YELLOWKNIFE — Promising a new era of co-operation and social development from the North's resource boom, Joe Handley was acclaimed premier of the Northwest Territories on Wednesday.

"I want to make a positive difference in the Northwest Territories," Handley said moments after fellow legislature members agreed he should get the job since his two main rivals backed down. "I think we have an opportunity in the Northwest Territories to do it right ... for all our people."

Under the consensus government system used in the N.W.T. and Nunavut, the premier and cabinet are chosen by legislature members following a general election. The most recent election was Nov. 24.

There are no political parties in the 19-seat legislature. The premier and cabinet introduce legislation, which is then scrutinized by the remaining members and debated until consensus is achieved.

Handley, who was also acclaimed in his Yellowknife riding of Weledeh, emphasized in his acceptance speech to the legislature that northerners need to see some of the social benefits from the N.W.T's resource-driven economic boom.

"It is not the time to reduce spending on investments in people and infrastructure when needed," said Handley, a former finance minister. "These investments can show us return.

"A key principle of our social agenda should be to assist people to be independent and responsible for themselves and their families.

"Wherever people are struggling to exercise their obligations as husbands, wives and parents, we need to be prepared to support them."

Handley also promised to renew the fight with Ottawa for control over northern resources and the revenue that flows from them. Currently, all royalties from northern diamonds and natural gas belong to the federal government.

"Our expenditure demands are outstripping revenue growth," he said. "Unless we have economic self-sufficiency we will not have political independence or the means to overcome our health and social challenges."

Such talks have been droning on for 17 years between Yellowknife and Ottawa, and Handley said it's time for results.

"If it means working until midnight every night to do it, we've got to make a commitment to do it."

The previous territorial government under the leadership of Stephen Kakfwi was criticized for being aloof, but Handley promised to involve backbench members of the legislature more and to work closer with aboriginal, municipal and business leaders.

Kakfwi's government was also sometimes marked by bitter divisions between the cabinet and the backbench.

Outside the legislature, Handley said the fact he was handed the premiership without a single ballot being cast for him by either the public or his fellow members of the legislature suggests such divisions are less likely in the future.

"I take that as an excellent sign of a probability of a really good working relationship. I don't expect I'm going to have people out for my head from the start -- I think we're going to work together here."

Handley, a Metis from northern Saskatchewan, served as deputy minister in several departments including education and resources before being elected to the N.W.T. legislature in 1999.

Both Floyd Roland, a member from the Inuvik constituency of Twin Lakes, and Roger Allen, the former justice minister also from Inuvik, withdrew their leadership bids.

They acknowledged Handley had too much support for them to successfully vie for the premier's chair.

The legislature was also choosing a six-member cabinet Wednesday. Two ministers come from the far north, two from Yellowknife and two from the south.

David Krutko, the member for Mackenzie Delta, was chosen Tuesday as Speaker.