Federal budget draws mixed reviews across North

Leaders in all three northern territories gave mixed reviews of Tuesday's federal budget, which earmarks hundreds of millions of dollars for housing, infrastructure and research centres in the North.

The budget, handed down by federal Finance Minister Jim Flaherty, includes $200 million over two years to build and renovate much-needed social housing in all three territories.

Half of that money will go to Nunavut, where the government has identified the greatest housing need.

"We thought it was a very good budget for Nunavut," Keith Peterson, the territory's finance minister, told CBC News late Tuesday.

"They've announced $100 million for social housing, which is going to probably translate into over 300 social housing units in Nunavut over the next two years. That's what we've been lobbying for for the last couple of months."

Peterson said there will also be money to fix some of the estimated 3,000 existing housing units that are in need of repair.

"The important thing now is we have to roll up our sleeves, and we've got two years to deliver a lot of the infrastructure," he said.

"I think it's going to be beneficial to all the communities in terms of creating employment and stimulating the economy."

Housing cash 'less than what the Inuit expected': Simon

Mary Simon, president of the national Inuit organization Inuit Tapiriit Kanatami, said while she approves of housing funds flowing up to the territories, Inuit in other parts of the country won't benefit.

"They have not included Nunavik and Nunatsiavut, and their housing needs are just as great," Simon said, referring to Inuit regions in northern Quebec and Labrador.

"They've announced $200 million over two years for more housing in the three territories which is less than what the Inuit expected."

Simon applauded the budget's inclusion of health-care funding for Inuit and First Nations, as well as funding to upgrade regional research stations.

The federal budget also gives $17 million to speed up construction of a harbour in Pangnirtung, but Simon said there's no mention of money for small-craft harbours in other small Nunavut communities.

Bypass road project 'ready to go'

Other infrastructure projects that will receive federal funding include water treatment projects in the Yukon, building of a cultural centre in Clyde River, Nunavut, and construction of the Kam Lake bypass road in Yellowknife.

"One of the key things that the government was looking for was projects that are ready to go. That one contract's just been let, so that's pretty ready to go," Yellowknife Mayor Gordon Van Tighem said of a bypass road, which would move heavy transport trucks off the city's streets.

"Now it creates some immediate economic activity right here," he added.

But Northwest Territories Premier Floyd Roland said he had hoped the some other infrastructure projects would receive funding.

"Well, we'd been pushing a number of packages that we're hoping to get some reaction to, and that was the Mackenzie Valley Highway [and] some of our hydro work as well," he said.

Roland said his government needs more details about the budget's promise of money for the Mackenzie Valley natural gas pipeline proposal.

In an interview Wednesday, N.W.T. Finance Minister Michael Miltenberger told CBC News he will hand down the territory's budget on Feb. 5.

Chamber applaudsmoney for northern agency

A total of $140 million will be spent over five years for economic development initiatives in the North, including the establishment of an economic development agency in the region.

"We're pleased to see they announced specifically $50 million over five years for the Northern Regional Economic Development Agency; that's a new agency they're looking at creating," said Muriel Chalifoux, chair of the Whitehorse Chamber of Commerce.

"There's also $90 million announced over five years for the continuation for some of the SINED programs that's Strategic Investment in Northern Economic Development," she added.

Chalifoux said a number of Yukon organizations are giving input into the creation of the northern agency, which would be similar to economic development agencies in other parts of Canada.

Details about the agency have not yet been determined, such as where it will be located and when it will open.

Meanwhile, political and community leaders in the Yukon continue to review the budget Wednesday.

Whitehorse Mayor Bev Buckway, who also heads up the Association of Yukon Communities, told CBC News she needs to review details of the budget before she can say how the territory will benefit.

Hope for drinking water assistance

Chief Diane Strand of the Champagne and Aishihik First Nation in Haines Junction, Yukon, said she hopes her First Nation can access funding for aboriginal programs, such as training and water treatment programs.

"There's some drinking water situations out there, and of course, the big one is the northern housing [funding]," Strand said in an interview Wednesday.

"But there is a whole heck of a lot of programs out there that will not help us, just for the simple facts that the definition of them is 'on reserve,' " she added.

"Within the Yukon, our challenge is that we don't have reservations here. We have settlement lands."

Strand said she hopes to take advantage of the budget's offering of green energy funds and money for national parks, such as the Yukon's Kluane National Park.