Yellowknife (Apr 08/05) - The Auditor General of Canada says the federal government is not doing enough to fulfil its responsibilities for managing non-renewable resources in the territory.

Auditor General Sheila Fraser unveiled her report Tuesday, which criticizes the Department of Indian Affairs and Northern Development on four counts: accountability on federally-appointed boards, board member training, ambiguous language in legislation pertaining to boards, and a lack of definable water standards.

Her report referred mainly to the department's relationship to the Gwich'in, Sahtu, and Mackenzie Valley Land and Water Boards and the Mackenzie Valley Impact Review Board.

All were created after DIAND implemented the Mackenzie Valley Resource Management Act in 1998 with an aim to give aboriginal peoples more control over resources in the territory.

"I think DIAND, when the boards were established, wanted the boards to operate independently and really took a hands-off approach," said Fraser.

"What we're saying now is that they do have the ability in the legislation to set water standards. As well, they should be giving some guidance to the boards on terms that aren't very clear."

Fraser said terms in the management act like "might have a significant impact" or "may be a cause for public concern" have caused unnecessary delays in getting some development projects off the ground, although her office didn't provide any specific examples.

She said without clear definitions, it's difficult to determine what really poses a "significant impact" or a "public concern."

She said other problems her office noted were that there weren't any consistent water standards in the NWT, which means industry doesn't know what target to shoot for when proposing a development project.

Also, new board members aren't given clear instructions after they're appointed, which may prevent them from making informed decisions.

Another area explored was the annual reports submitted by the boards at the end of the fiscal year. Fraser said they provide financial accounts of their activities but don't offer explanations behind the decisions they make.

She said DIAND has since responded, and agreed to make some changes.

"They will be working to develop some common principles on some of these things so I think it will be a positive move," said Fraser.

Ian McGregor, director general of Natural Resources and Environment for DIAND in Ottawa, said the department will tighten guidelines, for the boards, but some changes may be easier than others.

He said uniform water standards may be a problem because not all bodies of water in the territory are the same.

"For example, just around Yellowknife the background levels of arsenic are fairly high," said McGregor.

"So you wouldn't use the same standard in Yellowknife as you would in Norman Wells."