As a result, the plant closed its doors, possibly for good, last Saturday, according a government press release.

The department of Resources, Wildlife and Economic Development has subsidized the operation to the tune of $300,000 -- at a rate of more than $20,000 per month for the past 15 months.

Due to the government's current fiscal situation, it is no longer able to provide the financial resources necessary to sustain operation of the abattoir. "It's facing significant losses and there's no improvement in sight," says Doug Doan, executive director of resources and economic development.

Efforts have been made to attract interest from the private sector, but to no avail, RWED Minister Stephen Kakfwi said in a press release.

"The department will continue to pursue various alternatives in an effort to re-establish the operation on a more viable basis, or find alternate uses for the facility," Kakfwi said.

"I want to assure you that every opportunity will be examined to see the facility is utilized as soon as reasonably possible," he added. "However, given its losses, we cannot continue to fund the operation."

Initial funding was provided for the abattoir in 1995 through the Economic Development Agreement. Its management has been under the government control since it opened.

"It hits us at the worst possible time," says Hay River Mayor Jack Rowe. "Where it's hurting us is the cutback in spending and the insecurity of employees left (in Hay River)," he says.

People have curtailed their spending, and it's been tough on the retail sector. Rowe says the town figured it had 3,800 residents, but a recent census put the population at only 3,600.

If government can't make a go of it, he wonders, how can entrepreneurs?

"If RWED finds ways to do this type of business, that's a bit of a commitment. It will set the tone for where agricultural development will go in this area," he says.

The operation has employed up to six people since it began.

The plan was to construct a comprehensive meat-processing facility, capable of producing a broad variety of products.