DIA has $1 million for gas revenue losses

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CALGARY - The Department of Indian Affairs is earmarking about $1 million for resource rich Alberta bands who may be about to feel the pinch of deregulated gas prices.

The price of natural gas is scheduled to be deregulated November 1 and many analysts speculate prices could drop by as much as 20 to 40 per cent below current prices.

However, Calgary department manager Bob Dixon says the department is already preparing for a "worse case scenario" by formulating programs within the social-economic department for bands who may find their income suddenly cut if the price of gas falls.

"Of course, no one knows how low the price could go," said Dixon Tuesday. "It's all pure speculation right now."

Dixon added that meetings will be taking place this week in the Calgary office on emergency program help and other program areas.

"Some bands may find they cannot pay for the services they used to provide for their people and the department will have to quickly step in if and when we are needed," he added.

Dixon also pointed out that recent newspaper reports have focused on the worst case scenario and have not reported a balanced picture.

"These reports of a massive return to welfare are pure speculation. No one can see into the future," he said, pointing out that all Albertans will be affected by any fall in gas prices not just the bands.

Dixon added that a drop in per capita band distribution is possible but pointed out that any speculation of exactly how much or when the distributions will be cut is just "pie in the sky."

"We just won't know until after November 1 how bands and band members will be affected," he aid.

Several Alberta bands receive income from gas resources on their reserves. These include: Sarcee and Stoney in the Treaty 7 area, and Enoch, Saddle Lake and Hobbema in the north.

The provincial government agreed to deregulate gas prices several months ago. However, the agreement was made before the recent plunge in oil prices hit the province's economy. Now Calgary-Buffalo MLA Sheldon Chumir is demanding Energy Minister Neil Webber revoke the agreement.

In a press release, Chumir, the Liberal energy critic, said there is still enough time to cancel the pending deregulation of the Alberta border price for gas sold to residential and light commercial users outside the province.

Chumir is pressing for a gasoline tax of half a cent a litre to finance subsidies for the oil and gas industry.