NUNAVUT - The attempt by the Government of Nunavut to reinstate 110 businesses to the territory's registry of businesses eligible for preferential access to government contracts has essentially fallen flat, and the Baffin Regional Chamber of Commerce says it may be due to a loss of confidence in the system.

Beginning in March, the GN set out to update the number of active businesses registered under the government's Nunavummi Nangminiqaqtunik Ikajuuti (NNI) policy, which once counted 350 members in its registry; that number has dwindled to 240.

Under the policy, businesses owned by Nunavummiut as well as Inuit firms registered with Nunavut Tunngavik Inc. receive incentives when bidding on government contracts.

"We looked at the situation and said, 'Yeah, there's a lot of businesses out there that are overdue.' So the decision was made to give all of those businesses an extra 90 days,'" said Morris Schneiderman, acting executive co-ordinator of the government's NNI secretariat.

A notice was sent out on March 24, followed by a second reminder on May 26. By July 6, only three businesses had chosen to renew, said Scheiderman.

"We see this is a necessary step," said Schneiderman. "The registry needs to reflect businesses that are active in Nunavut."

Hal Timar and Chris West, executive director and president of the Baffin Regional Chamber of Commerce, respectively, said it's hard to know precisely why so many businesses opted to stay out of the program, but they do have a theory.

"The one thing we do think is affecting it is possibly declined enrolment because people or organizations don't feel that the NNI policy is doing what it meant to do," said Timar.

West pointed to a case earlier this year when, in his view, the spirit of the program was not adhered to.

"The (Nunavut Housing Corporation) was in need of 550 fuel tanks. Those fuel tanks were never tendered to any company in Nunavut," he said. "Somebody in housing felt that they had to be sole-sourced to a company in the South (Quebec), (but) if I'd receive that tender and had an opportunity to bid on that, how much money could I have saved the government?"

There are several businesses in Nunavut that have a history of rendering that kind of service, he added.

"The fuel tanks were purchased by an ex-employee of the housing department who has since moved to the south and has become a consultant," said West. "What that translates to is that businesses who see this is happening may be questioning why they need to be part of the NNI."

Schneiderman said there are other possible reasons for the drop, which were spread out throughout the entire territory, not specific to any particular region.

"Some of the businesses no longer exist," he said. "Somebody starts a business, they've got a great idea, and for whatever reason, it doesn't work out, or they find a better opportunity somewhere else. They shut it down. Or they sell it out to somebody. That might be a great thing. But if it is sold, the new owners may not qualify for NNI registration.

"I know that we get a significant letters come back as undeliverable. When that happens, we phone. If we get through to somebody, we ask them, 'Do you want to renew? This is what you have to do."

In many cases, when we phone, we don't get through to anybody. Or the phone doesn't connect to anywhere anymore ... That's reality."

Staff shortages at the secretariat may have also played a hand, added Schneiderman.

"We have in the past been understaffed and have had significant turnover, as has a lot of the GN. So we haven't always followed up with businesses that have failed to renew in as timely a manner as we should have."