Tourism business Weber Arctic has prevailed in its legal appeal after having its business licence denied by Economic Development Minister David Akeeagok.
Justice Faiyaz Alibhai found in favour of Weber Arctic, dismissing the previous ruling because Ageeakok did not explain his reasoning when making his decision on Dec. 21, 2023.
Weber Arctic alleged in its appeal that Akeeagok acted unlawfully in requiring the business to obtain a support letter from the Resolute Bay Hunters and Trappers Association (HTA), for which there is no basis in Nunavut’s Travel and Tourism Act.
Secondly, Weber Arctic argued that Akeeagok did not correctly interpret two sections of the act. The company also alleged that "they were never afforded even the most basic requirements of procedural fairness by the minister as they were never provided with the basic disclosure of the allegations against them or the factors the minister was considering in refusing to renew their licence.”
Economic Development and Transportation (EDT) denied all the allegations and maintained that “Weber Arctic was sufficiently aware of the complaints against them and they were given sufficient opportunity and notice to respond pursuant to the requirements of the Tourism Act.”
Weber Arctic, which operates in northern Somerset Island and services about 100 tourists each year, has been operating since 2000 and had never before been denied a licence renewal. When EDT refused the company's original appeal in September 2023, the government cited a failure to obtain a letter of support from the Resolute Bay HTA, advising that such a letter was necessary for future consideration. Weber Arctic had cited the government's own studies indicating that caribou were almost non-existent on Somerset Island and did not migrate to areas where the company operated. They also consulted a former HTA chair who expressed similar observations.
Weber Arctic then reapplied for a licence after the previous one expired, also unaware that the HTA had also informed EDT of wildlife concerns. The tourism company’s licence renewal was rejected in June 2023, as well as its initial appeal. Again, no documentation of the nature and existence of the complaints was provided to Weber Arctic at that time.
The judge determined that "effectively, EDT and the minister allowed the [HTA] to block Weber Arctic’s renewal application.... The minister made it clear that the [HTA] was the gate-keeper to his decision and was the sole party opposed to Weber Arctic’s presence at Somerset Island. He acknowledged that Weber Arctic met almost all of the requirements imposed by earlier decisions, including obtaining a letter of support from the Hamlet of Resolute Bay, another pre-requisite that could not have been imposed, but none of this sufficed or had any value, as long as the [HTA] was opposed to the granting of the licence. The minister granted [HTA] a veto on the licence renewal process by refusing to consider any application that did not have the [HTA's] support."
In July 2023, Weber Arctic sought disclosure of the nature of the complaints but no answers were provided, nor the reasons for failure to disclose.
Subsequent applications by Weber Arctic for the necessary licences for 2024 were then denied, including a direct appeal to Akeeagok.
In his decision on Aug. 21, Alibhai determined that the basis for the appeal to the Nunavut Court of Justice had merit, stating:
“I find that the appellant [Weber Arctic] is successful on two grounds with respect to its appeal. First, I find that the minister erred in sub-delegating his decision on the renewal of the tourist establishment licence by requiring Weber Arctic to obtain [HTA's] support as a condition precedent to obtaining the licence. Second, I find that the minister erred in failing to ensure that Weber Arctic had proper disclosure before rendering his decision on Dec. 21, 2023. With respect to the judicial review I find that the minister’s decision was unreasonable.”
The judge also provided both parties with 30 days to agree on changes to the terms of the licence.
When contacted for comment, Weber Arctic replied to Nunavut News: “At this present time, we are not prepared to comment on a matter in judicial process. We would be more than happy to reach out when the time is appropriate with more information.”