Yellowknife (July 02/04) - Premier Joe Handley predicts the North will have a difficult time getting its agenda on the table now that the Liberals have been returned to power with a smaller, minority government.

He said it could've been worse, however. Canadians could've elected a Conservative government, Monday.

"I think I know where a lot of the Reform-minded/ Alliance-minded are, and that scares me," said Handley yesterday.

"The other thing is that we would've had to begin educating a whole new group of people again, especially with a minority government. We'd run right into that same old trap of all that we'll see for the next two years is politicking rather than getting on with programs for people."

He was disappointed that Western Arctic Liberals didn't offer their views on the North and resource royalty sharing.

Handley posed the question to the four main political parties earlier this month, but he thinks the ruling party still has the best understanding of the territory.

In fact, his first preference would've been to see the Liberals returned to Ottawa with a majority government.

"I didn't think it would happen, but I was kind of hoping for it," said Handley.

"But that would be my first preference because I know Paul Martin. I know a lot of the ministers. We've invested a lot of time and money into educating them on the North."

The premier's one small concern with the new Liberal minority is that few of its rural candidates were elected, which he fears may leave parliament focused on urban issues.

Yet, he is glad to hear all three Northern Liberal MPs were able to retain their seats. He said Western Arctic MP Ethel Blondin-Andrew's close call Monday will serve notice that the Liberals will have to do a better job.

"She's seen as a very loyal Liberal party member," said Handley.

"People mad at the Liberals would've taken it out on her. I think her loss of votes is probably about the same proportionally to what the Liberals lost across the country."