Nunavik airlines report “solid returns,” give millions to Makivik

Air Inuit chairman Noah Tayara presents Makivik President Jobie Tukkiapik with a dividend cheque for $2 million at its board meeting in Montreal earlier this month. (PHOTO COURTESY OF MAKIVIK)

Nunavik’s Makivik Corp. will dole out millions of dollars this year to Nunavik communities thanks to strong returns from the organization’s two airlines.

Makivik said last week that it will allocate $16.8 million to a number of community projects and regional initiatives.

The money comes, in part, from “solid returns” posted by two of Makivik’s subsidiary companies, First Air and Air Inuit. Beyond this, Makivik didn’t offer details on the sources of the $16.8 million being spent.

At a recent Makivik board meeting in Montreal earlier this month, executives received a $3 million dividend from First Air, along with a $2 million dividend from Air Inuit.

“We are proud to once again be in a position to allocate funds to all communities,” said Makivik President Jobie Tukkiapik, in an Oct.11 release.

“The $16.8-million in allocations is made possible as a result of a strong financial focus in recent years aimed at achieving immediate objectives while at the same time growing Makivik’s Beneficiaries’ Equity to ensure continued benefit for generations to come.”

Makivik contributes funding to Nunavik communities each year based on their population. For 2017-2018, Nunavik’s 14 communities, plus Inuit in Chisasibi, will share an envelope of $4.5 million.

Another $1.3 million will be made available for specific community initiatives, including recreation, elders, Junior Rangers programming, JBNQA Day, National Aboriginal Day and a church fund.

Makivik also announced renewed allocations to programs and organizations funded under the Sanarrutik Agreement, a 2002 deal signed with the Quebec government that’s expected to pay out $1 billion to the region over a 25-year period.

Here’s a list of regional organizations and programs and what they’ll receive this year:

• Avataq Cultural Institute: $982,576 in recurring funding, plus $260,000 to create a Nunavik language authority;

• Taqriamiut Nipingat Incorporated (TNI): $439,546 in recurring funding, and $230,000 to renovate its Salluit broadcasting centre;

• Nunavik Tourism Association: $125,000;

• Nunavik Sivunitsavut (through Kativik School Board): $80,000;

• Nunavik Mineral Exploration Fund: $30,000;

• Nunavik Hunting, Fishing and Trapping Association: $439,546;

• Qarjuit Youth Association: $439,546;

• Nunavik Landholding Corporation Association: $2.2 million;

• A documentary on Nunavik’s political history called “Now That You Can Stand:” $250,000;

• Ivakkak dog sled race: $479,800;

• Makivik Income Tax Project: $629,106;

• 2017 Qanuilirpitaa health survey: $500,000 ($200,000 allocated specifically for 2017); and

• Fur Harvesting, Locally-Made Clothing and Access Initiative (managed by Kativik Regional Government): $1.2 million.

Under, Sanarrutik, Makivik will also allocate $1 million to the Isuarsivik Regional Recovery Centre over the next two years, while the program looks to construct a new centre in Kuujjuaq.

The funding announcement is a marked change from news earlier this year when Makivik’s board of directors flagged the organization’s slow revenue growth.

A review of its investments and business activities found Makivik’s equity had not kept up with inflation and population growth over the years since the James Bay and Northern Quebec Agreement was signed in 1975.

At its annual general meeting earlier this year, a presentation of Makivik’s structural review committee showed that 15 of its subsidiary companies showed accumulative losses over the years totaling $44 million.

Makivik has since dropped one of those companies; Nunavik Creations folded earlier this year, after posting losses for many years.

Only five subsidiaries posted profits—First Air and Air Inuit among them—totalling some $226 million, the presentation indicated.

To help encourage economic growth, the Inuit birthright organization launched a new development corporation earlier this year, an arms-length entity to oversee the day-to-day operations of Makivik’s subsidiaries and its joint ventures.