GN should continue to support 'value-added activities,' report says

Sustainable, humane and profitable – that's what Nunavut's sealing industry should be, argues a report on sealing in the territory

And to achieve this winning combination, the report says the industry must become more market driven and receive fewer handouts of government money.

The report says the marketplace – "not indiscriminate industry support" given to hunters and high-end fashion designers – should tell the Government of Nunavut where to put its manpower and money.

The Yellowknife-based RT Associates prepared the 2004 report, called "Towards a new sealing strategy for Nunavut," for the GN and the federal department of Indian and Northern Affairs Canada as a basis for the GN's final sealing strategy.

This strategy, which still exists only in a draft form, will outline how the GN plans to manage the sealing industry to "maximize economic opportunities for Inuit."

But the 30-page consultant report reveals there's little consensus about how best to achieve this.

Despite strong arguments in favour of privatizing the seal industry, the report recommends continuing the sealskin purchase subsidy program "because it maximizes the returns to harvesters."

"The sealskin purchase program has had the most impact in terms of providing cash to offset the costs of putting food on the table," says the report, which estimates the replacement value of the seal meat eaten in Nunavut at $5 million.

The report also recommends the GN continue supporting "value-added activities," such as sealskin garment manufacturing, arts and crafts and other opportunities.

The GN spends at least $600,000 a year to buy sealskins from hunters and support its other activities related to sealing and seal garment production.

But some territorial wildlife officers, who now purchase sealskins directly from hunters, told consultants that if the sealskin purchase subsidies were stopped, a local private buyer might take over and do a better job.

This buyer would bring the sealskins to auction, offer only high quality skins and find a solution to the lack of cool storage facilities in Nunavut.

This scheme would see, among other changes, the introduction of a "payment advance system" for sealskins.

Hunters would retain ownership of their sealskins until they were sold at auction. They would receive an advance equal to about 75 per cent of the market value of their skins, instead of the full amount, as is now the case.

"This is the essence of a market-driven approach: those that offer high-quality skins will be rewarded with high initial advances. Those that do not will either be rejected outright or receive lower advances," says the report.

The report also highlights differences on what should be done with raw sealskins so they can be used in garment production.

The report says there is consensus that a Nunavut-based tannery is "a good idea."

But it also says "current thinking suggests that a tannery would have to be subsidized and create unacceptable environmental issues. In other words, there is a negative payoff all around."

The idea of a Nunavut-based tannery has been tried out before at the Minnguq seal sewing shop and tannery in Qikiqtarjuaq – where it failed.

The business expanded to about 400 boot sales per year by 1990 and adopted a new product line of bags. But when the tannery opened, there were problems with the complicated tanning process. Minnguq closed in 1994. A later project to process seal meat there flopped because the consultants say there was ""no market for seal meat products."

The report shows more agreement on how the GN could develop a market for sealskin garments.

The report says "fashion shows in general have become a very effective public awareness tool" to promote sealing. But it recommends the GN pull away from subsidizing the creation of the Nunavut Inuit Collection and market sealskin garments in Nunavut through local events.

The report also says there should be a formal training program for sealskin garment production – something Nunavut Arctic College will start in September.

Among the report's other recommendations:

The GN should pursue a deal with the Fur Harvest Auction Inc. to build up an inventory of dressed skins for use in Nunavut, which would be available at a subsidized rate to Nunavummiut.

The GN should "restrict its efforts to cost-effective public education activities" because of the "negative consequences" of joining efforts with Newfoundland and Labrador sealing interests.

The report notes that in 2003 Nunavummiut received about $395,000 a year from selling sealskins, $25,000 from commercial seal meat sales, $330,000 from clothing production and $50,000 from arts and crafts sales.