Yellowknife (Sep 20/04) - A new infusion of cash for health from the federal government will barely cover the costs of what the department is spending right now, says the territorial health and social services minister.

Premier Joe Handley painted a rosy picture coming out of the First Minister's conference with Prime Minister Paul Martin last week, but Health and Social Services Minister Michael Miltenberger said he doubts there will be a significant amount of money left to invest in new health projects.

"The point that keeps getting lost in the discussion is how much the provinces and territories are already spending," said Miltenberger.

"We're spending huge amounts of our (overall) budgets. We're at 25 per cent or 26 per cent and climbing, just on health."

A deal reached between Martin and the provinces and territories Thursday will give an extra $10 million a year for health to the NWT, plus another $10 million a year through a separate agreement made with the three territories.

The NWT is already taking in another $6 million a year for health from an agreement made between former prime minister Jean Chretien and the territories two years ago.

However, Miltenberger said, the territorial government committed to cutting $15 million out of the health and social services budget this year to fight the deficit -- leaving, in reality, only about $11 million a year in extra money for health.

Miltenberger said any new money will be mostly absorbed into paying for already existing programs. To make matters worse, he said, looming contract negotiations with the Union of Northern Workers -- who represent medical staff other than physicians -- could take a significant bite out of any new gains out of Ottawa.

The current health and social services budget rings in at about $247 million.

"We already have a whole host of initiatives underway that, when the money is finally ready to flow, will allow us to move on those initiatives," said Miltenberger.

"We're not going to be embarking on a whole new range of spending. We've been in the reform business for the last three years."

Miltenberger said one silver lining coming out of the First Minister's Conference is a commitment from the prime minister to pay half the travel costs for medical services that will likely be above and beyond the money he already promised. Those details still have to be worked out, though.

A press release issued by Western Arctic MP and Minister of State for Northern Development, Ethel Blondin-Andrew, indicated that she was "delighted" with commitments made during the First Minister's Conference, particularly the $700 million allocated to improve aboriginal health.

Blondin-Andrew was on her way to Washington, D.C., and could not be reached for comment.