IRC clarifies information regarding Inuvik liquor store contract
As the contractor, Inuvialuit Corporate Group has been made aware of misleading statements made in the Government of Northwest Territories Legislative Assembly regarding the Inuvik Liquor Store contract.
The Inuvik Liquor Store contract ended in September 2024. Stanton, the contractor, issued notice on April 24, 2024 that it would not be renewing the contract due to low margins. Stanton was paid a low rate per litre of liquor sold, as negotiated in 2014, to cover all costs – including store rent, wages, heat and electricity.
GNWT, at their sole discretion, sets the price of liquor to the consumer in Inuvik. In 2023 GNWT made $22 million from liquor sales, and for each $10 of liquor sold GNWT earned almost $4 profit after costs, while agency stores earned pennies to cover the costs of operating the store.
GNWT was unable to issue a request for proposals (RFP) prior to the end of the contract and so asked Stanton to continue operating the store until December 2024. As part of this ask the GNWT offered an increase in rates to cover the additional costs to keep the store open for the people of Inuvik. Stanton did not negotiate rates, and our primary focus is turning the contract over to a successful proponent.