Yellowknife (May 20/05) - Inuvik will be the community hardest hit if the pipeline is scrapped, according to the town councillors, who met Wednesday to hash out an action plan to support the $7-billion project.

"What is the impact if the Mackenzie Valley Gas Project does not get built?" asked councillor Paul Komaromi, former Inuvik mayor.

"We're millions of dollars in debt, we'll be in big trouble."

Imperial Oil announced April 28 that it was halting all non-regulatory work on the pipeline because of complications with aboriginal groups and the regulatory process.

"This has already affected what, as far as I can tell, is the biggest construction season this town has ever seen," said councillor Tom Zubko, another former mayor and owner of New North Networks.

"It is sucking close to $30 million in building activity out of town, with the number of projects already cancelled this summer."

Construction of 36 housing units was recently called off and local business people are already feeling the effect of these types of moves by cautious investors.

After accepting a list of actions the town has already taken, such as meeting with oil and gas officials, ministers and initiating the Inuvik Petroleum Show, council set out a plan of attack.

Hiring a resource person to study the effects of development and keep council informed about the pipeline project was first on the list.

Second was to find the funding to pay for the position.

"We'll have to see how much money we can get. It may be a full-time or as-we-need position," said Mayor Peter Clarkson.

More trips to Yellowknife and Ottawa to lobby governments was highlighted as well as the need to get more media attention about what will happen in the area.

Council also hopes to engage the community in the issue and will host a public forum in the next few weeks.

"We need to be cautious about development but not halt it," said councillor Denny Rodgers.

Tom Zubko, who has been through the boom and bust in Inuvik before, said caution may not be enough.

"We're talking about stepping back (from planned projects) for the next three months," he said of his business.

"You can't defy history, these situations have happened before, not just related to oil, and the economy will crumble," he continued.

"There will be an exodus from town if the project is stopped."