Nunatsiaq Online
NEWS: Nunavut November 07, 2011 - 3:34 pm

Nunavut Development Corp. subsidiaries continue to lose money

Only CamBay's Kitikmeot Foods Ltd. shows a profit

NUNATSIAQ NEWS
Cambridge Bay's Kitikmeot Foods Ltd. was the only one of the Nunavut Development Corp.'s nine subsidiaries to show a profit in 2010-11. (PHOTO COURTESY OF NUNAVUT DEV. CORP.)
Cambridge Bay's Kitikmeot Foods Ltd. was the only one of the Nunavut Development Corp.'s nine subsidiaries to show a profit in 2010-11. (PHOTO COURTESY OF NUNAVUT DEV. CORP.)

All but one of Nunavut Development Corp.‘s nine subsidiaries continued to struggle financially in 2010-11, according to its annual report, tabled during the recent session of the Nunavut legislature.

On the positive side, the corporation managed to turn $3.1 million in government subsidies into 120 Nunavut jobs. Another $1.5 million went to harvesters, the report says.

But the only one of the Nunavut Development Corp.‘s subsidiaries to show a profit was Kitikmeot Foods Ltd. of Cambridge Bay.

Sales at the Arctic char and muskox food processor were down from $670,000 in 2009-10 to $567,760 in 2010-2011, but the plant still showed a profit of $88,500 and employed about 11 people.

The biggest money losers per job created at Nunavut Development Corp. subsidiaries were Kivalliq Arctic Foods, where six jobs cost about $50,000 each in subsidies and losses, Taluk Designs, whose two jobs cost about $49,500 each, and Kiluk, whose four jobs cost about $29,000 each.

Public money was most efficiently put to use by Ivalu, Pangnirtung Fisheries and the Uqqurmiut Centre for Arts and Crafts. The cost of the jobs these subsidiaries created ranged up to $13,000 per job at Pangnirtung Fisheries.

Here’s how money-losing subsidiaries shaped up:

• Ivalu of Rankin Inlet, which operates a retail arts and crafts store with products from other Nunavut Development Corp subsidiaries, had sales of $161,252. It received a $25,000 subsidy and showed a profit of $22,550 — almost breaking even;

• Jessie Oonark of Baker Lake, which sells and produces arts and crafts, had sales of $412,187. It received a subsidy of $130,000, but saw a loss after its subsidy of $63,000 — but it employed 11 people;

• Kiluk of Arviat, which produces and sells arts and craft, including sealskin products, had sales of $114,200, received a subsidy of $120,000 and saw an after-subsidy loss of $2,000;

• Kivalliq Arctic Foods, which sells Arctic char and meat products, had sales of nearly $200,000, received a subsidy of $100,000, but still ended up losing $281,000.

• Pangnirtung Fisheries, which operates a fish processing plant, had sales of $2.8 million, took in $100,000 as a subsidy, but ended up with a loss of $147,000 — however, it also employed 19;

• Papriuq Fisheries Ltd. of Whale Cove, which operates a processing plant, had only $7,700 in sales, received a subsidy of $25,000, and showed an after-subsidy profit of $835;

• Taluq Designs of Taloyoak, which sells and produces Inuit packing dolls, had sales of $76,000, received a subsidy of $120,000 and still lost $4,400.

• Uqqurmiut Centre of Arts and Crafts had $392,600 in sales (down from $516,400 the previous year). It received a subsidy of $120,000, but lost $47,535, although it created more than 15 jobs.

The Nunavut Development Corp. began life in the early 1990s as a Crown corporation called the Northwest Territories Development Corp..

After the creation of Nunavut in 1999, its Nunavut operations became known as the Nunavut Development Corp..

The corporation’s guidelines, inherited from the NWT, say subsidiaries should reach the break-even point after five years.

 

 

Email this story to a friend... Print this page... Bookmark and Share

 THIS WEEK’S ADS

 ADVERTISING


        


Custom Search