Mike W. Bryant
Northern News Services

Yellowknife (June 05/02) - NWT Finance Minister Joe Handley said he was disappointed but not surprised to hear that Paul Martin would no longer be federal finance minister.

Martin was dismissed by Prime Minister Jean Chretien Sunday afternoon, after a tumultuous week on Parliament Hill that saw Liberal party infighting reach an all-time high, and public confidence in the government plummet.

Chretien named the deputy prime minister John Manley as Martin's successor. Martin stayed at his post for almost nine years after the Liberals were swept to power in 1993.

"I think we (Martin and myself) were developing a good relationship," said Handley. "I liked him."

Handley was in Ottawa only two weeks ago, meeting with Martin and hoping to tap into the federal government's $2 billion federal infrastructure plan.

With a new finance minister in the federal cabinet, Handley is worried some of the progress the NWT has made with Martin will be lost. He cited two instances where Martin found extra money for the GNWT when faced with a cash crunch, coming up with an additional $125 million over the last two years.

"I met with Mr. Manley, but I don't think he has the same level of understanding," said Handley. "I'm not saying anything against Mr. Manley, I just think Paul Martin really knew what our needs were."

Handley declined to comment on the state of Chretien's leadership, saying only that he hoped the prime minister will now divert his attention away from recent scandals and a growing chorus of dissenters, and get on with the business of running the government.

Western Arctic MP Ethel Blondin-Andrew could not be reached for comment.

Liberal riding president Ruth Spence said she was saddened by Martin's departure, but confident in the government's abilities.

"I think it's sad, but the truth of it is the Liberal party is still strong," said Spence, noting that she could speak on the behalf of other Western Arctic Liberals. Spence said she still remains a strong supporter of both Chretien and Manley.

While economic analysts across the country spent last weekend worrying what impact Martin's dismissal will have on the Canadian economy, Yellowknife Chamber of Commerce president Dave McPherson said he does not believe it will cause much harm here.

"I don't think it will affect the economy at all," said McPherson. "Maybe there will be some interest rate hikes, but that was expected anyway."

Unlike Handley, McPherson does not believe Martin was a good friend to the North.

"I don't think Mr. Martin was a champion of the North at all," said McPherson.

"He did start talking about investment in municipalities last week, but he's gone now."