Return to Written Question 18-12(5) asked by Mr. Lewis to the Minister of Economic Development and Tourism and the NWT Development Corporation concerning businesses taken over by the NWT Development Corporation.
The following majority owned Development Corporation companies acquired the assets and/or assumed operating responsibilities of existing operations:
1. Northern Forest Projects Ltd. (Hay River) was established by the Development Corporation. It is a forest products management company contracting for the supply of logs, milling of logs and sale of lumber. However, some of the rolling stock assets of that company were transferred to it from #933261, and more than half of its revenues originate from logs milled by #933261. #933261 Ltd, is a contract milling company located in Hay River and owns all of the milling assets of the former Patterson Enterprises Ltd.
Northern Forest Products is responsible for arranging for the sales of lumber produced by $933261 (the Hay River mill).
It is expected that $933261 in 1994 will produce about four to five million board feet of lumber, and it is expected that this company and Northern Forest Products will both enjoy small profits.
In 1994, these two companies will fund 25 full and part-time positions, and will likely expend some $1.590 million on the payment of wages to NWT residents and the purchase of goods and services from NWT businesses.
2. Great Slave Lake Forest Products Ltd is based in Fort Resolution and is a contract lumber milling company. The Development Corporation entered into an agreement with Nuni Ye Forest Products that resulted in the transfer of the assets of Nuni Ye to Great Slave Lake Forest Products Ltd. Nuni Ye had been dormant for approximately eight years at the time.
Northern Forest Products will sell all of the lumber milled by this company.
It is expected that Great Slave Lake Forest Products in 1994 will produce 2.5 to 3.5 million board feet of lumber, and it is expected that this company will likely break even.
Fifteen to 20 full and part-time positions will be funded directly by the company in 1994, and the company will likely expend some $821,000 on the payment of wages to NWT residents and the purchase of goods and services from NWT businesses.
3. #913044 (Fort McPherson Tent and Canvas Shop Ltd) was an Economic Development and Tourism (ED&T) managed enterprise prior to its transfer to the Development Corporation.
The company operates a small craft outlet and produced a variety of manufactured fabric products. It is forecasting production of 500 tents, 4,600 bags, 250 miscellaneous fabric products and some custom work (example, boat covers) in 1994. Arctic Canada Arts and Crafts Wholesale is the majority wholesale customer of this business.
This company is not forecasted to generate a profit in 1994.
In 1994, it is expected that this company will fund 22 full and part-time positions and will likely expend some $560,000 on the payment of wages to NWT residents and the purchase of goods and services from NWT businesses.
4. Cumberland Sound Fisheries transferred its fish plant processing facilities to Pangnirtung Fisheries Ltd. at the time of the incorporation of Pangnirtung Fisheries.
Pangnirtung fisheries buy char from a variety of Baffin Island communities and turbot caught through the ice near Pangnirtung. It is expected that the plant will produce 300,000 to 400,000 pounds of finished turbot products and 25,000 to 40,000 pounds of Arctic char products in 1994. In addition, Pangnirtung Fisheries is involved in discussions that may result in the processing of summer caught turbot on a pilot project basis this year. It is not likely that more than 55,000 pounds of finished product would result from such a test project. This company is not forecasted to generate a profit in 1994.
Arctic Canada Foods arranges for the sale of virtually all of Pangnirtung Fisheries products.
In 1994, it is expected that this company will fund 37 full and part-time positions, and will likely expend some $1.630 million on the payment of wages to the NWT residents and the purchase of goods and services from NWT businesses. This includes payments to some 100 fishermen.
5. Nahanni Butte General Store Ltd was an ED&T managed enterprise prior to its transfer to the Development Corporation. It is the only store in the community and sells a range of fresh products and dry goods to community residents. In addition, it provides a taxi service for community residents to other nearby communities and also operates a small water taxi service. This company is not forecasted to generate a profit in 1994.
In 1994, it is expected that this company will fund five full and part-time positions, and will likely expend some $230,000 on the payment of wages to NWT residents and the purchase of goods and services from NWT businesses.
6. Acho Dene Native Crafts Ltd was an ED&T managed enterprise prior to its transfer to the Development Corporation. It generates a retail arts and crafts outlet and will purchase about 1,280 birch bark products and 830 moose hide products in 1994. This company is not forecasted to generate a profit this year.
The major wholesale buyer of its products is Arctic Canada Arts and Crafts Wholesale.
In 1994, it is expected that this company will fund three full and part-time positions and will likely expend some $210,000 on the payments of wages to NWT residents and the purchase of goods and services from NWT businesses. This includes payments to approximately 42 cottage workers.
7. Rae Lakes General Store Ltd was an ED&T managed enterprise prior to its transfer to the Development Corporation. It is the only store in the community and sells a range of fresh products and dry goods to community residents. This company will likely break even or generate a small profit in 1994.
In 1994, it is expected that this company will fund six full and part-time positions and will likely expend some $377,000 on the payment of wages to NWT residents and the purchase of goods and services from NWT businesses.
8. The Cambridge Bay HTA transferred its meat processing operation to Kitikmeot Foods Ltd. It is expected that in 1994, Kitikmeot Foods will produce 55,000 pounds of caribou and muskox products and 14,000 pounds of fish products. This company is not forecasted to generate a profit in 1994.
Arctic Canada Foods arranges for the majority of the sales of Kitikmeot Foods products.
In 1994, it is expected that this company will fund 12 full and part-time positions and will likely expend some $258,000 on the payment of wages to NWT residents and the purchase of goods and services from NWT businesses. This includes payments to some 4 fishermen and hunters. The volume of production and the benefits generated by this company will rise somewhat if the current negotiations for the purchase of 200 to 300 muskox carcasses from Holman are successfully concluded.
It should also be noted that the Cambridge Co-op has agreed in principle to transfer its fish processing operations to Kitikmeot Foods. If this transaction is completed, then in 1994 it is expected that there will be an additional $530,000 of payments of wages to NWT residents and the purchases of goods and services from NWT businesses. These additional payments would include payments to some 20 additional fishermen.
9. Keewatin Meat and Fish Ltd acquired the fish processing operations in Rankin Inlet that were managed by ED&T as an enterprise. On takeover of the fish operations, steps were taken to broaden the product lines to include meat and fish from all Keewatin communities. The majority product of Keewatin Meat and Fish since its takeover is processed caribou.
It is expected that in 1994, Keewatin Meat and Fish will produce 69,600 pounds of caribou and 42,000 pounds of fish products. This company is not forecasted to generate a profit in 1994.
Arctic Canada Foods arranges for the majority of the sales of Keewatin Meat and Fish products.
In 1994, it is expected that this company will fund 25 full and part-time positions and will likely expend some $280,000 on the payment of wages to NWT residents and the purchase of goods and services from NWT businesses. This includes payments to some 66 fishermen and hunters.
10. Uqqurmiut Arts and Crafts (1993) Ltd recently began operating the Uqqurmiut Centre. The major products of the centre are tapestries, prints, signage and woolen products. In addition, the operation runs a small arts and crafts retail outlet.
Arctic Canada Arts and Crafts Wholesale will arrange for the sale of some of the Uqqurmiut products in 1994, and the balance will be sold by Uqqurmiut Arts and Crafts Ltd.
In 1994, it is expected that this company will fund 25 full and part-time positions and will likely expend some $580,000 on the payments of wages to NWT residents and the purchase of goods and services from NWT businesses. This includes payments to some 35 cottage workers.