Thorunn Howatt
Northern News Services

Inuvik (Sep 10/01) - Separating business from politics can be both painful and profitable.

"A development corporation is an investment company but we are also looking at people, employment and training," said Gwich'in Development Corporation's chief executive officer Tom Connors.

At the start of 2001 the corporation underwent a restructuring, separating business from the political organization. It also hoped to take advantage of a rumbling oil boom and turn itself around financially.

"In the 10 months since Fred has been in, there have been a lot of changes. We're not looking back now," said Connors, speaking of Gwich'in Tribal Council president Fred Carmichael.

At the end of 2000 the corporation totalled a consolidated revenue of $4.2 million but tallied up a net loss of $600,000. Connors hopes to turn that around this year. The company estimates operations will generate $7.8 million in revenue and $600,000 projected income will turn red ink to black.

But Connors described the effort as a minefield.

"We don't want to compete with businesses that are owned by beneficiaries," he said.

Connors explained the corporation will stick to large-scale projects like its recent joint venture with drilling rig company, Ensign, a strategic move that readies it as a player in the booming oil and gas game.

The corporation will keep its focus on two operations: construction and trucking.

"Construction isn't a sexy business but it does employ," said Connors, who is working hard to turn Gwich'in assets to profits while maintaining philosophies set out by the tribal council.

Telit Zheh Trucking is completely owned by the Gwich'in and has driven much of the recent financial turnaround. Trucking is budgeted to produce nearly

$5 million in revenue this year.

"At some point we'll have to buy somebody. If you can't build it yourself, you buy it," Connors said.

But despite the quick about-face in the direction of the bottom line, Connors remains pragmatic.

"We're not there yet. We have the land. We have the labour force. We don't have the expertise," he said.

"First we need to gain stability inside the region, then move outside."

Connors said the corporation looks to the Inuvialuit Development Corporation as a model. The Inuvialuit corporation started a similar turn-around a little more than five years ago and is now at a point where it sees a profit and its beneficiaries receive dividend cheques.

"They went through this bump in the road themselves," he said.

The Gwich'in corporation's board of directors reflects its business attitude. Chiefs can't be directors on the board of directors and some seats are saved for professionals -- a banker, lawyer and an accountant.

The Gwich'in Development Corporation manages businesses and money for about 2,400 beneficiaries.