Premier Dennis Fentie says the first budget tabled by the federal Conservatives is a positive one for the Yukon.

'In general terms, there are certainly some positives in this budget that are going to have Yukoners realize more money in their pockets and increased ability to do many other things given the tax relief and many other measures,' Fentie told a news conference this morning.

Fentie said he was pleased with the $1,200 child care benefit, the drop of the goods and services tax (GST) to six per cent and exempting scholarships to $3,000 from federal tax.

He added Yukon MP Larry Bagnell's assertions that there is little in Finance Minister Jim Flaherty's budget for the North are misleading.

Despite grandiose promises from Prime Minister Stephen Harper during the January 2006 election campaign, there is almost no mention of the North in the budget, Bagnell told the Star this morning.

'The word North' doesn't appear,' he said.

Harper had stated if his Conservative party was elected to form government, it would make Arctic sovereignty a priority, including establishing a new military base North of 60. The commitment was absent from the budget.

So was the $5.1-billion Kelowna Accord agreements reached between the previous Liberal government and first nation leaders last November.

The accord aims to close the gap between first nations and non-aboriginal Canadians in the areas of health care, housing, education and economic development opportunities over the next five years.

'The Kelowna Accord is totally cancelled, not funded at all,' said Bagnell.

What is present in the budget is the $300-million Northern Housing Trust meant to increase the supply of affordable housing in the three territories, including rental, transitional and supportive housing.

The Yukon and the Northwest Territories will receive $50 million, while Nunavut will receive $200 million.

He added the investment in housing in the North is also an investment in Canada's sovereignty.

'When you invest in housing and invest in communities, you are investing in Arctic sovereignty,' he said.

Fentie said he is not concerned the budget did not directly address Kelowna. Harper and the Conservatives have already clearly committed to addressing the gaps experienced by aboriginals and first nations, he said.

'They've already taken a step forward with the housing trust,' said Fentie. 'The new government is taking a different approach.'

NDP Leader Todd Hardy said the approach the new government is taking on Kelowna one of piecemeal.

'Maybe it's not seen as the Kelowna Accord, but definitely anybody can take a look at it and recognize that kind of came out of there,' Hardy said regarding the funding for housing.

Liberal Leader Arthur Mitchell said he is disappointed Kelowna was disregarded in the budget.

He added Fentie appears to be out of step with the concerns expressed by other premiers about the exclusion of the agreement.

Though the housing funds are positive for the Yukon, he said, Kelowna would have more directly addressed the specific needs of aboriginals and Yukon first nations in a variety of areas.

The Yukon will also be receiving $950,000 for post-secondary education infrastructure, $850,000 for public transit and an additional $760,000 for affordable housing.

The funds in addition to the Northern Housing Trust are available because of the authority existing under Bill C-48, which was popularly referred to as the NDP budget leading into the first non-confidence vote in the House of Commons in May 2005.

The Conservatives vehemently opposed the legislation, which permits the Finance minister to dip into the surplus, but are now using its power to create $3.3 billion worth of trust funds for the provinces and territories.

Bagnell said Canadians need to remember this is not new budget money.

The Northern Housing Trust is a fixed payment directed at the territory. The other three are based on per capita measures.

The Canada Strategic Infrastructure Fund and the Municipal Rural Infrastructure Fund, which serve many projects in Yukon communities related to highway, transits and sewage, continue to exist in the budget despite speculation the Conservatives may have repealed them.

Funding has also been set aside to for resolving the legacy of residential schools and the $2.2 billion in payments for survivors.

Another $150 million in funding has been provided to deal with aboriginal concerns, which include the priorities of education gaps, women, children and families and water, states the budget. But much of the current funding is currently being directed at reserves.

Bagnell said the Conservatives have made their tax cuts on the backs of the most vulnerable people in Canada aboriginals, students and seniors.

Allocations under the territorial financing formula see the Yukon getting no increase, said Bagnell.

The formula, however, sees the Northwest Territories receiving an increase of $1.9 million.

The Yukon will benefit from a one-time adjustment of $300,000.

'The budget is not targeted for the Yukon or the North at all,' said Bagnell.

What the Conservatives are trying to do is appeal to individuals over regions, said Hardy.

'It's a very interesting approach that is being used here,' he said. 'The Conservatives are doing a direct transfer of benefits to individuals, taxpayers and not necessarily to provinces and agencies. (The Conservatives) are not talking to the North specifically, but talking to you individually.'

That could provide a challenge for the North, because there is less emphasis on broad programs related to health care, education and child care, he said.

'The reliance we have on the federal government on those broad investments is so central and essential for living in the North,' said Hardy.

But without a doubt, Hardy said, the Conservatives will have to pay attention to northern concerns in the future.

Bagnell agreed, but said it's unclear on when the Conservative government will touch on support for this International Polar Year, contaminated sites clean-up, research and rescue planes or programs to reduce greenhouse gases.

Mitchell said he is concerned that the budget was silent on the Northern Strategy.

'The Northern Strategy trust is already booked in the Yukon's fiscal framework. Why would they put it back in this budget?' asked Fentie.

The Conservative government has delivered on 'commitment by commitment' so far in their mandate.

'If that trend continues, there's no reason to believe they'll not deliver further on other commitments,' he said.

He added Bagnell should be more constructive about his criticisms of the Conservative government.

'I will say to our MP, Larry, let's be a little more constructive here. Your response to this budget does not address or reflect the facts, and we must deal with facts, not some partisan rhetoric that has provided zero for Yukoners to date.''