Jorge Barrera
Northern News Services

Coppermine (Jan 14/02) - With a growing population and more people landing jobs it's time for a bank, says Kugluktuk's deputy mayor.

"It's about time," Peter Taptuna said last week.

Without access to a bank, people in the hamlet either do their banking out of Yellowknife or put money into a savings-charge account at the Co-op or Northern store and use the in-store debit card machine to withdraw cash.

Derek Power, Northern store manager, said people can open accounts for free. He said they charge anyone without an account a $12 fee for withdrawals below $100 and nothing for larger withdrawals.

But Alex Buchan, community development officer for the hamlet, said the community needs more than that. He points to recent population growth as proof it's ready for a branch.

Nunavut's statistics bureau expects Kugluktuk's population to grow by 43 per cent over the next decade. Since 1991 the population has grown by 300 people, currently sitting at 1,350. By 2020 the bureau projects the population will top 2,000.

Buchan said 60 per cent of the population is employed and the number is growing steadily, with government decentralization and more people switching from living on the land to participating in the wage economy.

Those newly employed need advice on financial management, something a bank is best suited to offer, Buchan said.

"People aren't aware of the steps needed to buy houses or to plan finances."

In 2000, for example, three families hoping to build new homes received approval for $15,000 grants from the Nunavut Housing Corporation, but the offers lapsed because the recipients didn't know how to handle the investments, said Buchan.

"It's an economic impediment not to have a bank here," he said.

Two years ago the hamlet sent letters to some of the major banks requesting information on setting up a branch. No one replied.

Bill Bannister, Nunavut regional vice-president for the Royal Bank, which has a branch in Cambridge Bay, said he wasn't aware of the letters but encouraged the hamlet to get in contact with him over the issue.

"They could direct it to me and I could direct them to the right people," said Bannister.

Cost and staffing are the biggest challenges banks face in setting up Northern branches, he said. "It is very, very expensive."

Bannister said the bank would have to evaluate the level of return along with a host of other factors before deciding on the wisdom of a new branch.