Debates of October 17, 2008 (day 43)
Question 497-16(2) Negotiated Contract for School Construction in Inuvik
Mr. Speaker, my questions today are about the negotiated contract for the construction of the replacement of the two schools in Inuvik. There are land claims in place with respect to negotiated contracts in various regions in the Northwest Territories. In the Inuvik region those land claims extend to include the interests of the Gwich’in people. I would like to know if the Cabinet, when negotiating this contract, requested a legal opinion on any obligation they may have to the Gwich’in for a negotiated contract of this nature in Inuvik.
Thank you, Mrs. Groenewegen. The Hon. Premier, Mr. Roland.
Thank you, Mr. Speaker. The process of the negotiated contract policy that the government holds is one that has been put in front of aboriginal organizations and governments for their review and consultation with us, and some amendments have taken place. That policy has been on the books for quite a number of years. When the issue of the negotiated contracts comes up, that is when the claims are very specific. If we are going to negotiate a contract, then we have to go to the aboriginal organization that is in the area. In this case, both organizations, the Inuvialuit and Gwich’in, provided letters of support for the negotiation process.
Mr. Speaker, obviously I don’t have access to those letters of support. I have seen a list of the people who did provide letters of support, but I haven’t seen those letters of support.
I would like to know if the Premier would be prepared to make those letters of support available to this House and to the Members. Also, did the letter of support from the Gwich’in include anything about receiving part of the work that would be associated with this negotiated contract? It’s my understanding that Dowland Contracting is 51 per cent owned by the Inuvialuit, and it is also my understanding that….. Well, I’ll just leave it at that. Was there anything in the letter of support that could be interpreted as a condition with respect to receiving benefits for the Gwich’in under this negotiated contract?
Mr. Speaker, the letters of support I believe would be in the package. If they aren’t, we will ensure that Members get that. In fact, as the department goes through the process of finalizing the contract process, I understand that they are targeting about 90 per cent to fall within northern contractors. So that is one of the reasons the negotiation process is available for projects in the Northwest Territories.
With respect to this negotiated contract, we have learned that a letter of award…. Well, first of all, when I asked the Minister of Education, he said the contract had been awarded. Then we found out that the contract had been awarded but it was just a letter of intent and that the actual contract had yet to be signed. I said: is it legally binding? They said: no; in fact we have secured a legal opinion to the contrary — that, in fact, the letter to Dowland Contracting is a legally binding document.
I would like to know on whose authority the deputy minister of Public Works was acting under in order to enter into that letter of intent to Dowland Contracting. Was it the Minister of Finance? Was it the Premier? Whose authority was he acting on?
Mr. Speaker, this process and many of the questions that are being asked were asked early on as this went through the infrastructure acquisition plan that’s before Members. This project here, as awarded…. There are a number of phases that were awarded. First was the site development, and that is a northern company that is doing that work.
The issue with the construction company, which has now had an offer put in front of them…. But it is conditional, as was laid out through there. I haven’t seen the Member’s legal opinion, and we’d have to have a look at that if they are prepared to share that with us.
The other side of it is the fact that we followed the existing process that is in place; no changes to that process have been done. Whether it’s a tendered process or a negotiated process, the normal process has been followed.
Thank you, Mr. Roland. Final supplementary, Mrs. Groenewegen.
Thank you, Mr. Speaker. I know that these capital projects come in phases and that appropriations are voted in various years related to the work that will be done in that fiscal year. However, I am concerned that a letter equivalent to a letter of award was offered to a construction company, Dowland construction, without the appropriation having been voted on in this House. That is still before us today; that appropriation under the Department of ECE is still before us today. So I’m concerned about the timing and the process. Whose authority it was under that that letter was sent is important to me, also whether or not we got the process straight, whether that letter should have been held off until such time as the appropriation was voted on. That’s what I’m getting at.
Mr. Speaker, once again, the process has been followed. All the steps we normally do, whether it’s this negotiated contract, negotiated contracts in other communities or other schools.... The process has been followed in this area. The deputy minister has that ability to send awards out. It is conditional, as was stated in Committee of the Whole, I believe. An award is conditional on them meeting their conditions as well as this Assembly passing the infrastructure plan.
Thank you, Mr. Roland. The honourable Member for Yellowknife Centre, Mr. Hawkins.