Jennifer Pritchett
Northern News Services

NNSL (Nov 11/98) - City council is moving ahead with a grant for Giant mine that will see taxpayers hand over thousands this year for exploration and development.

Council unanimously agreed at its regular meeting Monday night to give Royal Oak Mines Inc. $37,500 this year, despite the fact the company already owes the city $712,164 in property taxes.

Coun. Dave Ramsay cautioned council about approving the grant while the company is still in arrears to the city.

"We can't confuse exploration and development with a tax subsidy," he said. "We can't masquerade a program by the territories to the mine as a tax subsidy."

But, Coun. Cheryl Best said the grant is not a tax subsidy, but, rather, an investment into maintaining a large part of the city's tax base.

"The economics involved in this seem overwhelmingly good for the city," she said. "It is a gamble, but it's not a large amount of money to gamble. This is going toward looking for more mining resources."

The mine contributes more than $30 million to the city's economy annually, according to Royal Oak representative Doug Matthews, who made a presentation to council Monday night.

Due to the declining price of gold, both Giant mine and Miramar Con mine requested financial assistance as part of the exploration and development program with the GNWT and the federal government (through the Department of Indian and Northern Affairs).

Miramar is still facing a strike by its workers and hasn't yet received any funding.

Coun. Robert Slaven, who was also apprehensive about awarding the grant, said the city isn't responsible for helping businesses in financial trouble.

"It's a tricky situation," he said. "There are a lot of businesses in this community experiencing difficulties. We don't have the ability or the mandate to go out and help businesses in Yellowknife."

Slaven also said the company's track record as a corporate citizen in Yellowknife hasn't been all favourable, but maintains that the city should take advantage of the opportunity to help keep the mine open.

"I will say, for me, this is a bit of stretch in trust," he said.

While the city agreed to support the program this year, if it went ahead with it again next year, the cost to taxpayers would rise to $150,000 and $112,000 in 2000.