Coppermine (Apr 18/05) - The financially strapped hamlet of Kugluktuk made another unpopular decision recently, to increase the cost of business licences in order to dig themselves out of debt.

The hamlet ticked off many people when they decided to close down the arena and curling rink for a year in order to address its $900,000 debt.

Kugluktuk's SAO Paul Waye says the community's business licence bylaw hadn't been updated since 1983. The

increase put in place now will only generate $20,000 a year to help pay down the debt, he said.

The increase is based on the revenue generation of each business and will not cripple them, Waye said.

But residents like Alastair Harvey say they are fed up paying for the hamlet's financial mistakes.

"It's hard to do business here," said Harvey, owner of AAA Taxi. "You don't know where you stand with the hamlet."

Harvey's business licence increased from $100 a year to $250. But there's a twist: the hamlet also wants $250 for each of his vehicles. He owns two vehicles, one is a back up.

"It's not going to break me," said Harvey, who's been here since 1979. "But if I take my other vehicle out on the road that's another $250. So I'm paying $500."

Harvey is starting a petition to get the business licence decision reversed.

"My feeling is that hamlet council should be held accountable for making bad decisions just like the director of a company," he said.

Harvey is so upset about the business licence increase, he is thinking of leaving town.

"The hamlet does whatever it wants to do," he said. "They are supposed to support Nunavut businesses. But I don't see that."

Kerry Horn owns the Coppermine Inn and has lived in Kugluktuk for over 30 years.

He pays $500 for his business licence.

Now, on top of that, the hamlet has added a fee of $100 per room.

"It's like a mini-tax grab if you ask me," said Horn. "The hamlet spent a million dollars without permission, now we're expected to pay for that error," he said referring to the arena.

Waye says the "tax-grab" feeling people have is "their opinion."

"Of course there are going to be some people that are unhappy. You can't increase any fee without pissing off somebody."