SOMBA K'E/YELLOWKNIFE - Despite concern about a possible delay raised by the mayor of Hay River, a Department of Justice official says work is proceeding as planned to amend the territorial Conflict of Interest Act.

The amendment would allow GNWT employees to sit on town councils without automatically being in conflict on issues involving the territorial government.

Mike Reddy, a senior policy analyst with the Department of Justice, said nothing has changed with the amendment process from the government's perspective.

"We don't see any difficulty in moving forward to address this," he said, adding the department is still doing research to ensure such an amendment would not have any unintended consequences.

Hay River Mayor Kelly Schofield said he has "heard rumblings" the process to amend the act may have hit a roadblock in Yellowknife.

"And that the process may take a little longer than we we're hoping," he added.

Schofield declined to say where he had heard the concerns or what they involved.

"I'm still very confident it will pass," he said of the amendment.

The Town of Hay River presented a resolution calling for action on the issue to the May 13-16 annual general meeting of the NWT Association of Communities, and it was passed by delegates.

Recently, four Hay River town councillors, who are also GNWT employees, had to declare conflict of interest on a land sale by the town to the territorial government.

The councillors followed legal advice, even though they did not feel they were in conflict.

Any proposed amendment to the Conflict of Interest Act would have to be approved by the territorial cabinet.

The legislation was passed in 1974, but its potential impact on GNWT employees sitting on municipal councils never before became an issue.

The act states councillors with "indirect pecuniary interest" - which could be interpreted as receiving a GNWT paycheque - would be in a conflict of interest on issues involving the territorial government.