Yellowknife (Feb 04/04) - As expected, Prime Minister Paul Martin committed an extra $2 billion to health care over the next year, but NWT premier Joe Handley said it is still not enough.

During the first minister's meeting held Jan. 30, in Ottawa, Handley said health issues dominated the discussion as the top problem each province and territory is facing.

As part of the $2 billion pledge, the NWT's cut will be $2.6 million, a far cry from taking care of the actual needs of the NWT, said Handley.

"It doesn't come near to satisfying our financial needs," he said.

"The real answer has to be in health reform."

Driving the health care costs in the NWT, he said, are high pharmaceutical costs and the pay required to attract doctors.

With health care costs rising in the North at a rate of about nine per cent annually, Handley said the only solution is a total reform of the system across the entire country.

"I think there is some national initiative that needs to be taken," he said.

Handley said the Prime Minister hasn't shut the door on this issue, and actually committed to another meeting with the premiers in the summer to further discuss a reform, which he referred to as a, "roll-up your sleeves meeting."

As for these future talks, Handley said he won't stage a walk-out similar to former premier Stephan Kakfwi's response in February 2003.

"I was particularly pleased with the Prime Minister's knowledge of the North," he said.

Handley also met with Andy Mitchell, minister of Indian Affairs and Northern Development, to discuss devolution and revenue resource sharing.

Mitchell committed to signing the devolution framework agreement at the earliest opportunity, said Handley, but he was not able to pin down a specific date.

"Mr. Mitchell -- I expect we will see him in the next month or so," he said.

The Prime Minister also showed full support for the signing of the framework agreement said Handley.

"His comments were that he fully supported devolution as both a finance minister and as a Prime Minister," he said.

Paul Martin, meanwhile, has no plans to visit the NWT anytime soon.