Jennifer McPhee
Northern News Services

Inuvik (Oct 21/02) - The Gwich'in Development Corporation plans to invest millions outside the Inuvik area, just in case the proposed gas pipeline falls through.

"At this point, all we can do is hope the pipeline happens and prepare for what happens if it doesn't," said CEO Tom Connors.

Currently, the investment company has $20 million worth of assets in the Inuvik region. It plans to add to that with investments between $5 million and $10 million outside the area.

"It's diversifying our risk, " said Connors. "We can only plan for what we have today. We don't have a pipeline today, so we can't plan for it."

"We would be foolish not to look outside the area, and look at other opportunities."

There aren't many opportunities left for the corporation to pursue without stepping on others' toes, he said.

"We could attempt to be a large company locally, but that would probably take away a lot of opportunity from individuals and smaller companies," said Connors. "Or we could build what we have locally, and grow outside the region."

In particular, the GDC plans to invest in real estate and build its heavy equipment company, as well as continue to investigate further oil and gas prospects.

"We try to invest in proven companies with proven records," he said.

The expansion is part of the corporation's mandate to provide a return to shareholders.

"The market here is only so big and we have a responsibility to provide a return," said Connors.

Traditionally, the GDC has operated as an employee training mechanism, he said. But that's changing.

"Our goal is to pay a dividend back to our shareholders by 2007."

From this point onward, the GDC will hold its annual general meetings separately from the Gwich'in Nation.

"It's significant that we are a separate entity, attempting to be transparent and accountable to beneficiaries and to the public," said Connors.

The corporation's consolidated revenue rose in the past year from $4.5 million in 2000 to almost $9 million in 2001.

"For the first time in its 10-year history, we've demonstrated an operating profit," said Connors.

"That's a significant accomplishment."