This is a reply to a question asked by Mr. Koe on March 25, 1992. From information made available to me, it would appear that the Uqqurmiut Inuit Artists Association of Pangnirtung is a non-profit corporation administered by a volunteer board of directors representing a variety of different types of artists. I understand that the funds raised from lotteries is intended to be used for the next phase of their capital project, which includes the expansion of the print shop.

Although all charitable organizations could be described as non-profit organizations, the opposite is not necessarily true. The constitution and by-laws of a corporation set out its objects and purposes. One of the objects of Uqqurmiut Inuit Artists Association specifically relates to the purchase and marketing of fine arts. As well, under the by-laws, the association has the ability to employ salaried employees and the right to issue shares for sale.

The association, as it is presently constituted, cannot be considered a charitable organization and therefore is not eligible for lottery licences. Further, the stated purpose of expanding their capital projects, which includes the business of a print shop, does not meet the criteria set down for charitable purposes. Accordingly, I have no option but to support the decision made by the regional director of the Baffin Region to deny the lottery licence application of the Uqqurmiut Inuit Artists Association.

Finally, let me assure the honourable Member for Inuvik that the government certainly supports this type of community venture in the promotion of Inuit art and culture and would recommend that Uqqurmiut Inuit Artists Association consider the establishment of a separate organization or society that would quality for lottery licences to be used for acceptable charitable purposes.