Debates of October 12, 2005 (day 8)

Thank you, Mr. Speaker. Mr. Speaker, I would like to direct my questions today to the Minister responsible for the Housing Corporation. It gets back to the statement that I had made earlier. I haven’t got an official response. It has been over three weeks since I have sent an inquiry to his department on what was the just cause for the cancellation of a contract to build two units in Rae. I would like to know why a small company located in my riding is being penalized. They put up the five percent bid bond, they followed all the rules, and they are left with nothing. I would like the Minister to answer what the just cause for the cancellation of that contract was. Thank you.

Thank you, Mr. Ramsay. The honourable Minister responsible for the Housing Corporation, Mr. Krutko.

Return To Question 91-15(4): Cancellation Of Housing Tender In Fort Rae

Thank you, Mr. Speaker. Mr. Speaker, there was a bid process which did take place. There was one bidder. But there was also another process that was in the works in regards to a negotiated contract from the community of Rae in regards to allowing them to do it through a negotiated contracting process. At the time, under the process for negotiated contracts, you needed the support of the local MLA. They did not have an MLA at the time the request came in. At the same time there was a change in government with the Tlicho Government in the community, and there was a transitional period that was taking place. Because the Tlicho agreement is now in law, we have to abide by that legislation. There are sections of those agreements which we have to consider through a contracting process, especially in regards to section 26 of the Tlicho agreement. Again, these processes have taken place. We have asked the parties to sit down and see if they can work out their differences. We had several meetings but, again, they were unable to resolve it. So we had made an extra attempt to get the parties to try to work this through, but the proposal has gone forward. It has gone to Cabinet going through the negotiated contracting process.

Thank you, Mr. Krutko. Supplementary, Mr. Ramsay.

Supplementary To Question 91-15(4): Cancellation Of Housing Tender In Fort Rae

Thank you, Mr. Speaker. I am glad to hear that response from the Minister. I guess I am to believe that now the Housing Corporation has only one company they can do business with in Rae. Am I to believe that? What happens to the public tendering process now that the Tlicho have their agreement in place? Is there a public tendering process in place that is fair and open to everybody, or is it just one company that we have to do business with at whatever the price is? Thank you, Mr. Speaker.

Thank you, Mr. Ramsay. Mr. Krutko.

Further Return To Question 91-15(4): Cancellation Of Housing Tender In Fort Rae

Thank you, Mr. Speaker. Mr. Speaker, we have a whole slate of processes that we can take. We can go sole source, we can go negotiated or public tender. The key component of what we are trying to do is build capacity to ensure that those dollars remain in the communities. You build capacity. You have tradespeople and the people that you need to carry out future projects. The biggest challenge we are facing in all of our small communities to date is we do not have tradespeople in those communities to carry out our activities at the Housing Corporation, and other businesses in regards to building high schools and public infrastructure, and we have to find a way to build that capacity. This is one way that we are doing it. I think, because of the opportunities that this allows, we have to look at those things.

Again, what we are seeing in regards to the Gwich’in area through their MOU, they are formulating partnerships with individual companies to come forward through joint ventures and proceed in regards to these tenders by way of negotiated contracts. It has happened in other areas but, again, people have to understand that we are under a different regime by way of the Tlicho land claim agreement. We have to acknowledge that and also accept that there is going to be change through this devolution process. So it is devolving. People have to understand that by working together. Thank you.

Thank you, Mr. Krutko. Supplementary, Mr. Ramsay.

Supplementary To Question 91-15(4): Cancellation Of Housing Tender In Fort Rae

Thank you, Mr. Speaker. I can appreciate the Tlicho self-government and where they want to get in building capacity. I can understand. At the end of the day, the contract was cancelled. That was a legitimate contract/tender process that went out and was cancelled. I would like to ask the Minister what he plans on doing to rectify that situation.

I would also like to -- while I've got the floor, just a quick one -- know what the Housing Corporation is currently doing to try to help the Tlicho Government. Are we looking at giving all the housing dollars over to the Tlicho and letting them administer it and, as well, does that include any human resource positions that should be transferred over to the Tlicho Government so they can conduct this work themselves? Thank you, Mr. Speaker.

Thank you, Mr. Ramsay. There were two questions there. Mr. Krutko, you can answer one or both.

Further Return To Question 91-15(4): Cancellation Of Housing Tender In Fort Rae

Thank you, Mr. Speaker. Mr. Speaker, the Housing Corporation reserves the right to accept or reject any bids based on the tendering process. It is spelled out in the tendering documents. It does not always have to go to the lowest tender. Because of that, we are looking to a legal opinion in regards to how this issue will be resolved. We are working on that.

Again, in regards to the Tlicho ability to take over housing, under their self-government arrangement they have that ability once they feel they have the capacity to do so. It is up to them to determine when they want to take over that responsibility. Again, that is part of the devolvement process in regards to the Tlicho Government. We are hoping to work with communities, the Tlicho Government, and other areas, to get them more involved in housing and allow them to take more ownership of housing, but also take on the responsibility of housing in their communities. Thank you.

Thank you, Mr. Krutko. Your final supplementary, Mr. Ramsay.

Supplementary To Question 91-15(4): Cancellation Of Housing Tender In Fort Rae

Thank you, Mr. Speaker. I can hear what the Minister is saying: that the Housing Corporation reserves the right to cancel or alter the tender process, but there was only one bidder. There was only one respondent bidder to that tender, and it was cancelled without just cause. That is what I am getting at, Mr. Speaker. I would like to ask the Minister when I can expect an official response on the just cause for that contract being cancelled. Thank you.

Thank you, Mr. Ramsay. Mr. Krutko.

Further Return To Question 91-15(4): Cancellation Of Housing Tender In Fort Rae

Thank you, Mr. Speaker. Mr. Speaker, in regards to the concerns raised by the community regarding this particular contract, they were going to have very difficult times acquiring the appropriate permits that are going to be needed to carry this out. Because of that, the delay of that project would have hindered the construction for this fiscal year. As I mentioned, there was also a negotiated contract request by the community, in which the support from the community came forward along with the support from the newly elected MLA. Because of those circumstances, they have changed. Because they were not able to acquire the appropriate permits to carry out this activity, we felt it would have delayed the project and would not have allowed us to proceed. We are, as I mentioned, going to be coming forward, we are looking at a legal opinion, and we will be making the final decision once we do that.