Yellowknife (Jan 21/05) - The upcoming split of a major government department will likely take a big bite out of this year's territorial budget, according to the cabinet minister who is overseeing the change.

Brendan Bell, minister of Resources, Wildlife and Economic Development, said the division of his department into two separate entities is still planned for April 1.

The new Department of Environment and Natural Resources will look after wildlife and sustainable development.

The Department of Industry, Tourism and Investment will handle economic development in the territory.

Bell said the division will cost money and require more job positions, although he wouldn't say how much or how many this close to budget deliberations.

"There are additional jobs being created here, there's already work underway, there's additional office space considerations," said Bell.

"It's very difficult to create two departments from one without adding some resources."

Bell said creating two departments means more senior level positions - deputy ministers, regional superintendents - will be needed.

When asked if this growth may lead to budget cuts for other departments, Bell said "funding priorities change."

The territorial government imposed a $20 million cut to jobs and programs last year in an effort to save money.

"This is, in our minds, a priority: to be ready, especially for things like devolution and development," said Bell.

"What's the cost of opportunities we may not be able to take advantage of because we're not ideally organized?"

The split also means new logos have to be devised, new uniforms for wildlife officers ordered, among many other cosmetic changes.

The cost of making those changes will be minor in comparison to the money needed for new job positions and office space, said Bell.

This isn't the first time the government's resource branch has undergone a major shake-up.

In a cost-cutting move in 1996, the three individual departments of Renewable Resources, Economic Development and Energy, Mines, and Petroleum Resources were amalgamated to form RWED.

Despite the cost of making changes again, at least two Yellowknife MLAs feel the government is making the right decision.

"I'm looking forward to this," said Yellowknife Centre MLA Robert Hawkins.

"There's a lot of people that believe (RWED) has conflicting mandates. One side wants to suck the minerals and resource potential out of the rocks, and the other side wants to protect it."

Kam Lake MLA Dave Ramsay agrees. Like Hawkins, he believes division will bring about one more change - a cabinet shuffle.

"I wouldn't be surprised to see Brendan keep Industry, Tourism and Investment," said Ramsay.

"The other department will probably fall under the mandate of another minister. So there could be a bit of a shake up there in terms of portfolios and who gets what."