OTTAWA - The March 4 federal budget included a number of initiatives for Canada's North.

Among the most prominent items is $11 million over two years for Indian and Northern Affairs Canada (INAC) to modernize the Northern regulatory system for project reviews.

"One of the big complaints I heard up North is we need to fix the regulatory regime up North, so that when business like a mine wants to open, for example, they can know what the regulatory regime looks like," said INAC Minister Chuck Strahl.

Projects could then get regulatory approval in a couple of years, Strahl said. "Not 10 years, which is the nightmare we've experienced with the Mackenzie Valley project."

Right now, the regulatory system operates project to project, the minister said. "And we have to recreate the wheel every time."

The budget also commits $45 million over two years for a revamped food mail program, which helps get food to remote Northern communities.

Combined with existing funding, the program's annual budget will be $60 million.

Strahl said the food mail program is being redesigned to get more food and more nutritious food to people.

The minister said he hopes the overhaul will happen relatively quickly.

"This additional money is going to be useful because it will help us get the job done and get the details of that redesign worked out," he said.

Strahl was noncommittal when asked if the redesign would be based on recommendations in last year's report by Graeme Dargo, who suggested major changes to the program.

"Mr. Dargo's report was one of the reports I received," Strahl said. "We did a pretty broad consultation at the community level, with the airlines, with the land claim groups. So we've got a lot of input."

Strahl said there will be significant changes, adding there is broad dissatisfaction with the program.

Western Arctic MP Dennis Bevington said the government has been overspending on the program by nearly the amount it is adding.

"It's not really going to change anything," Bevington said. "We'll have to wait and see what changes they will make to the food mail program, whether they go to a point-of-purchase program for food subsidies. It's not any new money."

The budget also provided $18 million to the Canadian High Arctic Research Station for pre-construction design.

Ottawa will announce this year where the station will be built, Strahl said. "Of course, this is going to be a big, big project."

Eight million dollars over two years was allocated to improve community-based environmental monitoring in the North.

Strahl said many people have indicated the need for basic environmental data before starting economic developments in the North.

Territorial Finance Minister Michael Miltenberger said the federal government's promise to maintain territorial transfer payments is welcome, as is the renewal of the Canada Health Transfer and Territorial Formula Financing for two more years - which totals $60 million.

"They're providing us with much needed relief in that area," said Miltenberger, adding while the $60 million was less than the original agreement, it's not bad. "It's much bigger than the zero we would have got had they let it sunset. So, we will wait to see how it will be divided up.

"Given our health pressures, it was a good bit of news for us."

The money however might not help reduce the amount the NWT spends on medical travel each year, according to Leona Aglukkaq, federal minister of health.

"The intent is to deal with the turnovers," she said.

Due to the nature and geography of the territory, individuals will have to travel for medical purposes.

Aglukkaq said the money will be used to train nurses, mental health workers, X-ray technicians and other health professionals.

Mary Lou Cherwaty, president of the NWT Federation of Labour, said she was disappointed with the budget, citing concern over the review of departmental spending.

"The review means 'to look for ways to make cuts,'" she said, adding the end of the collective bargaining agreement for public service members in 2011 is irksome. "I would be worried about them having to go into bargaining in 2011.

"The government is going to want them to follow their lead."

Fiscal responsibility was a focal point of the budget which will focus on job creation and measures to chip away at the $56-billion deficit.

In his budget address to the House of Commons, Finance Minister Jim Flaherty emphasized the private sector must grow in order to strengthen the nation's economy.

The budget includes a final sum of $19 million for the Economic Action Plan, along with a series of spending initiatives focused at creating jobs and growth through innovation.

"We take the same approach that Canadian families take in managing their household budgets," Flaherty said.

"We are spending what is necessary to meet an emergency. We are also looking beyond that emergency, to ensure we can keep paying off the mortgage and saving for our children's education.

Bevington said the budget is going to be hard to support because the government has neglected aspects of the economy that are important to the North.

"There is no new programs and there are cuts to a number of areas, environment, housing, natural resources and those are areas that will make a difference to the North," Bevington said.

In Wednesday's throne speech Governor-General Michaelle Jean said the government plans to freeze all departmental operating budgets and review department spending.

Federal departmental budgets will also not be increased to fund the 1.5 per cent annual wage increase for the public service. Employees will receive their annual raise as set out in their collective bargaining agreement, but departments will be required to absorb the cost.

To accommodate, departments will assess programs and identify five per cent of the lowest-priority and lowest-performing programs to cut.

- with files from Emily Ridlington