Daniel MacIsaac
Northern News Services

NNSL (Apr 21/99) - In delivering his first budget and the first budget of the new Northwest Territories, Finance Minister Charles Dent said the territory is at a crossroads.

Addressing the assembly Monday, Dent said that down one path lies increased dependence on federal transfer payments while down the other is increased financial independence and responsibility.

"I am an optimist," said the Yellowknife Frame Lake MLA. "I believe that we will, together, choose the road that gives Northerners the best chance to succeed and to live up to our potential."

But in outlining the territory's financial position, Dent balanced optimism with a harsh financial reality.

"The key message is we have one year to deal with a serious revenue problem," he said.

Dent said the $742- million budget is not balanced -- anticipating expenditures to exceed revenues by some $34 million -- but that this deficit will be offset by the current budget surplus.

The finance minister said the territory's economy has been affected by the global downturn in the demand for resources, such as gold, and that a slow revenue growth has resulted. On the other hand, he said the greatest potential for revenue growth lies in developing the territory's nonrenewable resources -- like natural gas, oil and diamonds.

"We need control over our resources and a greater share of the benefits they generate," he said.

If Ottawa will not budge on the status quo, Dent said, the NWT should promote increased economic activity while fighting for enhanced control over future revenue.

"The solution to our fiscal problem is to increase the size of the fiscal pie," he said.

Dent said this situation necessitates talks not just with Ottawa but with aboriginal groups in the NWT, which are anxious to clarify their resource control within the context of treaty claims and self-government. Dent was foreboding about the territory's fiscal future but said he was confident all sides would talk.

"The big difference now is the financial situation we find ourselves in," he said. "I don't know if aboriginal groups are prepared to come to the table, but I'll point out that if they don't, we're in trouble."

At a reception in the Great Hall following Dent's speech, Premier Jim Antoine confirmed more efforts would be made to speak to both federal authorities as well as aboriginal leaders about changing their fiscal relationships.

"In meeting with (Minister of Indian Affairs and Northern Development) Jane Stewart, she's supportive of the initiative," he said, "and in talking to (Finance Minister) Paul Martin, he was leery at first...but when we told him we weren't there looking for more money but to talk about the principles of the agenda on eventually how the Northwest Territories could pay their own way, he was still leery, but he was willing to listen."

Also reacting to the budget speech was the NWT Chamber of Commerce.

"The minister clearly articulated that the North has one year in which to address its fiscal realities," the chamber said in a statement, adding, "There is some concern amongst the 1,200 member businesses that using the full amount of surplus may cause the government difficulty next year."