November 26, 1998

NTI earmarks windfall spending priorities

Nunatsiaq News

IQALUIT — More than half of the $2.4 million in excess income attributed to last year's stock market earnings should be used to help pay down Nunavut Tunngavik Inc.'s debt.

That was the conclusion of a special committee set up to evaluate the options available to the directors of the Inuit birthright corporation.

In a report to NTI delegates at last week's annual general meeting in Cambridge Bay, the windfall allocation committee recommended that $1.5 million of the excess income be paid toward loans with Nunavut Trust.

The windfall allocation committee also recommended giving $200,000 to the Nunavut Social Development Council and the Inuit Heritage Trust to support cultural programs.

The excess income derived from high interest returns on Nunavut Trust's investments last year, which totaled $26.4 million.

NTI has accepted the recommendations of the windfall committee, which include setting up a $25,000 reserve fund for homeless people.

The balance of the windfall, $400,000, should be used to support the Elders Travel Assistance program or a similar program that meets the selection criteria, the committee concluded.

After deducting capital gains taxes of $3.3 million and the $20.1 million in operating funds used by NTI and the regional Inuit associations, and after setting aside $500,000 for administering the Elders' Benefits Fund, a surplus of $2.4 million remained.

After much consideration, the seven-member committee, which met three times over the course of several months, made its recommendation based on criteria consistent with the aim of promoting Inuit well-being.

The committee's own administration costs were $100,000.