Daniel MacIsaac
Northern News Services

NNSL (Jun 07/99) - Fort Resolution is reeling from the news that the community's biggest employer has been left in limbo after the government announced its withdrawing its support.

The NWT Development Corp. said last week that it's cutting funding to its Fort Resolution subsidiary, Great Slave Lake Forestry Products Ltd., following months of speculation on the sawmill's future.

Great Slave general manger Dan Walton said Friday that both the company and the community are in shock.

"I'm sort of in a neutral position as I'm here to run the place, but I'm not too impressed," he said.

Walton said he learned last week that the Development Corp. had rejected the business plan he submitted this spring and that the government was hoping the community might come up with some alternative proposals.

"We're left in limbo," Walton said. "There has to be a decision on ownership and how the financial restructuring will happen."

Walton had said last month that Great Slave was already seeking alternate sources of funding and was hoping to become less dependent on the Development Corp. and more of a viable business in its own right.

Joe Handley, the GNWT's deputy minister of Resources, Wildlife and Economic Development, had said the biggest problem at the sawmill was that it was absorbing more than its share of subsidy funding -- almost three times the target figure of $10,000 per job.

Since the end of the cutting season last fall, the sawmill has been silent, has missed out on the start of the current season and consequently failed to employ the 25 or so individuals who normally work there.

"There are limited options as to what we can do if we want to employ the same amount of people and to be viable," said Walton, who took over as manager just last summer.

"The government has basically said we have to find outside support if we want to remain in business, and we're in communication with the three main groups in the community -- the First Nation, the community council and the Metis Nation local."

Walton said the Dev Corp's intentions and what percentage of the operation it's willing to support is unknown.

"I think that's open -- no-one knows what the structure might be," he said. "The Development Corporation is looking for a way of divesting this business to the community."

Walton said that if an investment group is found quickly, the sawmill might yet catch part of the timber season.

"It depends on how fast people get together," he said. "The logs are here and ready to go."

Both Dev Corp president Fred Koe and RWED Minister Stephen Kakfwi were unavailable Friday, and Tu Nedhe MLA Don Morin could not be reached for comment.