Thank you, Mr. Speaker. Today I want to talk about how the market disruption policy is interpreted in the business development funding guidelines. Under the current policy, market disruption is said to occur when an investment by the government in a community impacts an existing business. Exceptions to this policy will only be considered if it can be demonstrated that a substantial portion of the market cannot be served by existing businesses, and that those existing businesses will not be seriously impacted by the proposed projects.
Recently a constituent who operates a small business informed me that a business located in another South Slave community received a business development contribution. The business that received the funding, however, has a Hay River business licence, and operates each year on a seasonal basis in Hay River and is in direct competition with my constituent. When my constituent raised his concerns with ITI officials and the Minister, he was told that the policy was followed, because the applicant's — in this case — primary place of business was in another community.
Clearly, this constitutes market disruption, and the government, by approving the contribution, is in violation of its own policies. This response also illustrates that the market disruption policy is narrowly interpreted, and does not take into consideration situations where market disruption occurs in other NWT communities other than the applicant's community.
This is not an issue about competition. Businesses — small businesses, all kinds of businesses — expect and deal with competition. This is about the need to have a fair and equitable funding process for businesses that are operating in the same region.
I ask that the Minister of Industry, Tourism and Investment investigate this issue and take appropriate action to address this gap in policy.
I will have questions for the Minister at the appropriate time today. Thank you, Mr. Speaker.
Thank you, Mrs. Groenewegen. Members’ statements. The honourable Member for Yellowknife Centre, Mr. Hawkins.
