Thank you, Mr. Speaker. Mr. Speaker, my Member's statement today I talked about the increase in Inuvik, and I know when I get back next week, Mr. Speaker, as they say, I'm gonna have some 'splainin' to do. So I'd like the Minister to explain why there was an increase in Inuvik and only Inuvik for the liquor increases? Thank you.
Thank you, Member from Inuvik Boot Lake. Minister of Finance.
Thank you, Mr. Speaker. Mr. Speaker, we have recently concluded an agreement with the local contractor in Inuvik to extend the contract that we had there. That -- and it's been extended only for the rest of this calendar year. I can say, Mr. Speaker, that the pricing system is fairly simple in a way. There's the landed costs of alcohol arriving in the Northwest Territories, there's an NTLCC markup which has not changed. We have an administrative fee NTLCC has not changed. And then there's whatever rate is applied through the commission from our various sales agents. So, again, Mr. Speaker, I can't necessarily speak to, you know, here what that choice might have been on the part of them, but there was recently an extension concluded with the local company in Inuvik. Thank you.
Thank you, Mr. Speaker. So, Mr. Speaker, I assume that with the extension, there was some increases obviously. I know that the liquor in the liquor store is sold by volume and not by -- and the prices are certainly set by the liquor commission, by this government. I guess my question is does the Minister -- obviously if the contract's expired, when is the current RFP scheduled to close?
Thank you, Mr. Speaker. There is right now a request for proposals out. That closes on November the 8th, Mr. Speaker. There's also a separate procurement process in place looking to actually have a new lease for the space where we would be able to sell -- or where a proponent would be able to sell alcohol in the North -- in Inuvik, the hope being that by splitting up the contract a little more it brings on, perhaps, a bit of competition and an opportunity to try to keep some costs a little bit lower, understanding that it's getting more expensive to do just about everything in the North. So hopefully by doing it that way, we're hoping to get a little more competition going. Thank you.
Thank you, Mr. Speaker. Mr. Speaker, in typical situations like this, would we not have the RFP concluded and of course awarded prior to the existing contract being finalized? Thank you.
Thank you, Mr. Speaker. Mr. Speaker, I've also been hearing from residents in Inuvik asking why alcohol prices, liquor prices are going up. Again, at this point, Mr. Speaker, the prices on our end haven't changed. Why there needed to be an extension, I've made that inquiry as well. It does seem like there was a delay -- that the last contract was coming due, there was a delay in getting this one out, so there's now an extension in place and so that there can be sales available for residents in Inuvik. And as I said, the new RFP is now out looking for a permanent proponent. Thank you.
Thank you, Minister of Finance. Final supplementary. Member from Inuvik Boot Lake.
Thank you, Mr. Speaker. Mr. Speaker, when the Minister says the prices on our end haven't changed, we set the prices, so the contract states that the sale of liquor, sale of beer, sale of coolers, sale of liquor in the liquor store, is based on the prices set by the liquor commission, by GNWT. So ipso facto I guess our prices must have changed. Now, whether they changed through negotiation or not, but they would have had to have changed, Mr. Speaker. Has the price, previous to the end of this contract and now the price of the extension, has our price per liter changed, Mr. Speaker?
Thank you, Mr. Speaker. Mr. Speaker, the only element in that formula that I read out earlier that's changed is the commission that we're paying to the contractor in Inuvik, and that commission that we're paying to the contractor in Inuvik is the negotiations that would go on with any proponent. And that was when we had to extend -- or sought to extend the contract that they had previously. During that negotiation, the commission that they negotiated for themselves went up, and so the prices have gone up. Thank you.
Thank you, Minister of Finance. Oral questions. Member from Range Lake.
