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N.W.T.'s pipeline deal comes under fire

Last Updated: Wednesday, February 21, 2007 | 10:33 AM CT

CBC News

The Northwest Territories should have insisted on a resource-revenue sharing deal with Ottawa before signing a socio-economic agreement on the proposed Mackenzie pipeline, Yellowknife MLA Bill Braden says.

"I think what the government has done is caved in on this one to the demands of big companies that want to make sure that we're not going to be a thorn in their sides when they go ahead and start stripping off the wealth of the N.W.T.," Braden said in the legislature Tuesday.

"When are we going to stop playing nice guy with either the proponents of this project or with Ottawa?"

The socio-economic deal, signed in January with Imperial Oil and its pipeline partners, includes guaranteed jobs for northerners and training money for the project, expected to generate billions in royalties and taxes.

N.W.T. Industry Minister Brendan Bell defended the deal, saying the alternative would have been a rush job.

"I don't think we would have seen a $20 million training fund," Bell said.

"I don't think we would see gas to communities or travel provisions built in for people in every community. So we didn't want to wait until the 11th hour and do a substandard deal."

There is still time for the territory to negotiate a royalty package, he said.

This story is now closed to commenting.

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N.W.T. inks deal with pipeline companies

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