Jason Unrau
Northern News Services

Inuvik (June 24/05) - Those waiting for a big pipeline announcement at the Inuvik Petroleum Show last week will have to wait longer.

As the fifth annual trade show and conference ended Thursday, the impasse between First Nations, governments and participants in the Mackenzie Valley gas project remained.

Deputy Premier and Finance Minister Floyd Roland, who attended the event, says that a social impact funding agreement with Ottawa, which would provide money for communities along the proposed pipeline's corridor should be hammered out "in a few weeks."

$100 million

"The territories are asking for $100 million, but word is that the number the feds are looking at is considerably lower," he said. "We know that they are coming up here at the end of the week and what we're hoping for is to find some common ground."

As well, once the federal budget is passed, the NWT will be eligible for another $40 million worth of Northern Strategy money. This deal is the fruit from negotiations between the three territorial premiers and Ottawa following the 2004 Premiers Conference.

When the total $120 million becomes available, there will be two options for the Yukon, NWT and Nunavut: take the lump sum or be paid out $40 million over three years.

Premier Joe Handley said the NWT will take the $40 million in one payment, but spending over three years.

Devolution?

Despite what former Minister of Indian and Northern Development Robert Nault said at the petroleum show, Roland believes that devolution is achievable in time to reap benefits of gas royalties that would come with the pipeline.

"The goal is to have an agreement in principal for this spring with an agreement finished in the summer of 2006," he said in response to Nault's comments about it not being possible. "And we know it will take two or three years to work itself through the system."

However, Roland added that a deal would be signed only if it was good for the territories.

"If we don't feel we're getting a fair shake we could park it for a while, put it on the backburner," he said. "We are in ongoing discussions with the feds. Ultimately for us, what it comes down to is a fair deal and we're not ready to accept something that is not of benefit to the North."

Roland says the territories are asking for 40 per cent of resource royalties.

"We want what other jurisdictions have and that's about 30 per cent."

Based on 2003/2004 numbers, a new revenue sharing deal would mean between $70 and $80 million more per year in NWT coffers.