Yukon Premier Dennis Fentie has consistently denied having any talks about privatizing Yukon Energy Corp., but officials have said Fentie did have discussions with ATCO about the public power utility. (CBC)

Yukon Premier Dennis Fentie should be held in contempt of the territorial legislature for initially denying he was in secret talks about privatizing Yukon Energy Corp. assets, said Liberal Opposition Leader Arthur Mitchell.

As the legislature began its fall session on Thursday, Mitchell asked Speaker Ted Staffen to rule that Fentie misled the legislature earlier this year when he said there were no talks with Alberta-based ATCO about privatizing the public utility.

"We believe the premier's denial that day was a deliberate attempt to mislead the legislature and the public. And as a result, the premier should be held in contempt of the house," Mitchell said in the legislature.

Staffen said he will rule on Mitchell's request later.

Mitchell pointed out that since Fentie denied the Yukon Energy-ATCO talks, he has been contradicted by people who were involved in those discussions.

"He has been contradicted by the former chair of the board, the former minister of energy mines and resources, his own officials and officials who handle access to information requests," Mitchell said.

A discussion paper leaked by former Yukon Energy chairman Willard Phelps to the media showed the government did talk with ATCO about possibly merging Yukon Energy with ATCO's Yukon Electrical Company Ltd. to form a new entity to be co-owned by the government and ATCO.

Even Fentie's former right-hand man in cabinet, Brad Cathers, has said Fentie lied about the Yukon Energy talks. As a result, Cathers quit the Yukon Party caucus in August to sit as an Independent.

Fentie did not respond directly to Mitchell's request but earlier in question period, fended off demands that he admit to misleading the legislature.

"The member's question or comment in his preamble was about discussions of privatization. There has never been discussions by this government, or direction to anyone in government, to privatize our energy corporation," Fentie told the legislature.

Fentie said the whole matter should be investigated by the legislature's public accounts committee, which could hold hearings and call witnesses.

But Mitchell said he doesn't trust the government to follow through on that, so it should be dealt with in the legislature.