Yellowknife (Oct 02/06) - Some groups in the NWT are reeling after the federal government announced $1 billion in spending cuts last week.

Among other things, the cuts will hit anti-smoking efforts, literacy promotion, volunteerism and the status of women.

The NWT Literacy Council will lose about a third of its funding - more than $300,000.

"The reality is, we've been hit pretty hard and we will have to reassess what we can do," said Cate Sills, the council's executive director.

She noted the council was shocked by the cut, which is all of its federal funding. "I think it's incredibly short-sighted."

The council's reduced funding is a result of cuts to the adult learning and literacy skills program of the Department of Human Resources and Skills Development.

Sills said the council is now assessing what it needs to do to continue its work. "We know there will be a reduction of services to NWT communities."

She noted all options are on the table, including the possibility some of the council's six employees may have to be laid off, or it may even have to shut down, if other funding cannot be found.

The council intends to start a letter-writing campaign to the ministers of finance and Treasury Board, along with the prime minister.

Volunteer NWT will lose virtually all of its funding, after cuts to the Canada Volunteerism Initiative.

Aggie Brockman, NWT's executive director, said the amount lost is less than $200,000, but that is 95 per cent of the organization's financial support."Once you take that out, you've sapped the group of any sustainability," she said.

Volunteer NWT intends to discuss the issue at an Oct. 13 meeting in Hay River.

Brockman said she is puzzled by the cut, noting her group promotes volunteerism, holds workshops and offers support to community organizations. "I don't think it reflects the priorities of the population," she said of the funding reductions, pointing out that the majority of NWT residents are volunteers.

The federal government cut $10.8 million from the First Nations and Inuit Tobacco Control Strategy.

In the House of Commons on Sept. 26, Western Arctic MP Dennis Bevington said more aboriginal Canadians will get sick and die due to smoking because of the cut.

Bevington charged it was another sign of Prime Minister Stephen Harper's arrogance and controlling nature. "At a time when this country has record surpluses, does the prime minister believe saving young aboriginal lives is fat to be trimmed?" the MP wondered.

The Status of Women Council of the NWT is also facing an undetermined reduction in funding.

Five million dollars has been cut from the Department of Status of Women Canada.

Gerri Sharpe-Staples, the council's president, condemned the cuts, while noting the costly gun registry was not eliminated. "This government needs to be taken down now, before we have nothing left. We need an election," she said.

Sixty-six different cuts were announced Sept. 25 and will save the federal government $1 billion over two years.

Finance Minister Jim Flaherty noted it's the first time in nine years that program spending has declined.