Yellowknife (Nov 03/04) - Premier Joe Handley is hoping a dispute over Newfoundland's off-shore oil and gas revenues doesn't spell trouble for NWT's own ambitions to collect its share of cash from mining ventures.

Newfoundland and Labrador premier Danny Williams walked out of last week's First Minister's meeting after Prime Minister Paul Martin refused to budge on resource royalties received from off-shore drilling companies.

Handley said he was relatively pleased with the funding boost the prime minister offered towards the three territories' yearly basic grants. However, he is troubled by Williams's claim that Martin broke a promise to give Newfoundland 100 per cent of its oil and gas revenues.

"We are just beginning our discussions with the federal government on resource-revenue sharing," Handley said.

"So depending on how those go over the next month, we could find ourselves in the same situation (Williams) is in."

Nonetheless, Handley said he still thinks Martin is in tune with Northern issues and needs.

The prime minister offered $68 million in new money this year, to be split between the three territories. Another $100 million will be added to basic grants for the 2005/2006 fiscal year.

The funding picture could see some big changes after that, depending on what an expert panel recommends for a new finance formula, said Handley.

"A month ago we did really well on the (health care) side," Handley.

"We thought we were doing really well on the (finance) formula side, but I think there is a bit of a disconnect between him and his officials, particularly in finance. But hopefully we've got that behind us now."