Iqaluit (Apr 07/03) - Thirty companies that don't meet Inuit ownership requirements now face stiffer competition for Nunavut government work.

The companies had until April to qualify under the GN's Nunavummi Nangminiqaqtunik Ikajuuti (NNI) policy.

Firms now axed from the GN's Northern-preference list include the Royal Bank of Canada, NorthwesTel, and Canadian North.

The NNI policy provides bidding advantages of up to 20 per cent on government contracts for Inuit-owned firms.

The government last spring gave 37 companies a one-year extension to meet the NNI's 51 per cent Inuit ownership requirement.

Only seven restructured in line with NNI by the deadline.

NorthwesTel's Anne Kennedy said the company isn't sure what the impact will be on its business with the Nunavut government.

"We certainly understand the intent of the policy, but we are a wholly owned subsidiary of Bell Canada," said Kennedy.

"That isn't likely to change."

Canadian North falls one per cent short of ownership requirement.

The airline is owned 50-50 by the Inuvialuit of the western Arctic and the Inuit of Nunavut.

The company has argued that as a 100 per cent aboriginal-owned firm, it should not be at a disadvantage when bidding on government work in Nunavut.

The GN's Barry Cornthwaite said the NNI policy was effected to build business sector capacity and encourage Inuit employment.

It will likely have the greatest impact on the construction industry, he said.

"The spirit of the policy is that company owners will be people living in Nunavut, not necessarily just Inuit ownership.

"We want to ensure that at least 51 per cent of ownership in a company live in Nunavut, not just a local manager or a phone on the wall."

The policy provides Nunavut firms with a 14 per cent 'adjustment' on government contracts.

An Inuit firm receives an additional three per cent edge, and a local community firm another three per cent.

The bid adjustment is capped at $100,000 on goods contracts.

Proposals submitted to the GN are rated on the extent of Inuit employment involved and Inuit ownership.

Baffin Building Systems is one of the 30 firms deleted from the NNI list.

The Iqaluit firm employs 50 people in construction, building supplies, and heavy equipment.

Co-owner Colin O'Neill is not happy with the government move.

"I have three partners and we all live in the South now," said O'Neill.

"But we all lived in Iqaluit for 12-plus years building this business. We have invested our money there. Now they want to kick us and our money out."

O'Neill said the company invested in the building supply side of the business specifically to meet the requirements of the Business Incentive Policy then in place.

"This is a local business, we pay taxes locally, and we hire locally.

"Now we face being at a competitive disadvantage against firms that buy their materials the same place we do -- in the South."

The company will continue to bid on government contracts but "will have a hard time" winning GN business now, said O'Neill.