SOMBA K'E/YELLOWKNIFE - Prime Minister Stephen Harper came bearing gifts for the Northwest Territories Thursday, speeding up promised cash for highway improvements, plus funding a new labour and training agreement to boost the territories' workforce.

Cash for Highways: The GNWT and federal government are in a seven-year cost-sharing agreement totalling $198 million to improve roads and airports in the territory. The federal government is providing 75 per cent of the funding, totalling $140 million. Prime Minister Stephen Harper announced last week that $70 million of that has been sped up to be included in this year's highway projects: Dempster Highway - $28 million Ingraham Trail - $13 million Liard Highway - $12 million Highway #6 - $7 million Mackenzie Highway from km 187 to km 411 - $10 million

The highway funding is part of a seven-year $140 million funding agreement to fix up roads and build new airport terminals. During his brief visit to Yellowknife, the prime minister told a packed crowd of government and business leaders at Joint Task Force North headquarters, plus a large number of Conservative supporters, that $70 million from that amount has been pushed ahead to speed up highway improvements in the territory.

"My government is committed to building on the Dief's legacy," said Harper, referring to former prime minister John Diefenbaker, and Roads to Resources project in the early 1960s.

Kevin McLeod, director of highways with the Department of Transportation, said the funding will go towards improving drainage alongside roads, replacing culverts, and strengthening roadbeds.

On the labour front, Harper unveiled a $7 million, five-year agreement to provide training and skills development programs to NWT residents who don't qualify for employment insurance.

"Our goal must be that aboriginal people and Northerners are the first people hired," said Harper. "We don't want a transient economy."

Inuvik mayor Derek Lindsay was in Yellowknife on Thursday during the announcements. He said he was pleased with the Canadian government's decision to put the "lion's share" of the highway funding toward improving the Dempster, which, he believes, will in turn boost tourism and industry in the North.

"I believe the government supports the Mackenzie Gas Pipeline and they believe there's probably going to be more traffic heading up that highway and it needs to be in better condition," Lindsay said Friday.

When Harper visited Inuvik last August, he didn't meet with the mayor, but Lindsay said he seized an opportunity to shake the prime minister's hand and have a chat about local priorities.

"I just reminded him that we were still waiting for some sort of federal input into the push on the JRP (Joint Review Panel) to make this MGP (Mackenzie Gas Project) thing happen."

But he wasn't impressed with the decision to build the economic development agency headquarters in Iqaluit rather than in Yellowknife.

"I didn't think it was the brightest one, but it's a political decision," he said. "They've got a Conservative (MP) over there so you always reap the benefits of having someone in the party in your riding."

Raymond Kaslak, senior administrative officer for Sachs Harbour, said the North needs an economic development agency and it's about time the government build an Iqaluit headquarters after so many years of focus on the western Arctic.

"Now it's just a matter of the pendulum swinging the other way," he said. "If there's no infrastructure (to support the headquarters), then they can just build it, I guess."

In an interview with News/North, Premier Floyd Roland said nothing concrete came from his discussions with Harper about Northern investment and infrastructure.

"No new agreements came out of it," Roland said Friday.

Instead, the premier said he and the PM reviewed priorities for the NWT. Among the issues discussed were the proposed Mackenzie Valley pipeline and highway, hydroelectric development and devolution.

While there has been an increasing focus on a military presence in the North as a show of sovereignty, Roland said that is just one piece of the puzzle.

"First and foremost, we live here," the premier said. "That is the first form of sovereignty - we're here."

While noting an increased military presence is necessary, Roland said investment, development and having people live in the North are more important.

"It would be a positive step to support Arctic sovereignty," he said.

During the PM's visit to Nunavut earlier last week, he announced the headquarters of the new Northern Economic Development Agency will be in Iqaluit. There will also be district offices in Yellowknife and Whitehorse. Roland said there are pros and cons to having the new agency's head officers in Iqaluit.

"Having the headquarters in the North is a good thing," he said, although he added he is disappointed it is not in the NWT.

- with files from Paul Bickford and Katie May