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Development fund lists clients

Jack Danylchuk
Northern News Services

Yellowknife (Sep 27/04) - Bill Aho is one of hundreds of established, struggling or aspiring business people who have tapped into the Business Development Fund since it was set up 13 years ago to grow the NWT economy.

The fund doled out $1.3 million during the 2002-2003 fiscal year.

It chipped in $10,000 two years ago when Aho and Doug Witty wanted to explore the idea of building welded steel boats.

"It had potential, but we found out it isn't feasible to manufacture boats in the Northwest Territories," Aho said in a recent interview.

The contribution is among those listed in the fund's annual report for 2002-03. It was tabled in the legislative assembly and is open to public view on the government's Web site.

"I think that information should be public," said Aho. "I don't know why anyone would be hesitant to disclose that they've received public money; if the government makes tax money available, it should say who is getting it."

The boat venture wasn't the only fund-financed venture to sink, however, the last time the branch looked at the statistics, 75 per cent of businesses that received money between 1993 and 1998 were still in operation.

The Mackenzie Gas Project has prompted projects and development fund grants up and down the valley, including $51,000 in 2002-03 to help Liidlii Kue First Nation and Fort Simpson deal with issues related to the pipeline.

Gabe Hardisty and his partner Walter Blondin got $25,000 each to study the feasibility of privatizing Wrigley's fuel supply in 2002.

Hardisty Petroleum and Blondin's Wildrose Resources are partners in Deh Cho Engineering and Environmental, a joint venture with a Vancouver company created to seek contracts with the Mackenzie Gas Project.

Blondin, a business consultant, lauds the business development program as an alternative to welfare and a means of creating jobs in isolated communities, but condemns the lack of support for first-time business operators who are often overwhelmed by paperwork the government demands.

The fund provides money for developing business plans, marketing, acquiring skills and capital and solving problems, but it offers no training in accounting.

"Of course the public should know who gets grant money," Blondin said. "It goes without saying."

The fund also contributed more than $70,000 in travel expenses to send delegates to business and economic development conferences in 2002-03.

It put $45,000 into Don Morin's Aurora Village, chipped in $40,000 for the Norman Wells reunion in 2002 and $39,000 for music and culture festivals from Fort Smith to Inuvik.

The fund found $4,885 for feasibility studies on organic farming by the Deh Gah Gotie Dene Council in Fort Providence and $53,000 for reorganization of the Fort Liard Metis Development. Corp.

Shauna Charlie got $5,000 to buy ice cream machines for Stephanie's Candy Shack in Aklavik. Her competitor, Darren Archie, got $4,265 to set up a summer ice cream stand.

"It just breaks even," Charlie said. "But it brings people into the store."

D&L Taxi in Wrigley got $20,000 toward a new 15-passenger van, mainly used to transport those going to the doctor in Fort Simpson.

Business isn't that good, owner David Moses said, but he still has to make a monthly payment to the territorial government. When applicants veer from their business plan, or don't use all of the grant, fund administrators seek repayment.