Mike W. Bryant
Northern News Services

Yellowknife (July 05/02) - Premier Stephen Kakfwi's worries over a proposed Alaska Highway pipeline route appear to be over.

Premier Kakfwi: "The debate seems to be over."-

The premier held a press conference Wednesday to announce he was pleased that the White House was opposed to a Congressional legislation that would have given the Alaskan route a substantial subsidy if it were to pass.

U.S. Secretary of Energy Spencer Abraham wrote a letter to the committee chair W.J. Tauzin June 27, saying he was opposed to any subsidy for an Alaskan pipeline.

A joint House-Senate committee is trying to reconcile versions of separate bills originating in both chambers.

Abraham wrote that the subsidy would "distort markets, could cost well over $1 billion in annual lost revenue, and would likely undermine Canada's support for construction of the pipeline and thus set back broader bilateral energy integration."

Kakfwi said the U.S. administration's opposition to the subsidy all but guarantees that a Mackenzie Valley route will proceed first.

"The main producers are categorically against (the subsidy), the Canadian government is categorically against it, and the U.S. administration is against it," said Kakfwi.

"The debate seems to be over."

Natural Resources Minister Herb Dhaliwal told The Canadian Press last week that he was pleased with the U.S. administration's position.

"I think they've basically accepted the Canadian position which is to subsidize the Alaska Highway (route) really doesn't benefit anyone in the long term," said Dhaliwal last Friday.

Kakfwi said he will continue lobbying against it to ensure that it does not pass.

"The ministers in Ottawa have also said they will continue to convey the position to the States, industry and the White House administration," said Kakfwi.

"The lobbying will continue."