Yellowknife (Apr 02/03) - Most small NWT firms are optimistic about the future -- despite rising costs and pressing labor shortages.

But tourism firms especially are concerned about the impact the war in Iraq will have on business this summer.

Those and other findings came out of a CFIB survey of NWT member firms last week.

The survey coincided with a visit to the city by the CFIB's Corrine Pohlman, director for Alberta and NWT.

About half of the companies surveyed said the war could harm their business, said Pohlman.

"Companies are concerned about the impact of the war on fuel pricing -- which is already significant in the North -- and a decrease in international tourism if the conflict is not resolved quickly."

The survey also revealed:

* Three of four small business owners in the territory say they expect business will improve this year, while only four per cent think things will get worse.

* About two-thirds expected to add staff in the next 12 months, while the other third anticipated maintaining staffing at existing levels.

* Sixty per cent of the companies reported rising input costs over the past 12 months.

* Labor shortages were experienced by 93 per cent of the firms in the past year. Half said the situation is getting worse.

"While most firms remain optimistic, there are strong concerns with prices and labour availability," said Pohlman.

"Increasing fuel prices, utility charges and WCB premiums are all adding to the cost of doing business in the North."

The CFIB has about 100,000 members in Canada and 200 in NWT.