond mining industry means for the NWT.

"Without the diamond mining industry, we would have been one poor territory," he said.

Even though diamond mining is still relatively new in the NWT, he pointed out the NWT has become the third largest producer of diamonds in the world.

Handley also expressed support for the proposed expansion of hydroelectrical generation on the Taltson River.

It will provide revenue to aboriginal organizations, which are part of the group proposing the development, he noted.

The Taltson proposal is moving along, as is another idea to develop hydro potential on the Bear River, he said. "I think we're going to see them come to reality. It's exciting stuff."

However, he noted he was in Lutsel K'e on May 10 to discuss the Taltson proposal with local officials and trappers.

Some trappers were negatively affected by flooding caused by the original development in the 1960s, but were never compensated. That project was undertaken by the federal government.

Handley said there must be a way to deal with the compensation issue without the GNWT assuming legal liability for someone else's project.

"We have to find a way of correcting some of the wrongs committed years ago," he said.

While being upbeat about business prospects, Handley expressed concerns about social trends.

For instance, he noted that while wages in the NWT increased by eight per cent from 2001-2002, the crime rate increased by 8.7 per cent in the same period.

Since 1996, the overall crime rate has increased by 43.1 per cent, drug offenses by 50.9 per cent and violent crime by 16 per cent.

And while Handley says the increases can't all be attributed to an improving economy, he said: "This is the side we often don't pay enough attention to."