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Fire over fuel

Fuel distribution companies say government violated Inuit business policy

KIRSTEN MURPHY

Three Inuit-owned companies are suing the Nunavut government for "improperly awarding" fuel distribution contracts to local co-operatives, according to a statement of claim filed in Nunavut court in early December.

The 10-page claim was filed with the Nunavut Court of Justice in Iqaluit on Dec. 13, 2001. Savik Enterprises Ltd., J.R. Peyton Enterprises and Enokseot Holdings Ltd. say the department of Public Works and Services contravened the Nunavut Land Claims Agreement by awarding at least four fuel contracts to Arctic Co-operatives Ltd. (ACL) last summer.

"ACL is not a Northern, Inuit or local firm within the meaning of the NNI policy," the statement reads.

The plaintiffs say they’re facing an uncertain financial future without the contracts to provide fuel to Hall Beach, Igloolik, Arctic Bay and Pangnirtung for 10 to 15 years. They have not yet determined the amount of damages they will ask for.

"General damages in an amount are to be determined by this Honourable Court. Special damages in an amount are to be determined ... prior to the trial," the claim reads.

The statement says the GN erred by not insisting NNI’s (Nunavummi Nangminiqaqtunik Ikajuuti) business policy applied to all applicants during the request for proposal process. The policy supposedly gives preferential consideration to Inuit-owned businesses to encourage economic development. The policy is based on Article 24 of the Nunavut Land Claims Agreement.

It insists ACL has an unfair advantage during the bidding process.

"The plaintiffs are private Inuit businesses located exclusively in Nunavut and do not have the administrative support, including proposal formatting and writing skills ... that are available to ACL," the statement says.

The Government of Nunavut has not yet filed a statement of defence.

ACL spokesperson Christine McCarville says all 25 Co-ops in Nunavut have Inuit status. Her office assists with preparing and submitting tenders for co-ops when asked.

"The (complainants) are saying we’re a Southern business — and we’re not. We’re located in Winnipeg, but our businesses are owned by the members in the communities," McCarville said.

ACL has never bid nor been awarded a fuel delivery contract, she said.

Montreal lawyer Michael K. Osland is representing the three companies. He said that his clients, along with four other companies, filed complaints with the government last year in relation to the contracts. Savik, Peyton and Enokseot pursued with a lawsuit after the appeal process stalled.

"Our clients were forced to commence legal action because they were not getting anywhere with the government," Osland said. "These three companies are well enough established and had the money to commence a lawsuit."

Minister of Public Works Peter Kattuk would not comment while the matter is before the court.

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