Economic and Resource Provisions

Article 13: Government of Canada Employment and Contracts

Part 13.1: Definitions

In this article:

"government contract"

means a contract, other than a contract for employment in the federal Public Service, between the Government of Canada and a party other than the Government of Canada or any other government for procurement of goods or services, and includes:

1. contracts for the supply of goods;

2. construction contracts;

3. contracts for the supply of services; and

4. leases, other than leases respecting real property.

"Government of Canada"

means all departments and agencies, including departmental corporations and branches designated as departments for purposes of the Financial Administration Act.

"Nunavik Inuit Enterprise"

means an entity which complies with the legal requirements to carry on business in the NMR and which is:

1. a partnership, including a joint venture partnership, at least fifty percent of which is owned by one (1) or more Nunavik Inuit;

2. a co-operative or non share-capital corporation, a majority of whose voting members are Nunavik Inuit;

3. a share-capital corporation, a majority of whose voting shares are beneficially owned by one (1) or more Nunavik Inuit; or

4. a share-capital corporation, a majority of whose voting shares are owned by one (1) of the foregoing entities.

Part 13.2: Employment

13.2.1 The Government of Canada undertakes to take all reasonable and timely measures to provide Nunavik Inuit with priority with respect to federal Public Service employment opportunities in the NMR.

13.2.2 If Federal Public Service employment opportunities exist in the NMR, the Government of Canada is committed to awarding those opportunities so as to achieve a public service in the NMR which reflects the ratio of Nunavik Inuit to all other residents in Nunavik.

13.2.3 The Government of Canada shall remove employment barriers for Nunavik Inuit in relation to Federal Public Service positions within the NMR by reviewing job qualifications and recruitment procedures and removing inappropriate requirements in respect of cultural factors, experience or education.

Part 13.3: Contracts

13.3.1 The Government of Canada shall provide reasonable support and assistance to Nunavik Inuit enterprises as set out in this part to enable them to compete for government contracts.

13.3.2 If the Government of Canada contracts for the procurement of goods or services in the NMR, Nunavik Inuit Enterprises shall, subject to meeting the technical and administrative conditions of the request for goods or services, be given fair consideration.

13.3.3 In inviting bids on Government of Canada contracts for the procurement of goods or services in the NMR, the Government of Canada shall provide all reasonable opportunities to Nunavik Inuit Enterprises enumerated on the list referred to in section 13.3.5 to submit competitive bids and in doing so, shall take, where practicable and consistent with sound procurement management, the following measures:

1. set the date, location and terms and conditions for bidding so that Nunavik Inuit businesses may readily bid;

2. invite bids by commodity groupings to permit smaller and more specialized firms to bid;

3. permit bids for goods and services for a specified portion of a larger contract package to permit smaller and more specialized firms to bid;

4. design construction contracts so as to increase the opportunity for smaller and more specialized firms to bid; and

5. avoid artificially inflated employment skills requirements not essential to the fulfilment of the contract.

13.3.4 Whenever practicable and consistent with sound procurement management, and subject to Canada's international obligations, all of the following criteria, or as many as may be appropriate with respect to any particular contract, shall be included in the bid criteria established by the Government of Canada for the awarding of its government contracts for the procurement of goods and services in the NMR:

1. the existence of head offices, administrative offices or other facilities in the NMR;

2. the employment of Nunavik Inuit labour, engagement of Nunavik Inuit professional services, or use of suppliers that are Nunavik Inuit or Nunavik Inuit enterprises in carrying out the contracts; and

3. the undertaking of commitments, under the contract, with respect to on-the-job training or skills development for Nunavik Inuit.

13.3.5 The MDO shall prepare and maintain a comprehensive list of Nunavik Inuit enterprises, together with information on goods and services which they would be in a position to supply in relation to contracts offered by the Government of Canada. This list shall be considered, where practicable and consistent with sound procurement practices, by the Government of Canada in meeting their obligations under this Article.

Article 14: Wildlife Compensation

14.1 In this Article:

"arbitrators"

means a panel of arbitrators appointed pursuant to provisions of Article 24;

"claimant"

means Nunavik Inuit or a Nunavik Inuk;

"compensation"

means monetary compensation, including cash payment in a lump sum or by instalments, and also includes non-monetary compensation such as the cost of temporary or permanent relocation, replacement or repair of property, and reimbursement in kind subject to conservation limits, or any combination thereof;

"developer"

means any person engaged in development activity;

"development activity"

means any commercial or industrial undertaking, or extension thereof, including those undertaken by any municipal, territorial, provincial or federal government in the NMR but does not include:

1. marine transportation; or

2. any wildlife measure or use approved in accordance with Article 5.

"fortuitous event"

means an act of war, hostilities, civil war, insurrection or natural phenomenon of an exceptional, inevitable and irresistible character.

14.2 Unless inconsistent with a specific provision of this Article, Article 24 shall apply to an arbitration undertaken pursuant to this Article.

14.3 For greater certainty, in the case of development activities, if any, begun prior to and continuing on the effective date of this Agreement, this Article applies only in respect of that portion of those development activities occurring on or after the coming into effect of this Agreement.

14.4 Subject to section 14.5, this Article shall apply to marine transportation occurring on or after the effective date of this Agreement that is directly associated with any commercial or industrial or any municipal, territorial, provincial or federal government undertaking, or any extension thereof, in the NMR but does not apply to marine transportation not directly associated with such undertakings.

14.5 There shall be a person, a fund or both, specified by the Government of Canada capable of assuming liability for marine transportation imposed under this Article by section 14.4 and that specified person, or fund, or both shall be considered to be a developer and that marine transportation shall be considered to be a development activity for the purpose of this Article.

14.6 A developer is liable absolutely, without proof of fault or negligence, for loss or damage suffered by a claimant as a result of its development activities in respect of:

1. loss or damage to property or equipment used in wildlife harvesting or to wildlife reduced into possession;

2. present and future loss of income from wildlife harvesting; and

3. present and future loss of wildlife harvested for personal use by claimants.

14.7 A developer is not liable where that developer establishes that the loss or damage was wholly the result of a fortuitous event.

14.8 With respect to flora, a developer is liable under section 14.6 only for those species contained in Schedule 14-1. Schedule 14-1 shall be reviewed by the parties every five (5) years for the purposes of updating the list of species in Schedule 14-1, if necessary, on the anniversary of the effective date of this Agreement.

14.9 Legislation may provide for appropriate limits of liability of developers or the methods of setting such limits and shall also require proof of fiscal responsibility and may also provide for security deposits and any other matters not inconsistent with this Article. Limits on liability will be set at levels sufficient to cover reasonably foreseeable damages in relation to various development activities. Recognizing Nunavik Inuit concerns regarding enforcement of compensation decisions, Government will give consideration to including enforcement mechanisms in legislation.

14.10 Claimants shall make all reasonable efforts to mitigate against any loss or damage.

14.11 A claimant or a MDO on behalf of a claimant shall make a claim for loss or damage in writing to the developer. If the claim is not settled within thirty (30) days of receipt by the developer, the developer or the claimant or a MDO on behalf of the claimant may submit the claim to arbitration.

14.12 In hearing a claim, the arbitrators are not bound by strict rules of evidence and may take into account any information which they consider relevant. The arbitrators, in hearing a claim, shall give due weight to Nunavik Inuit knowledge of wildlife and the environment and shall take into account the social, cultural and economic importance of wildlife to Nunavik Inuit.

14.13 The arbitrators may appoint experts and may call witnesses.

14.14 As a general principle, compensation shall not be a guaranteed annual income in perpetuity. A compensation award may be reviewed by the arbitrators at the request of either party to the hearing.

14.15 A claim must be made within three (3) years of the date on which the loss or damage occurred, or within three (3) years of the date on which the loss or damage became known to the claimant.

14.16 The arbitrators shall hear the case and determine liability and compensation within one hundred and eighty (180) days of the date that the claim was submitted to them or within such further period of time as the parties to the hearing may otherwise agree in writing. The arbitrators shall make a decision within thirty (30) days of completing the hearing of a claim.

14.17 Recognizing that it is the intention that loss or damage suffered by a claimant should be minimized by expeditious processing of claims and payment of compensation, the arbitrators may:

1. deal with a claim in respect of loss or damage to property or equipment used in wildlife harvesting or to wildlife reduced into possession before proceeding to hear evidence on any other loss or damage;

2. require that interest be paid on monetary compensation at a rate set by the arbitrators; and

3. provide for additional compensation to cover any additional loss or damage, or costs, including costs of collection, that may result from any delay in fulfilling the terms of the compensation decision.

14.18 At the request of a claimant, the arbitrators shall register the compensation decision in the Nunavut Court of Justice and the claimant may use that court to enforce the decision. The arbitrators may provide assistance in the enforcement of their decision.

14.19 In deciding upon the location of a hearing of the arbitration, the convenience of the claimant shall be a major factor in the decision of the arbitrators.

14.20 When the arbitrators determine that loss or damage was caused by more than one developer, those developers shall be severally liable. The arbitrators shall apportion liability in accordance with generally accepted principles of statute and common law.

14.21 The remuneration and expenses incurred by the arbitrators in determining claims under this Article shall be borne by the Government of Canada.

14.22 The provisions of this Article are without prejudice to any other rights or remedies that a claimant may have under laws of general application with respect to loss or damage arising out of a development activity. However, if the claim is referred to the arbitration under section 14.11, the decision of the arbitrators shall be conclusive in relation to all losses and damages described in section 14.6 subject only to review by the Federal Court of Appeal under Article 28 of the Federal Court Act, R.S.C. 1985, c.F-7. If the claim against a developer is dismissed, a claimant is not precluded from claiming the same loss or damage against a different developer.

14.23 Nothing in this Article shall be construed as limiting or restricting any right of recourse that a developer who is found liable under this Article may have against any person other than the claimant.

14.24 Nothing in this Agreement shall prevent Nunavik Inuit and a developer from entering into a wildlife compensation agreement that would replace all other obligations in relation to wildlife compensation under this Agreement.

Schedule 14-1: List of Flora

Brown Seaweed:

• Fucus sp. (Rockweeds)

  • Fucus vesiculosus

  • Fucus evenescens

  • Fucus filiformis

• Ascophyllum nodosum (Knotted Wrack)

• Ascophyllum mackaii

• Kelp

  • Laminaria longicruris (Hollow-Stemmed Kelp)

  • Laminaria agardhii (Common Kelp)

  • Laminaria digitata (Horsetail Kelp)

  • Agarum cribrosum (Sea Colander)

  • Alaria sp. (Edible Kelp)

Red Seaweed:

• Porphyra sp.

• Euthora sp.

• Ahnfeltia sp.

• Phyllophora sp.

• Gigartina stellata (Tufted Red Weed)

• Rhodymenia palmata (Dulse)

Green Seaweed:

• Enteromorpha sp. (Hollow Green Weeds)

• Ulva lactuca (Sea Lettuce)

Article 15: Resource Royalty Sharing

Part 15.1: Nunavik Inuit Right to Resource Royalty

15.1.1 Nunavik Inuit have the right, in each and every calendar year, to be paid an amount equal to:

1. fifty percent (50%) of the first two million dollars ($2,000,000) of resource royalty received by Government in that year; and

2. five percent (5%) of any additional resource royalty received by Government in that year.

Part 15.2: Payment of Resource Royalty

15.2.1 Government shall pay the Nunavik Inuit Trust the amount due to them pursuant to section 15.1.1 as follows:

1. The Government of Canada shall pay fifty percent on any amount up to two million dollars of resource royalty received by it in each and every calendar year; and

2. In the event that the Government of Canada receives less than two million dollars of resource royalty in a calendar year, the Government of Nunavut shall pay fifty percent on that portion of the resource royalty received by it in that same calendar year that when added to the resource royalty received by the Government of Canada amounts to no more than two million dollars ($2,000,000); and

3. The Government of Canada and the Government of Nunavut shall each pay five percent on any resource royalties received by each of them in addition to the first two million dollars received by Government in each and every calendar year.

15.2.2 Amounts payable by Government pursuant to this Article shall be calculated on the basis of amounts due to and received by Government in respect of resources produced after the effective date of this Agreement.

15.2.3 Payments remitted to the Nunavik Inuit Trust shall be in quarterly payments on an as received basis.

15.2.4 Government shall annually provide the Nunavik Inuit Trust with a statement indicating the basis on which royalties were calculated for the preceding year.

15.2.5 On the request of the Nunavik Inuit Trust, Government shall request the Auditor- General to verify the accuracy of the information in the annual statements.

Part 15.3: Consultation

15.3.1 Government shall consult with the Nunavik Inuit Trust on any proposal specifically to alter by legislation the resource royalty payable to Government. Where Government consults outside of Government on any proposed changes to the fiscal regime which will change the resource royalty regime, it shall also consult with the Nunavik Inuit Trust.

Part 15.4: Area of Application

15.4.1 This Article applies to the NMR.

Article 16: Capital Transfer

Part 16.1: Capital Transfer Payments to the Nunavik Inuit Trust

16.1.1 Canada shall make capital transfer payments to the Nunavik Inuit Trust as set out in Schedule A of this Article which shall be calculated by deducting from each amount listed in the Capital Transfer Schedule set out in Schedule B, the corresponding payment from the Negotiation Loans Repayment Schedule set out in Schedule C.

Part 16.2: Negotiation Loan Repayment

16.2.1 By deducting amounts listed in the Negotiation Loans Repayment Schedule set out in Schedule C of this Article, Canada extinguishes any and all obligations Makivik might have had with respect to such loans.

16.2.2 Notwithstanding section 16.2.1, Makivik may request to accelerate the repayment of the outstanding negotiation loan amounts without bonus or penalty, at their option, and the new negotiation loan repayment schedule payment shall be re-calculated such that the present value of the new Schedule C, including accelerated repayments, remains the same using an interest rate of 4.045%. Canada will then recalculate Schedule A in accordance with section 16.1.1.

16.2.3 Except as provided in this part, terms and conditions of the negotiation loans shall remain unaffected.

Schedule A: Provisional Capital Transfer Payment Schedule

Date

Payments

On the effective date of this Agreement

$5,067,146

On the first anniversary of effective date of this Agreement

$5,067,146

On the second anniversary of effective date of this Agreement

$5,067,146

On the third anniversary of effective date of this Agreement

$5,067,146

On the fourth anniversary of effective date of this Agreement

$5,067,146

On the fifth anniversary of effective date of this Agreement

$5,067,146

On the sixth anniversary of effective date of this Agreement

$5,067,146

On the seventh anniversary of effective date of this Agreement

$5,067,146

On the eighth anniversary of effective date of this Agreement

$5,067,146

On the ninth anniversary of effective date of this Agreement

$5,067,146

Notes to Finalize Schedule A

1. Payments will be made to the Nunavik Inuit Trust in accordance with a final schedule of payments, which shall be incorporated into this Agreement immediately prior to the effective date of this Agreement calculated in accordance with section 16.1.1.

Schedule B: Provisional Capital Transfer Schedule

Date

Amount

On the effective date of this Agreement

$6,582,881

On the first anniversary of effective date of this Agreement

$6,582,881

On the second anniversary of effective date of this Agreement

$6,582,881

On the third anniversary of effective date of this Agreement

$6,582,881

On the fourth anniversary of effective date of this Agreement

$6,582,881

On the fifth anniversary of effective date of this Agreement

$6,582,881

On the sixth anniversary of effective date of this Agreement

$6,582,881

On the seventh anniversary of effective date of this Agreement

$6,582,881

On the eighth anniversary of effective date of this Agreement

$6,582,881

On the ninth anniversary of effective date of this Agreement

$6,582,881

Notes to Finalize Schedule B

1. The purpose of this note is to enable the parties to calculate the amounts to be shown in the provisional capital transfer schedule and the amounts for the final schedule.

2. A provisional capital transfer schedule will be negotiated prior to the signing of this Agreement such that:
   
   
   
   

   1. the provisional schedule will provide for a first amount on the effective date of this Agreement and subsequent amounts on each anniversary date;

   2. the present value of the amounts listed in the provisional schedule will equal $50 million multiplied by the value of the FDDIPI for the 2nd quarter of 2006 and by dividing the resulting product by the value of FDDIPI for the 3rd quarter of 2000; and

   3. the present value referred to in (b) will be calculated using as a discount rate, 4.045%, which is the most recently released 9 year amortized consolidated revenue fund lending rate that the Minister of Finance for Canada has approved prior to the calculation of the provisional schedule, less 0.125 percent.

3. A final schedule will be calculated prior to the effective date of this Agreement by multiplying each amount in the provisional schedule by the value of the FDDIPI for the latest quarter available prior to that date for which FDDIPI has been published by Statistics Canada, and by dividing the resulting product by the value of FDDIPI for the 2nd quarter of 2006.

Schedule C: Provisional Negotiation Loans Repayment Schedule

Date

Repayments

On the effective date of this Agreement

$1,515,735

On the first anniversary of effective date of this Agreement

$1,515,735

On the second anniversary of effective date of this Agreement

$1,515,735

On the third anniversary of effective date of this Agreement

$1,515,735

On the fourth anniversary of effective date of this Agreement

$1,515,735

On the fifth anniversary of effective date of this Agreement

$1,515,735

On the sixth anniversary of effective date of this Agreement

$1,515,735

On the seventh anniversary of effective date of this Agreement

$1,515,735

On the eighth anniversary of effective date of this Agreement

$1,515,735

On the ninth anniversary of effective date of this Agreement

$1,515,735

Notes to Finalize Schedule C

1. The purpose of this note is to enable the parties to calculate the amounts to be shown in the provisional schedule and the amounts for the final schedule of payments.

2. Prior to the signing of this Agreement, the outstanding negotiation loans of Makivik shall be determined up to the time of signing this Agreement and serve to establish a provisional schedule of repayments loans in accordance with the following provisions.

3. A provisional negotiation loan repayment schedule will be negotiated prior to the signing of this Agreement such that:

   1. the provisional schedule of repayments will provide for a first payment on the effective date of this Agreement and subsequent payments on any or all of the anniversary dates;

   2. the present value of the amounts listed in the provisional schedule will equal $12,155,109 which is the outstanding amount of negotiation loans (principal plus accrued interest) as at the date of signature of this Agreement; and

   3. the present value referred to in (b) will be calculated using as a discount rate, 4.045%, which is the most recently released 9 year amortized consolidated revenue fund lending rate that the Minister of Finance for Canada has approved prior to the calculation of the provisional schedule of payments, less 0.125 percent.

4. A final schedule of loan repayment amounts will be calculated prior to the effective date of this Agreement such that:

   1. the present value of the amounts listed in the final schedule will equal the total outstanding amount of negotiation loans (principal plus accrued interest) as at the effective date of this Agreement; and

   2. the present value referred to in (a) will be calculated using as a discount rate, 4.045%, which is the same 9 year amortized consolidated revenue fund lending rate utilized in the calculation of the provisional schedule, less 0.125 percent.

5. The final loan repayment schedule will be incorporated into this Agreement immediately prior to the effective date of this Agreement.

Article 17: Nunavik Inuit Trust

Part 17.1: General

17.1.1 Prior to the effective date of this Agreement, Makivik shall cause to be established by trust deed a Nunavik Inuit Trust to receive the capital transfer payments referred to in Article 16, any resource royalty amounts payable to it under Article 15 and implementation funding referred to in Article 23. The Nunavik Inuit Trust shall receive, hold and administer the Trust Patrimony for the benefit of the Trust Beneficiaries and distribute monies therefrom to the beneficiaries of the Trust, both individually and collectively, for educational, social, cultural and socio-economic needs of Trust Beneficiaries and generally to improve their social, cultural, educational and economic conditions, their quality of life and the quality of community life.

17.1.2 The Nunavik Inuit Trust shall be resident in Canada.

17.1.3 The Nunavik Inuit Trust shall be subject to control by its trustees, who shall be selected by Makivik.

17.1.4 The trust deed establishing the Nunavik Inuit Trust may be amended by Makivik in accordance with the law.

17.1.5 The rule commonly known as the Rule against Perpetuities shall not apply to the Nunavik Inuit Trust which shall have a duration of no more than two hundred (200) years.

17.1.6 The Nunavik Inuit Trust shall provide for the protection and enhancement of settlement assets based on sound management practices.

17.1.7 Subject to section 17.1.5, the Nunavik Inuit Trust shall be subject to laws of general application including applicable tax laws.

Part 17.2: Access to Information

17.2.1 Makivik shall provide the following information freely to all Nunavik Inuit:

1. the trust deed establishing and governing the Nunavik Inuit Trust;

2. the constituting documents of any corporate beneficiaries of the Nunavik Inuit Trust; and

3. annual reports of the Nunavik Inuit Trust and any corporate beneficiaries.

Part 17.3: Standing

17.3.1 In addition to any relevant rights at common law or provided through legislation, all Nunavik Inuit shall have standing in a court of competent jurisdiction to enforce the objects and other provisions of the trust deed and the constituting documents of any corporate beneficiaries of the Nunavik Inuit Trust.