Prime Minister Stephen Harper says his government will shape its strategy on Canada's oilsands based on facts, not "fundraising agendas."

Prime Minister Stephen Harper says his government will make decisions on Alberta's oilsands that respect the environment but take into account the fact that they represent one of the most 'vital industries of the Canadian economy.' (CBC)The prime minister was responding to a reporter's question in Edmonton on Friday about a federal panel appointed to examine the water-testing regime in the Athabasca River around Alberta's oilsands.

Harper said his government is working with the oil industry to improve performance on the "environmental challenges" posed by the oilsands but that he was not going to speculate on what the panel would find.

"I think what really matters in this debate is that we make decisions based on the facts, not based on somebody's fundraising agendas somewhere," he said.

"We make decisions based on the facts, make decisions that respect our environment but also understand that this is one of the largest and most vital industries of the Canadian economy."

The prime minister did not specify whose fundraising agendas he was referring to.

Environmental groups such as Greenpeace have recently launched international advertising campaigns publicizing the environmental damage caused by the oilsands.

The oilsands also received global media scrutiny last month when Canadian-born Hollywood film director James Cameron toured oilsands operations in Alberta.

Federal Environment Minister Jim Prentice announced the appointment of a six-member advisory panel last week in response to a peer-reviewed study published by University of Alberta water scientist David Schindler.

The study found elevated levels of cadmium, mercury, lead and other toxic elements in the Athabasca River were linked to oilsands mining.

Those findings contradicted Alberta and industry scientists who claimed the toxins were naturally occurring.