QC defends foreign partners

We are writing on behalf of Qikiqtaaluk Corp. in response to Nick Illauq’s guest editorial of May 26, under the supermarket tabloid heading, “The Baffin fishery is controlled by foreign interests.”

First, Qikiqtaaluk Corp. disputes the use of our company’s name in the diagram that accompanied the article, with the inference that QC’s fishing company is “effectively managed and controlled by foreign interests.” It is true that our partners in Qikiqtaaluk Fisheries Corp. are from Iceland. QC owns 51 per cent of the company and Nataaqnaq Fisheries Ltd. owns 49 per cent. Most importantly, QC retains 100 per cent control of all its fishing licenses. Further, QC has the option to buy out our partners over the next decade.

QC made certain throughout its negotiations to create Qikiqtaaluk Fisheries Corp. so that QC would retain full control of its licenses and effective control of the fishing business.

Mr. Illauq’s editorial further implies that such a partnership is both uncommon and somehow unpatriotic. Your readers should know that many of the vessels in the Canadian shrimp fishing fleet are owned by foreign interests, and a number of the companies have foreign shareholders. Fishing, like mining, forestry, or agriculture, is a global business. We have not seen any comparable editorials protesting the arrival in Nunavut of large international mining companies like BHP or DeBeers.

It is worth asking the question why QC would form this partnership rather than one with a Canadian company. The answer is fairly simple. None of the Canadian companies we spoke to were prepared to enter into a genuine partnership in which they would hold a minority position.

QC has been in the fishing business for over twenty years, collecting royalties on a number of different shrimp and turbot allocations. The real profits from our licenses were going to other companies. In recent years the Board of Directors of QC made the decision to get more actively involved in the fishing business, as there is more money to be made (as well as risk) in active ownership than in just receiving royalties.

Within the current arrangement QC owns 51 per cent of a $12 million factory freezer trawler, and is making money on fishing operations as well. From a business point of view this is a much more satisfactory arrangement than leaving others to do the fishing. It is also much more likely to give Inuit a genuine chance to eventually control the Nunavut economy than any deal we were offered by east coast companies.

We have to look at the underlying theme of the article — the idea, presented as some kind of scandalous conspiracy, that BFC (and possibly QC, although this is not stated explicitly stated) is allowing “our Canadian fishery to be taken over by foreigners masquerading as Canadians.”

What could possibly motivate us to let that happen? QC is deeply committed to Inuit ownership, Inuit management, Inuit employment and Inuit training programs. The creation of Qikiqtaaluk Fisheries Corp., and QC’s cooperation with BFC in training Inuit and crewing our vessel, is a huge step in the direction of Inuit self-determination. We simply would not give away Inuit assets. It is our job to increase them.

QC also questions another premise of Mr. Ilauq’s editorial, that if only the fishing allocations were handed over to the communities they would automatically be better off. This is a political idea, not a business argument, and is not based on observed fact. Creating a successful business is a long and difficult process, requiring experience, skills, initiative and determination. Even with those qualities there is no guarantee that a business will succeed, and no safety net if it doesn’t.

We are not saying that people in Baffin communities are not capable of creating successful businesses, but it will take time. In order for the Baffin region to have successful community-based fishing businesses over the long term, intelligent people like Nick Illauq will need to spend five or 10 or 15 years working on fishing boats and getting business experience. We are still a generation away from having a fully Inuit-managed fishery. To get a single Inuk through to being a Captain will take that long.

In the meantime, the best way to optimize benefits to communities will be by developing joint ventures with experienced companies, with the option to buy them out over time, or to develop a business association on behalf of communities, like BFC. QC is prepared to work with community businesses to develop joint fishing ventures, and we have the skills and financial strength to make them work. We would be happy to talk to you any time, Nick.

Brian McLeod, President
Peter Keenainaik, VP and Manager of Marine Development
Qikiqtaaluk Corporation