NNSL (DEC 23/96) - What a year for business and labor in 1996. Deals and contracts were signed, new partnerships formed and everyone moved one year closer to division.
On the business front, there were many positive signs: the approval of the BHP Diamonds/Dia Met mine and ensuing impact benefit agreements and an increased interest in the oil and gas spring to mind.
Labor also had its share of positive news. New work sites were organized, new contracts signed and co-operative partnerships were formed.
But to say the year was only full of good news would be to admit wearing only rose-colored glasses.
Strangely enough, business and labor were affected by the same incident in 1996. When the Union of Northern Workers membership voted to accept a contract that saw wage and benefit reductions, business was hit by thousands of people with less disposable income and labor had to suffer with a new Public Service Act that can inhibit the length of collective bargaining.
Here's a summary of some of the other happenings in 1996.
At the beginning of the year Nunasi Corporation made an offer to the NWT Development Corporation to take over Baker Lake's Jessie Oonark Centre. The deal eventually went through.
Also early in the year NorthwesTel received federal permission to increase local phone rates and reduce long- distance charges.
In February, after a general manager for the abattoir-processing plant in Hay River had been hired, Western Arctic Foods took over the plant's operations. The company is largely owned by the NWT Development Corporation, with minor partners including the Territorial Farmers Association. Production began around April.
A partnership between the Fort Franklin Dene Corp., Metis Dev. Corp., NWT Dev. Corp. and tourism operator Chummy Plummer saw control of four of five tourist lodges on Great Bear Lake gather under one umbrella. The deal allowed for cost sharing and created jobs in the area.
The Kitimeot Chamber of Commerce held its first meeting in Kugluktuk in late February. The event marked the day when the region was the last to have its own business lobby group.
Another partnership formed in the year saw Arctic Co-operatives, the Inuvialuit Development Corporation and Mones and Associates teamed up to form Arctic Insurance Brokers.
Not wanting to let an economic opportunity slip away, a mining conference was held in Rankin Inlet allowing Keewatin and other Nunavut businesses and business people an opportunity to learn more about the industry and meet the people involved.
Four companies pledged to spend $9.3 million to conduct oil and gas exploration in the Central Mackenzie Valley. This was the second year industry showed interest in the area where the Sahtu and Gwich'in are surface right holders.
Later in April, six companies said they would spend more than $20 million exploring for oil and gas in the Fort Liard area. In 1995, industry also pledged to spend over $20 million exploring in the area.
Also in late winter, the three Nunavut development corporations teamed together to sell Caterpillar heavy equipment.
A meeting with then WCB boss Jeff Gilmour and the NWT Chamber of Commerce did little to alleviate fears of the transfer of health and safety to the WCB. Business still wanted to be consulted on the effects of the transfer.
The promising credit union movement in the NWT took a step backward when $1.4 million in funding disappeared because it wasn't spent by March 31. At the same time, however, Nunavut Tunngavik Inc. committed $1 million to the establishment of credit unions.
When word of the territorial government's contract offer to its unionized employees hit the news, the Iqaluit Chamber of Commerce took a strong opposition role stating the contract would have a devastating negative effect on the economy of the Eastern Arctic.
In the Sahtu region, Imperial Oil shut its refinery after a contract to resupply fuel to the Western Arctic was won by a refinery in Alberta. The move resulted in an outcry from a community worried about the negative impacts of losing 16 jobs.
On the water front, the Northern Transportation Company Ltd. won two contracts to deliver goods and fuel to three Alaskan communities.
In May, Premier Don Morin announced he appointed 16 Northern business people to sit on an advisory Premier's Panel on the Economy and Employment. The group is to meet four times a year with Morin and the finance department's investment office.
By early summer it became apparent the construction industry was headed for lean times. With government cuts and an uncertain economic climate, there was little private investment and thus little construction work in many parts of the NWT.
In mid-summer the only aboriginally owned hydro plant in Canada went into production. And with the Snare Cascades plant operating, the Dogrib owners began work on assessing the possibility of another hydro project in the area.
Tired of waiting for a pan-territorial credit union system to develop, members of the Co-op in Pond Inlet began moving on their own to develop a financial institution.
Bidding for the territorial government's communication network began in early August by three groups. Winning the contract was Ardicom, a consortium of Northern businesses and aboriginal groups.
Employers received some upbeat news mid-August when the WCB announced employer assessment rates were dropping for the second consecutive year.
The turbot harvest near Pangnirtung added an additional 16 weeks to the usual 20-week season at Pang Fisheries. With 42 people at work, the project added about $1.2 million to the local economy.
Sport hunting for walrus wrapped up its first licensed season in Igloolik. The plan behind the project is to bring in some outside dollars into the community.
Three quarters of the way through the year, the Kitikmeot Inuit Association signed a deal with Echo Bay Mines that will give Inuit in the area job training, business opportunities and education. At the same time Echo Bay can develop its Ulu gold property.
The first Western Arctic Aboriginal Economic Summit brought together aboriginal business people and organizations from across the NWT to discuss future prospects in the West. One idea from the summit called for the establishment of an aboriginal business lobby group similar to a chamber of commerce.
People were fishing in Broughton Island with their eyes on the future in November. Community members hope revenues from the 1996 project will lead to a port with fish-freezing capabilities for the community.
More talk on gas developments in the Western Arctic emerged in November. The Inuvialuit Petroleum Corp. said it will spend $1.5 million testing for natural gas near Inuvik.
Around the same time the Canadian Energy Research Institute estimated up to $300 million could be spent in the southern Mackenzie Valley on natural gas development.
Late in the year, Nunavut Tourism began the process of taking over some tourism functions, such as marketing, from the government. Depending on the success in this area, the private organization could take over other functions from government.
In early December, NWT Arctic Tourism, the western organization, held its second-ever meeting and also determined marketing to create an identifiable image of the West, as well as finding more funding were key in the year ahead.