The Financial Management Board Secretariat presented the government's hydro resource initiative to the standing committee during review of the secretariat's 2001-2002 Main Estimates with the committee. The committee pointed out that substantial funding would be required to develop the proposed Taltson River hydro project and connect it to the Alberta power grid.

Committee Members noted that this resource would outlast other resources, including minerals, oil and gas, as there will always be customers for electricity and our hydro-electric potential is almost unlimited. The project and future projects will provide a steady revenue stream to NWT businesses and government, in addition to providing employment to NWT residents. There is also a potential for energy cost savings for the NWT.

Committee Members acknowledged that timely development is important, but urged a prudent approach to ensure all impacts are considered, including environmental and land claims in addition to economic issues. Furthermore, the committee asked where the money for development will come from, especially in light of the government's proximity to the debt wall. In light of the overall significant impact of this proposed initiative upon our Territory, the committee referred further discussion on this matter to the Standing Committee on Accountability and Oversight.