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NUNAVUT
Despite a fiscal year of net losses for many of its subsidiaries, the Nunavut Development Corp. "enjoyed a strong year," its president said.

Arctic char products produced by the Nunavut Development Corp.'s three plants. The corporation's president said the 2010-11 fiscal year was strong although its subsidiaries continue to struggle. - courtesy of the Nunavut Development Corp.

According to the corporation's 2010-11 annual report, all but two of its nine subsidiaries saw net losses for the fiscal year ended March 31.

"They are struggling," corporation president Darrin Nichol said. "It's very easy to sit back and say 'hey, look, what a gong show' but you have to understand the economic framework that the territory operates in and the challenges that go into it.

"We'd love all these companies to be generating a profit or, if nothing else, breaking even, ideally we would," Nichol added. "But the challenges associated with manufacturing, commercial fishing, and food processing in this territory make that objective very difficult."

Nicol's said the work the development Corp does is more important than its financial sheets.

"If the focus is just about profit and net profit with regards to the activities of the corporation, then we don't stand a chance," Nichol said. "We do this because these jobs in these sectors are extremely important to our territory at a variety of different levels whether that be culturally, traditionally, economically, people need to work and there are people who rely on these sectors for their jobs and that's why we're involved with it."

The corporation provides about 126 total jobs including employment in its subsidiaries, including 11 jobs with Kitikmeot Foods, about six jobs for Kivalliq Arctic Foods in 2011, down from about eight in 2010, and about 15 total jobs with Uqqurmiut Arts and Crafts in 2011, the report said.

More than $3.1 million was expended directly on Nunavut employment, Nichol added, listing other highlights from the fiscal year, such as an additional $1.5 million paid directly to professional harvesters and artisans, and sales in excess of $6.5 million in Nunavut produced goods.

"Those are the type of success stories that we try to hang our hat on," Nichol said.

The corporation continues to work on its investment policies, he added, which support its mandate of creating employment and income opportunities, stimulating the growth of businesses in the territory, and promoting economic diversification and stability.

The corporation has nine subsidiaries, including Arctic foods and light manufacturing companies, in addition to its venture investments subsidiary.

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