Debates of March 30, 2004 (day 11)

Thank you, Mr. Speaker. I would like to ask further questions on the BIP and the waiving of BIP by Cabinet. This time, I would like to ask the questions to the Minister of RWED, the lead Minister, the Minister responsible for this policy. Mr. Speaker, I believe the Minister is well aware of the fact that government has spent a lot of money and concentrated efforts on developing, maintaining and operating this BIP. There is a lot of history to that, there's a lot of justification for this policy, and also RWED is the lead department in promoting, working with and sometimes using a lot of force to encourage the multinationals -- diamond companies, pipeline companies and companies associated with pipeline work if they come on board -- to make sure that we have an agreement and we maximize the benefits from that. So I would like to know from the Minister, having heard the information that he heard this afternoon from my Member's statements if he was listening and I don't want to repeat it, is he not concerned about the fact the waiving of this policy would cost us all the opportunity costs and economic costs coming out of that. Thank you, Mr. Speaker.

Minister of Resources, Wildlife and Economic Development. I heard two questions. Mr. Minister.

Return To Question 115-15(3): Costs Of Waiving The Business Incentive Policy

Thank you. I think there are a number of issues. The past government, in making this decision, obviously had to consider a number of factors. We have taken a look at that as well. Clearly when you move from stick built to mobile homes, and then potentially talk about waiving the BIP on the purchase of those mobile homes, you are attempting to find a balance here between supporting economic development in the North and getting the most housing on the ground in small communities that desperately need it. That is certainly a trade-off that we had to discuss, and that was the challenge put to us, it was not an easy decision to make. I want to assure the Member that we have every intention of continuing to support this policy and of continuing to support the value-added manufacturing industry in the Northwest Territories.

The last government did strike a business advisory panel to advise them on matters. A report was submitted to the last government. I intend to respond to that report. I have asked the Construction Association and the NWT Chamber of Commerce for their input. I've gone to a number of manufacturers. I'm aware of a couple specifically in Hay River that we've consulted with to get their input on that strategy, and I will come back, will meet with Members, will table a response so that we can have a discussion about the value of manufacturing in the North and how we best support it. Thank you, Mr. Speaker.

Supplementary, Ms. Lee.

Supplementary To Question 115-15(3): Costs Of Waiving The Business Incentive Policy

Thank you, Mr. Speaker. I appreciate all the things that he's trying to do, but I would like to concentrate on the issue at hand, Mr. Speaker. The issue is that there is plenty of evidence that suggests that giving this contract and keeping this contract in the North would create jobs and it would have major spin-offs in terms of using our electricians, our plumbers, our local labour to do the painting, taping and siding, instead of watching these 20 mobile homes fly in and get plunked in our communities. We have a real opportunity for our local people to work in them and make money at them and pay tax on them.

---Applause

I know he's a Member of Cabinet, he's going to have a say tomorrow. I want to know if he's going to support extending this contract and giving our northerners an opportunity to bid on it. Thank you, Mr. Speaker.

Excuse me, could I get some quiet in the House. It's getting kind of hard to hear the Member ask the question, so could I have some order. Minister of Resources, Wildlife and Economic Development.

Further Return To Question 115-15(3): Costs Of Waiving The Business Incentive Policy

Thank you, Mr. Speaker. I certainly continue to support northern manufacturing, will continue to do that, our department continues to do that, this entire government continues to do that. I think that in the specific case of this contract, I illustrated the factors that we had to weigh and balance. In making this determination, we were cognizant of the fact that this was a $2.3 million contract for this year out of a $32 million capital budget for the Housing Corporation, and we were hopeful that northern companies would still compete, would still submit bids. It sounds like 17 northern companies have picked this up. My department is not involved in the contract administration, but in weighing all of these factors, Cabinet made the decision that the more important priority here was putting housing on the ground in small communities. Thank you.

Final supplementary, Ms. Lee.

Supplementary To Question 115-15(3): Costs Of Waiving The Business Incentive Policy

Thank you, Mr. Speaker. I want to bring the Minister back to the issue at hand. It's good for the Minister to say I support this, I support that, I support this, but I tell you the people out there expect the Ministers to walk the talk and not just say I support the policy except in this case, without any justification. So I have a very specific question to the Minister. As a Minister responsible for this policy and Minister responsible for job creation, economy and economic development and spin-off benefits, would the Minister support giving maximum opportunity to local businesses and argue for extension of two weeks in Cabinet on Thursday? Thank you, Mr. Speaker.

Minister of Resources, Wildlife and Economic Development, Mr. Bell.

Further Return To Question 115-15(3): Costs Of Waiving The Business Incentive Policy

Thank you, Mr. Speaker. If the determination is made by the Housing Corporation that a two-week extension would not cause us any problems in our ability to still get housing on the ground, and would not mean that we would miss deadlines, would not mean that we would miss the ferry season, and would not mean that we would jeopardize putting new housing which will be very valuable to the communities who are awaiting this and desperately need this, and I would say are anticipating this eagerly, if there was no concern about deadlines then the Housing Corporation will come forward and make that case. Cabinet will have a discussion around that, and I am hopeful then that we can have and make the best decision possible when weighing economic development in the North with the need to put housing on the ground. Thank you.