Presentation to the Economic SelfSufficiency Working Group

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Presentation to the Economic Self-Sufficiency
Working Group Adamie Alaku June 28, 2005
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Nunavik

• North of 55th parallel
• Nunavik is 505,000 square Km (1/3 of Quebec)
• No road links
• Population of around 10,000 (90 Inuit)
• 57 of the population under 25 years old
• 14 villages of 160 to 1,900 inhabitants
• Inuit of Nunavik pay income and consumption taxes.

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(No Transcript)
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Makivik Corporation

• Created in 1978
• Represents Inuit of Nunavik
• A mean for economic development
• Administer, use and invest the compensations
  recieved by virtue of the JBNQA and other
  agreements.
• Promote Inuit culture and relieve proverty of the
  beneficiaries.

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Challenges to Achieving EconomicSelf-Sufficiency

• Remoteness of the region and climate.
• High cost of transportation.
• High labour and operational costs.
• Lack of skilled labour.
• Lack of expertise in certain fields.
• High transportation costs compounded by
  consumption taxes for subsistence activities.
  Traditional economy important for many especially
  elders.

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Solutions

• Wholly-owned subsidiaries
• Business partnerships and Joint-Venture with
  people with expertise and capital.
• Training - Capacity building
• Increase of post-secondary graduates.
• Build internal expertise and market niches.
• Increase of government subsidies for
  transportation and gas.
• More community involvement
• Building of community infrastructures.

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Wholly owned subsidiaries

• Air Inuit
• Makiviks first subsidiary created in 1978.
• Provides passenger, cargo and charter services to
  all of Nunavik.
• Employs over 300 people.
• Important economic engine in Nunavik
• Fulfills social responsibilities in communities.

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Wholly owned subsidiaries

• First Air
• A major carrier in Canadas Arctic.
• Makes the important link between southern Canada
  and the north.
• Purchased by Makivik in 1990.
• Employs over 1,150 people

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Wholly owned subsidiaries

• Nunavik Creations
• Creation and confection of Inuit clothing and
  crafts.
• Provides employment for seamstresses and artists.
• Products are in the upper market niches.
• Sells to domestic market and exports.

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Wholly owned subsidiaries

• Halutik Enterprises
• Provides fuel services and heavy equipment
  rentals.
• Cruise North Expeditions
• Makiviks newest subsidiary
• Offers Arctic Cruises in Nunavik and Nunavut.
• First year of operation with great reviews.

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Construction Division

• Nunavik Marine Infrastructure Program
• Total cost of program 88 million to provide
  adequate marine infrastructures to all Nunavik
  communities.
• Nunavik Housing Program
• Five year agreement with Federal Government
  227 social units built.
• Agreement renewed for another 5 years in 2005.

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Joint-Ventures

• Pan Arctic Logistics Corporation
• Joint venture with the 3 other Inuit groups in
  Canada.
• PAIL is 50 owner of Nasittuq which operates and
  maintains radar sites which are part of the
  Northern Warning System.

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Unaaq Fisheries

• Jointly owned with Qikiqtaaluk Corp. Owns
  offshore fishing license in which exploitation is
  contracted out to Clearwater.
• Nunavik Trawl
• Agreement with Farocan to operate Makiviks
  shrimp license.
• Employ Inuit fishermen from Nunavik.

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Natsiq Investment Corp.

• Owned jointly with Qikiqtaaluk Corp. and Sakku
  Investment Corp.
• Created in 1999 with the goal of harvesting seals
  and develop markets for seal products in Asia
  and North America.

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Nunavut Eastern Arctic Shipping

• Owned jointly with Nunavut Umiaq Corp. and
  Transport Nanuk.
• NEAS provides maritime shipping services to
  Nunavik and Nunavut with two vessels.

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Falconbridge Mines

• Profit sharing agreement for the nickel mined.
• Inuit employment targets.

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Whats Important In Business Partnerships

• Develop local expertise Capacity building.
• We would like partners to leave something in the
  community.
• Creation of employment.
• Profit

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Conclusion

• Makivik Corporation is well positioned to ensure
  the economic growth of Nunavik.
• As you can see it has expertise in many fields of
  activity.
• Always looking for new ventures with potential
  partners.
• Ready to face the future despite the challenges
  it faces.