Thank you, Mr. Speaker. As we all know, there are high pockets of unemployment in the Northwest Territories, especially in rural and remote communities. For a housing unit, the cost of $300,000 to $400,000 can go a long way to generate jobs and employment opportunities in our communities. This government has government policies and procedures to deal with that type of opportunity so that those dollars remain in the communities and some of those negotiated contracts, sole-source contracts, local tenders. Mr. Speaker, the whole approach on negotiated contracts is for the local organization in regards to community development corporation, local contractor getting the support of the local MLA and the local government to put forward a negotiated contract to the Minister to take to Cabinet and let the Cabinet determine if that contract should go or not go in those particular communities with the support of the MLA and the local government.
I would like to ask the Minister of Housing why hasn’t he taken any negotiated contracts to Cabinet knowing that this is a policy in government and why are you not following the policy.
Thank you, Mr. Krutko. The honourable Minister responsible for the NWT Housing Corporation, Mr. Robert McLeod.
Thank you, Mr. Speaker. I have taken a request for negotiated contract to Cabinet. Thank you.
Mr. Speaker, my understanding of all the letters that I have submitted to the Minister asking for negotiated contracts, not once did I get a response back to those letters asking for negotiated contracts that those contracts went to Cabinet or have been rejected outright by the Minister. Why have you not passed on the message that those contracts have been dealt with in Cabinet and when can I see those letters? Thank you.
Mr. Speaker, the Member is asking me why I haven’t brought a negotiated contract forward to Cabinet. I have brought requests forward. It was last year. He didn’t say where it was. If he meant in his particular riding, then I haven’t brought anything forward. I would make recommendations to Cabinet on whether to proceed with the negotiated contract or not. We are following policy and the policy states quite clearly that a negotiated contract is to help the local contractor build capacity so they can compete in an open market. I follow these things quite closely and I have enough confidence in local contractors, not only for their ability to do the work but their ability to compete in an open market. Having said that, we have fulfilled our obligations as a government as far as a negotiated contract policy goes. We have a lot more contractors out there getting their start through negotiated contracts, that are able to bid in a competitive market and are actually doing quite better bidding in a competitive market than they are getting negotiated contracts. Thank you.
Mr. Speaker, again, I just spoke to the president of the Aklavik Community Corporation in regards to the Aklavik proposal which went forward to the Minister and myself in which it clearly stipulated a contract that they were looking at has gone to an Inuvik company. Again, all we are going to see are headlights coming from Inuvik and driving back to Inuvik at five o’clock. Again, the companies that are benefitting from these contracts in our communities are Inuvik companies. I would like to know, is there a guarantee that those contract dollars will remain in the community and how they benefit the community where those contracts are being let. Thank you.
Mr. Speaker, I am not sure what the particulars of this case are. As far as I know, we do have some units that are slated for construction in the Member’s riding, one of the communities in the Member’s riding that he pointed out. We have been receiving letters requesting negotiated contracts. One of our policies says that if you get two or more requests for a negotiated contract, then we have to evaluate that. The one the Member is speaking of in particular, I am not quite sure which one that is. If it is one that we just awarded recently, I don’t know that. I have seen no requests for negotiated contract for that particular part. Thank you.
Thank you, Mr. McLeod. Your final, short supplementary, Mr. Krutko.
Thank you, Mr. Speaker. I just gave the Minister two letters lately from Fort McPherson and from Aklavik in regards to housing contracts and put in without local tendering or basically allow for some sort of local preferential treatment be treated for these units going into my constituents. I would like to ask the Minister, can he assure me that those contracts will have a fair airing that will go to Cabinet and the Cabinet will make the decision to go or not to go in regards to the contracts in my riding.
Mr. Speaker, we are still in the process of determining how we are going to procure those particular contracts. There has been no decision made yet. We look at all the information we get. Again I say, if we get two or more letters for a negotiated contract, one of them may have the Member’s support, one may not. How do we determine? The thing is, the contractors now all have the ability. Again, it goes back to policy. The purpose of the policy is to allow those contractors that are just starting up, trying to get their foot in the door, an opportunity to do so. If they prove that they are able to do the work and they are able to bid in a competitive market, then we have fulfilled our obligation. We are starting to see more and more local contractors that are doing that. They are competing with contractors from outside the community. They are given preferential treatment just for being situated in the community. It is a 5 percent preferential treatment, 15 percent northern, so they have proven that they are able to compete. I can assure the Member that no decision has been made on these particular ones that he is filed the letters on. We will have a look at them. It will be at ministerial discretion. I will be able to make a recommendation to Cabinet as to whether we proceed or not with the negotiated contract. Thank you.
Thank you, Mr. McLeod. The honourable Member for Frame Lake, Ms. Bisaro.
