Thank you, Mr. Speaker. I, too, would like to ask some questions on the plans for the business incentive program — the BIP. I’d like to give Minister Bob McLeod a chance to respond to some of these questions.
Could the Minister tell us exactly what is in planning for cutback or what changes are being contemplated? I see from the presentation yesterday that he has been requested by Cabinet to implement the recommendation. I’m gathering he must have some firm ground on that. What exactly is being contemplated, just to make sure we’re making our comments appropriately?
Thank you, Mr. Bromley. The honourable Minister responsible for Industry, Tourism and Investment, Mr. Bob McLeod.
The GNWT departments, as my colleague has stated, are seeing that the business incentive program has been having a negative impact on both the delivery of infrastructure and on the price of infrastructure because of the lack of competition. So what I will be doing is undertaking a process by which I would proceed through an orderly process to look at the BIP with a view to rescinding it and coming up with a way to protect local and northern purchasing.
Thanks to the Minister for those comments. Am I to understand that this process would include a public consultation or at least some firm and thorough and comprehensive consultation with the Regular Members on this side of the House?
That’s certainly been our intention, and we have followed that, and we have written to the committee advising them of that.
I appreciate that clarification. Again, looking at the presentation yesterday, “to generate the required interest, we need to consider removing the application of the BIP from these...contracts” is one statement, followed by “the subcommittee has recommended eliminating the application of the BIP from the GNWT and community government infrastructure projects.” That’s sort of two levels there. And then finally, Cabinet has requested implementation. So I just want to be sure. Can the Minister commit to bringing the Regular MLAs in on this process, and can we expect a briefing from the subcommittee on infrastructure and the opportunity for more input there, something I know we’re very interested in?
Seventy six per cent of the total businesses that have been BIP’d are located in Yellowknife, Hay River, Inuvik and Fort Smith. They obtain 62 per cent of government contracting in all of the Northwest Territories. Certainly we will be consulting with the Regular MLAs.
I should point out also that the Business Incentive Policy is only one of several ways to provide incentives to increase competition. One of the problems we’ve been facing is that several large northern businesses have been bought out by southern businesses and they’re still considered to be BIP’d. Similarly, large construction companies have moved south. There are other ironies; for example, Wal-Mart is one of my favourite places to shop, and it’s also a good business.
Thank you, Mr. McLeod. Final supplementary, Mr. Bromley.
I appreciate, again, the comments of the Minister. I wouldn’t be too proud about being a favourite shopper of Wal-Mart, myself.
Laughter.
But I really do appreciate the Minister’s comments and agree that some real innovation is needed in finding ways to protect our northern businesses. Thanks for that. I really appreciate that and encourage that.
Will the Minister include some of the ramifications of things like NAFTA — North American Free Trade Agreement — that’s been mentioned by my colleague Mr. Krutko, and the obligations we become vulnerable to when we lose these things that are forgiven because of grandfathering and so on? I’m asking for a very eyes-open approach to this. It sounds like there is a tendency to do that with an attempt to get some real protection and support for the local. I’m sure the Minister will be using full-cost accounting.
I know that Maude Barlow has made some comments about NAFTA, but I’m not clear on what the implications of NAFTA are on the Business Incentive Policy. I do know that under the Agreement on Internal Trade within Canada, which all of the provinces and territories have signed on to, we have been able to carve out the Business Incentive Policy. That allows us to have a northern preference for business. We intend to protect that part of Agreement on Internal Trade and also the fact that…. I’ll leave it at that.
Thank you, Mr. McLeod. The honourable Member for Nahendeh, Mr. Menicoche.
