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SOMBA K'E/YELLOWKNIFE - Like everyone else in the country, the people of the NWT listened intently on Jan. 27 as the federal government delivered a new budget.

Some liked what they heard in the stimulus, recession-fighting budget - highlighted by almost $12 billion over two years in infrastructure spending across the country.

Others, not so much.

Jim Flaherty, federal minister of finance, laces up a new pair of steel-toed work boots, signifying the work the federal government will have to do to stimulate the Canadian economy. Themed shoes are a tradition of finance ministers about to deliver a budget. - photo courtesy of the Department of Finance

Western Arctic MP Dennis Bevington said the budget shows the Conservative government has no real vision for Canada, such as any plan to develop new green technologies, and the money in the budget is not being spent wisely.

"They've just chosen to spend money in various ways and in a number of directions," Bevington said. "It's not a budget that has any character at all."

Bevington said even the tax cuts benefit higher income people more than low-income earners.

The MP also said $50 million allocated for social housing in the NWT is only maintaining funding levels of the previous three years.

Still, Bevington said he was glad about funding coming to the NWT.

"But it's not really a stimulus for the economy," he said, noting the programs are fairly bureaucratic and will be hard for small communities to access.

Ann Marie Tout, president of the NWT Chamber of Commerce, especially welcomed the budget's commitment to provide $37.6 million to fund environmental assessments and aboriginal consultations relating to the Mackenzie Gas Project.

"Hopefully this announcement will help speed up the process for the pipeline that so many of us in the NWT are desperately waiting for," Tout said.

She was also pleased to see $90 million for a five-year extension of the Strategic Investments in Northern Economic Development program and $50 million over five years to establish a Northern regional economic development agency.

"This is a huge step forward that will place us on an equal footing with the rest of the country," she said of the planned agency, noting the logical place for it would be somewhere in the NWT.

Premier Floyd Roland was disappointed to hear a Mackenzie Valley highway was not included in the budget delivered by Finance Minister Jim Flaherty.

Roland had expected to see the Mackenzie Valley highway as a means to open up the region to business.

The premier brought up the highway in budget consultations with Flaherty and Infrastructure Minister John Baird last month.

"We were talking about some of our bigger initiatives and that would extend to the Mackenzie Valley highway, Roland said.

He said the GNWT will wait and see if any funds will be available for the project as more budget details are released, but added it may "have to do some digging" to find other avenues to fund the project.

Mayor Peter Guther of Norman Wells is concerned about how much money will actually reach small communities, noting he has previously observed problems with federal programs.

"They're having a hard time getting money out for one reason or another," he said.

Guther said federal departments and agencies need to get in a "cheque-writing mood" more often.

The mayor would also have preferred to see the recently announced funding for proponents of the Mackenzie Gas Project included in the budget.

"Inside the budget, there's more of a lock on it," he said.

Grand Chief Jerry Antoine of the Dehcho First Nations said the budget falls short in enhancing First Nations' economies.

"There is a little bit of positive measures for First Nations, but it needs to do much more to stimulate First Nations economies, which will benefit all Canadians," he said.

Antoine said infrastructure spending for aboriginal people seems to be directed towards reserves.

The grand chief is also disappointed the budget did not respond to calls for more spending on education.

"Investment in education would get more of our people working and address the issue of poverty," he said.

Antoine said the recession seems to be the hot topic these days, but he said First Nations have always been in recession. "So I welcome the rest of Canada to that situation."

Territorial Finance Minister Michael Miltenberger said, while there are gaps in the budget, there are also things to help the NWT, such as the $50 million for social housing.

The minister also said the one-year extension of the mineral exploration tax credit is a good thing, especially when commodity prices are low.

Plus, he welcomed the $85 million over two years to maintain and upgrade key Arctic research facilities, noting that will benefit Arctic College's Arctic Research Institute.

Miltenberger expressed concern about the large deficits the federal government is projecting over the next few years.

"It's the road to financial ruination and perdition," he said, although he declined to say whether his own budget will have a deficit.

The federal budget forecasts a total deficit of $84.9 billion from fiscal years 2008-2009 through 2012-2013.

This year and next, the government will spend a little more than $50 billion through infrastructure projects, tax cuts and a variety of other measures in an attempt to stimulate the economy.

Miltenberger said it is a struggle to balance a budget. "Every jurisdiction will be dealing with the issue of deficit financing."

Chuck Strahl, federal minister of Indian Affairs and Northern Development, praised the budget.

"The package is going to be very good for the North," he said.

For example, he pointed to the $85 million for Arctic research facilities and $2 million for an assessment of a proposed Arctic research station.

Strahl also pointed to the $50 million for social housing in the NWT and the $37.6 million to proceed with the regulatory and consultation process for the Mackenzie Gas Project.

"Obviously, if we can accelerate a decision on the Mackenzie Gas Project, it's something we would all welcome," he said.

The minister said the extension of the mineral exploration tax credit and training funds for aboriginal people will also benefit the North.

On the lack of mention in the budget about the Mackenzie Valley highway, Strahl explained the budget is a stimulus budget that aims to spend most of the money in the next two years.

"We're really targeting things we can do in a hurry," he said, adding a highway can't be built quickly.

- with files from Herb Mathisen