Debates of June 2, 2005 (day 7)

Thank you, Madam Speaker. Madam Speaker, in my Member's statement I gave a brief picture of the difficulties of attracting investment and expertise in the Sahtu while keeping the playing field fair for all northern and aboriginal businesses. Madam Speaker, my question is for the Minister of Industry, Tourism and Investment. I want to ask the Minister how can his department ensure that businesses in the Sahtu are given an equal and fair opportunity to compete for government contracts? Thank you.

Thank you, Mr. Yakeleya. The Minister of Industry, Tourism and Investment, Mr. Bell.

Return To Question 79-15(4): Level Playing Field For Businesses In NWT Communities

Thank you, Madam Speaker. I am going to need a little more clarification on the question. Talking about a level playing field, I am unsure exactly what the Member is referring to. I know from his statement, he was, I believe, discussing joint ventures, referring to some joint ventures and I think making the suggestion that not all joint ventures are created equally. We agree with that and are looking for companies who want to do business in the North and leave something behind. We want to make sure that where there are joint ventures that we are looking to support, that there is actually a technology transfer or some transfer of capacity. That is our first goal. Of course, it is a market economy and all we can do is encourage local organizations and regional organizations to ensure and make sure, as much as possible, that there is some tangible benefit left behind as southern companies come in to do business. Thank you, Madam Speaker.

Thank you, Minister Bell. Supplementary, Mr. Yakeleya.

Supplementary To Question 79-15(4): Level Playing Field For Businesses In NWT Communities

Thank you, Madam Speaker. Madam Speaker, some of the business that has been done in the Sahtu…Well there are different interpretations of the joint ventures and they come into the region, do their business, then take the majority of the economics out of the region, not even using the businesses in the region. My question to the Minister is can he work with his Cabinet Members to ensure that northern businesses do have some level of equality or some level playing field in terms of receiving contracts from the government, making sure that some of these outside joint ventures are encouraged to use the businesses in the small communities as much as possible? Thank you.

Thank you, Mr. Yakeleya. Minister Bell.

Further Return To Question 79-15(4): Level Playing Field For Businesses In NWT Communities

Thank you, Madam Speaker. As a government, we follow a very well defined set of procurement policies. When it comes to preferential treatment for companies, negotiated contracts, those types of things, obviously we rely on political support from the MLA in the region who generally, I think, is very aware of which companies are providing meaningful benefit to the region. That is certainly a filter or one test for us, Madam Speaker, to make sure that in fact we are doing business with the right companies. We can't prevent anybody from bidding on work. It is a competitive process and generally the best bid will win.

In cases where we are looking at adjustments or looking at negotiated or sole sourcing, we want to make sure that we are using companies that leave benefits in the North and we do rely on endorsement from the region, from the local communities and the MLA to help us do that. Thank you, Madam Speaker.

Thank you, Minister Bell. Supplementary, Mr. Yakeleya.

Supplementary To Question 79-15(4): Level Playing Field For Businesses In NWT Communities

Thank you, Madam Speaker. Madam Speaker, the Minister is correct in terms of the support from my side at least with the companies. What I am getting at, Madam Speaker, is that some of these joint ventures that come in through the competitive process also bring in a lower cost of doing business in the Sahtu and so it reflects back into the region. They do not use the gas stations, or the wages that they pay are very low. I am asking the Minister if he can somehow encourage contractors, should they get the bids in the Sahtu, to encourage the southern contractors to use as much as possible the northern businesses in our region? Thank you.

Thank you, Mr. Yakeleya. Minister Bell.

Further Return To Question 79-15(4): Level Playing Field For Businesses In NWT Communities

Thank you, Madam Speaker. Without getting into any specifics, it is difficult for me to give the Member a concrete example. I would say generally that when I do meet with companies doing business in regions, oil companies, mining companies, I continue to encourage them to take advantage and make use of local companies and local labour, because obviously grassroots support by these companies is critical and if that support is not there or is waning, I think it generally impacts on the success that companies will have.

Companies that are not used to doing business in the North may not immediately recognize this, although I think it is becoming generally more accepted that you have to do business locally. It is not good enough to simply parachute in, take work and leave with all of the benefits in tow.

We will continue to encourage companies to absolutely leave as much as possible in terms of work and benefits on the ground. I will give the Member that assurance that we will continue to do that. Thank you, Madam Speaker.

Thank you, Minister Bell. Final supplementary, Mr. Yakeleya.

Supplementary To Question 79-15(4): Level Playing Field For Businesses In NWT Communities

Thank you, Madam Speaker. Madam Speaker, the joint ventures that sometimes happen in the Sahtu are 10 percent joint ventures just up front. The southern companies say we have a connection to the local business or the region, and then there are 51 and 49 percent joint ventures. Those are the real homegrown businesses that have equity in the region and sometimes those companies lose out on those 10 percent joint ventures. Madam Speaker, that’s what I am asking for the government to look at, is the real companies in the Sahtu to make sure those monies that are spent by the people who live and who are going to raise their families, not the 10 percent who fly in and fly out of the region. Thank you, Madam Speaker.

Thank you, Mr. Yakeleya. Minister Bell.

Further Return To Question 79-15(4): Level Playing Field For Businesses In NWT Communities

Thank you, Madam Speaker. Again, it is our preference as a government to support the companies that are leaving tangible benefits behind. Of course, it is very difficult to wade into the corporate structures of companies to determine exactly what the ownership structure looks like, unless we’re conducting something other than a competitive process and we need to go in and negotiate a contract. Then, as I’ve said, there are a couple of tests and filters; support from the MLA in the region. It’s difficult when development arms of bands are involved in joint ventures that may be less than ideal, because obviously there has been some political support for those entities. Getting in and actually evaluating, rating and looking at the track record of companies and comparing them to each other can be something that’s very difficult. So I’ll give my assurance to the Member that we’ll continue to work with the Member to understand better who is doing what in the region and which businesses we need to be, as a government, hoping to patronize as much as possible. Keeping in mind, of course, we have to respect the rules of procurement that we abide by as a government. Thank you, Madam Speaker.

Thank you, Minister Bell. I’d like to recognize the presence of a number of visitors in the visitors’ gallery. These folks are here working, they’re receiving certificates of program completion and occupational certificates. I know your Minister would have wanted to recognize you. We’re in the middle of question period right now and if you are still here at the end of question period, I’m sure we could return to recognition of visitors in the gallery and recognize you individually and by your community, but we’re going to conclude question period right now. In the meantime, I’d like to say welcome to the Legislative Assembly.

---Applause