CHIEF Minister Paul Henderson says he's confident the Federal Government will repeal legislation which paves the way for a nuclear waste dump in the Territory.

But environmentalists and Aborigines remain sceptical Labor will make good its election promise.

A Senate committee is holding hearings for two days this week at Alice Springs on the future of the Commonwealth Radioactive Waste Management Act.

Muckaty Station, about 120km north of Tennant Creek, was nominated by the Northern Land Council (NLC) and is regarded as the most likely site for selection.

Mr Henderson said he had every confidence his federal colleagues would live up to their promise to repeal the Act.