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SOMBA K'E/YELLOWKNIFE - In January's throne speech, the federal government committed to starting up a long sought after Northern economic development agency with a five year, $50 million investment. One MLA believes the agency should be located in Yellowknife.

Kam Lake MLA Dave Ramsay thinks Yellowknife would be the obvious place to set up the office because of its central location between Nunavut and the Yukon, an abundance of federal government staff already in place in the city, along with its proximity to major diamond development, the potential for a Mackenzie Valley pipeline and highway in the near future.

"We have to put our best foot forward," said Ramsay.

Premier Floyd Roland said the government has already been involved in discussions with federal ministers about the location of the office and agrees the NWT is suitably located for the office.

"We've already started making the business case that because of our location - central to the North - and the economic opportunities in the Northwest Territories, that it makes absolute sense that that agency be based in the Northwest Territories," he said.

Ramsay acknowledged Nunavut may have an advantage in negotiations for the office, with the Eastern Arctic's Leona Aglukkaq being a high-level Conservative MP and federal health minister.

"That's a fear," said Ramsay.

"I don't think who your MP is should make a difference," he said.

"But it's politics."

Patricia Valladao, a spokesperson for Indian Affairs and Northern Development, said the federal government will be meeting with all three territorial governments and aboriginal groups to get some direction on what they'd like to see out of the agency.

She said it was too early to know how many positions would be created from the office and where it would be located, but said it was her understanding the federal government was considering setting the agency up in the North.

"Existing regional development agencies have a headquarters in the region," she said, adding there are additional satellite offices in the region, with a small policy centre in Ottawa.

"This could possibly serve as a model for the Northern development agency," she said.

"But nothing is set in stone because it's too early."

Last Thursday, Roland said he would be meeting with Indian Affairs Minister Chuck Strahl "in the upcoming days."

Along with concerns about the office, Ramsay said it was time Northern development positions in Ottawa and Gatineau, Que. moved North.

Ramsay said 10 senior policy adviser and analyst positions on Northern development have recently been posted with Indian and Northern Affairs and the positions are slated to be located in Gatineau, Que.

"Not Iqaluit, not Whitehorse and not Yellowknife," said Ramsay.

These 10 positions will sit alongside hundreds more in Ottawa and Quebec which are related to Northern development - including what Ramsay says are 29 positions in Northern oil and gas development.

Roland said the government still needs to hash out a devolution agreement so Northerners can take over the positions and make decisions about their our own "front yard."

Ramsay thinks the spin-off from these 10 senior policy positions, and the 29 oil and gas positions, could inject millions into the local economy.

"Devolution or no devolution, the positions should be in the North," he said.