Liberal MLA Sandy Silver is lambasting Premier Darrell Pasloski for his new stance on the Peel River watershed.

The decision to reject the recommendation for maximum wilderness protection in favour of industrial development is an insult to First Nations, morally reprehensible and fiscally irresponsible, Silver said in a press release this morning.

The Klondike MLA goes on to accuse the government of wrongfully using the public purse to float what amounts to a Yukon Party propaganda campaign to promote the government position on the Peel.

"Yukon Party governments have wasted millions of taxpayers' dollars, by facilitating a process that they never had any intention of following,” said the Liberal critic for Energy, Mines and Resources.

"We're now in a situation where no one knows what will happen next, except for a few key Yukon Party people who are making decisions behind closed doors.

"This creates an environment of uncertainty that could erode confidence in future land use planning processes and which will inevitably be bad for all forms of business in the territory.”

Pasloski is declining comment on his announcement last week and the eight new conditions that will guide land use management in the Peel watershed from now on.

Nor has he responded to the harsh criticism coming out of several corners since his proclamation, including the four First Nations whose traditional territories make up the Peel watershed.

Chief Simon Mervyn of the First Nation of Nacho Nyak Dun said Friday the First Nations feel they've been stabbed in the back by Pasloski.

A legal opinion delivered to the premier Friday concludes the direction the premier has taken runs opposite to the spirit and intent of the aboriginal land claim settlements, Mervyn said.

Several have accused the Yukon Party of purposely suppressing its position on the Peel so that it wouldn't have to defend it during last fall's territorial election campaign.

Dave Loeks, whose been with the Peel Watershed Planning Commission since the beginning in 2004, said the Yukon Party government could have saved a lot of time and money had it announced its intent seven years ago.

After several years of research and public discussion, the commission recommended 80 per cent of the watershed be set for protection with no road access at any time of year.

Former Yukon Party premier Dennis Fentie asked the commission early last year to revisit its recommendation shortly after it was released, suggesting it did not provide enough allowance for industrial development.

The commission returned last July with what was essentially the same recommendation.

Pasloski announced last Tuesday his government will allow development and "reasonable” access throughout the watershed, subject to the standard guidelines provided for in the environmental review process.

The government, the premier said, would not consider expropriating any of the 8,000-plus mineral claims registered inside the planning area.

Specific areas deemed to be of wilderness significance will be set aside, he announced.

Pasloski said the eight conditions unveiled last week will be used this spring during the final round of public consultation to modify the existing plan recommended by the commission.

Under the land claim process, the Yukon government has the final say on land use planning over 98 per cent of the watershed's 68,042 square kilometres, because 98 per cent is territorial Crown land.

The land claim settlements provide for eight regional land use planning exercises.

The planning process for northern Yukon was largely without contention, and was concluded in 2009.

The third planning initiative is currently underway for the Dawson City region.

Approximately $1.65 million has so far been spent on the Peel plan.

See letter.