SOMBA K'E/YELLOWKNIFE - Premier Floyd Roland is willing to continue devolution negotiations without aboriginal support.

"The process has been laid out and the door remains open whether they want to be in at the start or join in along the way," said Roland.

Premier Floyd Roland speaks to reporters about his devolution agreement in principle. After a copy of the draft deal was leaked, the premier's office has faced an onslaught of questions and accusations. - Aaron Beswick/NNSL photo

Last night was the deadline for aboriginal governments to respond to the agreement in principle on devolving province-like powers from the federal to the territorial government. As the territory's chief negotiator, Roland still needs cabinet approval to continue. Cabinet will make its decision after reviewing responses from the aboriginal governments.

But those governments aren't biting - aboriginal leaders from 29 communities descended on Yellowknife to discuss the agreement in principle and passed a resolution widely condemning it last week.

"We're invited to be parties, but it is after the fact that the feds and the territorial government put a package together and we never got a chance to fend for ourselves at the table," said Dene National Chief Bill Erasmus.

"When you work on an AIP, the AIP is 90 per cent of what you're going to get. You've got to get the changes in before you're going to sign it."

So the territorial and aboriginal governments are facing off.

But what is the agreement in principle? What does it mean for future powers and revenues? Where does it come from?

The agreement in principle lays out three pots of money - one time transitional grants from the federal government to its territorial and aboriginal cousins, annual operating grants and resources payments.

The territorial government would receive $26.5 million and the aboriginal governments $3.9 million from Ottawa for transitional costs associated with devolution. The GNWT gets $4 million from its share after signing the agreement in principle and the rest after a final deal, while the aboriginal governments can negotiate the timing of their share. If devolution negotiations fall through, these grants have to be paid back.

The GNWT receives $65.3 million annually for administrating land and water resources, on top of the annual operating grant ($864,161 million for 2009 - 10 fiscal year). The aboriginal governments receive $3 million annually for the same. While the federal government wants the amounts fixed, the territorial government is demanding they be indexed as of 2005, so funding increases with inflation.

The territorial government gets resource royalties that formerly went to Ottawa. However, for every dollar it receives in resource royalties, it will lose 50 cents off its annual operating grant from the federal government. As well, resource royalties are capped at five per cent of the territory's budget ($1.3 billion for 2009-10). GNWT calculations state that over the past five years, the deal would have meant $206.8 million in increased revenue for the territorial and aboriginal governments.

"It was an exciting time," remembered senator Nick Sibbeston of becoming the Northwest Territories' first official premier in 1986. "We were just young and inexperienced in running government, but it was the introduction of democracy into the North."

Over the preceding years the territorial government had taken the reins of power from the federal government one portfolio at a time: housing, health, personnel - elected Northerners were running the North.

It was a big deal.

"It wasn't just about devolution, it was about doing things better," remembered Sibbeston. "We were closer to the ground, more practical. If Ottawa could build one house for $500,000, we'd build five."

The last set of reins held by Ottawa is control over lands and waters.

That's what this devolution agreement is about - transferring control and the consequent benefits from selling access to natural resources to elected Northern governments (aboriginal and territorial).

The debate is about the division of power and revenues between the aboriginal and territorial governments.

The Yukon took this step by signing a devolution agreement with the federal government in 2001. While similar, the Yukon's agreement came after land claims were settled with all its aboriginal governments. The GNWT and aboriginal governments, meanwhile, have been in talks on and off with the federal government about devolution since 1988 despite the Deh Cho, Akaitcho and Metis not having settled land claims.

Those claims state which areas of land aboriginal governments have surface and subsurface rights to.

"The claims will have to be settled - even though these groups don't have land claims, they will want to be at the table," said Sibbeston. "This devolution will take at least a decade, we're looking long term."

Roland, meanwhile, is aiming for two years for a signed devolution agreement.

He said devolution is a necessary step before the Northwest Territories and its aboriginal governments come to final agreements on how the territory is run.

"There will be future discussion on the constitution as we settle self-government. There have been past discussions and reports, but we felt the need to go this step first and bring more clarity. Do we move it the next step, or do we once again stall?"

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