January 18, 2008
Around Nunavut
Nunavut posts job growth in 2007
Nunavut added 900 jobs to its workforce in 2007, according to figures released by Statistics Canada last week.
The size of Nunavut's workforce grew by 11 per cent, to a total of 9,100 jobs. That caused Nunavut's official unemployment rate to drop from 10.3 per cent to 8.9 per cent in 2007.
While Nunavut was the only territory to gain jobs last year, the unemployment rate is still the third highest in Canada, trailing only Newfoundland and Labrador and Prince Edward Island.
The Yukon's unemployment rate stands at 5.1 per cent, while the Northwest Territories' is 5.4 per cent.
The unemployment rate doesn't factor in people who have stopped looking for jobs. StatsCan's figures for Nunavut are also only collected from the 10 largest communities representing about 70 per cent of the population.
Strahl wraps old money in new package
Chuck Strahl, the northern affairs minister, "confirmed" in a news release last week that in 2008-09, the Government of Nunavut will get $26 million through a federal spending program called the Canada Health Transfer, or "CHT."
The latest version of the CHT was worked out within a 10-year formula negotiated in 2004 by the federal, provincial and territorial governments, so Nunavut's $26-million simply represents Nunavut's pre-determined share.
Overall, Ottawa's financial support for Nunavut has risen sharply over the past three to four years.
Documents on the federal finance department's web site reveal the federal government will likely give the GN $30,358 for every man, woman and child in Nunavut for the 2007-08 fiscal year.
That's up from about $25,000 per capita in 2004-05.
More than one-third of that amount is eaten up by Nunavut's burgeoning health cares costs.
The Canadian Centre for Health information estimates that in 2005, Nunavut spent $10,742 on health care for every man, woman and child in the territory.
Next year, Nunavut will likely get at least another $3 million from a new $1-billion handout program announced last week by Prime Minister Stephen Harper.
Tahera seeks protection from creditors
The little Canadian firm that was once the pride and joy of Nunavut's fledgling mining industry, Tahera Diamond Corp. of Toronto, announced this week that it will seek protection from its creditors.
At the same time, the Toronto Stock Exchange is reviewing the company's status to determine whether the company's stock should be delisted.
Tahera's small Jericho mine in the western Kitikmeot is Canada's third and Nunavut's first diamond mine.
After opening to great fanfare in 2006, the company never came close to making a profit. In the first nine months of 2007, Tahera lost $143 million.
That's because the Jericho mine's operations were hammered by a series of blows that followed each other in rapid succession:
- lower than expected diamond grades during the start-up of production;
- problems with an on-site processing plant that also reduced diamond production;
- the early melting of the ice road from Yellowknife in early 2007, forcing the company to make do with lower than expected fuel reserves;
- rising fuel prices and a higher Canadian dollar;
- lower than expected increases in world diamond prices;
- disappointing exploration results at the nearby Muskox and JD-03 kimberlite pipes, which revealed diamond grades too low to be commercially viable.
This past fall, Tahera mounted a last-ditch effort to save the company from insolvency, when they persuaded two of its creditors, Nunalogistics and the Tiffany jewelry chain, to convert their debt into equity in the company.
But that deal was contingent on Tahera being able to sell another $40 million worth of shares on the stock market. That share offering has now been withdrawn.
In a statement issued Wednesday, Tahera's managers said the company intends to continue day-to-day operations under bankruptcy protection, pending approval of a restructuring plan.
Tootoo quits, Okalik reshuffles high-level GN bosses
Following the sudden departure of Victor Tootoo from his assistant deputy minister's job at the Department of the Executive and Intergovernmental Affairs, Premier Paul Okalik has once again reshuffled some high-level GN bosses.
It's not clear why Tootoo abruptly quit his highly-paid GN job. A Jan. 16 press release merely says, "Premier Okalik has accepted the resignation of Mr. Victor Tootoo, Deputy Minister of Intergovernmental Affairs."
David Omilgoituk will continue as deputy minister of the Executive, and at the same time replaces Tootoo as deputy minister of Intergovernmental Affairs.
Pauloosie Suvega will then move to EIA from the Economic Development department to become assistant deputy minister of Intergovernmental Affairs.
Jane Cooper will move from the Environment department to replace Suvega as assistant deputy minister at the ED&T department.
Finally, John Lamb, formerly the Director of Devolution and executive assistant to former cabinet minister David Simailak, will now serve as assistant deputy minister in the Environment department.
