Yellowknife (Feb 12/03) - As the GNWT enters this year looking at a $100-million deficit, resource revenue-sharing talks are "critical," says finance minister Joe Handley.

"Right now the federal government is taking all of the royalties," Handley said, adding the bulk of the NWT's corporate taxes -- 80 per cent -- also goes to the feds.

"Ottawa is doing very well off the Northwest Territories, but we need some more of that money to stay in the North."

"We're struggling along here. We have all kinds of economic activity going on, but we retain so little of it."

The territorial budget being tabled Thursday is expected to tackle big issues like infrastructure (mainly transportation), social services and health.

He said the GNWT doesn't have a lot of options, arguing the federal government holds all the cards.

"We're stuck with whatever they choose to give us.

"If Ottawa doesn't understand this, we won't be able to operate as a government. We cannot expect 42,000 people to pay for all this economic development that is happening."

MLA Charles Dent agreed with Handley that the deficit budget is a concern.

"It's critical Ottawa pays attention," he said. "Clearly they're not."

Dent said the feds continue to treat the NWT "as if we're here with our hand out, but we've continued to demonstrate to them if they would help us with infrastructure, the returns to Canada would be ten-fold."

Health care continues to be major issue, contributing to 25-30 per cent of the $100 million deficit, Handley said.

"We'll see what the federal government comes up with. If we're not able to come up with some better deal, I don't know what the alternative is. I guess we go further into debt. And that debt has to be resolved at some point."

Last week's health-care funding fiasco proved the feds still have a lot to learn about the North, Dent added.

"I think they're really missing the boat when the windfalls of all economic activity flows south of 60," said Dent.

"It's costing them a lot more money not to invest in the North up front."

Mayor Gord Van Tighem said he doesn't expect a "windfall" from Ottawa when the federal budget is tabled next Tuesday.

He only hopes that budget will assist, not hinder his growing city.

The city's focus continues to be housing, the mayor said.

"We need to see support within the housing corporation," he said, adding,

The mayor said he would also like to see the territorial government broaden its involvement in municipal infrastructure.