Arctic Co-operatives wants Nunavut MLA to correct fact errors

The president of Arctic Co-operatives Ltd. wants Rankin Inlet North MLA Tagak Curley to stand in the legislative assembly to correct a previous member’s statement that ACL says was “misleading to the public and undermines public confidence.”

This past March 6, when some members made remarks related to the International Year of the Co-operatives, 2012, Curley lambasted ACL in a member’s statement.

In that statement, Curley claimed ACL has received $50 million in federal government subsidies, making it impossible for small businesses in Nunavut to compete with local co-ops.

He also complained the Government of Nunavut has awarded fuel distribution contracts totalling $165 million a year to co-ops.

But in a letter to Curley, copied to all other MLAs, ACL president Bill Lyall said Curley’s statement is “unfair, unwarranted and inaccurate.”

“Tagak, I encourage you to set the record straight and stand up in the Legislative Assembly to correct the inaccurate and misleading information you presented in your March 6th statement,” Lyall said in his letter, a copy of which was obtained by Nunatsiaq News.

Lyall said it is not true that ACL receives federal subsidies worth $5 million a year for a total of $50 million.

“Your statement is incorrect and has no factual basis,” Lyall said.

Lyall went on to say ACL gets no “operating or capital contributions” from any level of government.

Lyall also said the Inuit co-ops in Nunavut do not hold $165 million worth of contracts for fuel delivery, contrary to Curley’s assertion.

“Inuit co-ops earn a commission on the delivery of each litre of fuel for the Government of Nunavut. The total commission revenue earned by all Inuit-owned co-ops in Nunavut in 2011 (before operating expenses) was just over $5 million,” Lyall said.

Curley has been a vocal critic of a recent fuel distribution contract award in Coral Harbour to Katudgevik Co-op Ltd., which took the contract away from Sudliq Developments Ltd., owned by Louie Bruce.

Lyall did not refer to that issue specifically in his letter, but he did say GN contract awards to Nunavut co-ops are conducted fairly.

“The fact that Inuit-owned co-ops were the successful proponent in many of the communities where they submitted proposals indicates that the government RFP evaluation process determined that the Inuit co-ops would provide the Government of Nunavut with the best service and value,” Lyall said.

“Local co-ops were awarded fuel delivery contracts on the strength of their individual proposals, not based on personal connections and political interference,” Lyall went on to say.

He said that in 2011, ACL distribute $6.5 million in a patronage refund to individual co-operatives that are members of ACL, and are classed as Inuit firms under the NNI policy.

In the same way, individual co-ops have distributed $54 million in refunds over the past 10 years to individual community residents, Lyall said.

“You suggest that co-operatives have an unfair advantage over other small businesses in Nunavut. This is not correct; the Inuit-owned co-operatives in Nunavut are small businesses.”