As Canadian scientists are seeing their research grants slashed, Yukon MP Larry Bagnell is questioning the wisdom of setting up an Arctic research centre in Norway.

On Wednesday, Foreign Affairs Minister Lawrence Cannon made the announcement at a ministerial meeting of the Arctic Council in Tromso, Norway.

Cannon was unavailable for comment this morning.

His spokeswoman, Natalie Sarafian, described the investment as enhancing the country's status among Arctic nations.

"Our presence in Oslo is beneficial for Canada's international foreign policy for the Arctic," she said.

While Bagnell said he supports the initiative in principle, it's a difficult pill to swallow for Canadian scientists whose research budgets are being trimmed, or cut altogether.

"We're not refunding the Canadian Foundation for Climate and Atmospheric Sciences (CFACS)," Bagnell told the Star today.

"This is the main Canadian body with dozens of projects and hundreds of researchers. I think the government has to answer for (funding one in another country) and what exactly they think they're doing."

If the federal government does not revisit its funding policy to the CFACS, existing projects will close down beginning in 2010 and the foundation's doors will shut in early 2011.

This would amount to the cancellation of 184 research grants at 35 Canadian universities and direct or indirect support to more than 400 researchers.

Studies under the auspices of the CFACS include those on Arctic storms, melting permafrost, Arctic pollution, air quality, changing sea ice conditions and the melting of Canada's glaciers.

In the House of Commons last month, Bagnell supported a motion by former Canadian astronaut and Liberal MP Marc Garneau that the government "reinvest in these areas to ensure long-term, predictable and globally competitive federal funding."

But this effort appears to be fruitless as Cannon's Wednesday announcement will mean millions of Canadian research dollars going overseas.

When pressed on this issue, Sarafian reiterated the government's Arctic foreign policy.

"It's in Norway, because it takes advantage of the Arctic Council Secretariat in Tromso, gives us access to six of the eight Arctic states and makes for more efficient co-ordination with our regional partners," she said.

The centre is expected to be operational by the fall of 2009 but cost figures for the project were unavailable.

In April, the federal government announced $2.5 million to construct Yukon College's new research centre where the territory's cold climate innovation centre will be housed.

Clint Sawicki, manager of the Northern Research Institute at the college, said apart from infrastructure money and International Polar Year-funded projects, new federal research dollars cannot be accessed at this time.

"There's nothing at the moment but once we've developed programs, we'll be able to apply (for funding)," said Sawicki.

"As for new money coming in - hard money for hard research - we'll be working on that as we go along."