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Joe & Paul agree

Talk about debt wall, resource royalties

Kevin Wilson
Northern News Services

Yellowknife (Mar 07/01) - A proposed resource royalty agreement and a hike in the debt wall seem to be closer to reality after a Sunday meeting.

Federal Finance Minister Paul Martin's Challenger jet landed at the Yellowknife airport 20 minutes prior to his 2:30 p.m. meeting with territorial counterpart Joe Handley. He was greeted at the terminal by both West Arctic MP Ethel Blondin-Andrew and Lynda Sorenson, chief of staff to Premier Stephen Kakfwi.

At precisely 3:30, the two Finance ministers emerged from their meeting to talk with reporters gathered at the legislature.

"This is a good news story for the North and it's a good news story for Canada," a relaxed-looking Handley told reporters after the meeting.

According to Handley, Martin told him that the "door was open" to move on the issues of resource revenue sharing and the debt wall.

"The fact is, I've had a very, very good meeting," Martin said.

While neither Martin nor Handley would provide a firm date for changes to revenue sharing and debt wall, Martin said that action on these issues would take place, "a lot sooner than if this meeting had not gone well."

Handley added that he expected that the territorial borrowing limit "will be increased in time for us," to complete its ambitious highways program.

In the NWT, royalties from resources are paid to the federal government. Ottawa also caps the GNWT's capacity to borrow at a maximum of $300 million.

The NWT currently has about $251 million in debts, and wants to borrow $100 million over the next four years to upgrade the territorial highway network.

Martin said that officials from the federal government will meet with territorial officials to work out details.

"We've made considerable progress," said Martin.