Yukon premier downplays gloomy economic forecast

Premier Darrell Pasloskiresponded to a "bleak" economic outlook with a warning to Yukoners: things will be worse if you vote us out this fall.

The Conference Board of Canada released its latest forecasts for the territorieson Wednesday, and the picture forYukonwas especially grim the "bleakest near-term outlook" in Canada, the report says.

• Yukon's economic outlook 'bleakest' in Canada, report says

It says Yukon's economyhas suffered from low commodity prices, and the downward trend will continue for at least the next couple of years.

Pasloski downplays the report, saying the gloomy forecast may not actually come to pass. But he also acknowledges how dependent Yukon still is on mining.

"What this really shows us is how important the resource sector is," Pasloski said.

"That's why, as a leader and a party...we've always said, now more than ever, you know, we need to stand up,we need to support our resource industry."

The Conference Board report comes at an awkward time for the governing Yukon Party, as it prepares to face voters in a territorial election this fall.

Pasloskisays, however, thathis party is still the safest bet forYukonersworried about the economy.

"Really, the greatest risk to our economy and to the mining industry is to elect an NDP or Liberal government, because both of those parties would put in a new taxa carbon taxthat would make everything cost more," he said.

Government must take some blame, opposition says

Not surprisingly, Yukon's opposition parties are turning the spotlight back to the Yukon Party, which they say must take some responsibility for the pooreconomic forecast.

"The Yukon Party government has driven Yukon's economy into the ground," said NDP leader Liz Hanson, in a statement.

"We need to build a more diverse and flexible economy; mining will always play a role in Yukon's economy, but we have to acknowledge the ups and downs of commodity prices by supporting other industries."

Meanwhile,Liberal Leader Sandy Silver blames the government's legal battles with First Nationsand its refusal to update mining laws.

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"I mean, that would be the difference between us and the other territories. We seem to be at loggerheads here, with antiquated ways of pursuing mining," Silver said.

Both Nunavut and N.W.T. are expected to see GDP growth by next year, the Conference Board report says.