IQALUIT
Advocates for change are happy to hear that the Government of Nunavut and Nunavut Tunngavik Incorporated are working together to update the territory's government contract policy, Nunavummi Nangminiqaqtunik Ikajuuti, or NNI.

Nunavut Tunngavik Incorporated president Cathy Towtongie and Economic and Development minister George Kuksuk (not shown) signed a memorandum of understanding December 4 that will see the Nunavummi Nangminiqaqtunik Ikajuuti policy changed to benefit Nunavut companies. - Casey Lessard/NNSL photo

"There's been issues with the policy and applying the policy since it started," Baffin Region Chamber of Commerce executive director Chris West said after the announcement Dec. 4. "Hopefully this new MOU (memorandum of understanding) will address those issues when it comes to procurement. There's been a lot of concerns about companies that weren't truly Inuit-owned companies, so hopefully the new policy will address those issues."

The problem of so-called "potato companies: brown on the outside and white on the inside," as former cabinet minister Manitok Thompson called them in a 2012 Up Here Business article, needs to be addressed.

"The structure needs to be looked at and I think there are ways to structure it to avoid the 'potato companies,' whether it's through ownership, the level of ownership, and it's got to be monitored," West said. "Over the years, we've had Inuit companies that were run by outsiders that had Inuit working for them but never attended work. There's got to be accountability to prove that it's an actual true company."

The NNI policy, as inspired by Article 24 of the Nunavut Land Claims Agreement and the government's economic development initiative, is to provide Nunavut, local and Inuit businesses a seven per cent advantage for each category when compared to other bidders for government contracts.

Dubious Inuit ownership claims are a problem the partners hope to address.

"Through the anticipated changes, NTI wants a refocus on increasing opportunities for Inuit firms to be the end result," NTI president Cathy Towtongie said, noting the policy is cheap to implement. "NTI's goals for the process is to have a revitalized policy that has a more strategic and meaningful impact for Inuit businesses that promote increased job opportunities and the overall enhancement of hiring of Inuit as required by the Nunavut Land Claims Agreement."

"We want to see these businesses flourish and spend the money from these contracts in our territory," said Economic Development and Transportation Minister George Kuksuk. "Every five years we undertake a review of the NNI policy. We want to make sure this policy is more transparent so that Nunavut-based, local and Inuit businesses will benefit."

To do so, West suggests lowering the barriers to participation. Stop requiring registration with Legal Registries every year, a process that requires too much paperwork, much of it copied from previous years.

"It makes more sense, rather than having to do the whole (document) every year, if there was just a renewal form," he said. "You have to do the legal registries process, recorded minutes, any resolutions that are changed, and it's a costly process, and they do get rejected."

On the latter point, he said a consistent policy is required so businesses know the rules won't change midway through the process.

"I think there has to be a collaboration from NTI, the GN, and even Legal Registries, to say this is the way it works. You can't phone one day and have it this way, and the next day it's another way," he said.

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