Andrew Raven
Northern News Services

Yellowknife (Oct 07/05) - The Northwest Territories should prepare for life without the proposed Mackenzie Valley pipeline, Premier Joe Handley said Wednesday.

"We need to generate discussion... on what could happen," Handley said during a sparsely-attended meeting with constituents in Ndilo.

Premier Joe Handley discussed the Mackenzie valley pipeline Wednesday night during a meeting with constituents in Ndilo. - Andrew Raven/NNSL photo

The comments came about one week after media reports suggested the companies behind the pipeline are seeking $2-billion in tax credits from the federal government.

That money could eventually come from the pockets of NWT residents, Handley said. They face the prospect of lower royalties on the estimated $40-billion worth of natural gas that could flow through the pipeline over the next 20-plus years.

Given the rising cost of fuel -natural gas prices have doubled within the last six months - Handley said companies like Imperial Oil do not need extra incentives for building the pipeline.

"Their requests are excessive," Handley said. "Pipelines do not go broke."

The oil companies have already received federal grants to explore offshore gas reserves in the Beaufort Sea, he said.

"Now they want more? Come on!"

Handley said he discussed Imperial's demands with Prime Minister Paul Martin last week. The Liberal leader wondered if the company "wanted out" of the pipeline and purposefully made demands that were unreasonable, Handley said. "Nobody can figure out what they want," Handley said.

While negotiations between the company and First Nations along the proposed pipeline route have been slow, a spokesperson for Imperial Oil said last month the company remained committed to the $7-billion project.

Last week former Premier Stephen Kakfwi, who is a negotiator for the Sahtu, called the pipeline "doomed."

Handley did not share that dreary assessment and said the government remains hopeful the project will go ahead - largely because it can provide jobs.

"There are people in the communities who need something," Handley said, and the pipeline is their best chance for work.

The pipeline is expected to be at the centre of debate when the Legislative Assembly returns Wednesday.

Other issues are alternate sources of energy, conservation and the allocation of $35-million in federal money destined for the communities.