Debates of June 4, 2008 (day 22)

Date
June
4
2008
Session
16th Assembly, 2nd Session
Day
22
Speaker
Members Present
Mr. Abernethy, Mr. Beaulieu, Ms. Bisaro, Mr. Bromley, Hon. Paul Delorey, Mrs. Groenewegen, Mr. Hawkins, Mr. Jacobson, Mr. Krutko, Hon. Jackson Lafferty, Hon. Sandy Lee, Hon. Bob McLeod, Hon. Michael McLeod, Mr. McLeod, Mr. Menicoche, Hon. Michael Miltenberger, Mr. Ramsay, Hon. Floyd Roland, Hon. Norman Yakeleya.
Topics
Statements

Member’s Statement on Elimination of Business Incentive Policy

Thank you, Mr. Speaker. I’d like today to speak to yesterday’s statement from Minister McLeod, Chair of the Ministerial Subcommittee on Infrastructure. While I agree with the Minister that we face significant challenges in the GNWT capital planning and delivery process, I was dismayed to hear the Minister state that, and I quote, “Some of the more important changes we’ll be implementing are....” What struck me when I heard those words was the finality of the statement. The Minister is advising the House and the public that changes will happen, that the decisions have been made and the GNWT is moving forward, full steam ahead.

For me, it’s not a matter of the substance of the changes. Changes are needed, and at first glance the proposals are good ones. I’m saddened by a public announcement from the government, yet again, about actions of which Regular Members are not fully aware. As I’ve stated before, maybe my naïveté is showing, but I’d hoped that the subcommittee would have advised Regular Members of the changes they were about to announce before the announcement.

The Minister will respond, correctly, that Members were advised of the intentions of the Ministerial Subcommittee on Infrastructure in April of this year. We were, Mr. Speaker, but I for one didn’t perceive the changes mentioned in that briefing as a done deal. In fact, one slide from the briefing states, and I quote, “Consider suspending the BIP.” I presumed, obviously wrongly, that Regular Members would have an opportunity to comment on the final proposals before they were set in stone and announced. As well, the letter from the Standing Committee on Priorities and Planning to Minister McLeod following his presentation stated, quote, “Please advise us of the next steps to be taken and when we can expect a follow-up discussion.” There was no reply to that request that I’m aware of.

Mr. McLeod said yesterday that the Business Incentive Policy will be eliminated, new options developed and implementation plans set, and then Regular Members will be advised as to how the plan will be put in place. Where in this scenario is the opportunity for us to comment on the proposed options and implementation? That’s assuming that we even agree on the options.

This side of the House represents many diverse communities, and we have excellent, wide-ranging ideas and suggestions in regard to the removal of BIP. I know with certainty there’s no agreement over here with the ministerial subcommittee’s statement that BIP should be cancelled altogether. I spoke in a global sense about communication disorders last week, Mr. Speaker, but maybe we have a communication problem here in the 16th Assembly. Did the Minister expect a response from Regular Members to his briefing?

Mr. Speaker, I seek unanimous consent to conclude my statement.

Unanimous consent granted.

Did the Minister expect a response from Regular Members to his briefing? Did the Members not hear the request for a response if there was one? Why do we seem to have such difficulty understanding each other? Where is the notice from the Minister that was requested in our letter?

Yesterday’s announcement to me is, unfortunately, another example of the high-handed attitude of this Cabinet. They seem to have little regard for the input of Regular Members, as evidenced by their actions.

All I want is a chance to hear, and comment on, what the government is going to do, before my constituents do.

Speaker: Mr. Speaker

Thank you, Ms. Bisaro. The honourable Member for Mackenzie Delta, Mr. Krutko.

Member’s Statement on Elimination of Business Incentive Policy

Thank you, Mr. Speaker. I, too, would like to speak to the statement made by the Minister of ITI yesterday, and it’s more in line with the Business Incentive Policy that has been established since 1984.

A lot has happened since then in the Northwest Territories and in North America. More apparent is the North American Free Trade Agreement — better known as NAFTA — which was negotiated between Canada and the United States in regard to free trade. Also, as part of that agreement there were exemptions allowed for jurisdictions in Canada that would have been grandfathered — programs we’ve established in the Northwest Territories by way of the Business Incentive Policy, the negotiating contracting policies, sole-source contracting policies and other policies this government has implemented to benefit northern businesses and also the residents of the Northwest Territories. We have to realize that by making these changes we may lose more than we gain by losing that exemption, which, again, I feel is very valuable.

Since then we have negotiated land-claim agreements with First Nations government, in which they have negotiated a section called the Economic Measures section, which clearly identifies that those negotiations took place under the emphasis of these economic policies this government had in place when those negotiations were happening.

Again, Mr. Speaker, this government has an obligation to negotiate with those aboriginal organizations and make them aware of any economic development programs and services they offer. If they’re going to alter any of those programs, they have to consult with those affected aboriginal organizations that have those agreements in their land claims.

I know there’s an opportunity here to revisit and refocus and look again at our policies and make sure they are working, and where they’re working and where they’re not. These policies may have helped a lot of businesses in the larger centres, but we’re struggling in our communities with the small business construction companies that are struggling to compete against the contractors in the larger regional centres. We have to look at that item.

With that, I will have questions for Minister on this matter later.

Speaker: Mr. Speaker

Thank you, Mr. Krutko. The honourable Member for Tu Nedhe, Mr. Beaulieu.

Member’s Statement on Elimination of Business Incentive Policy

Thank you, Mr. Speaker. Today I’d like to speak about the government’s intentions in regard to the Business Incentive Policy, and I thank Ms. Bisaro for her statement earlier today.

Since its inception there have been numerous debates, motions and discussions surrounding the Business Incentive Policy in this House. I listened to Minister Michael McLeod’s statement yesterday, where he suggested that the government’s intention is to scrap the BIP from GNWT contracts.

This is something the government cannot simply cut. This action would have far-reaching impact on all of our communities. I am surprised — well, then again, maybe not that surprised — that Cabinet would reference it in a Minister’s statement before having had a full discussion with Regular Members.

It is nice that the government proposes to advise us on the revised approach and its implementation. However, at that stage of the game what meaningful input could we really have into the process? I get a really uneasy feeling that it will be much like other government initiatives, where Regular Members will continue to be just an afterthought in the government’s overall plans.

If the government does follow through on scrapping the BIP, have they given any consideration as to what will happen to existing businesses and their future in our communities? I can’t help but think that given the hot economy in Western Canada and the lower operating costs, businesses would simply relocate to Alberta. Instead of having an office or a warehouse here in the Northwest Territories employing 20 people, they might just need one employee with a phone number and a BlackBerry.

If anything, Mr. Speaker, we need to improve and enhance the BIP. We need to ensure that truly 100-per-cent-northern–owned businesses are able to have an advantage, and let’s be realistic. It does cost more to do business here. The money we do spend stays here in the North, and we protect the 100-per-cent-northern–owned businesses that we do have.

As a government we have to do more monitoring and take the guesswork out of who is northern and who isn’t. I don’t want to see us lose more companies, people and economic opportunities to the south. We have to protect our own. If we don’t, who will?

I certainly look forward to asking questions of the Minister of ITI at the appropriate time. Mahsi.

Speaker: Mr. Speaker

Thank you, Mr. Ramsay. The honourable Member for Nunakput, Mr. Jacobson.