Conservative Leader Stephen Harper took his campaign to Iqaluit, Nunavut Saturday, telling northerners that jobs are the answer to the poverty problems in the region.

Harper promised the creation of a new stand-alone regional development agency for Northern Canada,

"'I think we understand, and I think everybody in the territory here understands that the social and other challenges that exist . . . will continue to be very difficult to manage unless we have a long-term plan to build the economy here. And that's really what today's announcement is focused on," he said.

He also trumpeted previous pledges to protect arctic sovereignty with an increased military presence.

"Regardless of what the opposition might say, we are determined that Canada's flag will fly as tall and as proudly here as it does in any square foot of this country," he told the small crowd gathered at the campaign stop.

Some protesting Liberals demonstrating outside of the rally disagreed with Harper, accused the Tories of ignoring social issues in the region.

"Invisible prime minister," a protester shouted.

Liberal candidate Kirt Ejesiak demonstrated outside Harper's rally and said Harper isn't offering enough to the region.

"We need to make sure that our poverty rates are looked at. People are screaming for help here. My whole campaign is focused on the people. Their whole campaign is setting up an office. Their whole campaign is focused on the military," he told The Canadian Press

Ejesiak told Â鶹´«Ã½ that his party's 'Green Shift' carbon tax plan wasn't at the top of his pitch to voters.

Harper said no one is buying the Liberal's plan to offset higher carbon prices for northerners.

"There is not one resident in these three territories except the three Liberal candidates who want to pay a carbon tax," he said. "Nobody wants it."

Liberals, NDP on the defence

After Harper spent the majority of his week dealing with the fallout of Agriculture Gerry Ritz's tasteless Listeria comments, it was Liberal Leader Stephane Dion and NDP Leader Jack Layton who found themselves playing defence Saturday.

Dion responded to both Tory and media calls that he was backing away from his divisive 'Green Shift' plan.

"Stephen Harper said taking the Green Shift away from me is taking doughnuts away from Tim Hortons. He's right. A Liberal government will help Canada make a green shift and Tim Hortons will keep selling doughnuts," Dion said at a Alexandria, Ont. rally.

Dion also seemed to admit that the Tories seemed to be winning the information war when it comes the 'Green Shift.'

Dion said that his plan has been distorted by the Tories and encouraged Liberals supporters to "go door-to-door and explain that to (Canadians) because many of them think that the propaganda of the Conservatives is right - that their taxes will go up because of the Liberals."

In Montreal later in the day, Dion attacked Harper's arts funding record and promised $530 million for cultural programs.

Layton found himself in a bit of political trouble as two of his B.C. candidates went up in smoke -- after they both resigned because of drug use.

Layton also faced an accusation from famed pot activist Marc Emery that the pair made an informal deal, which the party denied rigorously.