Jennifer McPhee
Northern News Services

Iqaluit (June 10/02) - The territorial government says Nunavut Tunngavik waited too long to challenge a decision extending a business ownership deadline.

NTI is taking the government of Nunavut to court over its decision to give 35 companies an extra year to get in line with the policy.

The Nunavummi Nangminiqaqtunik Ikajuuti (NNI) is a government policy for awarding government contracts in the territory. It gives an advantage, through bid adjustments, to Inuit-owned businesses.

The government also grandfathers non-Inuit owned businesses and gave these companies until April 2002 to comply with NNI policy.

On May 3, NTI filed a notice asking the court to quash the extension. The notice states the government ignored its obligation under the land claim to consult with NTI before making the decision.

NTI lawyer Steve Foulds said they took the legal route to preserve its right to go to court and meet the deadline for legal action.

According to law, NTI is required to take legal action within 30 days of the government's decision.

But Foulds said NTI's "main focus is to seek an amicable resolution outside of the courts."

Government lawyer Dougald Garson plans to argue at a July 19 preliminary hearing that NTI's application should be dismissed because it was filed after the 30-day deadline.

Garson said cabinet made its decision on March 27.

However, according to an affidavit signed by NTI's chief executive officer John Lamb, the government did not notify him of the decision March 27 -- he learned of it accidentally. Lamb said the government didn't go public until April 5.

Last Thursday, Justice Bev Browne ordered NTI to serve notice to 35 affected companies. Since the extension, the government has awarded at least 12 contracts.

Browne declined to hear the rest of the case because she personally knows people, on both sides, who submitted affidavits.