Finally, we meet
Yellowknife diamond task force challenges Ottawa

Fact file
Yellowknife's diamond task force recommendations to the federal-territorial task force:
Amendments to the regulations that relate to the emerging diamond industry should be delayed to include task force recommendations.
A recommendation as to whether diamonds are just another type of mineral or whether they should be treated differently is required.
A review of international experience and an analysis of options available to Canada.
Review public policy and taxation measures to maximize spin-off benefits to Canada in general and Yellowknife specifically.
A long-term view of Northern development.
Hold meetings in the North with Northern stakeholders.
Release the final report publicly.

by Doug Ashbury
Northern News Services

NNSL (Feb 06/98) - Northern lobbyists are astounded by the federal government's defeatist approach to the development of a Northern diamond industry.

The Yellowknife task force on secondary diamond industries made presentations to the federal-territorial task force on value-added diamond industries yesterday afternoon.

They told federal officials it appears all the government cares about is getting its royalties.

That message was backed up by NWT Chamber of Commerce president David Connelly, who urged federal officials to "put on their Nikes and just do it."

"My perception is that there is a no-can-do mentality on the part of the government," Connelly told the federal delegates. "I am staggered to hear the government has obtained three or four legal opinions about what it cannot do," said Connelly.

"Take that same energy and put those lawyers to work giving you lists of what you can do," he added. "Leave it to our competitors to hire lawyers to tell us what we cannot do."

The Yellowknife task force told federal officials it has yet to see evidence that the Department of Indian and Northern Affairs supports the opportunity presented by the emerging diamond industry.

Ottawa will get $200 million annually from royalties -- and that's just from one company -- BHP Diamonds.

Combined federal and territorial spending for the North's 67,000 residents is about $2 billion.

Diamonds represent a significant step to "self-reliance" the task force said.

The jobs are important, but the Yellowknife task force wants to know what will happen to the money generated after the diamonds come out of the ground.

The value of a diamond increases substantially after mining -- possibly by five times.

"We believe what's missing is support from Canadian public policy," the task force said.

"With all the resources at your disposal and the multitude of programs and legislation, you can find a way (to support a northern diamond industry)," said Connelly.

"If need be, change the legislation so that it can benefit the North," he urged.