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Sharing the wealth

Area Needs to benefit from development: NDP

Malcolm Gorrill
Northern News Services

Inuvik (Nov 03/00) - Making sure the Mackenzie Delta benefits from oil and gas development is a priority for the federal New Democratic Party.

That was the message Dennis Bevington, NDP candidate for the Western Arctic, delivered Monday.

Bevington
Dennis Bevington


"We want to assist to ensure Inuvik's boom economy doesn't become a bust. That's where we're starting from," Bevington said.

"Development doesn't only mean jobs, but it means an economy. Jobs are short term, an economy is something that has lasting value," said Bevington.

"We're also concerned that our public government in the Northwest Territories can't achieve significant amount of revenue from development," Bevington said.

"What revenues are accruing to the territorial government now, through taxation and improved economic activity up here, are being clawed back under our formula financing agreement."

Bevington referred to the fact that the GNWT gets a certain amount of funding each year from Ottawa, but that if the GNWT's revenues exceed a certain base amount, then 80 per cent of the excess is clawed back by the federal government.

"We would recommend the clawback be eliminated," Bevington said. "The clawback is hurting us up here. It doesn't give us the ability to respond to developments the way we should."

This is Bevington's first run at federal politics. He sought the NDP nomination in the 1988 election but lost. He was mayor of Fort Smith from 1988-97.

Bevington visited Inuvik on Monday, and campaigned in Aklavik on Tuesday, and Tuktoyaktuk on Wednesday.

Royalty situation

Bevington said royalties are another big issue, especially in light of oil and gas development occurring in the Mackenzie Delta area.

"Right now there is no royalty transfer to the Government of the Northwest Territories. All the royalties from minerals, oil and gas are delivered to the federal government."

He said the Frontier Lands Gas Administration Act must be updated, as it now shortchanges the royalties to the GNWT.

He said that under that act, a territory receives far less than a province would in royalties.

Bevington used the Chevron well at Fort Liard as an example. If the well had been in British Columbia, then that government would have received 30 per cent of the gross revenue from the start.

On the other hand, Bevington said, the GNWT is to get one per cent for the first 18 months, two per cent for the next 18 months, up to five per cent -- and, once the company has broken even, the GNWT's royalties share goes up to a percentage of net revenues (after taxes).

Bevington said the NDP also wants to protect hunting and trapping, and encourage the development of tourism and renewable energy.