Iqaluit (May 08/06) - The federal government's injection of $200 million for housing in Nunavut won praise from territorial ministers, but a cool response from Liberal MP Nancy Karetak-Lindell.

Federal finance minister Jim Flaherty announced a budget ripe with tax cuts and new military spending last week in Ottawa. But the Kelowna Accord, a $5.1 billion agreement signed last November to improve aboriginal living standards, is nowhere to be found, as are specific promises to protect Arctic sovereignty or build a military base in the North.

But Premier Paul Okalik and housing minister Olayuk Akesuk were ecstatic with the $200 million for housing promised to Nunavut. That money consists of $50 million for each territory, plus a one-time $150 million transfer for what Ottawa calls "urgent needs."

"I'm very pleased and encouraged," Okalik said. "It's a good investment. It's needed now."

The money could build as many as 800 of the 3,000 homes Nunavut needs, said Akesuk.

While the housing shortage is a fact across the entire territory, Iglulik, Repulse Bay and Kugaaruk are some of the communities facing the most pressing housing needs.

The money will also help boost Nunavut's construction industry, Akesuk said.

"It's not just building the houses," he said. "It's training people and making sure we have people qualified to build houses in the future."

Karetak-Lindell was less impressed with the Tories' spending.

"While I applaud any funds for housing, (the $200 million) is a one-time investment, not the multi-year plan we had under the Kelowna agreement," she said in a release.

But in an interview, Karetak-Lindell also said she wants to work with the Conservative government and educate them on Nunavut's needs.

"We have to give them a little time to learn how to run the country."

She said she wasn't worried by the omission of a military base for the Arctic. She said with the current housing situation, her constituents are worried about the impact an influx of soldiers would have on the community.

Nunavut Housing Corporation district directors in Cambridge Bay and Cape Dorset wouldn't comment, but Peter Scott, president of the corporation, said the federal money represents about 10 per cent of the more than $2 billion needed to meet housing demands over the next decade.

"It's certainly going to help and it's going to go a long way," Scott said. "It's a start."

While Nunavut's 10-year housing plan calls for 3,000 new units just to meet current needs, demand is expected to grow by a further 2,700 units during that time.

Flaherty also delivered on the government's much-anticipated $1,200 per year child care payment for children under six. While some critics say the plan won't result in new day care spaces, Okalik believes the income support will help some families.

Besides, he said, the last government provided Nunavut with $600,000 for day care.

"That's not enough to open a day care (centre)," he said.