The Yukon is one step closer to renegotiating its resource revenue sharing formula with the federal government.

Premier Darrell Pasloski announced this morning that Prime Minister Stephen Harper, during the last leg of his northern tour, agreed that the Yukon should receive the same sharing agreement as the Northwest Territories.

The N.W.T.'s agreement allows for the territory to receive up to 50 per cent of resource royalties to the equivalent of five per cent of its gross expenditure base.

With the Yukon's gross expenditures hovering between $800 million and $850 million, annually, the premier said, the Yukon could see an excess of $41 million a year.

"This is allowing us to retain a larger portion of revenues, without taking away from another area of finance,” Pasloski said at this morning's press conference. "That's what makes this such a significant announcement, for ourselves and for First Nations.”

"With Yukon's resource economy so strong, I am pleased that the prime minister has agreed to increase the amount of resource revenues that Yukon can retain and utilize for the benefit of all Yukoners,” Pasloski added in a statement.

"This issue is very important to Yukoners, and I am pleased with the federal government's response to our request.”

Pasloski assured the media that he and Harper did not discuss cutting any federal transfer money in lieu of the new royalties agreement.

"We never talked about other revenue streams, other than the fact to say this would not impact negatively on other streams,” he said.

The territory's current agreements are split into two categories: a Devolution Transfer Agreement, signed in 2003, and the Canada-Yukon Oil and Gas Accord, which came into effect in the 1990s.

Both allow for the Yukon to receive up to $3 million in royalties, but that's it. Any additional dollars from the devolution agreement would be subtracted from Ottawa's annual transfer payment to the territory.

The Yukon has not yet reached the $3-million cap for mineral royalties in this fiscal year.

Jesse Devost, a spokesperson for the Department of Energy, Mines and Resources, told the Star this morning that the current numbers were not yet available. He did say, though, that last year the territory almost reached the $3-million echelon, and he would guess this year would yield even better results.

As for the next steps, Pasloski said, the government now has to consult with First Nations, as they receive a share of the revenue from the agreements. He couldn't say how long this would take, other than guessing in the ballpark of "months”.

"A greater portion of the revenues generated from our booming mining and resource economy will become available for use in Yukon, by both our government and First Nation governments,” Pasloski said in the statement.

"First Nations are in agreement with us, that it is time to revisit the resource revenues available to Yukon and we look forward to consulting with Yukon First Nations on the prime minister's proposed arrangements.”

Pasloski noted he'd promised to work on royalty agreements with the federal government during his leadership campaign.

"I'm very happy to deliver on this so soon,” he said.

The premier explained the extra revenue will be put into areas of government that feel the stress of the mining and exploration boom, like the Yukon Environmental Socio-economic Assessment Board and the Yukon Water Board.

"One example is ensuring we have inspectors out in the field working where the exploration and mining is taking place,” he said.

Yukon MP Ryan Leef also spoke at the press conference. He agreed with Pasolski, saying it's exciting that the government can deliver on something that's important to Yukoners, and in such a quick fashion.

"During the campaign period, when I was travelling around Yukon and listening to important issues in our territory, resource revenue-sharing was something that came up in First Nation communities from Beaver Creek to Dawson City to Watson Lake,” he said.

Former premier Dennis Fentie was also an advocate for renegotiating the resource revenue-sharing formula.

Since 2006, he was vocal about wanting to change the Yukon's system to one similar to the Northwest Territories' new agreement.

"With the announcement of renewed health care funding last week in Yellowknife and this agreement to improve resource revenue-sharing, we are seeing continued strong commitment to the North from the federal government,” Pasloski said.

"These arrangements will allow us to build further on our strong working relationships with Yukon First Nations and with Canada.”

By Nadine Sander-Green

Star Reporter