Inuvik (Aug 29/03) - The big question facing negotiators of the Beaufort Delta self-government agreement is, "How will the new government be funded?"

Bob Simpson, chief negotiator with the Beaufort Delta Self-Government offices, said the teams are pondering the costs associated with self-government.

"How big is the difference between what is the funding available and what it will actually cost and how do you fill that gap," Simpson said.

The teams are faced with three exercises: one is to find out what are the existing resources available to fund self-government, another is to determine the cost of the Agreement in Principle (AIP) and how it will be paid and the third exercise is to identify sources of home source revenues.

One source of revenue will be through income tax and GST, which will be collected by the federal government and returned to the region. Property tax is another option available to each community government.

Devolution and resource royalties are another potential source, but that still faces many hurdles.

The three levels of government need to agree on how the resource money will be shared among aboriginal, territorial and federal governments, but Simpson said now is a very difficult time to negotiate such a sensitive topic, since it is an election year.

"(The GNWT) are kind of unwilling to make any controversial decisions right now," he said. "It's not going to be a 50/50 split, but in the long term, it may end up there."

Each community in the region will operate under a community constitution, rather than territorial legislation. Each community is currently working on their constitutions and Simpson said about half have drafts completed. As well, there are some planning exercises to determine when they will be ready to take over authorities.

The self-government office is working on an evolving implementation plan that's being drafted from the AIP as new matters are agreed on.

There has been some negativism surrounding the agreement, such as the cancelled signing of the AIP last summer by some Gwich'in chiefs, but Simpson said that issue has since been ironed-out.

"If there is a Gwich'in government that incorporates band council concepts along with the land claim, Gwich'in institutions won't be so fragmented," Simpson said.

While many have isolated negative issues in self-government, he said there are also many positives to the agreement.

The town of Inuvik will serve as the regional hub for services to the area.

"There will be a lot more local control," Simpson said. "People won't have to go to Yellowknife and Ottawa when they need a decision."

The financial picture will also be a benefit from the new government.

"If not an improvement, there will be a lot more control over the finances and a lot more flexibility," he said.

The regional government will also have better accountability towards taxation.

"If you're paying taxes here you'll expect to see the services here," Simpson said. "You'll see those dollars more available and we'll make the decisions over how they will be spent."