Nunatsiavut is open for business, says board chairman

Those who overlook the growing business opportunities that exist in aboriginal communities in this country risk missing the boat on a market that is growing quicker than many realize.

That was one of the key messages delivered by leaderswith the NunatsiavutInuit during a marketingpitch to the St. John's business community on April 15.

In other words Labrador is open for business and partnerships are welcome.

A delegation from the Nunatsiavut government and its business arm, the Nunatsiavut Group of Companies(NGC), were given a warm welcome during a luncheonby members of the St. John's Board of Trade, with many of its members already doing business in Labrador.

Len Knox, senior vice-president with H.J. O'Connell Construction in St. John's, didn't have to be convinced of the opportunities in Labrador, or the benefits of working with aboriginal leaders and companies.

H.J.O'Connell has done business in the Big Land since the late 1950s on several major projects, including the Voisey's Bay mining project.

Knoxappreciates and supports the Inuit's emphasis on jobs and training, growing their companies and pursuing business opportunities that support the "supply chain."

"It's been successful because they believe in strong business principles honesty andintegrityand at the end of the daywhat's fundamental is to make money," said Knox.

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Leading the delegation was Clint Davis, chairman of theNunatsiavutGroup of Cos.board of directors, and vice-president of aboriginal affairs for TD Bank.

Davis, a lawyer,is an Inukfrom Labrador who now resides in Toronto.

The president of the Nunatsiavutgovernment, Sarah Leo, was also on hand.

Five-fold business growth

It was a unique marketing strategy for an aboriginal group that has experienced incredible economic growth in recent years, beginning with the signing of the Labrador Inuit land claims agreement in late 2005,paving the way for the Nunatsiavut government.

The agreement also changed the Inuit approach to economic development, with a distinct separation of business from government, and a focus on profitable enterprises that can generate earnings to be reinvested into the Nunatsiavut region.

The NGC is owned by the Labrador Inuit Capital Strategy Trust, and the Nunatsiavut government is one of its beneficiaries.

The NGC now operates businesses in the areas ofmarine and air transportation, commercial real estate, construction, remote camp operations, logisticsand heavy civil.

They include familiar names like Air Labrador and Universal Helicopters, along with the company that provides and administersmarine transportation on the Labrador coast, Nunatsiavut Marine.

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The group of companies recorded revenues of some $30 million last year, a five-fold increase over five years ago.

The companies employhundreds of aboriginals, who are helping drive what many are calling a "remarkable transformation" in aboriginal communities that have been long plagued bychronic unemployment and a wide array of social problems.

The region is also benefiting from an impact benefits agreement related to the Voisey's Bay mining project.

It's all part of a strategy ofbecomingan Inuit-led business leader in the north.

"We've come a long way," Davis said, adding, "there is more to be done."

Turnaround worth the wait

It took nearly 30 years for the land claims agreement to be finalized, and for the Labrador Inuit to realize self-governance.

Davis said it was worth the wait.

He said the agreement, and the resulting benefits from economic development, are "significantly helping" Inuit communities such asNain,Hopedale,Postville,MakkovikandRigolet.

A plunge in commodity prices has created a noticeable lull in economic activity in Labrador, but there remains a multitude of opportunities in this vast land, Davis added.

NGC is looking for ways to partner with new investors, both inside and outside of Labrador.

"We're developing the professional capacity and experience to do bigger things," Davis stated.

He said issues such as poverty, crime and youth suicide often overshadow the true picture unfolding in aboriginal communities.

Davis said the "tide is turning" and land claims agreements have "opened up incredible employment and business opportunities" for aboriginal communities who were previously shut out of the benefits of resource development on their lands.

I think by working with Inuit business we can strengthen the relationship and forge a better understanding of each other, which will only lead to a better future for everyone in the province.- Clint Davis

He added the aboriginal population is growing at a rapid rate and it's much younger than the general population.

A study by TD Bank four years ago estimated the combined buying power of aboriginal people, businesses and communities in Canada at $32 billion by 2016.

Davis said this proves aboriginal people are not a drain on the Canadian economy.

As such, Davis said non-aboriginals have a vested interest in ensuringland claims agreements succeed, and that governments at every levelrespect their obligations.

"I think by working with Inuit business we can strengthen the relationship and forge a better understanding of each other, which will only lead to a better future for everyone in the province," Davis said.