Aboriginal groups agree on formula to split resource royalties

N.W.T. aboriginal groups have agreed on a formula that will divide theirshare of resource revenues among them after devolution.

After devolution, aboriginal groups willreceiveup to a quarter of the territory's portion of resource royalties. It's anticipated that their share for the coming year will beabout $15 million.

The five groups that have signed on to the deal came up with the formula:

• 30 per cent of the money will be divided upbased on the average cost of living in eachaboriginal group's region
• the remaining 70 per cent will be distributedbased onpopulation.

This means the more members a group has, or the more remote the region they live in, the bigger the shareof royalties they will receive.

For the InuvialuitRegional Corporation, that will amountto approximately $3 to $3.5 million a year.

"I'm reluctant to throw out figures. Resource revenues are fairly volatile, you all of a sudden have one mine come off and those revenues will be greatly decreased,"says Bob Simpson, whonegotiated the revenue sharing agreement for theInuvialuit.

He says theInuvialuitmay partner with the territory or the federal government to try to improve conditions in the communitieswith the new revenues.

"There's the possibility of dedicating some of the money to enhancing programs or improving program and services, because education levels are low, health indicators aren't great. There's some ideas we've been formulating," he says.

Groups will receive four payments a year.

The territory will start collecting resource revenues April 1 but it's expected most royalties won't come in until late 2015 or early 2016.

The five groups also agreed to form an Intergovernment Council.It will allow aboriginal groups to discuss how lands and resources should be managed with the territory.

"We're hoping I suppose that we're no longer in a subordinate role as aboriginal organizations. And that you have really meaningful participation in making decisions," says Simpson.