August 21

Gas compensation program expanded

IQALUIT, Nunavut (August 21, 2002) - Finance Minister Kelvin Ng announces further information on the compensation program for mechanical damage to two-stroke engines in snowmobiles and outboards as a result of the 2001 gasoline supply in the Baffin and Kivalliq regions.

"To date we have sent out over 400 interim payments to individuals who have made claims. Now with the progress we're making on appraisals, we want to get final payments out to owners of snowmobiles and outboards to compensate them for damages to their two-stroke engines," said Minister Ng.

Since early July appraisers have been visiting affected communities to conduct inspections of two-stroke snowmobiles and outboard motors. This process will continue through September until most communities have been visited.

"For people who operated two-stroke engines on the affected gas, but didn't have a breakdown, we've authorized appraisers to carry out inspections. If repairs are necessary, the appraisers can authorize that work to their snowmobile or outboard motor," Minister Ng said.

Any person needing to make a claim for gas-related damage to their outboard motor can use the same process as was used for snowmobile damage claims. These claim forms can be obtained from the Department of Finance in Iqaluit and through wildlife officers in Baffin and Kivalliq communities, or by calling toll-free at 1-866-975-5800. To receive their final payment, claimants will be required to sign a release that will permit the Government of Nunavut to attempt a recovery against any parties that could be held responsible for these damages.

The 2002 fuel re-supply has begun. Inspectors from the Alberta Research Council monitored the gasoline before it was loaded onto ships in New Jersey, and are satisfied with its high quality.

In an effort to protect two-stroke outboard motors from damage during this boating season, Public Works and Services Minister Peter Kattuk announced that communities are receiving supplies of an additive that can be added to the 2001 gasoline. The additives destined for the Baffin communities have been on route since August 16, 2002. The Kivalliq additives will be distributed to the communities no later than August 21, 2002. "The additive will be provided free of charge to customers when they purchase gasoline, until each community receives its new gasoline supply," Minister Kattuk said.

The Baffin is being serviced by two vessels, the Ellen Knutsen and the Torill Knutsen.

The last resupply in the Baffin will be at Kimmirut on Sept. 17 and the last resupply in the Kivallq will be at Rankin Inlet on Oct. 1.

The government also announced a new element in the compensation program to address income losses by harvesters, Minister Ng said.

"We invite harvesters who believe they have suffered harvest-related income losses because of their use of this gasoline to submit a claim, including proof of their loss, to the Department of Finance."

Harvester claims can be submitted to:
Risk Management Division
Department of Finance
PO Box 2260
Iqaluit, Nunavut, X0A 0H0
or by fax at 1-867-975-5845

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Media Contact:
Wende Halonen
Government of Nunavut Communications
Tel (867) 975-6044

(C) Copyright 2003 Department of Finance