ECONOMIC MEASURES

16. (1) In this section,

" Government " means the Government of Canada , the Government of the Northwest Territories and the Government of the Yukon Territory;

" Inuvialuit " includes individual Inuvialuit , partnerships of Inuvialuit , any corporation or entity the majority of which is owned by Inuvialuit and ventures in which the Inuvialuit have an interest greater than 50%.

16. (2) Canada and the Inuvialuit agree that the economic measures set out in this section should relate to and support achievement of the following objectives:

(a) full Inuvialuit participation in the northern Canadian economy; and

(b) Inuvialuit integration into Canadian society through development of an adequate level of economic self-reliance and a solid economic base.

16. (3) A full and complete public review of the efficacy of the provisions of this section shall be carried out in the year 2000 by the Government and the Inuvialuit .  If it is the view of the Government , after the review, that the objectives of subsection (2) have been adequately met, the obligations of the Government under this section, except under subsections (13) and (14), shall cease commencing January 1, 2001.  So long as these obligations remain in effect, a like review shall be held every five (5) years thereafter.

As amended by P.C. 1987-26, January 15, 1987

16. (4) The Government agrees to provide the Inuvialuit with the opportunity to participate in economic planning in the Inuvialuit Settlement Region .

16. (5) In the application of any Government programs in the Inuvialuit Settlement Region regard shall be had to the objectives set out in subsection (2).

16. (6) In particular, and without limiting the generality of the foregoing, the Government agrees:

(a) to use its best efforts to overcome any institutional prejudices that may exist against the Inuvialuit ;

(b) to facilitate Inuvialuit access to Government al economic assistance programs of general application; and

(c) to take the measures it considers reasonable to afford economic opportunities to Inuvialuit with respect to employment and projects within the Inuvialuit Settlement Region .

16. (7) With respect to any business activity contemplated by the Inuvialuit , the Government agrees to use its best efforts to:

(a) provide the Inuvialuit , on request, with access to any available and releasable information or data;

(b) direct the Inuvialuit to the appropriate contacts or sources of information; and

(c) facilitate expeditious consideration by the Government of Inuvialuit applications.

16. (8) In order to expand the role of the Inuvialuit development Corporation and its subsidiaries in the supply and delivery of goods and services in the Inuvialuit Settlement Region and the Inuvialuit communities, to strengthen the economic viability of the renewable resource sector in the Inuvialuit Settlement Region , to diversify the economy of the Western Arctic, and to assist the Inuvialuit development Corporation and the Inuvialuit in contributing to the development of the private sector, the Government shall:

As amended by P.C. 1987-26, January 15, 1987

(a) provide the Inuvialuit development Corporation with an Economic Enhancement Fund of Ten (10)     million dollars within three months after the date of the execution of this Agreement, to be used to support projects approved by the Inuvialuit development Corporation Board of Directors and to be exempt from tax on initial receipt;

As amended by P.C. 1987-26, January 15, 1987

(b) notify the Inuvialuit or all Government contracts subject to public tender that relate to activities in the Inuvialuit Settlement Region and the Inuvialuit communities. Where the Inuvialuit submit the best bid having regard to price, quality, delivery and other stipulated conditions, the contract shall be awarded to the Inuvialuit ; and

(c) notify the Inuvialuit development Corporation of instances where federal Government procurement or goods and services related to activities in the Inuvialuit Settlement Region takes place on a basis other than public tender. If the Inuvialuit are capable of supplying those goods and services on a reasonable basis, they shall receive a reasonable share or the contracts so awarded.

16. (9) Where the Government , in respect of renewable or non-renewable resource development on Crown lands, invites parties to apply for leases, licences, permits concessions or other rights and the Inuvialuit submit the best proposal in respect of all the specifications and conditions, the Inuvialuit shall be awarded the rights in question.

16. (10) Where the Inuvialuit , on their own initiative, submit a proposal for the right to engage in resource development on Crown lands, and that proposal is the best overall proposal, the Inuvialuit shall be awarded the right.

16. (11) With respect to Crown lands and paragraph 7(1)(b) lands within the Inuvialuit Settlement Region , general guidelines developed by Government s relating to social and economic interests, including employment, education, training and business opportunities to favour natives, shall be considered and applied, as reasonably as possible, to each application for exploration, development or production rights.

16. (12) The Inuvialuit Land Administration and the holders of rights on Inuvialuit lands may voluntarily conclude COPE ration agreements with regard to the objectives referred to in subsection (11) and such other matters as they consider appropriate. To the extent that those agreements conform with Government requirements, the Government may accept them as sufficient to satisfy its approval process.

16. (13) The Inuvialuit development Corporation may at any  time hold up to ten (10) prospecting permits and twenty-five (25) mining claims under appropriate legislation, and those permits and claims are subject to the following conditions:

As amended by P.C. 1987-26, January 15, 1987

(a) the requirements for exploratory and representation work shall be modified in such a way that prospecting and exploration can be carried out without necessarily incurring significant financial outlays or obligations;

(b) an exploration program must be carried out and results reported in accordance with the regulations applicable from time to time; and

(c) all royalties and payments in lieu of royalties with respect to mining or exploration shall be waived for the first fifteen (15) years of production, starting with the initial year in which royalties would be paid, for the first ten (10) productive mineral leases taken out by the Inuvialuit development Corporation in the Inuvialuit Settlement Region .

As amended by P.C. 1987-26, January 15, 1987

16. (14) Canada shall issue to the Inuvialuit , from time to time, local use coal permits, free of royalty and other charges, to explore, develop and mine coal in the Inuvialuit Settlement Region for community use and regional industrial use by the Inuvialuit development Corporation, under the Territorial Coal Regulations.