'Frankly, the federal government should be stepping in.'

Ottawa should dip into its ballooning budget surplus to fund infrastructure improvements in Arctic communities, says Jack Layton, the federal New Democratic Party leader.

Specifically, Layton said the federal government should contribute $40 million to $50 million to build a deep-sea port in Iqaluit.

"This is not an overwhelmingly large expense when you realize how much economic activity would be generated," he said.

The federal finance department announced late last month that the federal surplus through June 2007 stood at $6.4 billion, more than double what Jim Flaherty, the federal finance minister projected in February.

The city is now seeking private sector funding for a port. While the NDP usually opposes such ventures, Layton said he doesn't blame the city for exploring its options to get the facility built.

"I certainly salute the leaders of Iqaluit who are trying to find some way to make life more affordable and provide economic development for their citizens," he said. "Hats off to them, but frankly the federal government should be stepping in."

Elisapee Sheutiapik, Iqaluit's mayor, welcomed the moral support, saying the port is needed to reduce the cost of goods and make unloading cargo safer. A sealift worker died last November when a bulldozer fell off a barge.

Tourism and the fishing industry would also get a boost and benefit the entire South Baffin region, she said.

"We're looking at whatever it's going to take," Sheutiapik said.

Layton, who met also with Premier Paul Okalik in Iqaluit Aug. 29, told reporters the trip was meant to discuss Ottawa's approach to Arctic sovereignty with Nunavut leaders.

"I believe they've been very disappointed and that's been reaffirmed to me by [Prime Minister Stephen] Harper's attitude," Layton said.

In a letter to the prime minister last month, Layton urged Harper to fund the construction of ports in both Nanisivik and Iqaluit. Harper later announced nearly $600 million in spending for Arctic sovereignty, including $100 million to refit the old dock at Nanisivik as a supply station for the navy.

The funds also included money to build an Arctic military training centre in Resolute Bay and expand the Canadian Rangers. But Layton accused Harper of ignoring other elements of sovereignty and called for more spending on education, housing and social programs.

"His belief in sovereignty seems to focus entirely on the military," Layton said. "There's a role for the military, but the best way to show and demonstrate sovereignty is with strong communities in the North."

Sheutiapik agreed, saying she felt "betrayed" by the Conservative decision to reverse an election promise and build a port only in Nanisivik.

"With Iqaluit, there are so many sectors that would be impacted [by building a port] and I really thought that Arctic sovereignty was not just about building infrastructure for [military] use."

Layton travelled to Iqaluit, Pangnirtung, Rankin Inlet and Cambridge Bay before capping his trip with a press conference in Yellowknife Aug. 31. Joining him were fellow New Democrats Dennis Bevington, MP for Western Arctic; Jean Crowder, the NDP's aboriginal affairs critic; and academic Michael Byers.