Doug Ashbury
Northern News Services

NNSL (Jun 28/99) - What's good for the NWT is good for Alberta, says Finance Minister Charles Dent.

Especially when it comes to developing the NWT's oil and natural gas resources.

Speaking at the Canadian Club Wednesday in Edmonton, Dent said Alberta stands to reap huge economic benefits from the North's resource sector.

At a time when the North has "barely begun" to develop its resources, a huge amount of money already flows from the NWT to destinations south of 60, he said.

"Alberta alone receives roughly $1 billion annually as a direct result of the economic activity in the NWT," he said.

"Take a moment and imagine if you will the economic opportunities that await both north and south of 60 if we can really begin to access our immense resource wealth."

The NWT has an estimated oil reserve of 1.75 billion barrels while the natural gas reserves are estimated at 15 trillion cubic feet.

With recent discoveries, a rising price for natural gas, and predictions of big growth in natural gas consumption in the U.S., interest is on the rise in the NWT's reserves.

Hundreds of billions of dollars worth of known reserves could generate tens of billions of dollars of more economic activity "if these resources are developed," he said.

Dent went on to say that the NWT is experiencing a dilemma similar to one Alberta faced in the early part of this century -- that of control of resources.

Ottawa has transferred responsibility of high-cost programs like health, education, housing, renewable resources and transportation to the territory but "jurisdiction over non-renewable resources, the one program with significant revenue generating potential, remains with the federal government," Dent said.

Gaining control of non-renewable resources would lower the NWT's dependency on transfer payments -- 81 per cent of the cost of running the NWT is paid by Ottawa, he said.

Dent believes if the NWT had more control over its resources it would generate more incentive for Northern development.

Ultimately, that development would benefit all of Canada financially as new oil and natural gas development would expand tax amounts paid by companies to the federal government, he said.