Yellowknife (Oct 06/04) - The creation of a national diamond council will soon be reality.

Resources, Wildlife, Economic Development Minister Brendan Bell called the council the most significant development arising out of the action plan for the National Diamond Strategy, which was released in late September.

Bell said the Northwest Territories joint stewardship of the National Diamond Strategy was a success.

The development of such a council is a way to get all the industry participants and governments together and working toward a common goal, he said.

"It's a way to have industry all on the same page. We haven't had a co-ordinated or collaborative approach," said Bell.

The provinces and the territories have now agreed to move to the implementation stage, said Bell.

He added he would like to see more federal involvement through the development of a centre of excellence for education and training on the diamond industry.

Whether or not such a centre might be located in Yellowknife is still up for debate.

"But we are the only area in Canada with two operating diamond mines so it would make sense," said Bell.

Another area where the federal government needs to improve on is in its support for geosciences, he said.

The report calls on the government to abolish the federal excise tax on jewelry.

Bell explained the excise tax is like a luxury tax.

"Most luxury taxes have been abolished, but the excise on tax on jewelry is the one remaining hold-out," he said.

The report also recommends community consultation work be considered a tax write-off for mineral exploration companies.

"These things do a lot to entice exploration spending. That's key to this whole strategy," said Bell.