Darrell Greer
Northern News Services

Rankin Inlet (Aug 15/01) - There will be no debenture doomsday in December 2002 for the hamlet of Rankin Inlet, says Shawn Maley.

The regional supervisor for the Department of Community Government and Transportation (CG&T) says the utilidor project in Rankin has never cost the hamlet a penny out of its regular operational revenue.

He says council has been scared of the obligations that come with the utilidor since the first days of the project, despite the members they knew years 3 through 6 were going to be tight.

The loan for the utilidor project in Rankin has been guaranteed by the government since day 1.

Maley says it was set up through the GNWT and carried over to the government of Nunavut.

He says the guarantee means in the event the hamlet can't make its payment, the government has to.

"I've been hearing doomsayers since day 1 of this project," states Maley. "The bottom line is, the utildor has not cost the hamlet one penny more than when the debenture happened because it's generated its own revenue so far."

Maley says the structuring of the deal had all municipal land transferred to the hamlet, including lots already developed.

The hamlet was then free to charge equity leases as they renew and lease fees on all the lots.

"We've yet to have a deficit in terms of the operation of the utilidor itself and the payments involved."

The hamlet already has the money to make this year's payment and there's a number of equity leases on the verge of going through, including a substantial lot for the new regional health centre.

Maley says the idea of transferring the utilidor to the hamlet has been discussed many times, but hamlet council has never performed its duties adequately enough to warrant such a transfer.

"The hamlet went through some scary times recently with its own structure.

"The transfer of the utilidor couldn't have been tabled without the council being laughed at.

"You have to be honest, council was in some pretty dire straits for almost three years."