Federal Liberal Leader Stéphane Dion with local candidate Kirt Ejesiak in Iqaluit on Sunday. ((Adrian Wyld/Canadian Press))

A Liberal government would spend $25 million for small craft harbours and buy new search-and-rescue planes for the North,  party leader Stéphane Dion said Sunday.

He is the third national party leader to visit Iqaluit, capital of the sprawling territory of Nunavut. The riding has been a Liberal stronghold for most of the past 30 years.

The Liberals would also bring back the post of circumpolar ambassador, abolished by the Conservatives, the party website said.

That would be one part of the Liberal's diplomatic approach to settle disputes in the Arctic. The party would also send a senior cabinet minister to Arctic Council meetings.

NDP Leader Jack Layton was in Iqaluit on Friday, and Conservative Leader Stephen Harper visited Nunavut on Sept. 20.

The other parties are trying to dislodge the Liberals after MP Nancy Karetak-Lindell retired. She won the riding four times.

Layton said the best way to ensure Northern sovereignty is to support the communities in the region.

Harper has said the Conservatives would promote development and strengthen Canada's Northern military forces.