YELLOWKNIFE - Liberal Leader Michael Ignatieff is showing the party flag in the Northwest Territories.

During a visit to Yellowknife Ignatieff tried to dispel rumours of a fall election.

He says federal Liberals want good government, not an election.

But he says Canada has a $50 billion deficit and 1.5 million unemployed and the Harper government isn't doing enough to deal with the situation.

Ignatieff says it's important for Northerners to be involved with and benefit from local resource industries such as diamond mining and natural gas.

During his visit Ignatieff visited a diamond polishing operation, toured the Buffalo Airways hangar and spent time with kids at the Yellowknife Daycare Association.