Iqaluit (Jun 12/06) - Nunavut could be getting $285 million more over five years from the federal government.

But that will only happen if Ottawa changes the way it hands out money to the territories, which Nunavut Finance Minister David Simailak says is needed.

Community and Government Services Minister Levinia Brown, chair Peter Kilabuk (who was named new Speaker of the House) and Finance Minister David Simailak file into the Nunavut Legislature before the start of a leadership review June 6. Simailak wants to see a new funding formula for Nunavut, which could see the territory receive $285 million more over five years. - Chris Windeyer/NNSL photo

The board set up to examine territorial funding is saying the same thing.

The Expert Panel on Territorial Formula Financing released a report, June 5, saying changes to the tax system and the way Nunavut's revenues are calculated will help the territory fight social and economic problems.

Nunavut gets 81 per cent of its revenues from the federal government.

"Clearly (the panel) agrees with me when I say that Nunavut needs special attention," Simailak said in a news release.

Calculating territorial revenues at 70 cents on the dollar and excluding revenue from natural resource development would help Canada's three territories catch up and grow, the report states. "We heard serious concerns about outcomes in education and health, about social conditions and housing, aging infrastructure, high costs and the challenges of addressing those concerns in the unique context of the North," the report states.

Simailak said addressing those problems will mean special funding that falls outside the formula.

He also doesn't want to see territorial funding get bogged down with arguments over the separate issue of equalization between provinces and territories.

"We would like to proceed with discussions on the future of our transfer payments as quickly as possible and we urge the federal government to treat (the formula) and equalization" separately, Simailak said.

The finance minister will meet with his federal counterpart, Jim Flaherty, to try to reach an agreement later this month.