Thorunn Howatt
Northern News Services

Yellowknife (Feb 04/02) - Development corporations within the Northwest Territories and Nunavut fulfil a number of different purposes, but there are only two that are crown corporations.

The Northwest Territories Development Corporation and the Nunavut Development Corporation were established by the Northwest Territories Development Corporation Act of 1990.

Kivalliq Arctic Foods manager Brian Schindel, left, and Nunavut Development Corporation president John Hickes have good reason to smile after the company topped the $1 million annual gross sales mark for the first time, and the fiscal year isn't over yet. - Darrell Greer/NNSL photo

The rest of the many development corporations are privately held with diverse mandates.

Nunavut and NWT development corporations

The focuses of the two crown corporations are employment creation and economic diversification.

Both government development corporations invest directly and give operating subsidies to companies through subsidiary companies, joint ventures and projects.

Subsidiary companies are owned by the development corporations by 51 per cent or more.

The development corporations become involved in joint ventures by injecting capital funding into a business in return for preferred shares.

Sometimes the corporations fund business projects on a cost-sharing basis for feasibility assessments, development of new products and management of pilot projects.

The NWT Development Corporation has eight subsidiary companies: Acho Dene Native Crafts Ltd., Arctic Canada Trading Company Ltd., Aklavik and Tuktoyaktuk Furs Ltd., Muskox Leather Incorporated, Fort McPherson Tent and Canvas Shop, Nahanni Butte General Store Ltd., Rae Lakes General Store Ltd. and Dene Fur Clouds Ltd.

Some of the joint ventures the NWT corporation is involved in include Nats'enelu, a high-end leather fashion manufacturer influenced by traditional Dene designs, and the MS Norweta, a 105-ton cruise vessel that tours Great Slave Lake and the Mackenzie River.

One of the Nunavut development corporation success stories is Kivalliq Arctic Meats. The company hit the $1 million annual sales mark this year. The Nunavut corporation is 100 per cent shareholder of Kivalliq Meats. Marketing outside the community is how the development corporation hopes to stimulate Nunavut communities' economies and to lure outside cash, not just recycled government money.

Atuqtuarvik Corporation

Atuqtuarvik Corporation provides loan and equity financing of between $100,000 and $3 million to Inuit-owned businesses for startups, business expansions and acquisitions. The Rankin Inlet-based corporation was established by Nunavut Tunngavik Inc. and Nunavut Trust.

Private development corporations

Development corporations are formed to develop economies and the myriad of corporations in both territories have a multitude of focuses. Some are huge entities like the Inuvialuit Development Corporation, an economic vehicle of the Inuvialuit Regional Corporation, or Nunasi Corporation, owned by the Inuit of Nunavut. The Northwest Territories' Department of Resources, Wildlife and Economic Development lists 25 aboriginal development corporations across the territory.

Denendeh Development Corporation's interests include drilling and service rigs through Shehtah Drilling. Denendeh is an economic vehicle of five Dene regions in the Northwest Territories.