Prime Minister Paul Martin speculated on Monday that Canada's northern territories might soon enjoy full provincial status.

Responding to a simple question from a Brazilian state governor about Canada's provinces and territories, Martin said, "they will eventually become provinces."

The prime minister said the territories are one stage below the provinces, but suggested that the newest territory Nunavut, for example, which has only 30,000 people would eventually enjoy provincial status.

The Nahanni River in NWT

"They will eventually get full provincial powers because they represent an important part of our history," he said.

"I'm prepared to see territorial governments take on as much power as they can," he said.

Making the territories into full provinces would undoubtedly stir debate over the terms of Confederation, the Constitution and the impact on Quebec, which would find itself in an even bigger pool of provinces.

The prime minister says the future of the North is not just about creating provinces, but about asserting Canadian sovereignty the Arctic. He says that is becoming more important because climate change will make it possible for shipping to sail through the North and because of the vast natural resources to be exploited in the north.

"We're just telling the world the Arctic is Canadian territory, so we will exercise sovereignty," said Martin.

Martin put no timetable on expanding the provinces from 10 to 13. He said later it will only happen when the territories and provinces are ready for it. But he said discussions are ongoing now to devolve more powers to the territories.