Richard Gleeson
Northern News Services

Yellowknife (Feb 22/02) - Much has been made of the enormous impact mega projects such as the diamond mines have on the NWT economy.

Last year, for example, the start of the construction of the Diavik mine contributed to a 33 per cent increase in economic activity in the territory. But it was a stock sell-off by a mystery investment company that had the biggest impact on territorial coffers.

The deal, believed to be a sale of stock, boosted territorial corporate tax revenue by roughly $367 million.

A big chunk of that money was clawed back by the federal government under its formula financing agreement with the Northwest Territories.

The windfall contributed about $80 million to the whopping $160 million operational surplus the government realized at the end of the 2001-02 year, estimated Finance Minister Joe Handley.

"It's made a big difference to us," said Finance Minister Joe Handley Tuesday. Handley emphasized it was a bonus the territories cannot count on in coming years.

The revenue was the result of attractive corporate tax rates in the Northwest Territories.

Citing confidentiality laws, officials refused to divulge the name of the investment company that paid the taxes.